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FREE REPORT
U.S. debt downgrade:
A lot of hullaballoo
about absolutely freaking nothing –
– but the hysteria has doubled
our potential profits in gold and silver
(and we are making a killing in our other trades)
Date: August 9, 2011
Posted by: David M. Holt
The downgrade is a smokescreen. It comes from the rating agency (Standard & Poor's) that has gotten every single major debt event of the past decade -- from the sub-prime mortgage debacle to the EU sovereign defaults – dead wrong. See below for proof.
Tragically, the downgrade has panicked the hysterical masses. They have been scammed into doing exactly what the precious metals miners and Big Boys want. When the hullaballoo dies down – as it soon will – gold and silver will crash harder than ever.
Even before this, we had the potential to make 10-to-20 times our money with these two trades. Maybe a h-ll of a lot more. Now, thanks to the downgrade, our potential is nearly double that. And the best part is, that you can do all this while risking as little as $5...
Dear Friends
I don't believe how lucky We are.
First the gold and silver markets had a tizzy fit about the debt ceiling. They hyper-ventilated over budget deficits. They p-ss-d all over themselves about the dollar supposedly crashing.
All total nonsense. You and I knew that long ago. Now the world finally sees this as well.
But as crazy as all that b.s. spin was, yesterday's bizarre action takes the cake.
And that makes the greatest trade I've ever seen twice as good for you and me.
The markets are in mindless hysteria. All over an extremely minor debt downgrade -- by clueless, out to lunch, never-got-it-right Standard & Poor's.
You may know there are three major bond rating agencies. Moody's, Fitch and S&P. For a downgrade to affect anything, all three agencies must stand behind it. And the downgrade must be big.
But two of the rating agencies -– Fitch and Moody's -– did NOT downgrade U.S. debt! They kept it at the coveted AAA rating.
Only one agency gave a miniscule downgrade. The very, very, very political Standard & Poor's. And even then, only by an itsy bitsy teeny weenie fraction, to AA+.
Yet this tiny, inconsequential downgrade has the precious metals masses running around like chickens with their heads cut off. I didn't think it was possible, but our phenomenal opportunity in gold and silver just got better.
S&P's rated Greek, Irish, Portuguese and Spanish debt AAA –
when in reality it was junk
To show you how recklessly out to lunch S&P's is, they are the same agency that rated...
* Greek debt AAA
* Irish debt AAA
* Portuguese debt AAA
* Spanish debt AAA
* Italian debt AAA
Every one of those should have been rated junk. Greek debt finally IS rated junk. The others will soon follow suit. They will all default.
But because of S&P's outrageous AAA ratings (meaning the paper was supposed to be rock-solid), every bank in Europe holds the debt of those dead-broke nations. i.e. most of Europe's bank capital is in fact , junk debt.
This is why every bank in Europe is dead-broke... why most of them are about to go under... and why the European depression will soon far outstrip the worst times of the 1930s. S&P's and its crap ratings get a lot of the blame for this.
It gets worse. S&P's also gave U.S. sub-prime mortgage debt their Triple A rating. i.e. they said junk sub-prime mortgage debt was as safe and secure as U.S. government securities!
Criminally wrong. And without that bogus rating, our real estate bubble would not have blown up. Home prices would not have crashed.
U.S. banks (including your bank) would not hold all that AAA rated now worthless paper. Instead of dead-broke, they would be solvent. The financial crisis either would not have materialized -– or would have been a minor road bump.
So understand that this feared downgrade comes from the most discredited rating agency on the planet. By rights S&P's should be shut down. Its executives should be thrown in jail for the misery and poverty they have created.
Until a few days ago, the public knew next to nothing about Sovereign debt ratings. Now it is having a mass heart attack. Again, due to S&P's b.s. downgrade.
Hello. It's meaningless. All that counts is how the market views U.S. debt. And the market has already given its verdict. Loud and clear.
After the downgrade, interest rates on U.S. Soverign debt DROPPED. i.e. the smartest investors in the world are demanding even more U.S. debt. They are accepting even lower interest rates to get it.
