Rescue Your Money from the National Debt Disaster pot

Rescue Your Money from the National Debt Disaster How to Secure Your Savings & Retirement Before the Debt Bomb Explodes by Damon Geller Copyright 2013 by Damon Geller Published by Christopher Prince at Smashwords Smashwords Edition, License Notes: This ebook is licensed for your personal enjoyment only. This ebook may not be re- sold or given away to other people. If you would like to share this book with another person, please purchase an additional copy for each person you share it with. If you’re reading this book and did not purchase it, or it was not purchased for your use only, then you should return to Smashwords.com and purchase your own copy. Thank you for respecting the hard work of this author. What You Will Gain from This Book * Profit from the Fed's monetary mismanagement * Steadily grow your investments * Smartly protect your retirement * Significantly outperform the stock market * Achieve your investment goals What You Will Learn from This Book * Learn how gold profits from expanding national debts * Learn to discern fact from fiction in gold investing * Learn to detect the important signs it’s time to invest in gold * Learn why gold is an powerful hedge against the falling dollar * Learn to find the best investments in gold and silver Who Else Will Benefit the Most from This Book * Younger investors building toward their retirement * Older investors seeking to protect their wealth * Value investors seeking solid long-term performance Table of Contents Invitation from the Author Get Ready for $9 and $3800 Gold Why Gold Is the Enemy of Corrupt Banks The 7 Fundamental Reasons to Own Gold Gold Tells the Truth The 7 Deadly Myths of Gold Investing The Gold Boom is Over Gold Is Too Risky of an Investment I Can Get Better Performance from Other Investments I’m Too Old to Buy Gold Bullion is the Best Way to Invest in Gold All Gold Can Be Confiscated During Crises Gold Is for Collectors, Not Investors The 7 Empowering Signs That Now Is the Right Time to Invest in Gold The Dollar is Falling The Debt is Rising The Fed Keeps Printing Money The Stock Market Is Losing Value Even As It Rises The Wealthiest People in the World Are Buying Gold Retail Investors Are Just Now Discovering Gold Gold Has Been A Durable Investment for 5,000 Years Bonus: The 7 Best Gold & Silver Investments St. Gaudens Gold Liberty Gold Indian Head Gold Gold Proof Eagle Silver Proof Eagle Morgan Silver Peace Silver Secure Your Retirement with a Gold IRA Conclusion: Waiting Is the Hardest Part Addendum: Gold & Silver Bullion Investing About the Author Invitation from the Author After many years of advising clients on how to protect their money and wealth against reckless Fed policy and expanding national debt, I chose to write this book to address many of the common concerns and misconceptions people have about how the national debt affects their personal savings and retirement. Naturally, I cannot address all your questions and concerns in a book, so I invite you to contact us directly with any of your investment questions during or after reading this book. You can call us at 800-226-8106 and you can learn more on our website, www.WholesaleDirectMetals.com. We welcome the opportunity to assist you. Damon Geller President Wholesale Direct Metals Get Ready for $9 Gas and $3800 Gold Every major economist and the U.S. Treasury all concede that the U.S. will run a $1.5 trillion deficit for the foreseeable future, inflating the U.S. debt to a staggering $28 trillion by 2018. Ironically, these numbers by the U.S. Treasury extend to 2018 regardless of who wins the 2016 election. That is scary, and if you think this is just a meaningless number on a spreadsheet, ask yourself if paying $9 for a gallon of gas is meaningless to you and your family. Because as any experienced investor will tell you, the price of both gasoline and gold are directly correlated to U.S. debt more than any other variable. Doing simple math based upon long-standing historical trends, conservative estimates put gas at $9/gallon and gold at $3800 an ounce as the U.S. debt bomb explodes. Want proof? Right before the 2008 election debt was $8T, Gas was $2.40 and Gold was $850. Right after the 2012 election, debt was $16T, gas was $4.90 and gold was $1700? What happens when debt hits $28T? Read on because it’s all simple math. Although you can always look at gold as an “investment,” I have always thought of gold as just a better savings vehicle, especially when monetary policy is positioned to help the volatility of money in any way it can. When the banker is paying zero interest, you don’t give up much opportunity-cost by removing your money from the bank and storing it in some other form. If the Fed is printing, QE-ing and