Wednesday, September 2, 2009

Survive the Depression and Prosper

Whiskey & Gunpowder
Whiskey & Gunpowder
By Gary Gibson

September 2, 2009
Baltimore, Maryland, U.S.A.

Survive the Depression and Prosper

Dear Whiskey Shooter,

Tapped out American consumers…

Mounting government debt…

Another wave of wipeouts in real estate on the way…

And that’s all just for starters!

You know it’s all coming. You know that it means that the worst is yet to come. So of course you’ll keep reading to make sure your survival strategy is in place…

Gary Gibson
Managing Editor,
Whiskey & Gunpowder

Secretive Society of economists, market players,
and world-class researchers and analysts reveal... 

The TRIPLE TIMEBOMB That Makes Market Recovery Almost IMPOSSIBLE in 2009 or 2010... but that could still make a few people very rich!

Elite alliance of experts warn: don't hold your breath waiting for a recovery this year or even in 2010. The three toxic timebombs they name below make a quick rebound next to impossible.

Yet, they also name seven "Super Shields" you can use to safeguard against further losses... plus at least five surprising "long" plays you can still use — even now — to get very rich.

Dear Reader,

I don't intend to buy a single stock this year.

Not one.

And not in 2010 either.

Frankly, when you see the shocking report I share below, I'm convinced you'll see why. You may even already agree.

Even so, what follows should give you more than enough proof... that even a partial market recovery is unlikely for at least the next 18-24 months.

If not longer.

This doesn't mean you can't protect yourself.

And it doesn't mean you still can't get very rich.

In fact, over the last 24 months, I've invested over $532,171 to back the research behind the stunning forecast you'll find below.

And I'm so concerned by what you're about to see, I've dedicated an entire team — including a top economist with over 20 years experience in global equity research and asset allocation — to help reveal opportunity in the midst of this unfolding crisis. 

You'll discover below how U.S. shoppers can no longer "save" the world economy... and why China's economic miracle can't save us either...

You'll find out why millions of jobs are gone for good, and how millions more could disappear before we're through... plus, how long-term collapse for the dollar is inevitable...

But you'll see, it's not all bad news.

There are at least seven "super shields" you can read about right now that can help protect your money... and my team has honed in on at least five ways for you to see potentially money-doubling and even money-tripling gains over the next few months ahead.

It's all in the report that follows.

Plus a lot more, as you're about to see.

But before we get into that, let's dig into the surprising forecast my team of elite insiders, analysts, and economists just shared with me. Because I'm confident you'll be as shocked as I was by what you're about to see...

Toxic Timebomb #1:
The Total Breakdown of the
American Consumer Culture

How many people do you know who have lived through a "real bust?" No, I don't mean the dotcom bomb or the Asian currency crisis.

I don't mean the 9-11 recession or the '87 market crash... or even the '74 market meltdown or the late '70s oil crisis.

I mean a full-on social and economic reversal.

Of course we haven't seen anything on that scale since the Great Crash of '29. And many of the witnesses alive to those events are long gone from our lives.

But do you remember... how your parents or maybe your grandparents talked about those times? They never seemed to forget.

How many "Depression survivors," for instance, still save scraps of paper and bits of string... rinse off tin foil... and wouldn't dare toss leftovers?

When you grow up knowing only good times, it's easy to forget that "thrift" and "value" were bedrock American values. And harder still to imagine an America that returns to those ideals.

But see, it's not the little busts and downturns that change behavior. It's the BIG ones that do it. And sometimes in long-lasting and radical ways.

Take Japan, today.

In the late 1980s, you might forget that Japan was busy buying up American companies at a breakneck pace. They too felt pretty rich. And we were sure they were out to eat our lunch.

Then their market went through its own credit meltdown. Just like the one we're seeing now, but on a smaller scale.

They have yet to recover.

Not just economically, with a stock market that's basically flat-lined for the last nearly two decades. But culturally too.

Already high Japanese savings rates exploded... car sales plunged by half and remain as low... cabbage long ago replaced meat on Tokyo dinner tables... middle class Japanese started washing their clothes in used bathwater.

Are these the destitute Japanese?

No. This is the well-employed Japanese middle class. With good jobs and incomes. But working and scrimping as though they could lose everything all over again.

What happens if the same consumer malaise locks into place here in America? A much longer recession or even financial depression than anybody is willing to imagine.

Yet there's ample proof this is exactly the radical shift underway...

In the bedrooms and boardrooms across America, we're waking up to a very scary realization. All those big houses we bought... the cars and fancy techno gadgets... the fancy clothes and furniture... the $100 dinners and $5,000 vacations... and suddenly we're looking back and realizing... we've got so little to show for it.

Look, it's not hard to do the math. Over the last three decades, we've taken one of the greatest industrial nations in history... and traded it off piece by piece. In its place, we became the world's #1 shopping nation.

Not makers, but buyers.

Even now, we're facing an economy in which 70% of our economic output depends on consumer buying.

No buyers, no recovery.

And yet, unlike other recent minor busts and even major corrections, the lesson hundreds of millions of strapped Americans are learning all over again is that same lesson our forebearers learned after 1929.

Namely, that the law of personal and financial responsibility is as irreversible as the law of gravity. And it's the egg that no bureaucrat — no matter how popular — and no multi-billion dollar bailout  — no matter how large — can unscramble.

