La economía de EE.UU. 2012

7/31/2019 La economa de EE.UU. 2012

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I t w i l l permanent ly a l ter how you w ork . . . how you save .. . how you invest . . . how youl ive in re t i rem ent . . . and how you prot ect and prov ide for your loved ones.

I t wi l l drive mil l ions of Am erican fam il ies into t he nightm are of povert y, hom elessness,and gr im d ependence on government bureaucrats.

You could see soaring crime , the conf iscat ion of your p rivate pro pert y, and t hesuspension of your civi l r ights.

But while the vast majority will suffer terribly, a select handful will use this crisis tobuild substantial wealth.

Ill lay it all out for you in this presentation:

I wi l l describe this catastroph ic event in det ai l . .. I wi l l show you w hy i t w i l l dwarf every f inancia l catast r ophe the w or ld has ever seen

and exp lain w hy i t is now a l l but inevi tab le . ..

I wi l l nam e the giant banks and popu lar stocks that are m ost l ikely to crash and burn asthis event explodes into t he headlines . ..

I wi l l nam e the special types of investm ents that are m ost l ikely to skyrocket in valueas th is crisis un fol ds and ...

I wi l l g ive you six free survival manuals designed to help you d efend w hats yours and even grow your w eal th as th is mo dern-day catast r ophe unfo lds.

I solemnly promise that I will not ask you to take anything on faith.

Instead, I will present compelling evidence to prove that this threat is real.

Still, the facts Im about to present are so shocking, it will be hard formany people to accept this warning ...

I know because, in previous crises, most folks failed to listen ... failed to prepare ... andpaid a heavy price for their skepticism.

It happened 27 years ago when we began warning that the Washington and Wall Streetelite were about to spring a great savings and loan crisis on the American people.

When the dust settled, more than one thousand savings and loans had been closed.Millions of savers who ignored our warnings watched helplessly as their s&ls wentbroke. And millions of investors who thought our warnings too extreme sufferedmassive losses.

I saw it happen again in the late 90s, when we said Americas political and financial fatcats were creating a massive tech stock bubble.


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Almost nobody heeded that warning. They were too busy buying every dot-bombstock they could lay their hands on; too intoxicated by the paper profits they wereearning to even listen.

More than $9.5 trillion in invested wealth simply vanished when that forecast came true.

Later, in 2005 most people ignored us AGAIN when we began warning that theWashington and Wall Street elites were engineering a massive real estate bubble ...

And that when it burst, it would trigger an historic real estate bust, banking crisis andrecession.

The same was true when we became the only firm in the world to issue low ratings and to specifically name Bear Stearns, Lehman Brothers, General Motors, FannieMae, Wachovia Bank, Citigroup, Bank of America and nearly every other majorcompany that later collapsed.

Homeowners and investors who failed to listen could only watch helplessly as nearly$15 trillion in home equity and stock investments were vaporized.

Fortunately, we selected 15 stocks and gave them our Weiss Rating of A the creamof the crop that should do well even in the worst of times. And those stocks soared eventhrough the Great Recession that followed.

But even though these kinds of on-target warnings prompted Worth magazine to say ...

Weisss record is so goodcompared with that of his competitors ...

consumers need look no further.

And theNew York Times to say ...

Weiss was the first to see the dangersand say so unambiguously.

And promptedBarrons to write ...

Weiss is the leaderin identifying vulnerable companies.

And causedNEWSMAXto report ...

Weisss prediction of thecurrent economic crisis is uncanny ...

Yet despite all this history, Im afraid most folks will also fail to heed this warning let aloneprepare for the catastrophic event Im about to describe for you.

And once again, they will pay an extremely high price for their complacency.


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Because the simple truth is, at this very moment ...

Washington and Wall Street fat catsare now recklessly engineering

the single greatest bubble ever ...

And when THIS bubble bursts, it will triggerthe most catastrophic annihilation of personal wealth

in world history.

Yes, I understand; this is an extreme forecast. It is by far the most dire warning I haveever issued.

But please hear me out, because in both of the financial bubbles since the 1990s, theprocess was the same: First, Americas central bank the Federal Reserve slashed

interest rates to the bone and flooded the economy with cheap, easy money ...

Then it simply stood by as the flood of money drove prices of a particular asset sky-high.

Wall Street fat cats made billions of dollars in commissions and fees as each bubblegrew.

The Washington elite grew exponentially more powerful first, by taking full creditfor the good times before the bubble burst ...

And second, by using huge political donations from the Wall Street fat cats to expandtheir power bases.

But every financial bubble inevitably bursts. And when these two bubbles burst,millions of American workers, savers, investors and small business owners were robbedblind to the tune of trillions of dollars.

The Fed began building Bubble #1 in 1992 ...

The nation was still reeling from the savings and loan crisis of the late 1980s and early

1990s and the largest bailouts in U.S. history.

