Larry Edelson’s blog

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I’m writing you today from Asia with a passionate plea to our country — to its citizens and especially to our leaders in Washington.

We are now the laughing stock of Asia. Our dollars are no longer respected; our ambitions, no longer mimicked.

Our way of life, often based on consuming far beyond our means, is being flat-out rejected.

I can’t even exchange a $100 bill on the street here anymore: Most of the street money changers will take euros, Singapore dollars, even Chinese yuan. But fearful of losing their shirt with sinking exchange rates, they don’t want U.S. dollars.

Not long ago, I never traveled without my American Express card. Now, it sits in my office safe. Many in Asia no longer accept the card anymore. MasterCard and Visa are still OK, but they’re also losing market share to locally grown cards like Aeon.

The running joke in Singapore, Hong Kong, Bangkok, and Kuala Lumpur is that the U.S. is the place where even your pet could get a credit card or a home mortgage.

So to Asians, the crisis we’re going through is our own fault. And although it was also caused by blunders in Western Europe and other regions, truth be told, they are mostly right.

The message is clear: We need to immediately stop living beyond our means. But can we?

Consider the facts:

• Through August, the federal deficit has already hit $1.38 trillion, or TRIPLE last year’s all-time record deficit of $454.8 billion. And in September alone, the administration expects another $200 billion in red ink, bringing the total for the year to $1.58 trillion.

• The U.S. government’s official debt is now at an all-time high of $11.8 trillion. That’s over $100,000 for each and every household in America.

• Both the administration and its opponents agree that, over the next 10 years, the cumulative federal deficit will be another $9 trillion, bringing the burden per household up to $177,000.

• The Federal Reserve is also in hock up to its eyeballs, with more than $2 trillion in liabilities on its balance sheet. That brings the total burden up to $194,000 per household.

• Perhaps worst of all, the unfunded government IOUs that are now starting to come due on Social Security, Medicare, and Federal pension payments are also ballooning higher and now stand at an estimated $104 trillion, or $886,000 per household.

Grand total: Each and every household in America is indirectly responsible for a debt burden of over 1 MILLION DOLLARS!

Bottom line:

Even assuming they can save 5 percent of their income year after year … and even assuming every single penny of their savings is thrown into the pot … in order to pay off the U.S. government’s debts and obligations, each American family — and descendents — would have to toil for the next 429 years.

Problem is, we haven’t borrowed all that money from ourselves. We’ve borrowed more than half of the outstanding national debt from overseas investors, who now fund fully 50 percent of our debt addiction.

But now …

America’s foreign creditors are haunted by the spectacle of Washington’s spending binge and are starting to recoil in horror.

That’s why in April, U.S. bond purchases by foreign central banks plunged 41 percent from the month before, while purchases by foreign private investors dropped 7 percent. All in a single month!

Yet even as investors flee in increasing numbers, our government continues to ramp up spending — trying to hawk even more U.S. debt to foreign lenders.

The Obama administration largely ignores the fact that overseas investors are getting tired of footing the bill for our borrow-and-spend addiction … and are also becoming increasingly skeptical of our ability to pay our debts.

The result: More foreign central banks, overseas fund managers, and investors flee, leaving the U.S. government with no choice but to pump out more and more unbacked paper dollars and dump them into the economy — further eroding their value.

Central banks over the last year have been actively replacing portions of their dollar reserves with the euro, the Canadian and Australian dollars … and gold. China alone recently announced it has quietly increased its gold reserves by more than 75 percent over the last seven years.

So it should come as no surprise that the widely watched U.S. Dollar Index, a measure of the dollar’s performance against a basket of six of the world’s major currencies, has plunged 15.1 percent since its high of March 4.

As you can see from the accompanying chart, that now puts the greenback in free-fall territory.

It’s plunging against the euro, the Japanese yen, the British pound, the Swiss franc, the Canadian dollar.

It’s even sliding against the currencies of lesser-developed economies like the Thai baht, the Philippine peso, the Indian rupee, the Malaysian ringgit, the Indonesian rupiah, and the Vietnamese dong.