In short, the hearts and minds of the American consumer have been thrown into reverse. And it's this total psychological "snap" that will make a back-to-baseline conventional recovery impossible any time soon.

The $2.5 Trillion Gorilla in the Room

This is vital. Because, you see, a lot of Americans — and a lot of people in the rest of the world — are counting on credit-card carrying American shoppers to jumpstart the global economic engine all over again.

But it isn't going to happen. And you don't want to bank your investments on the idea that it will. Or you'll risk even bigger losses than many Americans have suffered already.

Consider, right now, total private consumer debt is nearly $2.5 trillion. How serious is that? Well, with the way "trillion" gets tossed around these days, it's hard to imagine.

But you can already start seeing the massive paradigm shift taking grip when you look deeper into day-to-day details...

  • On New York's Madison Avenue, shops that used to sell $2,390 bed sheets and $2,400 handbags have packed up and slapped "For Rent" signs in their windows

  • Penny-pincher clubs are back. And coupon-clipping sites are getting some of the highest traffic on the Web. Discount sales and all-you-can-eat buffets have lines going out the door  

  • Last holiday season was the slowest in four decades. Meanwhile, luxury products are "out," showing off how budget-wise you are is back "in"

  • Big "box" stores continue to close at record rates too, while department store sales are down as much as 24%. The Gap? Sales are down 23%. Other clothing chains are down 22%

  • What's more, U.S. cars sell slower than in 1982. For the first time in history, China sells more cars than we do. Keep in mind, about 20% of all the retail in the U.S. comes from car sales

  • Planes can't sell seats in business or first class either. Not to mention a 20% drop in airline freight shipping. Meanwhile, train and truck shippers are in absolute freefall

  • Even FedEx and UPS — slammed by the double-whammy of crashing buyer demand and no-shipment digital book, document, and movie delivery — have seen overnight shipping profits vaporize.
You don't need me to tell you that adds up to trouble. But how much trouble? Total U.S. retail sales have rolled back to levels we haven't seen since 2005.

Imagine if every single retail shop opened in the last three years shut down overnight. It's already that bad.

Here's the thing. A lot of people, from Wall Street to Washington, have a great deal invested in you believing we can reverse that trend.

I'm writing you today to reveal another possibility... that the freeze in consumer spending and the consumer economy could actually take many more years to thaw.

I'm also writing to show you there's a move you can make — a surprisingly simple one that takes just minutes to arrange — that can give you back double any further downturn in consumer sales. How so? I'll explain in just a moment.

But first, let me just show the first of at least two reasons why this dangerous consumer crisis is about to get a lot worse before it gets better...  

The "Multiplier" That Could Soon Double the Impact of this Downturn

Take a look at this chart...

I'm sure you've read, that since the start of the downturn on December 27, we're already out 4.4 million jobs. And we're losing hundreds of thousands more each month.

How much deeper could this go?

Well, today's crash is already bigger dollar-wise than anything that we lost in 1974. And even back then, 1% of U.S. jobs disappeared. Do that today and you're talking about a total 13.2 million Americans out of work.

That's 13 million people not buying cars or new houses... 13 million cutting back on groceries... 13 million not buying flat screen TVs or going to strip malls... in fact, it's the same number of Americans who lost their jobs during the 1930s.

You've seen pictures.

The jobs that disappeared were the "multiplier effect" that turned a stock market bust into a decade-long downturn. Today's record setting job losses could do the same.

With an average of over 650,000 jobs disappearing in each of the first couple months alone... we're on pace to lose a total of 7.8 million jobs just this year.

Boomers cancelling retirement... middle-aged workers swarming college job fairs... at one Ohio high school, over 700 people showed up for a janitorial job... these aren't people set to dive back into impulse shopping anytime soon.

In fact, just like in Japan in the early 1990s, Americans have started saving — if you can believe it — at record levels.

Just in the last year alone, we've socked away $545.5 billion. That's the biggest glut of cash going under the mattress since we first started tracking U.S. savings rates... back in 1959!

Foreboding? Very.

But there's a second "multiplier" on the way that could drive consumer spending — and any dream of a consumer-led recovery — even deeper into the ground.

Even though you're not hearing much about this at all from political publicists or the TV talking heads...  

The Second Wave Property Meltdown That Nobody Wants to Talk About

You already know by now, I'm sure, that it was the first wave of defaults in "subprime" mortgages that sparked today's economic meltdown...

What you might NOT know is that there's a whole second wave of just as toxic mortgages in the pipeline... in a glut just as large... and potentially just as far reaching. You can see it for yourself, in fact, in the simple illustration below...

You can see that the first peak in subprime loan "resets" arrived smack dab in the middle of 2008. And many billions in bank write-downs... along with trillions of dollars in market losses immediately followed.

This second wave of toxic property loans, however — a flood what you call "option ARM" or "Alt-A" loans — won't hit peak resets until 2011.

What are these second kinds of toxic loans? These were the fancy mortgages snapped up by middle Americans... to buy homes nobody imagined would be worth a fraction of their selling price, just two years later.

And like I said, just like subprime, these loan contracts also carry a "reset" risk in the fine print, when already high monthly mortgage payments could as much as double — right at the height of the second biggest market meltdown since the Great Depression.

Millions more consumers will freeze up as their finances go over the cliff... more bank losses will drag down even more so-called "blue chip" retirement portfolios... and the impact of the consumer bust I've told you about will get "multiplied" yet again. Millions more Americans could lose everything.