But it was an election year.


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The incumbent U.S. president George H. W. Bush desperatelyneeded an economic miracle andFederal Reserve Chairman AlanGreenspan was determined to give

him one.

So the Fed began cutting interestrates like there was no tomorrow.

The year began with interest rates at8.25%. By September, GreenspansFed had cut rates to just 3%.

And not only did the Fed slashinterest rates by 64% in just nine

months ... it KEPT them that low for 18 full months ...

Long after President Bush had been defeated at the polls and well into PresidentClintons first term in office; until March of 1994.

Now, as you might expect, those low interest rates made everybody want to borrowmoney and fast, before they began rising again. So suddenly banks were loaningmoney like there was no tomorrow.

But what most people dontknow isthat when banks loan money, theyeffectively create dollars out of thinair.

Each new loan the banks makemultiplies the amount of money inthe economy.

So thanks to the Feds easy-moneypolicies in the early 1990s, theamount of cash in the economy

the U.S. monetary base surged bynearly a third of a trillion dollars.

Meanwhile, their cohorts on WallStreet and in the pop media began hyping the stock of companies in the Internet andtechnology sectors.

So, it should come as no surprise that a big chunk of that cheap money found its wayinto the U.S. stock market, where it lit the fuse on an explosion in stock prices.


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The great tech stock bubble of the 1990sbegan to grow.

The Nasdaq stock index, which is loadedwith technology stocks shot for the moon. It

soared 840% between 1992 and early 2000.

Wall Streets elite made out like bandits.Each of Wall Streets major investmentbanks made an estimated $1 billion in feesby underwriting Internet companies duringthe boom.

And of course, Wall Streets millionaires andbillionaires funneled massive amounts ofmoney to Washingtons elite.

But then ...

Just when it looked like the buying frenzywould continue forever ...

THE FED PULLED THE PLUG.

In 1998, it began gradually raising itskey interest rate to 3.5% ... 3.75%... 4.25%.

By January of 2000, interest rateshad hit 5.5%. By March, they hit 6%.And by May, they had peaked at6.5%

Now, anybody who knows anythingabout economics or history couldhave predicted what would happennext.

The flood of cheap, easy money hadcreated a massive bubble in the stockmarket.

Now, the Fed was closing the spigot.

It was as certain as tomorrows sunrise: The tech stock bubble was about to burst.

We did everything we could to sound the alarm.


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We mailed tens of millions of free special reports to investors warning that the bubblewas about to burst urging them to sell their overpriced Internet, computer, andcommunications stocks.

Anyone who listened and acted on our warnings and recommendations could have

turned their huge paper profits into huge money in the bank before the crash ... avoidedlosses during the crash ... and, better yet, they could have multiplied their money manytimes over with put options investments that soar when stocks sink.

Here are just a few of our favorite picks we actually recommended in one of our tradingservices during the tech wreck of 2000-2002:

A 158.1% gain in 71 days as Advanced Micro Devices declined ...

A 162.1% gain in 30 days as Helix fell ...

A 196.3% gain in 12 days as Lycos dropped ...

A 200% gain in 23 days as Applied Micro Circuits plunged ...

Plus, using these inverse investments, you could have grabbed ...

A 215.2% gain in 42 days as in Hewlett-Packard declined ...

A 217.4% gain in 50 days as RF Micro Devices fell ...

222.8% gain in 42 days as Tyco International dropped ...

A 255.3% gain in 84 days as Amazon.com plunged ...

And there were many more.

But for nearly everyone else, the bursting of the tech stock bubble was a nightmare ofepic proportions.


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The Dow fell nearly 39%.

The S&P dropped 51%.

And the tech-heavy Nasdaq plunged

a staggering 78.4%.

Investor blood ran hip-deep downWall Street.

According to Bloomberg data ...

More than 219 Nasdaq stocks losthalf their value ... 170 lost at least75% of their value.

Citrix declined 94% ... Broadcomdropped 95% ... Juniper Networksfell 96% ... Level 3 Communicationscollapsed 96% ... Corning plunged 98% ... VeriSign plummeted 98% ... and both JDSUniphase and American Tower crashed 99%.

And at least 50 Wall Street darlings simply ceased to exist. EToys ... govWorks ...Flooz.com ... ToySmart ... BusinessMall ... Furniture.com ... Pets.com and many othersfell to zero, wiping out 100% of the money invested in them.

Everyday stock investors got skinned alive.

When the crash finally ended in 2002, more than $9.5 trillion of investor wealth hadbeen wiped out.

The news media was full of stories about everyday investors who had lost everything.This story, by theLos Angeles Times in March 2001, spoke for millions ...

After racking up huge gains in the bull market, Tim Martin figured it would take atleast a decade to recoup the "devastating losses" he suffered when the Nasdaq plunged.