And it leaves …

The U.S. and All Americans
Between a Rock and a Hard Place

Either …

• U.S. consumers and the U.S. government must slash spending drastically, accepting a deeper economic decline or …

• They will perpetuate the borrow-and-spend cycle, destroying the U.S. dollar and, ultimately, our standard of living.

I’d like to hear your thoughts on how we might get out from under this mess we find ourselves in — and, more importantly, what YOU are doing to protect yourself, your family, and your retirement from the dollar’s demise.

Just click here to post your comments and weigh in on this issue.

Best wishes,

Larry

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Click here to post your comments …

First, if you missed our crucial strategy update or want to watch it again, this is the last week to do so. Just turn up your computer speakers and click this link.

Second, your opinion matters to us — more than you could possibly imagine. I would personally appreciate it if, after viewing the full video, you give me your thoughts or any follow-up questions. Just click this link to leave a comment.

Third, we created the Weiss Global Forum expressly for you, part of our ongoing commitment to help you avoid hidden investment dangers and seize emerging profit opportunities.

However, if there’s someone you trust who is also looking for similar information, you have our permission to invite them to view this unprecedented strategy update as well. Simply send them a link to this blog post or give them the link below — before it’s taken offline later this week.

http://weiss.streamlogics.com/Aug13-09/

I am truly grateful for your friendship and support. If there’s anything further we can do to help you, please let us know at any time.

Best wishes,

Larry

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I won’t mince words …

Until you invest 64 minutes to arm yourself with the startling facts we present in the Weiss Global Forum, you are at risk of being blindsided by a rapidly emerging economic megatrend capable of turning the financial world upside down.

Equally important: You may be in danger of missing what could be one of the greatest opportunities to build enduring wealth that you will ever see.

At the Weiss Global Forum, our top analysts — joining from the U.S., Europe and Asia — reveal some astonishing truths that the media isn’t telling you:

• The staggering reality of the decline and fall of the U.S. and Western Europe as the world’s dominant economic powerhouses …

• The shocking facts about the ascendency of China and the East as dominant economic superpowers …

• And no fewer than 11 critical profit opportunities this massive global economic convulsion is offering!

In short, the Weiss Global Forum is a must-watch briefing for you if you’re serious about protecting your wealth …

And it’s indispensable if you’re looking for ways to grow your wealth no matter what happens next in the U.S. stock market.

Three more essential facts you need to know about the Weiss Global Forum:

1. The video of this historic briefing is absolutely free, no strings attached: Just turn up your computer speakers and click this link to watch it now.

2. No product is offered; there’s nothing to buy: The Weiss Global Forum is simply OUR GIFT to you — part of our commitment to make sure you have the facts you need to protect yourself and profit.

3. If you do not watch the Weiss Global Forum now, you could miss it entirely: Because the information we present in the Weiss Global Forum is so time-sensitive, we must take it offline THIS week. So you’re almost out of time!

Just grab a notepad and a pen …
turn up your computer speakers …
and click this link to discover:

• The immediate impact of America’s skyrocketing federal deficits: How the U.S. government’s borrowing spree — and shocking deficit spending throughout the eurozone — could affect the West for decades to come …

• The ONE exception in Europe — the single European nation that is set to grow even as the rest of Europe continues to twist in the wind …

• The two greatest drivers of economic growth for any nation: Why both of them are absent in the U.S. and the eurozone … where they spell explosive growth.

• Six medium-term economic drivers that are causing China’s economy to explode 7.9% even while the U.S. economy continues to shrivel — why the Chinese stock market has soared 133% in less than a year …

• China’s ingenious strategy to use the global recession to corner the global resource markets: How the world’s most populous nation is now buying companies that produce energy, food, construction materials and manufacturing resources with both hands — and how understanding this strategy could give you scores of opportunities to profit in the months ahead …

• The two-pronged strategy to profit with the companies destined to grow richest as China’s economy continues to explode — and the five Chinese stocks that offer you the greatest profit opportunities …

• The #1 blunder investors make when investing in China and Asia: Plus, the two types of Chinese companies you should NOT touch with a ten-foot pole.

• The three Asian countries that now offer you the best stock bargains … and the ONE country ETF that could outperform most others.