This is no surprise. Until the late 1990s, Japanese soverign debt was rated AAA. In 1999 its debt got downgraded. A few years later a second downgrade followed... and then a third downgrade as well.
As recent as last month as a result of the earthquake and tsunami it was lowered again. What was the effect of these three downgrades? Absolutely nothing! Funny how you heard nothing about that debt downgrade.
Japan borrows all the money it wants, at the lowest interest rates on the planet. Nobody borrows at lower rates. As I write this, Japan pays under 1% on its 10-year bond.
Japan's debt rating of AA-minus (4 notches below AAA) is far below that of most Eurozone countries. Like Germany, France and England. It's far lower than the new U.S. AAa rating assigned by Standard and Poor's.
Yet when it comes to debt, Japan is like a superman among mortals. It raises all the financing it wants, at nearly 0% interest. Japan finances its ten year bond at 1.05% the lowest in the world. By comparison, AAA rated Germany must pay 2.28%... the UK must pay 2.64%... and France 3.15%. As you can see the ratings don't mean squat.
Think about it. If S&P's downgrade really meant anything, U.S. rates would have soared at once. They would have jumped back to 4%, same as they were a year ago or more.
But today, even after the downgrade, the U.S. 10-year rate is a tiny 2.34%! Day before it was 2.56%. Instead of raising U.S. rates, the downgrade sent those rates falling 22 basis points.
Over the next several years U.S. bond rates will fall lower and lower. They will replace Japan as the lowest yield on earth. And like a starving man at a smorgasbord, the world will not get enough of them.
Bottom line, this downgrade is a lot of hullaballoo about nothing. Sadly, the masses do not see that. They have panicked. They are throwing their money into gold and silver like there is no tomorrow.
They have been scammed again. They have done the exact wrong thing, at the exact wrong time. Absolutely you are seeing mindless panic buying.
Gold prices soared another $130 an ounce. It is approaching $1800. Silver is up near $40. I can't believe those words are coming out of my mouth.
These record (and near-record) prices are not driven by inflation. Not by the debt ceiling crisis. Not by a falling dollar.
All that has been proven to be complete, total lies. Spin designed to steal the public's money.
Gold and silver have blown up their biggest bubbles ever -– because just one discredited debt agency made the political decision to slightly lower the U.S. debt rating.
When markets enter fantasy-land, they always have a rude awakening. Gold and silver are about to crash big time.
This panicked, knee-jerk reaction is about to snap back.
Wait till you see the profits our trades could soon make
In this business, there is no such thing as a sure-fire trade, guaranteed to make you money. It doesn't exist.
But every once in a while, an opportunity comes along that sure as xxxx is close.
These opportunities don't last long. A few months or less. Most of the time you have a matter of days to line up your position.
The beauty is you don't need a lot of money to exploit them. A few thousand dollars is enough. In this current case, you can even play for twenty dollars or less.
But such a tiny investment would be silly. You'd be blowing the chance to make millions from thousands. The money-making potential here is like nothing I have seen in the past 30 years of trading.
Why? Because these trades have risen out of panic. Panic over the debt ceiling... and now panic over S&P's meaningless debt downgrade.
When the panic dies down -- when the public sees the “crisis” was so much hot air -- the market snaps back like a stretched bungee cord. Precious metals collapses overnight. That is when you cash in.
As traders, we look for markets that have gone “parabolic.” They are doing moon shots. Go to the internet and Take a look at two charts , of gold and silver. Both have done the same thing.
They've gone near straight up. Especially the past year and a half. Exactly when all the panicked rumors about debt, defaults and downgrades started.
We also have the one final thing that is critical for a big emotional trade. What I call the countdown timer to the end.
That's where markets anticipate the date Armageddon will come. The date that, in their hysteria, they predict the end of the world.
The markets convinced themselves the financial end of the world -– the economic Armageddon -– would take place soon now, when America “defaults” on its debts. That's what this downgrade is all about.