That is, if he ever puts his money back into the market. Right now, he wants nothing todo with it, after watching such former technology stock stars as CMGI Inc. and PSINetlose more than 95% of their values.

Mr. Martin, 37, sold almost all of his stock holdings and says he doesn't even bother toopen his monthly brokerage statements when they arrive in the mail.

"At one point I was one of those Nasdaq dreamers who thought I was literally a fewmonths away from being a multimillionaire. I saw the gold pot at the end of therainbow, and then right before my eyes, it was obliterated."


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From coast to coast, all across America, the stories were the same about investorswho had recently been millionaires on paper, dreaming of the wonderful things theywould do with their newfound fortunes ...

Cancelling their vacation plans ... telling their kids they couldnt go to college any more

... scrimping and saving again ...

Suddenly forced to delay their retirement or worse, to come out of retirement andreturn to work.

It was an excruciatingly painful time and we still havent recovered from that greatcrash. Even today twelve years later the tech-heavy Nasdaq is still down morethan 40% from the high it hit in early 2000.

But whats worse is that immediately after the tech wreck began in 2000 ...

The Fed began inflating ITS NEXT great bubble by driving interest rates

lower again.

Its reasoning?

America neededlower interest ratesto help it recover from the stockmarket disaster that the Fed had justengineered!

And so, the Fed cut rates from 6.5%in 2000 down to 3% in 2001 ... to1.75% in 2002 ... to 1% in June of2003 and then kept them lowthrough 2005.

Once again, the low interest ratescreated huge demand for loans and once again, the banks were more than happy to oblige.

And again the monetary base surged by another $184 billion.


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The Feds rate cuts also helped driveinterest on 30-year mortgages, andsuddenly the real estate sector wasred hot:

Monthly housing starts exploded50% higher from 1.5 million inSeptember of 2000 to nearly 2.3million in January of 2006.

It was a frenzy of massiveproportions. Millions of familiestook advantage of low interest rates and even lower rates onAdjustable Rate Mortgages to buyfar more house than they could

possibly afford.

Millions more took out second andthird mortgages and spent thatmoney on exotic vacations, fancycars, clothes and jewelry ... and even to buy second and third homes.

In Visalia, Riverside and MaderaCalifornia, home prices surged morethan 91%.

In Honolulu, Hawaii and LosAngeles, they soared more than 95%.

In Bakersfield, California, theysurged 99.6% ... and in Miami,Florida they skyrocketed 106%.

Unsurprisingly, real estate andconstruction stocks shot the moon.

Then, just when the real estate frenzywas hitting its peak ...

THE FED PULLED THE PLUG.

First, it doubled its key interest rate from 1% to 2.25% in 2004 ...

Then, it nearly doubled them again; raising them to 4.25% in 2005.

Finally, it raised rates to over 5% in 2006 and held them there through most of 2007.


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At that point, the handwriting wasclearly on the wall.

The Feds flood of cheap, easymoney had created the greatest real

estate bubble in human history.

Now once again: The Fed wasclosing the spigot.

And the outcome was as sure astomorrows sunrise: Like the techstock bubble before it, the housingbubble was about to burst.

Once again, we did everything in our

power to help investors avoid thecarnage we knew would inevitablycome.

At that time, the Washington eliteswere swearing on a stack of Biblesthat there could never BE anationwide housing bust becausethere had never BEEN a nationwide housing bust ...

And at that time, Wall Street fat cats continually told you not to worry about a nationalreal estate crash because, after all, there had never been a national real estate bust ...

In a bold headline on the front page of our flagship publication Safe Money Report,we warned that a massive bust was not only possible it was inevitable!

We wrote that we were in the final stage of the real estate bubble.

We wrote that panic selling will replace panic buying ... crashing values will replacesurging values ... fear will replace euphoria.

Then, literally days before of mortgage and banks stocks began their sickening 85%collapse we publicly warned of a mortgage meltdown.

And as if that wasnt enough, we specifically namedsubprime lenders, prime lenders,and even traditional banks that would collapse as a result.

We warned that the real estate bubble would burst and the fallout would be Even worsethan the tech stock bust of the 1990s!

We wrote, There are many, many stocks that will likely get taken apart as the realestate and mortgage sector unravels. Among them: Home builders, mortgage lenders,

mortgage insurers, and plenty of other financial firms.


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We named 25 key stocks to avoid like the plague including Fannie Mae, FreddieMac, and most of Americas top lenders and homebuilders.

And realizing that the fallout of a broad stock market collapse and recession would beenough to push other weak companies into bankruptcy, we even included General

Motors in that list long before the company was forced to beg Congress for a bailout.

Sure enough, by year-end 2008, eleven of the 25 companies we named had filed forbankruptcy, been bailed out, or bought out.

Virtually all had suffered severe stock declines, with average losses of 81.3%.