But that doesn't have to happen to you...

The Double-Barreled Strategy That
Could Protect You

My colleagues and I have found seven simple "super shield" moves you can make that could easily protect you from an even deeper downturn.

Two of these could do very well directly because of the money that will continue to pour out of consumer-related assets over the months ahead.

One move is a neatly packaged "downside" play that could give you back double the value of any percentage downturn in consumer goods. In other words, if a basket of retail and related stocks drops another 5% or worse... you see a gain of 10% or better.

The second move gives you an equally neatly packaged way to gain as the money that's pouring out of retail... pours into one of the best gravity-and-recession defying sectors going today. I'm talking, of course, about the fortune still pouring into healthcare.

With the boomers aging and billions getting redirected into health resources, healthcare has outperformed ailing Wall Street for nearly two years in a row. And this second move can also let you make back as much as double every percentage uptick over the coming year.

You can read about both sides of this balanced play in a free report we've put together, Parachute Portfolio, Volume One: 7 Super Shields Against the Next Round of Market Wipeouts.

It's the first in a set of reports I'd like to send you, collectively called the Parachute Portfolio Library. And as you can see, it includes at least seven of these "super shield" plays to help you protect your money during the even bigger economic unraveling my alliance of experts foresees ahead.

I'll show you how to download the entire Parachute Portfolio Library free in just a moment.

First, let's continue with my team's forecast.

Because I need to make absolutely sure you see how the clock is ticking a lot faster than most people think...

Toxic Timebomb #2:
China's "Dirtiest Secret"
Gets Revealed

Vital to the idea of a global recovery... is the idea that China, at least, is still growing. And that, just maybe, they can help pull the rest of us out of this crisis by our bootstraps.

Is that a real possibility? Not by a long shot. And if you're placing any faith in a whole new Asian miracle, I urge you right now to reconsider. Especially if your wealth depends on it, as it might — in more ways than you imagine.

Consider Detroit. It once looked like a global mecca for capitalism and monument to progress, too. Have you seen it lately? It's practically a ghost town.

Now imagine the world's next industrial ghost towns — and you might be shocked to discover that they're already turning up. But not in America. Rather, in the Chinese provinces of Shenzhen, Guangzhou, or Dongguan.

See, while China's head honchos tout a rosier future for the "Red Dragon" economy than seems possible... over 15,000 factories in those areas I just named alone have already shut down... with many more slated to close over the months ahead.

It's an epidemic that's happening all across Asia, though you might not be hearing about the full scale of their meltdown on the evening news.

Half of China's toy factories have shut down. In fact, at least 67,000 factories overall closed in the last six months of 2008. With another 60,000 factories in the Wen Zhou Province alone about to shut down.

As many as 27 million Chinese are already out of work — with 20 million of them streaming out of the cities and back to the abandoned farms of the Chinese countryside.

It's not hard to figure out why...

China's Secret "Stealth" Depression

See, the "party line" coming out of Beijing says that even with the downturn... and with Americans not buying China's output... Chinese GDP could still grow another 8% this year.

But the facts on the ground tell a different story...

  • According to Merrill Lynch, China's economy didn't grow at all in the last quarter of 2008. And it's still contracting fast, ever since the start of this year

  • Of course, official Chinese growth last year topped 9%. But if you did the math the way we do in the U.S. and they do in Europe, the real growth rate — for the last three months of 2008 — was zero

  • Keep in mind that China needs at least 9% growth to soak up the 24 million new Chinese workers who come of age each year — something even the Chinese Premier doesn't like to mention.
Why the lies? It's a huge con game. Says expat Prof. Tian Xie of Drexel University, China's elaborate campaign to falsify GDP numbers "is all part of a sophisticated strategy to cheat the world." But China can't keep up the deception much longer...

  • In one huge textile factory — as big as 31 football fields and with 4,000 workers — the owner racked up $200 million in debts. Afraid to tell Beijing, he burned his records and fled the country

  • Officially, nobody's protesting about losing their jobs or going broke. Unofficially, dozens of riots have broken out in front of closed Chinese factories

  • 1,000 schoolteachers clashed with police over wages in early January. Hundreds of workers swarmed a city government building in Foshan, demanding back pay

  • In Northern China, a TV journalist covered a story about a hostile labor takeover in a textile mill. Local authorities immediately punished him and pulled the story

  • Creditors showed up to seize equipment from deadbeat borrowers at a factory in southern China. Police broke up a dozen riots in the aftermath, all of which they hid from the newspapers.
This isn't a modern-day coincidence. In the days of emperors, Chinese generals lied about battle kills... to keep from losing their own heads. In the days of Mao, farmers lied about crop results... even as 20 million Chinese starve to death.

Today, local bureaucrats fudge the books to get ahead in the Party... and the top dogs in Beijing lie to hang onto foreign investors. Padded revenue reports... fake production numbers... overstated employment... it's all part of standard practice.

To say so might not sound politically correct. But ask anyone who's done business there. Keeping a double set of books in China isn't just common, it's considered "good strategy."

Meanwhile, northeast China — home to 110 million people — looks more and more like rusted-out Detroit... only at ten times the scale.

You've also got under-regulated Chinese banks hiding as much as $500 billion in bad debts — China's own "subprime" loans to small businesses and Asian property speculators...