monetizing, and the boys in the government are "stimulating" and dragging us into further debt, it would seem to make even less sense to sit green paper in a bank. Regardless of what you think gold is, I’d like to make an argument for gold’s price- action being somewhat predictable or, if you will, “mathematical." Gasoline prices trend right along with the same math and parallel increases in U.S. debt. Of course you can’t store gasoline as a means of storing value, but you certainly need gasoline. As it rises it erodes your wealth, income, and your ability to save or invest. Rising gas prices also tend to run a course through the entire economy from food prices to heating your home. So if you can hedge rising gas prices by owning an asset whose gain will parallel them, thus maintaining your purchase power, then you are effectively wealthier. Given all the various forces that cause gold to move in the short term – mostly emotional – there’s one single linear variable that drives gold's (and gasoline’s) movement in the long term. Experts agree this massive force will continue to be a driving force in the long-term price of gold and gasoline… U.S. debt. It is not emotional; it is not unpredictable. As a matter of fact, it is quite predictable. To clearly illustrate this point, let’s take a look at gold price action and debt accumulation since 2005. I can take this back all the way to 2000, or even further, and it will hold true. But then we would have to start inflation-adjusting the numbers. So let’s look at 2005 to the present and beyond. (The US Treasury was used to gather this debt data). All debt-data is January 1st and gold-price data is based on the monthly average for the month of January: 2005 US Debt = 7.6T, Gold = $430/oz., Gas = $1.82/gallon 2006 US Debt = 8.1T, Gold = $520/oz., Gas = $2.28/gallon 2007 US Debt = 8.7T, Gold = $635/oz., Gas = $2.40/gallon 2008 US Debt = 10.7T, Gold = $875/oz., Gas = $2.90/gallon 2009 US Debt = 10.6T, Gold = $855/oz., Gas = $1.90/gallon* 2010 US Debt = 12.3T, Gold = $1,100/oz., Gas = $2.80/gallon January 2011 US Debt = 14T, Gold = $1,360/oz., Gas = $3.15/gallon June 2011 US Debt = 14.3T, Gold = $1500/oz., Gas = $3.75/gallon May 2012 US Debt = 15.6T, Gold = $1650/oz., Gas = $3.90/gallon Oct 2012 US Debt = 16.2T, Gold = $1750/oz., Gas = $4.25/gallon And here’s where we’re going: 2013 US Debt = 17T, Gold = $1,875/oz., Gas = $4.50/gallon 2014 US Debt = 18.8T, Gold = $2,200/oz., Gas = $5.00/gallon 2015 US Debt = 21T, Gold = $2,600/oz., Gas = $6.00/gallon 2016 US Debt = 22.7T, Gold = $3,100/oz., Gas = $6.75/gallon 2017 US Debt = 25.5T, Gold = $3,575/oz., Gas = $7.50/gallon 2018 US Debt = 27-28T, Gold = $3,800/oz., Gas = $8-9/gallon *Artificially low as U.S. gas demand fell of the map as a result of the economic implosion in the fall of 2008. And so on, with many outside shots of inflation breaking out, banking systems imploding, currencies failing, or any host of black-swan events that could speed this trajectory. So we'll surge to $28 trillion in U.S. debt by 2018. Based upon the chart above, that will put gas at $9 and gold at $3800. Now do you see the pattern? The real tell is 2008 and 2009. Debt was higher in January 2008 than it was in January 2009, and guess what? So was gold and gas! This was likely due to the bailouts in 2008 and because there was a rush of debt creation to solve the debacle of 2008. Needless to say, debt was high. But no additional significant debt was created until later in 2009, and that skewed the debt-data in January of 2009. But gold wasn’t fooled, was it? You will also see the biggest jump in gold and gas prices correlated directly to the biggest jump in additional U.S. debt. To say that gold gives you fiscal TRUTH about the creation of debt couldn’t be more truthful. The reality is, an understanding of monetary policy and the history of debt-based money prove to be crucial in predicting the price of gold or how much the dollar will be debased against the single most needed commodity on earth… gas. Let's face the brutal facts. The politicians that run this country have no incentive to fix or repair anything, but instead just try to get re-elected. The bank pays you nothing, the fed robs you while you sleep, and the equities market traps your money with high risk while you earn modest dividends. Or there’s the U.S. Treasury market or the elephant in the room that will probably be the next meltdown. Forget the number. The economic forces that caused the price of gold and gasoline to double between the last two elections and appreciate 18% per year for 11 years straight, are not slowing down or going away; on the contrary, they are accelerating. The question for you is, how will you protect your wealth against gas and general price inflation? Why Gold Is the