And sure enough just as we warned, the crisis exploded into the headlines, thenspread like wildfire from the handful of lenders who specialized in sub-prime loansto the largest lending institutions inAmerica.

Suddenly, millions of homeownerswere defaulting on their mortgages.

Suddenly, mortgage foreclosuressoared exploding by nearly260% between 2007 and 2009.

Suddenly, millions of families werebeing evicted from their homes.

Mega-banks like WashingtonMutual and Wachovia either failedor were forced into shotgunmergers.

Thousands of banks were pushed tothe brink as borrowers defaulted ontheir mortgages and as the banks other real estate investments collapsed in value.

Fannie Mae and Freddie Mac suffered hundreds of billions in losses, forcing them into

the arms of taxpayers.

Mega-brokers like Bear Stearns and Lehman Brothers ceased to exist.

The stock market suffered its worst declines since the Great Depression.

Investors who owned real estate stocks took a terrible beating. The average S&P 500stock plunged by more than half and many real estate stocks did even worse.

In all, more than $15 trillion of invested wealth was wiped out as the stock marketcratered ...


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Plus a staggering $8.2 trillion in home equity the Americans counted on for theirretirement was wiped away and thats just the home EQUITY that was erased.Altogether a staggering $14.8 trillion of real estate value was gone with the wind.

All told, investors and homeowners lost $29.8 trillion!

Of course, that doesnt even begin to include the financial agony suffered by themillions of Americans who lost their paychecks as the official unemployment rateexploded to 10%. And those are conservative figures, based on the governments funny-money accounting.

Economist John Williams tracks unemployment measured the way the government usedto track it including all discouraged workers who can only find part-time or low-wage jobs or have given up looking for work altogether. According to Williams,unemployment surged to nearly 30% leaving an estimated 15 million former workerswithout paychecks.

The Nation reported that there's a Mad Max, post-apocalyptic feel to daily life inmany neighborhoods and local papers all over the country are still telling the storiesof desperation.

Harriet left this post on the Internet in May of 2009, describing her anguish at losing herhome ...

I always wanted my name to be in the paper as a young girl. I never thought my namewould be in the paper reflecting a foreclosure listing.

I cannot begin to describe how difficult it has been to fight the mental anguish thatcomes with financial failure.

Im still shell shocked and in pain; still racking my brains for a viable solution; stillfaced with the daunting possibility of having to pick up, move and start over again insomeone elses property, still repelled by the prospect of having to file bankruptcy in alast ditch effort to save our home.

Among the stories of heartbreak, there are also stories of rage. According to theSpringfield, OhioNews-Sun, an Ohio man actually bulldozed his own home rather than

let the lender take it.

MSNBC reports that 61-year-old Michael Vanatta of Vero Beach, Florida, was laid offlast January from his $100,000-a-year job as a sales executive. Now, with little savings,he was about to learn to live on the pittance Social Security will pay him.

Hes in the majority. Most Americans counted on their home equity to see them throughretirement. Now, that money is long gone.

Unfortunately, these are anything but isolated incidents. There are millions of victimslike Harriet and Michael in America today hard-working people who have had their

lives destroyed.


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Altogether, more than four million familieshave lost their homes to foreclosure since 2007.

And after nearly five years, the toll is still mounting faster than ever. There were nearlytwo million foreclosures in 2011 alone.

Meanwhile, though, a small group of investors who heeded our warnings had theopportunity to use the special class of investments we recommend to grab gains of93.2% as the Dow fell ... 69.5% as the S&P dropped ... and 236.6% as the Nasdaqcrashed.

Plus, they could have used even more aggressive investments to grab gains of up to553% as the economy sank into the most severe recession since the Great Depression enough to turn a $25,000 molehill into a $163,250 mountain of cash.

These investments Ill tell you about them in a moment have never been morecritical to own than they are right now.

Because ...

In 2008, the elites in Washington, D.C.and Wall Street fat cats

began engineering a THIRD great bubblethe ultimate bubble ...

Its a bubble that dwarfs anything weve seen so far; the greatest asset bubble mankind

has ever witnessed.

And mark my words: When that bubble bursts, it will dwarf every financial disasterweve witnessed so far.

It will destroy most of the wealth everyday Americans have left ... reduce millions ofAmericans to poverty ... and spell the end of life as we have come to know it.

And as youll see in a moment, it will make a handful of investors a small minoritywho heed this warning and take action immediately to protect themselves and profit much richer.

The Fed actually began engineering this ultimate bubble in early 2008 while thehousing bust was just beginning to unfold.


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Meanwhile, Congress and the White House embarked on a spending spree of historicproportions.

First, they gave $594 billion to the rich bankers who helped them create the housingbubble and to the rich brokers who blew up the bubble in the stock market.

They called it a bailout and swore it was needed to save the financial system.

