Day: May 25, 2011

We’ve Just Breached the Debt Ceiling… Next Comes the Default

While Barack Obama is chugging Guinness and Congress is doing… well not much of anything, we’ve breached the US debt ceiling.

That’s correct, the US now has more debt than is legally permitted. We’d crossed the “more debt than is healthy” as well as the “more debt than is sane” levels long ago. However, it wasn’t until the last few weeks that we cleared the legal debt limit.

You’d think that the world’s largest economy (and home of the world’s reserve currency) exceeding its debt limits would be big time news. But we’ve yet to hear a peep about it from the mainstream financial media.

It’s even stranger that we haven’t heard mention of the fact that the US is in fact RAIDING pension funds to continue to fund its debt.

That’s correct, Tim Geithner, who aside from being a tax dodger has managed to make US Treasuries (formerly the ONLY risk-free investment in the world) so unattractive to foreign investors that he is now using money that was promised to retirees to fund his debt orgy.

Let’s think about this for a moment… US Treasuries are so unattractive that investors no longer want to buy them… so we’re using money promised to those who worked… to buy them.

Simply staggering.

Aside from being morally wrong, Geithner’s moves are the usual “I’ve got no solutions so I’m just going to come up with something on the fly” nonsense we get from the DC crowd. Even Geithner himself has admitted that his latest scheme will only buy the US about three months’ time before we start defaulting on our debt.

That’s not a typo… Geithner has publicly stated that barring any sudden changes in the demand for US Treasuries, the US will DEFAULT in August 2011.

In some ways this doesn’t matter. The US was going to default soon anyway. The US Federal Reserve is the primary buyer of Treasuries now. And it’s simply buying 50+% of all new debt issuance back from Wall Street (usually within a week or two of the debt being issued).

In other words, the entire US debt structure is now a giant Ponzi scheme.

We all know how this ends… with a debt default followed by a US Dollar collapse… which is why smart investors are using this latest pull-back in inflation hedges to load up in anticipation of the coming US Dollar collapse.

On that note, I’m just about to release Parts 2 and 3 of my How to Survive Hyperinflation report in a few hours.

The purpose of these reports is to identify EXTRAORDINARY inflation hedges that will outperform even Gold and Silver as hyperinflation erupts in the US.

And boy WILL THEY.

My first inflation hedge is a Gold producer. However, you wouldn’t think this if you looked at its balance sheet. It has no debt and over $700 MILLLION in cash.

In fact, based on its production, this company is trading at a P/E of less than 10!!! Other companies with comparable Gold production rates trade at more than TWICE this company’s current market cap.

So to say that the odds of a double here are high would be a GROSS UNDERSTATEMENT.

Want to find out what it is and get in on the gains? You can get the name, symbol and how to buy these incredible investment by…

Clicking Here Now!!!

Now about that second inflation hedge…

With Gold at $1,500 per ounce, this company is trading for less than 1/6th of its PROVEN reserves.

However, the potential for a MAJOR surprise to the upside here is high. You see, this company has increased its reserves over 1,000% in the last ten years alone.

This is no mere exploration company either… this company expects to produce 300,000 ounces of Gold this year… up from 200,000 last year.

And yet it’s currently CHEAPER TODAY than it was BEFORE it began production!

The potential for a buyout here is very VERY high. To find out what this company is (name, symbol, and how to buy it) and get on board before this happens…

Click Here Now!!!

The above two investments are two of the best opportunities I’ve seen in my entire investing career… However, I’m not done yet… I’ve got another THREE incredible inflation hedges coming later this week. And they’re just as amazing as the first two.

To pick them up as well as the two I described above, all you need to do is take out a “trial” subscription to my Private Wealth Advisory newsletter.

You’ll immediately be given access to Parts 2 and 3 of my How to Survive Hyperinflation report (which are online now).

You’ll also receive Parts 4-6 via email later this week as they’re released.

And you can keep ALL SIX of these reports EVEN if you decide Private Wealth Advisory isn’t for you and request a full refund in the first 30 days.

How’s that for some SERIOUS value?

To get started with your “trial” subscription to Private Wealth Advisory

Click Here Now!!!

Good Investing!

Graham Summers

Editor In Chief

Gains Pains & Capital

Posted by Phoenix Capital Research in It's a Bull Market