The only way to make sure you get this crucial investment intelligence is to turn up your computer speakers, click this link and watch it before it goes offline.

Best wishes,

Larry

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Thank you SO MUCH for your wonderfully positive feedback to our Weiss Global Forum!

If you missed the live event video or want to see it again, just turn up your computer speakers and click here. Plus, I welcome your comments and questions here on my blog.

Here are just a few of the many we’ve gotten so far, with our brief responses …

CB: Fantastic!! I am so impressed with the massive knowledge on your panel! That was one of the most honest and informative pieces of information that I have received in a long time. I am a new investor so it was really great to receive a longer term plan for my retirement portfolio.

Our response: We’re glad you liked it!

DS: Thanks so much for the presentation today. It was most interesting. I would like to have someone else see it if there is a way.

Our response: We created this presentation for you. But if you’d like to share it with someone you trust, you have our permission. Just send them this link: http://weiss.streamlogics.com/Aug13-09/

JK: Appreciate your time, knowledge and ability in relaying this information. Will CDs be available?

Our response: We’re sorry, but this is timely information and can only be made available online for a limited period.

PN: Thanks for a great global forum today! Would you please publish the charts, as well as a transcript of today’s forum? There was so much great information to absorb in one hour.

Our response: Yes! But not for a week or two. In the meantime, we suggest you watch the recording and when you need to take notes, just press the "pause" button.

HG: You hit a home run today! The Weiss Global Forum was fantastic.

Our response: Thank you! Everything came together nicely, and more importantly, the time is ripe.

RA: This one was the best yet! The specific recommendations are appreciated, but the long-term focus, and explanation, were critical to my future success.

Our response: Yes, this is a trend that could last for decades. So we also provided a long-term, global strategy. It’s critical.

Best wishes,

Larry

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Unless you register within the next EIGHT hours (before midnight tonight), you will miss what’s likely to be the most PROFITABLE event of the year — the international video conference we’re holding online at noon tomorrow.

This event is not going to be a debate like you see on CNBC or Fox News. Nor is it about theoretical information you can’t use. It is exclusively about giving you clarity of vision and specific ACTIONABLE investment ideas for the balance of 2009 and beyond.

No commercials, no products. Strictly high profit potential!

Martin Weiss is hosting the event; and Weiss analysts Mike Larson … Claus Vogt … Tony Sagami … and I … will tell you what we see happening in the markets and how the tides may be changing in stocks … bonds … international markets … commodities and more.

But I repeat: Our deadline for registration is midnight TONIGHT, just 8 hours from now.

Registration is free, quick and easy. Just click here.

Then check your inbox for your login instructions, and join us tomorrow (August 13) at noon Eastern Time (9 AM Pacific, 5 PM GMT).

See you then!

Larry

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Click here to register.

You’re coming down to the wire.

Final registration to attend our historic, international online forum ENDS at midnight tomorrow — just 36 hours from now.

We must close the registration at that time so that we can make absolutely sure we have enough broadband capacity and servers hooked up to accommodate everyone — and deliver what promises to be one of our most important Weiss events ever!

The event is 100 percent commercial-free and jam-packed with everything you need to know about the tidal wave shifts that are now occurring around the world — shifts that impact your wealth negatively if you stand in their way … or open up very substantial profit opportunities if you take the right steps.

During this intense event you will hear from Martin Weiss along with Weiss analysts Mike Larson … Claus Vogt … Tony Sagami and me — as we tell you what we see happening in the markets and how the tides may be changing in stocks … bonds … international markets … commodities and more.

But I repeat: The final registration period closes tomorrow (Wednesday, Aug. 12) at 12 midnight, just 36 hours from now.

Then, at high noon this Thursday, August 13 the Weiss Global Forum will begin giving you …

• The BIG PICTURE view: The facts you need to safely navigate and profit from the markets for the rest of this year, into 2010 and beyond …

• The international view: Which countries are likely to sink or lag and which are truly rebounding …

• Surprising news about the U.S. real estate markets …

• China’s grand strategy for the dollar and natural resources …

• And more, much more! 

Click here to register and to automatically receive your login instructions for this historic event.