Then, they blew another $1.4 trillion on spending programs full of pork-barrel whichthey promised would stimulate the economy but never really did.

And they just kept on spending; squandering a record $16.3 trillion since 2007 ...running up the largest deficits in world history ... and adding more than $6.5 trillion tothe national debt in just four years.

So, to help pay all those bills, the U.S. Treasury borrowed $7 trillion from investors

and dumped that money into the economy, too.

Needless to say, this tsunami of federal funny money made all previous Fedinterventions pale by comparison:

It made the huge amount of money the Fed used to create the tech bubble seem like adrop in the ocean.

It made the mountain of money theFed used to create the real estatebubble seem like a tiny molehill.

Look at the first little bump in thischart. Thats how much the U.S.monetary base increased after theFed cut interest rates in 1992.

The second, slightly larger bumpshows the increase in the monetarybase after the Fed cut interest rates in2003.

Now, see that massive mountain thatbegins in 2008? Thats how much the Fed has pumped up the monetary base this timearound!


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The impact on the price of U.S. treasuries investments that usually only rise or fallby tiny amounts has been enormous.

In fact, the price of the 30-year treasury has soared to the highest level in history.

As a result, we are now staring down the barrel of the greatest bubble of all time:

Not only have treasury prices exploded higher ...

According to the U.S. Federal Reserve, the total amount of debt on the market today ismore than $58 trillion.

It towers over the housing bubble that began to burst in 2007 ...

That dwarfs the tech stock bubble that burst in 2000 ...

It dwarfs every other asset bubble mankind has ever seen!

Of course, it goes without saying that the elites are having a heydaythanks to the latest, biggest historic bubble ...

The enormous explosion in money printing and borrowing has Washingtons eliteshowering trillions of dollars on their constituents and by doing so, expanding theirpower bases and ensuring their re-elections.

Wall Street firms like Goldman are feeding at the government trough, earning recordbonuses by helping Washington sell those mountains of treasuries.

Theyve made billions more as this tidal wave of federal funny money food andgasoline prices through the roof ...


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And of course, Wall Street fat cats are funneling massive amounts of campaigncontributions to the elite in Congress and the White House.

But the average guy on the street? Mom and pop investors? You and me? Our parents?Our kids?

We gotbupkiss!

Sure Washington claims the unemployment rate is falling, thanks to their spending,printing and borrowing spree. But thats just another lie.

The truth is, the White House is shamelessly cooking the books: It actually changed theway it counts unemployed workers in order to make gullible voters believe things aregetting better.

The highly revered, independenteconomist John Williams still measures unemployment

like Washington used to.

And using the formula Washingtonelites USED TO swear by Mr.Williams has proven that the realU.S. unemployment rate is still astaggering 22.5%!

Thats more than one in fiveAmerican workers without a

paycheck nearly as bad as thingsgot during the Great Depression!

Meanwhile, despite everything theWashington elites have done everything they swore would savethe real estate market housingprices are still falling; our homeequity still evaporating.

And now, thanks to the trillions of dollars the Fed is pumping into the economy, your

buying power is evaporating.

Thats why ground beef is up 16% ...

Potatoes are up 17% ...

Butter has jumped 22% ...

Gasoline has soared 35% ...

And coffee has skyrocketed a mind-boggling 42%

All in a single year!


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Plus, to add insult to injury, the Fed is now waging war on savers; its near-zero interestrates have made it impossible for you to earn a decent yield on your money.

But the bubble in government debt is just the beginning ...

The government ITSELFis a HUGE bubble!

Its much BIGGER. It spends more. Its more directly involved in everything we do.

FACT: The Heritage Foundation reports that since the December 2007, the privatesector workforce has shrunkby 6.6%; shedding more than 7.5 million jobs ...

But the federal government workforce has grown by 11.7%; adding 230,000 jobs. Andnow, President Obamas 2012 budget proposes the hiring of thousands MOREgovernment employees!

FACT: American dependence ongovernment has soared 23% to an all-time high under the Obamaadministration.

CNN reports that one in every fiveAmericans now relies on federalassistance. Nearly 46 millionAmericans need food stamps to keep

body and soul together 34% morethan just two years ago.

The average recipient of federal aidcollects $32,748 in benefits about$300 more than the average tax-paying family has in disposableincome.

FACT: According to PresidentObamas 2013 budget, federal

spending will soar by ANOTHER53%.

And thats just what Washington willspend if current policies are continueduntil 2022 and future presidents dontadd a penny of new spending on top of it. Actual spending will probably skyrocket evenfaster!

FACT: The administration claims that his budget will cut the deficit by $4 trillion.But that simply isnt true. His budget proposal never cuts spending. It only reduces the

increases in spending that were previously baked in. Under the Obama plan, federalspending increases every single year between 2013 and 2022.