Enemy of Corrupt Banks One of the questions we commonly get from clients is, "How do I really protect my money in volatile times like these?" Well, it's a good thing you're asking us and not a run-of-the-mill investment adviser or banker. Pose this question to several investment advisers and you’ll probably get a different canned answer from each of them. One concept you will hear thrown around is that “diversification” is very important to wealth preservation. I completely agree. Unfortunately, it seems no one really understands true diversification. In today’s times, diversification means that everything you buy from a bank or bank investment house involves a stock, ETF, bond, annuity, CD, etc. The problem is, all of these instruments reside “inside the system.” But for true diversification, and to be prepared for the perilous risk facing the current financial system, you need some wealth “outside the system" – outside the fiat currency and paper-based/digital banking system. This way, if “the system” fails, you don’t. The big – or should I say “too big to fail” – banks all use very general risk models and fancy words like “asset allocation” to help decide where to place your money based on your “risk profile,” which is seemingly determined by a number of factors including your age, income (if you’re still working) and your goals for the future. In reality, the "TBTF" banks don’t care where your money goes in terms of different investment vehicles, just as long as it lives with their bank for as long as possible. The more locked up it is, the better. This is a very important concept to understand, because fractional banking relies on it and it creates imaginary liquidity for the bank. The banker, or “investment advisor” as they may be called, may suggest a municipal bond, a mutual fund, a CD, an individual stock, US treasuries, a combination of all of those things or an Exchange Traded Fund or ETF. For example, just ask an advisor about gold and they’ll sell you the ETF “GLD” as fast as they can to keep your money there – and that itself is a disaster waiting to happen. In the end, the only thing that matters to your banker is that your money, as much as possible, lives with that bank so that the bank can now create even more money from thin air by fractionalizing your wealth and taking risks with your money. Bottom line: if your money is in any traditional paper-based investment or exists simply in the computer of a bank or investment banking company, ALL of your wealth is at risk to a single catastrophic event. As Economist and investment adviser John Mauldin notes, “One of the very real problems we face is the growing feeling that the system is rigged against regular people in favor of “the bankers” or the 1%. And if we are honest with ourselves, we have to admit there is reason for that feeling. Things like LIBOR are structured with a very real potential for manipulation. When the facts come out, there is just one more reason not to trust the system. And if there is no trust, there is no system.” The point of this is not to contrast each different investment-vehicle against the others. It is to make the point that ALL assets outside of hard tangible investment assets live with a bank and can vanish right alongside the banks’ capital. In other words, if for example the global financial system were to collapse because of, say, Europe, you could have zero access to any wealth – literally overnight. Look, I have no idea whether the S&P 500 will perform better or worse than a tax-free municipal bond at 5% and, quite frankly, I can’t tell you which one has less risk. Your banker, by contrast, would like you to believe the muni is safer, but here's the reality: major cities in California have already filed for bankruptcy like San Bernardino, which was over a billion in debt, as well as Stockton. Therefore, today I wouldn’t consider any debt asset completely “safe.” Is an annuity right for you? Again, who knows? But they make great sense for the bank, because as soon as you sign on the dotted line, they know your money is not going anywhere for a while and it isn’t going to cost them very much to use it. Same situation with a CD. However, what I can tell you is that if you have ALL your wealth with BofA or Charles Schwab and the whole house of cards comes down, it isn’t going to matter what fund they have you in. Let’s please be very clear: the bank is not your friend. If you haven't been convinced by the bailouts of 2008, or the interest rates since then, or the banks’ unwillingness to make loans to small businesses over the past several years, then you should be convinced by stunning crimes committed by the world’s biggest banks. After the MF Global scandal, the PFG futures-broker scandal and the Libor rate-rigging criminal