The Unfolding Dollar Crisis
There is a crisis unfolding that all of us can sense. It feels a bit like the year 2000 all over again, when the media was thumbing its nose at Gold and hyping dot com Stocks that were all the rage. The NASDAQ peaked at 5,048 before it lost 80% of its value.
Perhaps it feels more like 2007 when Greenspan’s Fed flooded the country with cheap home loans, inflated the housing market via phony credit applications, ending in the 2008 mortgage crisis and financial meltdown that nearly took down every bank in the country. Yes, something is very wrong especially as Washington’s borrowing and spending remains out of control. What’s coming next may really catch many Americans by surprise. If you’re not prepared, then you could end up losing everything you’ve worked so hard for all of your life.
Irrational Hype of Stocks
Over the decades, the Austin Report has warned readers of irrational exuberance in Stocks, and we feel the same way today. We warned of massive Government spending and debt accumulation, yet it continues unabated. We warned of the unexpected consequences of the Federal Reserve fueling $3.2 Trillion of newly created money into the U.S. economy. Each month in 2014, $65 Billion more is mindlessly created. We warned that excessive money always ends up in the pockets of bankers and Wall Street executives— resulting in artificially historic high prices for Stocks. We have been right time and time again.
Today, we’ve issued another clear, unmistakable warning: “Take Cover in Face of a Falling Dollar.” As the Federal Reserve creates seemingly endless amounts of money out of thin air, and Washington spends it, the Stock Market soars. So, maybe the economy perks up a bit, but people only feel happy for a while. That is, until the Fed bubble deflates into the next crash. As you’ll learn in this report, as excessive Dollars are fabricated, the value of every other Dollar in existence loses buying power. What’s next is almost unthinkable.
A Falling Dollar Would Kill the Economy
Today we’re warning our readers of the quietly developing currency crisis. The coming Dollar crisis is of such magnitude that it will change the value of every investment you own. This is what you’ve been worried about.
Those who know the facts early can take cover from Stocks and Bonds as the U.S. Dollar sits on the verge of extinction as the world’s only reserve currency.
Our nation’s enemies are not standing idly by as our Central Bankers have printed Billions then Trillions of new dollars— a total of $3.2 Trillion “new” Dollars, in fact. That’s three times the total national debt when Ronald Reagan was President. Even after the taper, Dollar creation remains at $65 Billion every month. It’s ridiculous to think the Fed can get away with it!
Why Debt Will Kill the Dollar
Our Federal Reserve knows fully that every new Dollar printed decreases the value of every existing Dollar.
When the paper printing gets this out of control, the Fed risks that the world’s only reserve currency may be on the brink of disaster. Remember the 2007 crisis?
Every Paper Currency Ever Invented Has Failed
We may be on the verge of the U.S. Dollar following history’s trend. Here’s how the death of every paper currency has unfolded from Roman times till now. Government spends and spends. They borrow when they spend more than comes in. In our case, the U.S. has amassed a $17 Trillion national debt.
Sadly, our politicians never attempt to pay down the debt, they only pay the interest, and they continue to spend.
Congress raises taxes until it can no longer tax its citizens anymore. They continue spending until they finally must print money just to pay the bills.
Debt and Currency Creation Matters
For a sovereign nation, debt and currency inflation destroys everything. Over time, the value of the paper currency declines, slowly at first. Inflation rises noticeably as the cost of housing, food, gasoline, energy, and consumer goods rise 10%, 20% then 30%.
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Real food prices have surged dramatically over the last quarter.
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Government officials lie about inflation by excluding food and energy from the equation. Inflation steals buying power from every income bracket, and people suffer.
At some point, our trading partners get angry. They attack our currency scheme that steals money from the U.S. Treasuries they hold. Finally, these countries refuse to accept our paper IOUs. No one will loan us money to buy things from China or Europe, so imports slow. Shortages develop, prices escalate rapidly, and the U.S. economy stalls.