Now if you believe that, read no further. Run, don't walk, away from me as fast as you can. Same if you think the U.S. will default on its sovereign debt.
I know for fact that will never happen. Calmer heads will soon prevail.
Sure, the U.S is the world's greatest debt-creating machine. No doubt about it. But it is also the world's largest economy. It is the most creditworthy nation on earth... and has the world's biggest tax collecting system.
Proof that the politicians get it: they raised the debt ceiling. They put in $5 trillion of mandatory deficit cuts. Cuts in defense spending lead the way, as the Afghan and Iraqi wars wind down.
There will be NO US debt default. The U.S. will slash the deficits. It's now law, and there is no way for the politicians to maneuver around that. The S&P's debt downgrade hysteria will be seen as the pure hokum it really is.
King Obama will raise taxes. By a ton. As always, America will rise to the occasion. We will slash this deficit like no country ever has before.
Gold is approaching $1800 an ounce. When the world sees America is serious about cutting its deficit, gold will fall to under $300 an ounce. Silver, currently around $40, will plunge to $5.
The masses are terrified about this debt/downgrade crisis. They are not thinking rationally. People who did not know what gold bullion was have panicked into the gold and silver markets en masse.
Small investors are buying precious metals like crazy. A broker contact of mine tells me people are so hungry for gold, he could sell them chocolates wrapped in gold paper.
This mindless gold rally is about to fall apart. Congress already agreed to its plan that raises the debt ceiling and slashes the deficit. The debt downgrade will soon join the debt ceiling -- as a phony contrived “crises” that panicked the masses over nothing.
Precious metals are either at their peak or within 10% of it. The markets will calm down. The U.S. Senate and House soon leave for the August recess. The media will pick their next story to hype to the moon.
When Congress comes back for the fall session, the world will see America really is slashing spending. We really are cutting budget deficits. There is no debt default and will not be any debt default.
The dollar will soar. The debt default will fade from the news, like a distant memory. Gold bugs will wake up with a bad hangover, seeing the precious metals party is over.
And with the gold and silver trades I recommend, you could cash in like you won't believe. Who wants to be a millionaire?
Watch your Silver Etf trade go from $13 a share to $1120...or more
(as it did before)
The two trades I'm talking about are ETFs. Both are 2X (bear) inverses. That means they go up when gold and silver go down, and vice versa.
Each one gives you outstanding profit potential. Let me show you the more modest trade, with smaller profit potential, first.
When gold was $750 an ounce, this ETF traded at $40 a share. Now with gold at record highs, it trades at $5.
Say gold simply goes back to $750. (A slam dunk in my opinion.) This baby could rise eight times in value. You could make a killing.
It gets better than that. Because I expect gold to go to under $200 an ounce. Without the panicked buying (which is about to end), that is its historic market price. When that happens, this ETF could well soar twenty times or more in value.
Every ten grand you invest could turn into two hundred grand. Probably before Thanksgiving.
But the real profits could come from my silver reco.
A few years ago, silver was around $11 an ounce. This sweetheart ETF traded for over $1100 a share.
Now silver is close to $40 an ounce. You can pick up this great money-maker at the bargain basement price of around $13 a share. It's damn near free.
Say silver falls to $10 an ounce, as I expect. (Better put, as I KNOW it will.) This ETF could go soaring back past its old price. Every $13 you invest could turn into $1300.
And if silver goes to $5 like I'm sure it will -– as its fundamentals scream it must -– you could make two hundred times your money or more. We are talking about turning thousands into millions.
These are not pie-in-the-sky numbers. This ETF has been there, done that. It traded at similar prices, not long ago, when silver made the same moves we expect are coming soon. It could make you a millionaire. In fact, it could make you a multi-millionaire.
With the ETFs I recommend, you never trade futures. No options or margin calls. No time limits. You never risk more than your initial investment. That is $13 a share (for the silver trade) and $6 or less, a share for the gold.
It's like buying a share of stock. You simply sit back and wait for the fireworks.