fraud, how can anyone have all of their wealth sitting in the absolutely corrupt financial and banking system? But then you must remember, perception control is the banker weapon du jour. “When it comes to building wealth, muddying the difference between perception and reality is the key manipulation tool that banksters use to goad people into wrong choices.” So, how do you properly diversify and protect your wealth and retirement? Gold and silver make the most sense as true diversification for many reasons. The most simple reason: they are hard money. We are struggling through a period of severe structural pressure on our global fiat currency systems, and the best hedge to any chaos in them is gold and silver. Gold has outlasted every paper currency ever printed, because all paper currencies throughout history have failed in time. The Euro will fail. The dollar will fail. That question has been answered by history. The bigger questions are: what will the new currency look like? Will there be more consolidation or less? Will it be global or regional? How much wealth destruction will occur in the process and – most importantly, how much will gold cost in the new currency? While no one knows the exact answers to those questions, what we do know from history is that at some point in the near future, there will be a reset of currency and even the very notion of what “money” is, just as there have been many times throughout history. The question is not if, but when. And when the banking system is teetering on collapse and the whole system needs a reset more than it needs another worthless stimulus package, gold is by far the best true diversifier and the only asset of last resort. The 7 Fundamental Reasons to Own Gold * Gold has outperformed and outlasted every paper currency ever printed * Gold remains the ultimate form of payment with no counterparty risk * Gold acts as safe haven in times of rising geopolitical tensions * Falling gold supply vs. increased investment demand means long-term gains * Gold prices would need to exceed the $10,000 mark to counterbalance all US public debt held in foreign hands * Half of all central bank’s gold has been leased into the market (about 15,000 tons), so that covering these short positions is not possible without catapulting gold prices to unimaginable highs * Negative real interest rates plague other investments Gold Tells the Truth What draws people to gold? You can’t eat it, live under it, or even buy things directly with it. Gold is an asset that is very expensive to mine, and once it has been dug up, people simply sit on it in hopes of maintaining or growing their wealth. So why is gold's value rising and how high will it ultimately go? As the president of Wholesale Direct Metals, I answer these types of questions every day for our clients. And the truth is, they’re simpler to answer than most people think. Gold's value is increasing because the amount of printed fiat currency is also increasing. Simply put, the increase of fiat currency devalues fiat currency. As long as the Federal Reserve (a.k.a. “The Fed”) and the central banks around the world keep printing fiat currency, the price of gold will continue to rise. Below are 6 graphs. They represent the printed money supply, called “M2,” for the US, China, the Eurozone, Japan’s central bank, the UK and India: By laying a chart of Gold over any of the above M2 charts, one gets a very clear indication how the printing of fiat currency effects the price of gold. With regard to money printing, Gold Tells the Truth. Assuming the Fed keeps printing – and they have no other choice (but that's another discussion about interest rates and treasuries) – gold will continue to rise. [...]... long­term   investment  vehicle   is   that,   while   gold   has   recently   traded   close   to   historic   market   highs,  numismatic coins are well below their historic highs.  Their upside profit potential  is very significant, while their downside risk remains quite small A   recent   study   by   Penn   State   University,   provided   to   the   Joint   Committee   on  Taxation of the House and Senate, showed that U.S. rare coins were a better hedge ... American Silver Eagle Silver Eagles are the official silver bullion coins of the United States.  First released  in 1986, American Silver Eagle have a face value of one dollar and usually trade at  a percentage above spot silver price.  They feature the Walking Liberty design that  was originally used between 1916 and 1947 on the obverse of the half­dollar coin.  On the reverse of these beautiful coins is an eagle design by John Mercanti . reason for that feeling. Things like LIBOR are structured with a very real potential for manipulation. When the facts come out, there is just one more