If the excessive money creation continues, there will be a mad rush to dump Dollars— first by our enemies, then by everyone. This will create a Dollar sell-off and panic.
China’s Big Gold Shocker
Until something drastic changes, each day America gets closer to this “day of reckoning.” It may shock you to learn that an economic war is already underway.
Our angry trading partners will not need missiles, bombs, or tanks to wage war on America. It will only take a strong economic power like China, with money and time, to push the U.S. Dollar over the cliff. It appears the process has already quietly begun.
Major economic agreements between nations with larger populations and larger economies than ours are already happening. The economic and currency wars are underway.
Asia is the New Leader
In 2012, China surpassed the U.S. as the world’s largest trading nation. India & China’s “emerging economies” have a population of more than 2.5 Billion people, and can no longer be considered third world countries. This is more than twice the population of all of North America and the entire European Union combined.
For too long, the U.S. has abused its world reserve currency to export inflation and create a burgeoning debt that’s mathematically impossible to repay. No wonder China wants to replace the Dollar with Gold-backed Yuan creating a very different world order.
No wonder the rest of the world is fleeing from Dollars. The Federal Reserve’s QE3 stimulus program is representative of what is happening to the current Dollar denominated paradigm - they have been forced to purchase $80 Billion per month in U.S. bonds.
Why did they have to purchase those bonds? Because the rest of the world refused to. The implications of this policy spells the beginning of the end of the U.S. Dollar’s prominence on the world stage.
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The Federal Reserve owns more of our own debt than any other country in the world
and in 2013 they purchased 150% more of our debt than all foreigners combined.
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| Ultimately, will you want to own the Dollar, the Yuan, or Gold? |
China Announced They’ve Expanded Their Gold Reserves By 76%
The reason behind China trading Dollars for Gold is a smart strategy. China owns some $1.227 Trillion Dollars in U.S. Treasuries and the interest we pay them does not cover inflation. Every day, they are worth less. These IOUs are backed only by the “full faith and credit of United States Government.” To put it bluntly: Our trading partners, including Japan and China, have lost faith in the Dollar.
Worse yet, China fears America may default and never repay our loans to them. You’ve heard already of China’s mad rush to trade U.S. Dollars for our pork factories, theaters, oil, gas, and rare Earth minerals.
This May Be a Big Shocker
It may surprise you to learn just how many U.S. Treasury IOUs China has traded for Gold.
- China just surpassed France and Italy to hold the third largest Gold reserves in the world.
- China purchased enough physical Gold last year to equal all the Gold mined in the world.
- When Gold ETFs liquidated in 2013, China bought up all the physical Gold it could.
- China refuses to report their total Gold reserves.
China Buys Gold at Any Price
Gold prices falling last year were a real mystery to many of us. While paper Gold prices slid, the demand continued to be very high for real, physically delivered Gold. Despite falling Gold prices in 2013, China hoarded record amounts of the yellow metal into their Central Treasury.
China is not concerned if Gold is trading at $1,200 or $1,600 today— it only cares what Gold will be worth in the future. We should all feel the same way.
Officials are very worried about the Dollar. China is betting Gold will outperform Dollars in the long run. Why else would they buy so much of it? They believe Gold will again play a significant role in international trade, as it has always done throughout history, up until 1971 when the U.S. got off the Gold Standard.
China is bound and determined to replace the U.S. Dollar’s stranglehold on world trade. One way to do that is to replace the U.S. Dollar with China’s Yuan as the world’s only reserve currency backed by Gold.
They are Winning the Currency War
Currency war, also known as competitive devaluation, is when countries compete against each other to achieve a relatively low exchange rate for their own currency.
China’s efforts are well underway. In March, the Bank of England and the People’s Bank of China agreed to settle trade transactions in the U.K. using the Yuan. This makes China’s currency a serious rival to the Dollar’s supremacy in global trade, which should concern every American.
This follows Germany, New Zealand, Australia, and Japan’s agreement to make their currencies convertible for China’s Yuan. Only by circumventing the U.S. Dollar, can China truly control its own destiny.
