CrisisAfterCrisis soverein

7/28/2019 CrisisAfterCrisis soverein

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The Crisis

After theCrisis

How to Make 2 to 10 imes Your MoneyWhen the -Bubble Pops


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World Currency Watch98 S.E. 6th Avenue, Suite 2,Delray Beach, FL 33483 USA

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Any inormation or statements contained in this publication are not to be considered by the reader as personalizedinvestment advice. Te authors and any agents o World Currency Watch are not licensed under U.S. or other securitieslaws to address particular investment situations and nothing herein should be deemed as personalized investment advice.


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Part I

The Crisis After the Crisis

How The Most Trumped-up, Dressed-up, Glorifed

Investment in the History Capitalism is About to

Become the Most Scorned

Since it inception on April 24th, 1917 this investment has been heralded, applauded and em-braced by the world.

It saved America rom two World Wars, a Depression and several recessions. It unded our empire.

But now, its about to rip us apart and take the rest o the world down with us.

Im talking about U.S. reasuries

Yes, this toxic asset is U.S. reasury Bonds specically reasury Bonds with maturities o 10years or more. Teyre the worlds most popular investment by far and now theyre about to

turn out to be the worlds most dangerous!

Troughout their history, these bonds have been sold under many names. During times o warthey got pedaled to the patriots as war bonds, and to the pacists as liberty bonds. During timeso peace they got pitched to the housewives as savings coupons. And now more recently theyvebeen sold to the Chinese as sanctuary.

But the Fed can dress them up any way they want, but all they really are at the end o the day isdebt plain old dirty debt but its debt to the twisted tune o $11.1 trillion a sum almost equalto the GDP o the United States.

Now this king o all debt bubbles is about to pop. And when it does, it will have dire consequenc-es or youyour wealthand the worldconsequences that very ew people understand.

But beore I tell you about these consequences and how to shield yoursel rom them, you need tounderstand the evolution o this most bizarre o all market bubbles in order to get ahead as an inves-tor in the New Economic Order. Its important that you understand how non-commercial tradingin this investment is subversively turning markets inside outand upside down


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How Historys Most Bewildering Economic Anomaly Formed

It all began with emerging markets rom the Middle East to Russia, Latin America to China earn-ing BIG DOLLARS by exporting oil, gas, copper, lead, zinc and even toys and electronics to thewest.

Tey raked in trillionso dollars o these exports in the past decade, and quickly went rom beingsub-prime borrowers to AAA-rated lenders swimming in surpluses!

But or previous decades these nations had been debtors. Tey werent used to running tradesurpluses. So they didnt know what to do with all the surplus cash. Most just sat in bank accountsearning 0% interest (a giant reserve or a rainy day). But their emergency resource unds became thebiggest pots o gold any country had ever known.

So rather than just leave them in an account earning 0% interest, they started to put them intoreasuries to earn around 3%. And why not, the United States had never deaulted on a debt.

And so the giant reasury Bubble began.

And with it came a market aberration that had even stumped Greenspan, Bernanke, and theworlds greatest bond traders.

In 2006 the yield curve inverted. Tat means the cost or borrowing money or a long time (say10 to 30 years) became cheaper than borrowing it or a short time (weeks or months). Tis is NOsupposed to happen. It doesnt make economic sense. reasury buyers were getting paid moreto take

less risk, and getting paid lessto take more risk.

But that happened mainly because the biggest treasury buyers in the market didnt reallyknow what they were doing. Tey werent global money traders. Tey were largely dictators,ascists, and communists! And they certainly werent used to swimmingin surpluses letalone even beginning to know how to manage them. For decades theyd been drowningindebt.

It was a giant power fip.

Te debtors became the creditors. And the creditors (America, being the biggest one) became thedebtors.

It was like these new emerging market power players had won the Powerball lottery. And likemany lottery winners, who are not used to managing their newound wealth, they mismanaged it:Tey piled into the worlds worst investment.