Plus, you've got a $40 billion tab left over from the Beijing Olympics... and a $140 billion tab for rebuilding Sichuan after their 2008 earthquake…

How Long Can China Hide the Truth?

Here's the bottom line:

China — with 80 different car makers to bail out... tens of thousands of huge socialist-era factories... and 100s of millions of workers to support — has a big problem.

Much bigger than they're letting on.

And it's not just China about to take an even bigger hit.

Korea, Singapore, Taiwan, Vietnam. Thailand. Malaysia. And Indonesia... just to name a few, all soared thanks to the China boom. Now they're going bust in kind.

Korean production alone is already down 14%. Japan is off 20%. Taiwan's exports have dropped 28.5%. Singapore is already deep into recession. Thailand's decayed into political crisis.

Until U.S. and European consumers come out of their shells, the new Asian meltdown doesn't end any time soon.

You remember how hard the Asian currency crisis hit U.S. markets in 1997. A total "miracle" reversal in the Far East could have much greater impact, especially in today's already battered environment.

And you'll want to take steps immediately to protect yourself, before that new wall of worry reverberates back here in the U.S.

Fortunately, taking those protective steps could be much easier than you might think...

How to Turn the New Asian Meltdown
Into Triple-Digit Safe Haven Gains

While Shanghai stocks haven't yet collapsed anything close to what we're seeing on this side of the ocean... it won't be long before they catch up.

Before that happens, there are at least two more simple "super shield" moves you can make to protect yourself and your money... and you can read about both in the free Parachute Portfolio Library I just mentioned.

Neither one requires you to bet in or against Chinese stocks or China's market as a whole. Rather, both focus on the Asian market that could backpedal even faster — Japan.

One takes about five minutes to set up and, in one play, gives you a proxy hedge against the entire Asian downturn. The other is a key "super shield" against a new collapse in Asian currencies.

I'm sure you remember the "Asian Contagion" currency crisis of 1997 and how fast that unraveled. Between 35-40% disappeared from Asian indexes. But anyone on the other side of that trend could have made a bundle.

With a new money meltdown in Asia on the way... as Asian governments race to save their export markets... this move that you'll find in the report gives you that chance.

You'll find both moves I just mentioned — along with five more "super shields" — in your copy of Parachute Portfolio, Volume One: 7 Super Shields Against the Next Round of Market Wipeouts.

This is just one of the reports in the Parachute Portfolio Library put together by a new alliance of concerned market experts, analysts and economists that I'd like to introduce you to.

In fact, I'll send you this private library of reports at no charge, included with your elite membership in this special elite society I've just mentioned.

Only members of this secretive new society will have access to these reports... plus quite a bit more... including nearly $10,000 in member benefits, at no extra charge... just as soon as you accept my special invitation.

But before we get to your special invitation, let me just take a second to introduce myself and this new alliance I've been telling you about...

Your Chance to Get Rich
While Making History

My name is Addison Wiggin.

Maybe you know me from two New York Times bestsellers I co-authored, Financial Reckoning Day and Empire of Debt. Or maybe from my recent award-winning documentary I.O.U.S.A.

I've also done many hours worth of interviews on Fox, CBS, MSNBC, NBC, Bloomberg television... as well as on NPR and in The Washington Times and The New York Times... and on local and national radio stations across the country.

In fact, for the better part of the last 15 years... I've dedicated most of my time to researching and writing about markets and economics. Why?

Because I believe in nothing more than I believe in our moral obligation to make the most of the financial opportunities handed to us by past generations... not to mention the importance of the wealth legacy we pass on to our children.

I'm appalled — disgusted, even — by what's happened on Wall Street and in Washington. But I also know it's nothing new.

Which is why, over the last decade and a half, I've done everything in my power to help like-minded Americans recognize these dangers... while still finding ways to protect and grow their own wealth.

That journey has taken me a lot of places. And it's given me a lot of experiences many Americans might never realize.

Sitting down one-on-one to interview Warren Buffett, Paul Volcker, and Alan Greenspan, for instance, which I had the chance to do just as this latest financial crisis started to unwind.

I've also met and talked at length with more than one former Secretary of the Treasury. And I've been lucky enough, as head of a $30 million international market research network, to rub shoulders with some of the world's greatest financial minds.

My team and I publish this research in many ways, as you might already know. In fact, just one of our best known research-sharing services, The Daily Reckoning, has over 400,000 readers.

But today, for the first time, I'd like to tell you about a very different and new kind of alliance. Unlike anything we've ever done before. And it may just be the most exciting thing I've ever been a part of.

It is, I believe, our chance to make history.

People Like You Who Understand
Wealth and Money the Way You Do

In this new alliance, you won't find armchair financial prophets and day-trading hopefuls.

It's a brand new alliance for the people like us — the individually ambitious and financially responsible, the informed and the disciplined, those who know what it is to make one's own opportunity.

Among your fellow members, you'll find working economists and analysts... top academics and best-selling financial writers... former financial insiders and international speakers... and more.

We call this new alliance the Richebächer Society, after the man who inspires us — the late great economist, Dr. Kurt Richebächer.

You may remember Kurt.

After all, it was Kurt who first predicted today's financial meltdown — at a time when the Dow crested 11,000 and property values still went up — almost to the letter, back in early 2006.