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FACT: Each year, the government is enacting more than twice as many new rules asthe prior administration did. In fiscal 2010 alone, the Obama administration adopted arecord 43 rules.

The Federal Register the daily record of regulatory changes has exploded in size

to an average of over 82,000 pages.

According to the Government Accountability Office, between October 2010 and Marchof this year, 1,827 rulemaking proceedings were completed, 37 of which were classifiedas "significant" or "major," meaning their expected economic impact surpassed $100million per year.

Seven proposed rules on the environment and transportation ALONE would cost U.S.companies at least $38 billion per year and could cost as much as $100 billion annually.

And now, this enormous government bubble

by far the largest in the history of planet Earth is about to burst.

But this time, its different: This time, the Fed doesnt have to pull the plug by raisinginterest rates.

This time, the bubble it has created is so enormous and so vulnerable to any kind ofshock it will simply collapse of its own weight.

Youve already seen this kind of collapse in Europe right now in Greece, Portugal,

Italy, Spain and France:

First, their political elite ran up massive debts that could never be repaid ...

Just like ours did.

But when it came time to pay the piper, they didnt have enough money.

Neither do we.

And now theyre already doing what America must do next:

Cutting social programs and entitlements right and left; breaking promises they made totheir own people ...

And creating trillions of euros out of thin air in a desperate attempt to avoid defaultingon the patently unpayable debts they owe to bond investors ...

But these kinds of desperate, stop-gap measures have never worked. Despite all this,Greece had no choice but to default on a huge chunk of the debts it owned to bondinvestors.

The toll in human suffering has been devastating:


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Unemployment is skyrocketing; while the UK's youth unemployment rate is was 20%,the European authorities report that it hit 28% in Portugal ... 29% in Ireland and Italy ...36% in Greece and 44.3% in Spain.

Hundreds of thousands of citizens have taken to the streets in Greece, Spain, Italy, the

U.K. and other countries to protest cuts in government spending. Many of thosedemonstrations have turned violent.

How deadly can this kind of crisis get?

The Guardian reports that in Greece, the nation has been shocked by stories of parentsforced to give up their own children because of the crushing poverty and charities arewarning that the trend is accelerating.

Even before Greeces economic crisis engulfed his own home, Dimitris Gasparinatosand his wife, Christina found it impossible to provide for their six sons and four

daughters.

Deep in debt, the couple owed money to the butcher, baker and grocer the verypeople who had kept them going in the port of Patras, west of Athens. In their tiny flat,the family slipped increasingly into a life of squalor.

And so, with Christmas approaching, the 42-year-old took the decision to put in anofficial request for three of his boys and one daughter to be taken into care.

The next day, his 37-year-old wife visited the local town hall and asked that her children

be "saved." According to the local deputy mayor, pleas for help are on the rise.

From cases of newborn babies wrapped in swaddling and dumped on the doorsteps ofclinics, to children being offloaded on charities and put in foster care, the nation'sstruggle to pay off its debts is assuming dramatic proportions.

Propelled by poverty, 500 families had recently asked to place children in homes run bythe charity SOS Children's Villages. One toddler was left at the nursery she attendedwith a note that read: "I will not return to get Anna. I don't have any money, I can'tbring her up. Sorry, Her mother."

The Athens headquarters of one charity is filled with cots for babies who wereabandoned in hospitals, found in windowless homes or taken from unfit parents or evendiscovered in garbage dumps.

Thats the kind of pain that comes with this kind of debt implosion.

And never forget: The European Union has bailed out Greece and these other debtornations but there is simply no institution on Earth large enough to save America.

Yes, in the tech wreck and housing bubble, we could turn to Washington to bail out theeconomy.


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But now, the government ITSELF is the bubble and theres nobody left to save it whenit begins to burst.

Sure the Washington elites and Wall Street fat cats will tell you that the bursting ofthis great bubble is impossible.

But thats the same thing they said when they fat cats promised you that the newtechnology economy meant the tech boom of the 1990s would go on forever ...

And when they swore on a stack of Bibles that there could never be a nationwide crashin the real estate market.

But mark my words: This crisis is real.

This unprecedented bubble of government debtcannot ... WILL not ... survive much longer.

Nearly half of every dollar Washington spends is borrowed money.

We owe China $1.1 trillion ... Japan another $1 trillion ... the OPEC nations $259billion and now theyre mad as hell. Theyre simply not going to take it anymore.

Theyve made it crystal clear: Either Washington gets its house in order, or the flow ofeasy money will simply stop.

The handwriting is clearly on the wall: Our leaders now have NO CHOICE but to burst

this bubble. They must radically slash spending and dramatically shrink the size of ourgovernment.

To do that, they must radically slash Americas military budget and delay or evencancel payments to seniors, veterans, the poor, the disabled and to pensioners. Becauseif they dont, our creditors have made it clear that THEY WILL!

All they have to do is begin lending less money to Washington!