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The Bursting of Americas Last Great Bubble

It wasnt bad enough that the markets richest new traders were all piling into the wrong invest-ment. Out o the blue, along came the derivatives-led global nancial crisis.

Now because U.S. reasuries are considered to be the saest and most liquid o all investments,tensomillionso investors (who were stampeding out o stocks) also piled into them. Tey ran roma burning casino into a sinking riverboat gambling ship.

And the Bubble infated to insane levels swelling to over $11 trillion. Even as the economyhas begun to recover, the -bubble continues to infate.

And that, my riend, is how the biggest (and most bizarre) bubble to ever orm in a single invest-ment came to be. Its as simple (and as insane) as that!

Yet the conundrum stumped many o the worlds greatest nanciers and Central Bankers or years!

But now the bubble is literally about to burst at the seams. With yields at their lowest levels inover 50 years, reasuries have never been so overbought.

Te 27-year bull market in U.S treasuries is about come to a thunderous end. It will be the burst-ing o Americas last great bubble. Historians may mark the date as the End o the American Empire.Ater it, Wall Street will be a very dierent place. Te world o investing will have changed orever.Old rules or retirement will be turned on their heads

Dj 76

27-Year Bull Run in U.S. Treasuries is

About to Come to a Cataclysmic End


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The Next 5 Years Will Make or Break You

Te last time the reasury Bubble imploded was in 1976. Te ve years ollowing were among themost extraordinary in economic history. And theyre about to be repeated again. But this time thetrends will be biggerand they will movefasterand the all-out will be ar greater.

From 1976-81:

Commodities, which had just come o their historical highs, lunged into the next and nalleg o their epic 20th century bull market.Te price o oil leapt 3-old.Te price o gold leapt 6-old.Te yield on 30-year reasuries went rom 7.2% to 14.68%.Te Dow lost 18%.Te dollar shed 35% o its purchasing power.And infation ratcheted up rom over 4% to almost 12%, transorming traditional nancial

sanctuaries bonds, CDs and money market unds - into nancial death traps, almost de-stroying the abric o the American economy.

Millions o investors lost their shirts. Te food o sell orders rom panicky bond holders, whowere unloading at any price, prompted all but 4 or 5 o the largest New York dealers to eectivelyabandon their market-making role. Te dealers actuallydropped outo the market. It was no longera price collapse. It was a market collapse in the literal sense o the word. Te brokers went home.

In 1976 a $100,000 American portolio (made up o 50% bonds and 50% Dow stocks) wasworth just $48,393 ater ination in 1981.

We expect the coming years to be very similar to that extraordinary period in economic histo-ry. But this time or the broader market and in particular or America it will be worse.

But there are ways to turn these cataclysmic events into the kind o prots that only come alongonce or twice a century.

Turn Your $100,000 Portfolio into $4.8 Million in the Next 5 Years

For example, the privileged ew at the time who were savvy (and wealthy) enough to short dollars

and get in early on gold, oil and booming oreign currencies racked up a generations worth o gainsin just a ew years.

Just by shorting the dollar, you couldve turned a $100,000 portolio into $240,000. Some tradersleveraged their bets 20-100 times, and turned $100,000 into $4.8-$240 million. Tat was just onthe dollar.

Tere were many other currency and alternative investment trades that ared just as well. You


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couldve made 207% on oil 514% gold 511% on Palladiumor 22% on the Austrian Schil-ling44% on the Swiss ranc

raders who leveraged their bets on these currency moves made 20100 times those gains thats 439% 4,383% gains!

Admittedly at the time it was dicult or the average American investor to get in on these exotictrades. But now, thanks to revolutionary new innovations in nance, these exotic trades have becomeas easy (and as cheap) to execute as buying a quart o milk and a pack o cigarettes at your local con-venience store.

For example, back in the late 70s, there was no simple way or the average mainstream investor tobet against a U.S. reasury or short a dollar. Te prots back then were largely enjoyed by institu-tional investors (and the George Soross) o the world.

But today its as easy as pointing and clicking!