And it was Kurt who called the collapse of the Internet bubble in January 2000, only to see it happen two months later... and Kurt who called the collapse of the Brazilian currency in 1998... as well as his call on the Asian crisis in September 1996.

The list goes on.

And those who listened had the opportunity to make fortunes. In fact, in his lifetime, Kurt himself had the ear of world leaders and billionaires, leaders of industry, and other financial "celebrities."

Kurt's friend, former Fed Chairman Paul Volcker, showed up at Kurt's retirement party. Legendary economist Murray Rothbard referenced his work. Former German Chancellor Helmut Schmidt once tried to have Kurt silenced, because he criticized what he saw as reckless financial policies of the German government.

Kurt passed away in August 2007, at the age of 88.

It was my privilege and honor to help him share his research with his own "inner circle" of elite readers. Today, it's my duty to make sure his legacy lives on.

Not just for us, but for the handful of like-minded thinkers who I know understand what Kurt did about the integrity of markets, about economies, and about real wealth and how it's created.

That's why I want you to have my special invitation to join us today, as the Richebächer Society's newest member.

In the months since his death, I've spent over $532,171 building this alliance. And the "parachute portfolio" strategy is just a fraction of the opportunities we've managed to uncover so far.

But before you race ahead for details, let's take a close look at the last of the shocking events our new alliance — building as we have off of Dr. Richebächer's own groundbreaking research — has uncovered.

Because, frankly, this third threat could have an even bigger impact on your wealth than any of the stock market or property value devastation we've seen so far...

Toxic Timebomb #3:
The "Full-On" Collapse of
the American Greenback

Brace yourself for America's "Minsky Moment."

What's a "Minsky Moment?"

Said great American economist Hyman Minsky, it's easy to take on big risks when times are good. Financially, that includes big debts.

But pretty soon, the risks get bigger than the reward... the bills come due... and you have to start dumping assets just to cover your tail.

And that's exactly what's about to happen now. This is the big secret behind today's endless cycle of booms and busts.

Every bubble has its breaking point .

It's what's already happened to real estate. It's what's happened with the big selloff in stocks.

And now it's what’s about to happen to the U.S. dollar too... and quite possibly, the idea of America itself.

The Giant Pin About to "Pop" the American Bubble

The U.S. dollar has been the world's "go to" currency for decades, backed by faith in the U.S. economy. But if you get paid in dollars or save in dollars, you have to ask yourself...

How much longer can that last?

Kurt himself wrote his warnings well before this current crisis sent markets collapsing. See, even back in 2006, experts at the Fed were already hinting about "positive inflation" as a tool to fight off an economic collapse.

And Kurt was already warning us against it.

He warned too about the insane debt leverage we were handing over to China and other foreign lenders.

You've seen what's happened since.

The Fed not only ignored these warnings... they're actively moving us down the same destructive path as before... but at a pace unprecedented in history.

I'm sure you can see where that's taking us, too.

With trillions pouring into the black hole of badly managed banks... and pouring into U.S. treasuries, in the form of more loans from the already agitated Chinese.

This cannot continue.

I urge you to protect yourself and your money while you can. Especially now, with just shy of $11 trillion in debt already piled up... another $8.5 trillion already committed to the bailouts... and $3.6 trillion more in new spending on the table.

Think about it this way...

Even now, we're fueling our own "rescue" with unequaled borrowing from overseas. But just how much faith would you put in an I.O.U. from a friend in our situation?

Shrinking job prospects, a sky-high credit card bill, a chronic gambling problem, nervous creditors, and a bad habit of lying about the balance of his bank account... we've spent billions on the bailouts, but haven't done much at all to fix the core weaknesses.

Even Obama admits this can't go on forever.

He recently told 60 Minutes, "If we don't get a handle on this and also start looking at our long-term deficit projections, at a certain point people will stop buying those Treasury bills."

You'd better believe it.

Take a look at this chart...

China alone backs U.S. spending with dollar reserves worth nearly $2 trillion. These are the loans we use to fund our bailouts and more. What happens when those loans no longer look like a good deal?

With China slipping into crisis mode, that day could come a lot sooner than you might think. Already, China's prime minister Wen Jiabao says he's "worried." And both China and Russia have already called for a new world reserve currency.

All it would take is a shift of opinion...

And the dollar could go into freefall overnight!

In fact, no matter what our overseas lenders say in public... privately they've already started slinking toward the exits. Three times in the last four months of 2008, they dumped U.S. long term securities. Not just the Chinese, but Japan, India, the Saudis, and Europe... just to name a few.

When even your dollar savings aren't safe... what do you do?

Dollar Super-Hedges That Go Even 
Beyond Gold

Gold is obviously one smart place to go when dollars are headed for a sudden down spiral. For instance, consider right now that just 1.1% of China's "other" foreign currency reserves are in gold... compared to nearly 80% gold in our foreign currency reserves here in the U.S.

If China decided to try to match our GDP-to-Gold ratio, that would soak up three-quarters of the world's total gold production for an entire year!

Sound crazy?

They're talking about it.

Hou Huimin, vice chair of the China Gold Association says, "China should have at least several thousand tons of gold in its reserves, five to six times the officially announced 600 tons."

Even if China switched over to 3% gold reserves — triple the gold reserves they hold now — that would send the bullion price through the skylights.

Hold gold and you could ride that trend.

But holding physical gold isn't your only option.