Best wishes,

Larry

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This Thursday’s complimentary and promotion-free video conference — The Weiss Global Forum — could easily be the single most timely and crucial event you’ll attend this year.

The simple truth is, the markets are CHANGING. But how are they changing? Where will the next opportunities be? Has the crisis truly passed?

Where can you make the biggest money in the weeks and months ahead? In stocks? Real estate? International markets? Currencies?

Where are the risks now?

These questions — and many more like them — will be asked and ANSWERED this THURSDAY at high noon — so that you can make the absolute best investment choices in the weeks and months ahead.

Martin Weiss will host the event.

And we will tell you what we see RIGHT NOW … what we see for the balance of this year … and for 2010 and beyond — in a 100% commercial-free event packed with analysis from our international group of experts, including:

Mike Larson, our real estate and banking specialist, among the first in the nation to warn of the historic real estate bust and worst-ever financial crisis.

Claus Vogt of the Million-Dollar Contrarian Portfolio, via a live video feed from Berlin to give us the view on Western Europe, Eastern Europe and Russia.

I will be online from my office in Bangkok to give you my boots-on-the-ground analysis of the sudden renewed economic explosion in China and its impact on natural resource markets. Plus …

Tony Sagami, editor of our Asia Stock Alert, will identify specific stock opportunities he’s seeing right now in China and the rest of Asia.

The Weiss Global Forum is absolutely free. But in order to attend, you need to register so we can send you the simple instructions for logging on to the forum a few minutes before HIGH NOON, THIS THURSDAY.

Here are the key facts on this blockbuster event:

Date: This Thursday, August 13

Time: 12 Noon Eastern Time (9 AM Pacific, 5 PM GMT)

Duration: 1 hour (no commercials or promos)

Free registration: Click here

Registration deadline: Wednesday, August 12

We look forward to seeing you there!
 
Larry

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Click here to post your comments …

Larry here with the answers to our quick quiz.

If you’re among the many that thought the green line in this chart was the ETF linked to the Chinese stock market, you guessed incorrectly.

It’s actually the Brazil ETF (symbol EWZ), up a whopping 65 percent so far this year.

A possible source of confusion: The Shanghai Stock Index HAS soared a lot more, but the China ETF (FXI), due to its portfolio of steadier, less volatile Chinese stocks, is up “only” 40 percent.*

Meanwhile, nearly everyone guessed correctly that the WORST-performing major stock market is right here in the United States: the Dow Jones Industrial average was up a meager 3 percent year to date.

Bottom line: For every $10,000 investors have made in the Dow this year, they could have made $133,000 in the China ETF … and $217,000 in the Brazil ETF!

Reason — and this nearly everyone answered correctly — the major economy with the weakest growth is the United States; and the major economy with the strongest growth is China.

Now, for the final question we asked …

Which would you prefer to invest in?
A country where the market has had the best performance so far this year? Or one which may be lagging but can be bought more cheaply?

One reader says: “I would prefer to invest in an economy that is stable and has direction from its government.”

Several others want “the one that will have the best performance next year.”

Still another reader writes that he’d go for “one which may be lagging right now but is underpriced and will shoot to the forefront in the next 12 months.”

All good answers!

Our team of international experts and I actually recommend a mix of both: Investments in countries that have great momentum and a proven recent track record … PLUS those that may have lagged in recent months but offer better value.

And in our Weiss Global Forum this coming Thursday, we provide specific, actionable recommendations for each.

But you have only a few more days to take advantage of our free registration. Here are the specs:

Date: Thursday, August 13

Time: 12 Noon Eastern Time (9 AM Pacific, 5 PM GMT)

Duration: 1 hour (no commercials or promos)

How: Video streaming online

Topic: Global profit opportunities

Registration: No charge for readers. Click here.

We look forward to seeing you there!

Best wishes,

Larry

* FXI is comprised of Chinese companies listed on the Hong Kong Stock Exchange that have issued class “H” shares denominated in Hong Kong dollars and available to international investors. The Shanghai Stock Index is comprised of companies listed on the Shanghai Stock Exchange issuing Class “A” or “B” shares, denominated in yuan and traded only by mainland Chinese investors.

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