And its not just shorting U.S. reasuries and dollars today that can help you rake in a generationsworth o gains in just the next ew years, manyothernations including Britain, Germany, Ireland,Iceland, Hungary, Latvia, Estonia are all in similar situations as the U.S. Teir bond markets are alsostarting to collapse or already did in 2010.

Recently in Germany (the economic engine o Europe) no one turned up to buy any o the coun-trys bonds at their auction. thats because investors know the Germans are stuck paying the tab ortheir deadbeat riends in the EU.

Youll learn how to prots o these events in your upcoming issues oCurrency Capitalist, and inPart II o this report. But rst let me tell you why the trends driving them are now unstoppable

Dj 76

1976 1981 January 19, 2011 *2014

Oil $11.16 $36 $90.81 $148

Gold $105 $600 $1371 $4994

Ination 4.86% 11.83% 5.2% 10.42%

30-yr Yld. 7.2% 14.68% 4.5% 8.86%

Dollar $1 $1.55(Lost 35.5%)

$1 $1.55

Dow 1000.4 824 11,781 7444

*Tese uture gures are based on the past perormance o the same investments during the 1976-1981 period, whenthe reasury Bubble last imploded. But this time, we expect the implosion to be ar bigger, and the returns (and losses)

on these investments ar greater.


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Get Ready for a Repeat of the Most Destructive

5-Year Period in Economic History

But This Time it Will Be On a Scale Never Before Seen

Last time, when the U.S. reasury bubble imploded, we still had plenty o oil. America was stillan oil exporter not anet importer. We werent trillions o dollars in debt. We didnt have unundedSocial Security and Medicare disasters hanging over our heads. And above all, we werent recoveringrom the worst credit crisis in history.

And now in order to try to catapult ourselves out o this crisis, we need the rest o the world tokeep unding usto keep buying our debt. Obama has already said he anticipates trillion-dollardecits or years to come. And hes right on track. Te reasury Department just announced that itsplanning to auction another 1.1 trillion worth o reasuries this year, on top o the $2.6 trillion soldlast year. Tats what Obama calls a reovery!

With these skyrocketing debt levels, the day o reckoning or bonds (and America) is near. It willbe the day when no one turns up to buy our reasuries not even our own citizens.

When that day comes, our only option let will be to print our way out o the hole weve dugourselves in. What we will in eect be doing is silently deaulting on our debt. Bonds will crash. TeDow and the dollar will dive. And infation will start to quickly spiral out o control.

And this new infation will not just be powered by the printing presses, it will also be powered bysoaring commodity prices

The Coming Inflation Holocaust

Many Americans are still betting on mild infation at the moment, i not even outright defation.

Tey keep holding o, waiting on the sidelines beore they buy anything because they think itsgoing to be cheaper next week. Tis is part o the reason why the reasury Bubble has continued toballoon so big.

And while many things may be cheaper next week, they might not be the things youll want to

buy or own. Many things are actually going to get a LO more expensive. And you might want tostart stockpiling these things now while theyre at bargain Bernanke prices. For Obamas $13trillion dollar stimulus package is starting to trickle inand it will transorm a disinfation tailwindinto an infationary headwind

As Warren Buett recently said, the coming infation has the potential to be worsethan the double-digit rates o the 1970s. And Jim Rogers o the amous Quantum undwarnedwe are acing an ination holocaust.


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With $13 trillion o American stimulus packages start kicking in (not to mention $9 trillion moreo global stimulus packages and Obabmacare) there willindeed be a giant boost to global economicoutput (in act those gures amount to almost 50% o everything every business and every personwould produce on the planet in a single year).

But even though this paper moneywillbring real businesses and industries back onlinethe re-turns they will seeminglyoer investors will be illusoryand in many cases theyll even be negative.

Most o this stimulus is ear-marked to build bridges, highways, buildings, oil reneries, pipelines,power grids, ports, ships, trains, rail-tracks, steel mills, waste management plants

So one things or sure: In order to create and uel this giant new global building boom were goingto need a LO more oil, copper, gold, silver, platinum, uranium, lead, iron, zinc, cement, water andwood.