For instance, in your members-only report, Parachute Portfolio, Volume One: 7 Super Shields Against the Next Round of Market Wipeouts — you'll read about another "super shield" play that can pay you a dividend as high as 14% right now, even as Treasury notes pay next to nothing.

Plus, in your second report, called Parachute Portfolio, Volume Two: The Only 5 "Long" Market Moves You Need to Make in 2009-2010, you can read about a second move that lets you get gold's inflation-protection power at one-tenth the spot price of bullion.

You'll also discover a third inflation-beating move that should soar, given the tidal wave of government cash in the pipeline... plus, two more moves as piles of that money flow into "green" technology and crumbling U.S. infrastructure.

And of course, as a new member of the Richebächer Society, you'll also get a free copy of my own 218-page book on the coming greenback crisis, called The Demise of the Dollar and Why It’s Great for Your Investments.

This book sells on Amazon. But I'll send it out to you free, the moment you accept my special invitation. I only hope that I'll hear back from you in time...

The Only Financial "Playbook" Worth Following During 2009-2010

Look, here's the bottom line.

I know you can easily find "experts" out there with two-bit explanations of what's going on. I know you're already swarmed by headlines and financial shows, newsletters, magazines and more.

Every one of them with something to say. With some who are right on the money and others who haven't a clue. But the brand new Richebächer Society isn't any of that.

The idea behind our alliance is much more simple...

See, we don't plan to wait for someone else to "fix" this mess. We don't plan to sit by and watch it ravage our wealth, either. We're not looking for tin-pan insights or cheap thrills.

Instead I've organized what could be the best team of analysts in the business — lead by a real economist with 26 years of top analysis experience — to take a whole new kind of look at what's really going on.

This is not insight for small-time players. This is advanced and serious research. For equally serious and enlightened men and women.

I have reason to believe you belong with us. And I sincerely hope you'll accept my invitation...

Your Chance to Join
the Ranks of the
World's Elite 

Simply reply to your invitation at the end of this letter, and you’ll receive a broadcast of a very special interview with Dr. Richebächer's natural successor and the editor of our new Richebächer Society, economist Robert Parenteau.

Rob was the chief U.S. economist and investment strategist for RCM, one of the investment management firms of Allianz Global Investors. And has over 20 years experience guiding global asset allocation, sector research, and equity selection for that same firm's top portfolio managers.

Rob has also founded and runs his own market analysis firm, rooted deeply in the same kind of disciplined macroeconomics Dr. Richebächer subscribed to in his lifetime.

In his members-only interview, he's going to tell you exactly how to read these three "toxic timebomb " events we talked about. He'll also walk you through the entire strategy you'll find in the Parachute Portfolio Library I'll send.

In fact, I've arranged for you to receive the full library as well, so Rob can explain it all with the full grounding of his considerable expertise.

But that's just the start. Let's just run through what you'll receive the moment you decide to join...

Everything You'll Get as a New
Member of Our Special Alliance

Once you accept my special invitation, here's what you'll receive...

1) First, You'll Immediately Receive the Complete "Parachute Portfolio Library"...

The most urgent thing I can do for you, the moment you tell me you're ready to join, is to rush you the complete Parachute Portfolio Library we talked about.

This is the set of two straight-talking special research reports that reveal exactly how to hedge yourself against the remainder of this crisis... and how to find the handful of recommendations you actually can still count on, even during the rest of the turbulence ahead.

Inside The Parachute Portfolio, Volume One: 7 Super Shields Against the Next Round of Market Wipeouts, you'll find a definitive guide to seven "super shields" against the most toxic economic events of 2009-2010, each one of them easy to follow and spelled out in full detail.

And in your copy of The Parachute Portfolio, Volume Two: The Only 5 "Long" Market Moves You Need to Make in 2009-2010, you'll find five more market plays not only safe enough to make over the next 12 to 24 months... but with the potential to double or even triple your gains.

You won't have to wait long to receive this library. In fact, the moment you agree to accept my invitation, I'll rush you a private password and a web link where you can download these reports.

Your two-volume Parachute Portfolio Library is conservatively worth $98. But both reports in the library are yours free, just as soon as you accept my invitation to join.

2) Next You'll Get a FREE 218-page Copy of My Popular and Newly Updated Book, The Demise of the Dollar and Why It's Great For Your Investments

With a wall of bailout reserves backing up in the vaults of stingy banks... and U.S. consumers too terrified right now to spend... we're watching prices fall in most big assets, not take off.

Yet gold is creeping upward. Why? And what's the truth about gold and the role it could play in protecting your wealth from the rest of this crisis? Many experts are getting it wrong.

This book not only sets the record straight, it also outlines a total of seven ways to protect and grow your wealth — not just in spite of a coming U.S. currency collapse, but as a direct result.

This book debuted on at $20.

But I've made a special arrangement to get you a complimentary copy, as one of the gifts you're entitled to as a charter Richebächer Society subscriber.

3) You'll Immediately Start Getting Weekly Portfolio Updates:

Rob Parenteau has agreed to email you targeted updates every week on everything vital that's happening with the "parachute plays" outlined in your member library... with the economy... or with the other opportunities you'll discover as a Richebächer Society subscriber.

Given that Rob is not just an economist with 24 years of experience as a global investment manager... but also the senior proprietor and sole founder of a macro-strategy investment firm... that's an enormous "members-only" advantage right there.