Of course, those kinds of massive budget cuts will take massive amounts of money outof the U.S. economy and push America to the brink of disaster. So, after theyve cut all

they can, theyll do what governments always do when they run out of options whatthe European Union is already doing:

Theyll run the money printing presses until the value of every singledollar in your pocket is destroyed.

The impact on the U.S. economy will be immediate and painful:

Millions who count on government checks will suddenly find themselves on the ropes,struggling to survive.

Millions more who still earn a paycheck will find that it busy them a LOT less than itused to.


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Therefore, with massive government programs slashed or cancelled altogether ...

With millions of consumers paralyzed in fear ...

With the U.S. economy in intensive care ...

With tax revenues plunging ...

And with your cost of living surging ...

Here is the worst-case scenario;the scenario I fear most ...

Hunger and homelessness explode to pandemic levels from coast to coast.

The victims take to the streets. Rallies turn into demonstrations ... then, into protests ...and finally, into riots.

With law enforcement severely crippled by the spending cuts, crime skyrockets.

With fire departments running at austerity levels, cities burn.

With emergency services and hospitals out of money, people die.

To restore order, Washington elites revoke many of your personal freedoms.

Hard to believe? I understand. But dont take it just from me. Look at whats alreadyhappening at the city and state level:

New Jersey has laid off m any of i ts pol ice off icers. M any stat es are fol low ing suit . Several states are put t ing pr isoners back on t he street befor e their sente nces are

served because there s not enough mo ney to house them .

Philadelphia, Balt imo re, Sacram ento and m any ot her cit ies are laying off f i r ef ightersand emer gency m edical personnel and shut t ing dow n f ireho uses.

M any states, including New York, have refused to pay their p ension funds. Governor Chris Christ ie slashed New Jersey's budget by 26 percent. H e has laid off

tho usands of t eachers . .. f i red 1,300 state w orkers . . . and drast ical ly reduced fundi ng

to cit ies and count ies.

And d espite al l t hose cuts, S& P slashed N ew Jerseys credit rat ing anyw ay! I l l inois recent ly jacked up incom e taxes by 67% and i t s st i l l no t enou gh to solve i ts

def ic it n ightm are.

Also in I l l inois, pharm acies have closed because th e state fai led t o m ake i ts requiredM edica id payments, and


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State em ployees are be ing ev ic ted f rom the i r o f f ices for nonpaym ent o f rent . Arizona w as so desperate, i t SOLD its state capitol, Supr em e Court bui ld ing and

legisla t ive chambers and now leases the bu i ld ings f rom t he i r new ow ner.

Arizona also el im inated M edicaid funding for m ost organ tr ansplants, causing at leastth ree deaths so far.

As a result, even theNew York Times recently warned that, for the first time since the1930s, were likely to see U.S. states default on their debts!

So whats next for the U.S.?

You need only look at Europe.

Every time theres a new threat that Greece, Italy, Portugal or another country could

default ...

Every time we get news of slowdowns in the European economy ...

The European Central Bank printsmore money.

And every time the E.C.B. printsmore money, the Bank of Englandisnt far behind!

As a result, the euro has plunged ...Europeans cost of living isskyrocketing and poverty isspreading like wildfire.

And now, the same happening here.

The total of the Feds recent moneyprinting has ALREADY swelled awhopping 218% to nearly $3 trillion

and that hasnt done anything tore-energize the U.S. economy.

Now, despite the fact that hisprevious money-printing programswere utter failures, Fed chiefBernanke is all but promising tocrank up his money-printing pressesagain! Plus, even though the Fedshistorically low interest rates havealso failed to lift the economy out of the doldrums ... the Fed recently announced that it

will nail short-term rates to the floor through late 2014 a full year longer thanpreviously indicated.


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It goes without saying: All of this fits perfectly with Einsteins definition of insanity doing the same thing over and over again, expecting a different result!

To you, all of this means two things:

The spending cuts will drive the U.S. economy into another devastating recession asspending cuts kill corporate profits and drive unemployment sky-high again and as I justpointed out, your cost of living will continue to explode.

The price you pay for food ... to heat and cool your home ... and to fuel your automobileare already skyrocketing, thanks to the Feds massive money-printing.

Even the so-called core inflation rate the Fed apologists like to cite just jumped at itsfastest pace in 40 months!

But those increases are likely to be little more than a sneak preview of the price

explosions well see as the Fed tries to fight this crisis.

How bad will it get?

These are ten former heads of the presidents Council of Economic Advisors ...

They are the men and women who served under the presidents of both major parties,including President Obama and have since left office ...

They recently wrote that the next debt crisis could and I quote

Dwarf 2008!

Thats an absolutely shocking assertion: In 2008, Wall Street came within a hair of amassive, devastating meltdown.


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Virtually ALL of our largest banks were pushed to the brink of failure. The entirecountry was only a few hours away from a fatal collapse.