Demand will soar once again or these precious resources

But supplies will run extremely tight.

And all these things are going to get verypriceyveryquicklyonce again!

And when they do, theyll continue to eat into the realvalue o everything you own your dol-larsyour stocksyour homeyour bonds

And this will be a cycle that will eed on itsel. Because the higher the price o oil and copper andsilver and steel go, the more they will seep into the price o almost everything else, and the more yourdollars will all.

Its the most vicious thing a government can do to its population: wage economic warare throughinfation.

And in this devastating market reality, there will only be a ewsureasset classes let.

While some commodities will be headed back to the stars in the next 5 years, investing in themdirectly can be a roller coaster road. Investing in the companies producing them (while saer) can alsobe risky due to management issues, new technology risks, unstable supply/demand dynamics and ris-ing mining and production costs.

But we can show you easy, ultra-sae ways to ride these commodity booms. By investing in thecurrencies o resource-and cash-rich nations, which are set to rise to a stunning degree over the U.S.dollar in the years to come, you can realize enormous prots, and at the same time protect yourselrom the bursting o the U.S. reasury and dollar bubbles.

Youll get introduced to these investments in your upcoming issues oCurrency Capitalist, and inPart II o this report.


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Part II

How to Make 2 to 10 Times Your Money

When the T-Bubble Pops.

Im about to smash one o the markets biggest myths.

Most investors believe the best way to make money is to get in on a stock, a commodity or an as-set class when it is booming.

On the contrary, the best (and quickest) way to make money is not when an investment is boom-ing but when it is crashing.

We call this trade a squeeze play.

Squeeze plays come at moments in history when sentiment shitswhen the crowd realizes itgot it wrong and investors all pile out o a stock, a sector, a market, a currency at once sell-ing in a renzylike when investors dumped tulips in 1637 railroad stocks in 1873... bonds in1981Mexican pesos in 1994 tech stocks in 2000urkish lira in 2003banking stocks in2008

Tese dates marked the end of some of historys most irrational manias

Every year hundreds o buying renzies are quickly ollowed by selling renzies steep climbs ol-lowed by vertical descents.

Tose who pinpoint the timing o these renzies, and identiy the set-ups that are leading to thesevolatile moments beore they happen can prot handsomely. By betting against these eventsyou canrealize a decades gains in just months.

In the past 15 years, savvy investors who watched countries like Mexico, Argentina and urkeystart to crumble made prots o as much as 838%, 1471% and 1255% in as little as 6 months - justby betting against these countrys currencies.

Now the same opportunity is opening up in the U.S. reasuries and currency market.

And these trades may prove to be the largest squeeze plays in history: Te Sultans o ALLSqueeze Plays!

Shorting Dollars: Profiting off the First Sultan of Squeeze Plays

As we said, by shorting dollars in 1976, you couldve turned a $100,000 portolio into $240,000.And i you leveraged your bet 20-100 times against the dollar, those returns wouldve turned


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$100,000 into $4.8-$240 million, as it did or George Soross and John empleton. While you cantgain that kind o leverage without rst opening up a special type o account called a FOREX account(more about this below), you can still short dollars and reasuries today saely, easily and cheaply.AND you will not only protect yoursel and your wealth against the collapse o the American Em-pire, but you will still garner handsome prots rom it.

oday there are a number o EFs that allow you to short the U.S. dollar against a numbero major currencies. Te best o these EFs are those that short the dollar against the Brazilianreal, the Australian dollar and the New Zealand dollar. We believe these three currencies will risethe greatest relativve to the dollar in the years to come (or reasons Ill explain in a moment).