And worth a fortune, all by itself.

Easily, a research service like that is worth at least $549 per year. However, you'll get Rob's weekly briefings free for a full year, along with everything else, when you accept my special Richebächer Society invitation.

4) You'll Also Start Getting Our Elite Monthly Bulletins:

For nearly two decades, the Richebächer Letter has been a trusted "insider's" resource to some of the world's most intelligent and advanced investors and market commentators in the world.

With Dr. Richebächer gone, we had to withhold the letter until we could find someone as skilled at stripping away the mainstream fluff... and as brilliant at unearthing and revealing the kinds of powerful, one-of-a-kind insights the good doctor himself used to produce.

But with economist Robert Parenteau guiding the Richebächer Society, we finally have someone who helps the great tradition of the Richebächer Letter continue, bringing fresh new and in-depth analysis to our small circle of elite readership, every month without fail.

I know of no resource like it.

When Dr. Richebächer was at the helm, the letter itself cost members $497 per year. But you'll not only get the letter, as the cornerstone of my invitation, but nearly $10,000 in the rest of these new member benefits... at no additional fee.

Of course, there's still more...

5) You'll Also Have Unlimited Access to The Society's New "Blog & Daily Dialogue" Forum:

Dr. Richebächer pounded out his first issues and analysis on a typewriter. Today, we have access to technology the good Doctor never imagined.

Who could guess, for instance, what he would say as we launch our entirely new members-only "Blog & Daily Dialogue" forum.

This is your online space where Richebächer Society members can read new market insights and launch into exchanges with other Society members.

Frankly, this is too new for me to know how to value it. But it's clearly worth at least $49. However, it's yours as a member. Use it as often as you like, whenever you like.

Free for an entire year, as a charter member of the brand new Richebächer Society.

What's more...

6) Every Quarter, You're Invited to the Private Society Conference Call

Each financial quarter, we'll gather on a member's only conference call.

You can participate from anywhere. And you can listen live as Rob and other financial experts dissect what's happening now — and next — across the markets and the world economy.

If the timing isn't convenient, you'll have the option of listening online or downloading an audio recording. You'll also get the chance to download and print out the full transcript.

A ticket for this kind of session with a top financial analyst and seasoned economist — live — would be worth at least $249 for even just a single call. As a member, you'll get four of these members-only conference calls per year, for a total value of $996.

And it's also included with your Richebächer Society membership. Just in case you're keeping tabs, that's already $2,209 in value.

And there's still more...

7) You'll Also Get Dr. Richebächer's Famous "Last Interview"

Every member will immediately receive a full transcript of Dr. Richebächer's now-famous "Last Interview" with investing expert Eric Fry, recorded live at Kurt's home on the French Riviera.

You'll read as Kurt exposes one prescient forecast after another about the financial crises... which at the time, had yet to unravel. From his call about the peak in real estate... to the impending implosion of credit markets and the Wall Street catastrophe... and quite a bit more.

What's especially shocking, though, is how much more we're in for if Kurt's already stunning forecasts continue to prove true. You'll see what I mean when you read the full interview.

This full, uncensored transcript is easily worth $149. But you can download your copy immediately, free with the rest of your Richebächer Society materials, just as soon as you agree to sign on.


8) You'll Also Receive a "Virtual Key" to $6,947 Worth of Richebächer Research

Your membership also includes a "virtual key" to the final seventeen and a half years of Dr. Richebächer's personal market research and analysis. It's all there, available in a fully searchable online archive.

This is like having your own veritable Encyclopedia of Modern Markets and Economics.

In my opinion, this is a priceless resource.

But if I had to put a monetary value on it, the most natural thing to figure out what others would have paid to gain access to Dr. Richebächer's brilliant research over that same period — a total of $6,947.50, at standard subscription rates.

You'll pay nothing of the sort.

The entire seventeen-and-a-half year archive is yours to use as often as you like — including free access for a full year — just as soon as you accept my invitation.

There's still more...

9) You're Immediately Invited to All Private Richebächer Society Gatherings

Every year, we host one of the largest and best-known financial conferences, the Agora Financial Investment Symposium in Vancouver. For the first time this year, we'll be hosting a special private event at the same conference, exclusively for Richebächer Society members.

We'll sip fine wines, mingle, and then listen to a private briefing from an invited guest speaker. As a member of the Society, you're automatically invited to this private event. And if you can't get to Vancouver this year, you can watch the speaker's presentation on the private Richebächer Society website.

This private event could easily be $100 per person. However, as a member, you and a friend are both automatically entitled to attend these side events at no additional charge.

10) You'll Play an Official Role in Awarding the Annual Richebächer Scholarship Prize

One of the greatest missions of Dr. Richebächer's 42-year career — and one of his great concerns in life — was that the study of macroeconomics was all but dead in today's colleges and universities.

That's why I'm proud to announce that the official Richebächer Economics Scholarship, to be awarded to a student with excellence or promise in the study of macroeconomics.

This crisis, these half-baked bailouts, they largely result from a widespread lack of understanding of basic economics. You'll have your chance, as a Society subscriber, to vote on candidates learning how to change that by the pursuit of excellence in economics studies.

11) You'll Help Nominate the Next Recipient of the Prestigious Richebächer Award

As I said, in the past, I've sat for long one-on-one interviews with two former Federal Reserve chairman... two former White House Treasury Secretaries... the world's richest investors... and more.