I don't think you'll have to wait long. These emotion-driven markets are about to get kicked in the teeth. In the next few weeks the whole insanity they have rallied on will be shown for the charade it is.
Shortly after that, your modest investment should soar to the moon.
How you can make these trades
You are reading about some of the most powerful money-making trades I've ever seen. I sincerely believe you could turn several thousand dollars into millions.
That doesn't happen often. Like almost never. The markets have gotten so panicked, they are giving you this once-in-a-lifetime opportunity. I beg you, do not pass this up.
Now, the average investors can use Wall Street's own trading secrets against them.
These trades are just two examples of that. The panic trades -- where Wall Street whips up the masses into a frenzy -- always make you the most money, in the shortest time. They do not happen often. But they are here now.
If you have some speculative capital you can afford to risk -- say $10,000 or more -- ThisI could become one of the best investment decisions you ever make. Truly.
The bottom line is this: if I'm wrong, the most you can lose is your initial investment. Not a dime more.
But if I'm right you could make a fortune. Very, very quickly.
Think about what's going on. One debt agency has missed every major debt default of the past decade. To cover its a$s, it just whipped the public into a frenzy.
But the things it is saying just aren't true. In fact, S&P's just admitted this. It admitted it understated the deficit cutting by $2 trillion.
So the 'Smart Money' is buying the h-ll out of the very bonds S&P's just downgraded. They are positioning themselves to make a killing. George Soros already made a billion dollars from the downgrade. He used derivatives, heavily shorted bonds, and took home another fortune.
Six months from now, the vast majority of people will know the pro's were right. Again. They will realize the whole “crisis” was much ado about nothing.
The 'Sheep' (public) will be Too late. By the time they wake up, they will be much poorer. The crashing gold and silver markets will wipe out much of their wealth.
For you, if you pay attention, and act -- it will be a different story. You could be much richer by then. Simply because U.S. debt is stronger than ever... and the world is buying it in greater amounts than at any time in history.
When gold was $270 an ounce, I'm the one guy who said it would go to over a thousand. I begged friends to buy.
Now I'm telling You that you're missing the closest thing I've ever seen to a slam-dunk, very little risk, make-a-million on these trades.
Put a gun to my head. Ask me for the best trade I've seen in the past twenty years. This without a doubt is it.
Now ask me the one safe, slam-dunk trade I would put my Family's retirement savings into. This is it.
Next phase of the Great Depression has started. You are going to
need money like never before. This is the best way I know to get it
The past ten years my worst horrors have been realized. Everything that can go wrong has gone wrong. It's really sad to watch the fall of the American empire. The loss of our way of life.
I don't care how wealthy you've been. Almost everyone has gotten poorer these past few years. The markets are treacherous. People have gotten more desperate. Desperate people do desperate things.
We've all experienced more theft. More losses. More betrayals. I think we're pretty much in unanimous agreement: things are going to get a whole lot worse.
I think we also agree that now would be a real good time to make a large amount of money, real fast.
You know I don't often use words like “guaranteed,” “must-do,” “sure thing,” or “best trade ever.” Here's a news flash for you. This is near a guaranteed trade. It's near a sure thing, that you must do. Without question it's the best trade I've seen come along in years.
And it's perfect for the little guy.
You've seen how I've predicted this whole financial/economic mess. So I hope I have some credibility with you. Please hear me. As screwed up as things are now, five years from now you'll look at this as a golden age. The good old days.
I told you they would resolve the debt ceiling “crisis.” They did. Soon this debt downgrade will be seen as so much hot air. As even Warren Buffett said, U.S. debt should have a 4A rating.
Next step is for the precious metals markets to stall. Then there will be a light tremor. Then all of a sudden, the 9.2 Richter scale earthquake will strike.
That shock will hit the gold and silver markets like the sneak attack on Pearl Harbor.
I hope you make these trades; and get in on this. Then I know you'll be facing the horrible time that's coming with bags full of money.
Good luck and Stay tuned ......
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