And you can buy these EFs on the New York Stock Exchange under the symbols:

Te Brazilian Real: (BZF)Te Australian Dollar (FXA)Te New Zealand Dollar (BZN)

Admittedly, the gains to be made on an EF that short-sells the dollar will be minimal comparedto the leveraged bets we mentioned above. In order to use 20:1 leverage or even as much as 100:1leverage you need to open a FOREX account. It is with this special type o currency trading accountthat you can ampliy your prots by 20, 50 or even 100 times against the amount the dollar is set toall. And with FOREX trading youre not limited to just major currencies like the U.S. dollar, Cana-dian dollar and British pound, you can trade against exotic currencies like the Hungarian orint,Polish zloty and Czech crown.

Tis type o higher-risk trading, however, is not covered in Currency Capitalist. In Cur-rency Capitalistwe deal with sae, long-term, conservative strategies. But you can learn aboutthese higher-risk trading techniques by signing up or the currency-trading services below.Tese currency trading services have already made prots o1229.9%, 2997.2%, 2948.6% and1509.6% in just a matter o weeks by pitting the dollar against other exotic currencies like theHungarian orint, Polish zloty, South Arican rand and Czech crown. We did this by leveragingour bets as high as 100 to 1, meaning or some o these trades every 1% the dollar ell, we made100% gains.

o nd out more about these services just click on these links:

www.worldcurrencywatch.com/exotic-x-alert/

www.worldcurrencywatch.com/global-currency-options/

Shorting Treasuries: Profiting off the Next Sultan of Squeeze Plays

In the past, shorting reasuries wouldve been a very dicult order. At best, you would have to setup a margin account, and sell-short specic bond unds. Tats not an easy strategy or most newinvestors.


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But now thanks to a revolutionary new EF whose perormance is directly linked to the long-term bond markets, with the click o your mouse or a quick call to your broker, you can quicklyshort reasuries or the long run with:

Proshares Short 20+ Year reasury Fund (NYSEArca:BF)

Tis und tracks the inverse perormance o long-term government bonds. More specically, ittracks the opposite o the Barclays Capital 20+ Year U.S. reasury Index. Tis means that as bondscome apart, this long-term play should rise in tandem. We recommend buying up to $50.

Shorting this singleinvestment is one o the saest ways to proft rom the implosion o thereasury Bubble.

However, NOW theres an even better way to prot as the reasury bubble ruptures. About ayear ago, two revolutionary new EFs were launched that have a 2:1 leverage built in againsttheiShares Barclays 20+Year reasury Bond Fund. Tat means that i you own these unds, you earn

twice as much as someone who holds the iShares Barclays 20+Year reasury Bond Fund.

In act, theyve recently been hailed to be as close as it gets to a cant-miss trade.

Tese two radical new leveraged bear-market unds are the:

Ultrashort Lehman 20+Year reasury Proshares (NYSEArca:B)

Ultrashort Lehman 7-10 Year reasury Proshares (NYSEArca:PS)

A quick word o caution: Both o these plays are ultra-shorts, so both track double the inverse olong-term reasury bonds. Tis means that i bond prices all by 10%, these two unds should rise

by 20% (or vice versa).

However, with this added prot potential comes greater risk. Tereore we recommend that youplace a 25% stop-loss on both o these plays to protect yoursel just in case the market turnsagainst you.

For Ultrashort Lehman 20+Year reasury Proshares (NYSEArca:B), we recommend buying upto $45.

For Ultrashort Lehman 7-10 Year reasury Proshares (NYSEArca:PS), we recommend buying up

to $45.

The One Sure Fire Way to Cash in as the T-Bubble Blows

As commodity guru Jim Rogers recently said, the dollars rally is set to end in a currency crisis.

Te last time the dollar aced such a challenge was in 1985, when it lost hal its value oday


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its challenges are ar more daunting Recently, the Fed doubled the money supply in one year fat.Tats the largest increase in generations by almost a actor o 10. And its not done yet.

And now that no one is turning up to our bond auctions and Ben Bernanke has to buy themback himsel, the situation amounts to no less than America silently deaulting on its debts. But by

owing the EFs in this report, you can continue to earn up to $2 or every buck that everyone elselosses! Tese investments truly are as close as it gets to a cant-miss trade.

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