The Disaster You've Sensed Is Coming
We’re worried that the U.S. Dollar is destined to fail as the world’s exclusive reserve currency. The Dollar remains fragile. Any event, at any time could trigger a sudden, sharp sell-off of the Dollar. That’s why China is hoarding Gold and why you need more Gold too.
We’re all in this boat together as Americans. This growing risk threatens to change the value of every investment you own. As this exclusive Austin Report sinks in, you can understand why we are absolutely confident in our opinion.
The Gold Bull Is Not Dead
The early stages of the bull market for Gold have generated profits of over 475% from year 2000 until March 2014.
Likewise, Silver has followed suit and created profits of 400%. Impressive? Yes! But, we believe the 21st century Gold Bull Market run is far from exhausted. In our opinion, the best profits are still ahead. We recommend buying Gold now and taking advantage of the current bull market lull.
Forecasts of $5,000 Gold
How high can Gold go? Our answer is— it doesn’t matter. Theoretically, the fall of the Dollar could take Gold to extreme highs. The price of Gold is (generally) inversely related to the value of the United States Dollar. Some experts use this to justify their forecasts for $5,000 or $10,000 Gold. We do not.
Frankly, we aren’t concerned with the value of Gold today or next month. We own Gold so it will retain its future buying power years from now since we know the Dollar cannot.
When the Dollar crisis finally unfolds, we will depend on Gold to sustain our buying power. We will be thankful to have preserved our legacy of wealth to take care of us in retirement and hand down to future generations.
As Mark Twain once said, “I’m more concerned with the return of my money than the return on my money.”
Buy Before the Breakout
Since we wrote our first Austin Report article about Gold and Silver some 15 years ago, we’ve always recommended precious metals as a core holding. We’ve urged anyone who owns no Gold and no Silver to protect themselves against unpredictable events.
You can see that readers who heeded our warning have avoided Stock losses time and again. They’ve also multiplied their wealth as Gold value soared 475% and Silver is up 400% since the year 2000.
We admit there have been an extraordinary number of events to reward people who owned Gold and Silver. All came totally unexpected just like the Dollar crisis.
There was the dot com crash as the NASDAQ lost 80% of its value. Then after the 9/11 Terrorist Attack investors suddenly lost $1.2 Trillion in Stocks. The 2008 Sub-prime Mortgage Crisis ended in a near financial meltdown for banks across the globe. Just like insurance, you need to own precious metals to protect against the unexpected.
Plan Your Dollar Escape by Diversifying Now
Today, we are warning again of the inevitable destruction of the U.S. Dollar as the world’s only reserve currency. If the Dollar falls dramatically, as we fully expect, Gold’s value will multiply many times over.
Diversify your life savings; defend against a Dollar crisis or a Stock and Bond meltdown. Follow China’s example and hoard away Gold while it’s relatively cheap.
We believe this is a time to be extremely conservative with your family’s savings. The coming Dollar crisis could make the dot com bust and 2008 financial disaster look like a day in the park. When a nation’s currency collapses, inflation soars until hyperinflation eventually destroys all buying power.
Buy More Gold, Silver, Hard Assets
If you don’t own Gold or Silver, consider purchasing now while prices are very attractive. We’ve long recommended a core holding of 10% to 20% of your liquid assets in precious metals. Only you can determine how much is enough.
Austin Rare Coins & Bullion’s team of Gold, Silver, and Rare Coin Specialists are here to help recommend the best private, non-reportable forms of Gold and Silver to add to your portfolio. Call 1-800-928-6468 with any questions.
Reasons to Buy Gold Today
- As an alternative investment to holding risky paper Dollars.
- To protect family wealth from years of inflation.
- Diversification from holding bonds or bank savings paying less than inflation.
- For freedom and independence from Government intrusion into our lives.
On one hand you have hard assets like Gold and Silver that are beginning a recovery after a strong correction. On the other you have assets that are trading at valuations never before seen and are clearly entering bubble territory. Which one would you rather be holding?