I've also appeared on CNBC, MSNBC, Fox, and more, to talk about some of the very same issues you and I discussed here today. That kind of exposure gives me access to some of the top minds in markets and economics today.

It's also going to give us, as members of the Richebächer Society, a special opportunity to reward those who continue the work Kurt Richebächer dedicated himself to during his lifetime.

And as a member, you'll have a chance to be part of that.

Each year, we'll select a recipient for the honorary Richebächer Memorial Award for Excellence. Anybody distinguished in the fields of economics or financial research could be a candidate. And when the time comes, you'll have a spot on the member "board" that helps us make our decision.

And finally, if you respond right now...

12) You'll Get the "First Interview" With Economist Rob Parenteau

When we lost Dr. Richebächer at age 88, we knew immediately that we couldn't rush the search for a spiritual torch-bearer and natural successor to his legacy. Economist Robert Parenteau more than fills those shoes.

You'll see why when you dig into the printed and audio "first interview" with Rob that's also included once you sign on to try the Richebächer Society.

Even now, Rob sees even greater debt-driven dangers lurking on our horizon. The good news is that, he also has a very simple strategy that he can share with you, including things you can do now — immediately — to prepare.

Few are willing or able to share these details. But Rob will reveal all.

To get this benefit — worth at least $149 — free as a new member, I must hear back from you today.

All told, everything you get when you sign on adds up to...

$9,554 in Member Benefits
(And They Can Be Yours Today
— At A Remarkable Rate)

Naturally, the Richebächer Society is for elite members... individuals who are ready and able to grasp advanced insights and who understand the value of "Big Picture" thinking.

Which is precisely why I've chosen to write to you today.

It's also why my team has so carefully put together this package of new member benefits — worth at least $9,554 total — to help assist and inform you immediately, should you decide to join.

Please understand, this is not a conventional research service. This new alliance is specifically designed for men and women who can appreciate the higher quality of service and analysis the Richebächer Society intends to offer.

Like Dr. Richebächer, our chief analyst Robert Parenteau is a published and working economist. His insights will not pull punches. Nor will they treat you like an amateur.

In fact, it's no accident that Rob has been a chartered financial analyst for nearly 19 years. Nor that he's also a macroeconomics Research Associate and lecturer at the prestigious Levy Economics Institute of Bard College... and a scholar in the works of economist Hyman P. Minsky.

I did NOT want day trades or watered-down, feel-good market research for Richebächer Society members. And I know you wouldn't want that either.

So as long as you know the level of what you'll receive, I'm confident you'll enjoy it just as much as the rest of our "inner circle" of elite members.

Of course, creating an elite circle of like-minded thinkers like this has challenges. As I said, I've made a substantial investment in building this alliance already.

From hiring Robert and his team to hosting the archives... sending out the monthly briefings and weekly alerts... creating the conference calls and the transcripts... arranging society functions... you can imagine that it adds up quickly.

So, to make sure we can sustain the highest level quality... in both the research we produce and the members we attract... here's what we're going to do.

I would like to give you membership in our brand new Richebächer Society... including benefits worth a minimum of $9,554... at the cost of only a subscription to the elite research advisory letter itself, which was set long ago at $497. You pay nothing additional for the other benefits.

That works out to just $9 and change per week — less than you'd shell out for a handful of financial magazines or leading business newspapers.

That's truly an impressive deal.

Here's one more thing...

Your 30-Day 100%
Satisfaction Guarantee

Simply fill out the charter membership invitation that follows this letter.

Your Richebächer Society benefits will start arriving immediately. Look over our research. Start using the insights to safeguard your wealth. Review Rob's recommendations for how to multiply gains, even over the duration of this world-shaking financial crisis.

You've got a full 30 days to decide for yourself if everything I've said about the new Richebächer Society lives up to the deal. If I'm wrong or if it just turns out — for any reason — this isn't your cup of tea, shoot me an email or call the member's hotline. I'll send you a full refund, even if it's the last day of your trial period.

Of course, you'll still get to keep the free Parachute Portfolio Library, your copy of the interview transcripts with Dr. Richebächer and Rob Parenteau, the 218-page copy of The Demise of the Dollar and Why It’s Great For Your Investments, and all the issues and briefings you've already received.

No questions asked.

No Matter What,
You Have Nothing to Lose

You risk nothing.

For an experience inside of a community unlike any other.

Still trying to decide?

If you're the kind of person who worries about bond investments... if you have substantial wealth that's impacted by inflation or currency swings... or if you own real estate, either private or commercial, worth quite a bit of money... then you're the kind of world-class individual who belongs inside this inner circle.

If you're heading up your own growing business empire... if you're the kind of person who understands the worth of offshore bank accounts... overseas investments... or the simple unvarnished truth about markets, wealth and the economy... then this is for you.

Even if you're simply as morally offended as I am by the tsunami of debt and reckless spending that's taken hold with American consumers... and worse, our own government... and the shameful multi-billion dollar handouts they've doled out almost unrestricted to the banks and financiers...

I assure you, this special invitation is for you. I hope to hear from you today.


Addison Wiggin, Founder
Richebächer Society

P.S.: Remember...immediately when you sign up, you receive the $9,554 in benefits and exclusive access I described — for just a fraction of that price. Please let me hear from you today… 


AGORA FInancial

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