Now, these ten former White House advisors are warning that this next debt crisis coulddwarfthe last one.

And these ten former presidential advisers are not the only ones ringing the alarm bells.

Senator M ark Warner says, W ere approaching f inancial Arm ageddon. Senat or Joe M anchin calls th is crisis, A fiscal Titan ic Adm iral M ike M ullen, the chairm an of the Joint Chiefs of Staff , is w arning that th is

crisis is, t he biggest t hreat t o o ur nat ional securit y.

Econom ist Robert Sam uelson war ns that t his crisis has the po w er to tr i gger, Aneconom ic and pol i t ical death spiral.

Dem ocrat Erskine Bow les, w ho headed up t he president s def ici t com m ission, warn sthat t his crisis is, l ike a cancer; i t s t ru ly going to destroy t he count ry from w ith in.

Senator M ike Crapo says i t is a threat to not just our w ay of l i fe , but t o our nat iona lsurvival. I t h as th e pow er to . . . guarantee that t his nat io n becom es a second-rate

pow er w i th less opportun i ty and less f reedom.

And David Walker the for m er U.S. Com ptro l ler General and d i rector o f theGovernm ent Accountabi l i t y Off ice says, The bo tt om l ine is: Were not Greece. But w e

could end w i th the sam e prob lems!

These men are not extremists.

They have nothing to gain by trying to scare you.

They are merely following the factsto their logical conclusion.

Thats what Ive done in this presentation. The warnings Ive given you are based onnothing more and nothing less than economic reality and

historical fact.

And once again, just as we did before the Tech Wreck in 2000 ...

And just as we did before the housing bust, banking crisis and recession began in 2007...

Were doing everything we can to warn you before its too late.

Once again, greedy and power-mad CEOs, politicians and bureaucrats are playing us forsuckers; blatantly mugging good, hard-working people to save their own necks and line

their own pockets.


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Theyre about to get richer.

Theyre about to grow more powerful.

Unless you take action to protect yourself and profit immediately, youre about to get

taken to the cleaners.

Your opportunities to build a better life: Crushed.

Your hard-earned money: Ruthlessly stolen from you.

Your financial security and independence: Utterly destroyed.

Your hopes for a comfortable retirement: Heartlessly dashed.

Worst of all ... if history is any indication...theyre going to get away with it!

After all: Wheres the punishment for the scoundrels who engineered the tech wreck?

Wheres the retribution for the elite in Washington and on Wall Street who engineeredthe housing bust?

The politicians who made it a virtual crime to deny anyone a mortgage?

The bankers who got rich making loans they knew would never be repaid, then turning

them into securities and selling them to investors?

The bureaucrats who were supposed to regulate the entire process but who never did?

Wheres their punishment for the lives they destroyed? Wheres the retribution for themoney they stole from all of us? Where are the investigations? The trials? Why arentwe hearing of long prison sentences?

You and I both know the answer;and it makes me fighting mad ...

Theyre the Washington and Wall Street elite. And that birthright means they neverhave to worry about paying for their crimes.

The crooked and incompetent politicians simply get re-elected.

The failed regulators keep their lifetime jobs, lavish perks and fat retirements.

The bankers get massive bailouts, huge bonuses and just keep on getting richer.

And to add insult to injury, YOU the victim of their schemes get to pay through

the nose to clean up the mess they made with bailouts and stimulus schemes ...


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Giveaways BY the elite TO the elite that only make them richer and more powerful butthat somehow never really seem to help the little guy.

Nevertheless, if the crisis Ive just described is hard for you to imagine, I certainlyunderstand.

Weve never seen anything like thishappen before in America.

We always believed we were somehow insulated from these kinds of catastrophes.

Besides: Things still seem so normal for most of us today so routine. Its hard toimagine that such terrible things could happen to us, and ...

That it could happen so quickly, in the twinkling of an eye.

But isnt that always the case?

Isnt there always a calm before the storm?

Arent people always caught by surprise when historic crises strike?

After all nobody believed the Soviet Union would collapse virtually overnight and when it did, it caught everybody by surprise. Even our own C.I.A. failed to see thatone coming!

In Japan, even though they had been repeatedly warned, nobody believed the nuclearpower plants would suffer multiple meltdowns.

Once again, their denial was costly in the extreme.

So Im under no delusions here.

I know that the vast majority of Americans will fail to heed this warning and fail to getready for this crisis.

I sincerely hope for your familys sake that you are not one of them.

Because the precautions required to weather the coming tempest are not difficult.

And even if the storm turns out to be less severe than I fear it may be, the worst thatllhappen is that youll sleep better at night and make some money in the process.

So WHEN should you expect to see this cataclysmic event the moment whenWashington runs out of money?

Soon. VERYsoon.

La economía de EE.UU. 2012

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