Protect Yourself and Profit
Everyday investors were swindled out of more than $39 trillion when the tech stock and real estate bubbles burst. Now, Washington elites and Wall Street fat cats are creating a THIRD bubble — the largest in human history. When it bursts, it will destroy what little wealth Americans have left and plunge this nation into a modern-day “Dark Age” that could last for generations. Here are the facts that the media won’t tell you ... And what you must do immediately to protect yourself and profit.
Dear Investor, Hello — Mike Larson here, with a critical warning that no American citizen can afford to ignore. I’m a top analyst at Weiss Research — a global financial watchdog organization that serves 600,000 investors worldwide. Here at Weiss, our mission has remained unchanged for 40 years: To cut through the propaganda and outright lies the Washington and Wall Street elite use to defraud good people ... To expose the callous scams they’re using to swindle America’s savers and investors ... And to give you the truth ... the whole truth ... and nothing but the truth about the establishment’s cynical plans for you so you can make wiser, more profitable financial decisions. I’m making this presentation to right a terrible wrong that has been done to you — and to millions of families — and to issue a critical warning about a terrifying event that’s now being engineered by America’s elite class in Washington and Wall Street. When this event explodes into the headlines, it will change your life forever.

It will permanently alter how you work ... how you save ... how you invest ... how you live in retirement ... and how you protect and provide for your loved ones. It will drive millions of American families into the nightmare of poverty, homelessness, and grim dependence on government bureaucrats. You could see soaring crime, the confiscation of your private property, and the suspension of your civil rights.

But while the vast majority will suffer terribly, a select handful will use this crisis to build substantial wealth. I’ll lay it all out for you in this presentation:
I will describe this catastrophic event in detail ... I will show you why it will dwarf every financial catastrophe the world has ever seen and explain why it is now all but inevitable ... I will name the giant banks and popular stocks that are most likely to crash and burn as this event explodes into the headlines ... I will name the special types of investments that are most likely to skyrocket in value as this crisis unfolds and ... I will give you six free survival manuals designed to help you defend what’s yours — and even grow your wealth as this modern-day catastrophe unfolds.

I solemnly promise that I will not ask you to take anything on faith. Instead, I will present compelling evidence to prove that this threat is real.

Still, the facts I’m about to present are so shocking, it will be hard for many people to accept this warning ...
I know because, in previous crises, most folks failed to listen ... failed to prepare ... and paid a heavy price for their skepticism. It happened 27 years ago when we began warning that the Washington and Wall Street elite were about to spring a great savings and loan crisis on the American people. When the dust settled, more than one thousand savings and loans had been closed. Millions of savers who ignored our warnings watched helplessly as their s&ls went broke. And millions of investors who thought our warnings “too extreme” suffered massive losses. I saw it happen again in the late ‘90s, when we said America’s political and financial fat cats were creating a massive tech stock bubble.


Almost nobody heeded that warning. They were too busy buying every “dot-bomb” stock they could lay their hands on; too intoxicated by the paper profits they were earning to even listen. More than $9.5 trillion in invested wealth simply vanished when that forecast came true. Later, in 2005 most people ignored us AGAIN when we began warning that the Washington and Wall Street elites were engineering a massive real estate bubble ... And that when it burst, it would trigger an historic real estate bust, banking crisis and recession. The same was true when we became the only firm in the world to issue low ratings — and to specifically name — Bear Stearns, Lehman Brothers, General Motors, Fannie Mae, Wachovia Bank, Citigroup, Bank of America and nearly every other major company that later collapsed. Homeowners and investors who failed to listen could only watch helplessly as nearly $15 trillion in home equity and stock investments were vaporized. Fortunately, we selected 15 stocks and gave them our Weiss Rating of “A” — the cream of the crop that should do well even in the worst of times. And those stocks soared even through the Great Recession that followed. But even though these kinds of on-target warnings prompted Worth magazine to say ... “Weiss’s record is so good compared with that of his competitors ... consumers need look no further.” And the New York Times to say ... “Weiss was the first to see the dangers and say so unambiguously.” And prompted Barron’s to write ... “Weiss is the leader in identifying vulnerable companies.” And caused NEWSMAX to report ... “Weiss’s prediction of the current economic crisis is uncanny” ... Yet despite all this history, I’m afraid most folks will also fail to heed this warning — let alone prepare for the catastrophic event I’m about to describe for you. And once again, they will pay an extremely high price for their complacency.

Because the simple truth is, at this very moment ...

Washington and Wall Street fat cats are now recklessly engineering the single greatest bubble ever ... And when THIS bubble bursts, it will trigger the most catastrophic annihilation of personal wealth in world history.
Yes, I understand; this is an extreme forecast. It is by far the most dire warning I have ever issued. But please hear me out, because in both of the financial bubbles since the 1990s, the process was the same: First, America’s central bank — the Federal Reserve — slashed interest rates to the bone and flooded the economy with cheap, easy money ... Then it simply stood by as the flood of money drove prices of a particular asset skyhigh. Wall Street fat cats made billions of dollars in commissions and fees as each bubble grew. The Washington elite grew exponentially more powerful — first, by taking full credit for the “good times” before the bubble burst ... And second, by using huge political donations from the Wall Street fat cats to expand their power bases. But every financial bubble inevitably bursts. And when these two bubbles burst, millions of American workers, savers, investors and small business owners were robbed blind — to the tune of trillions of dollars.

The Fed began building Bubble #1 in 1992 ...
The nation was still reeling from the savings and loan crisis of the late 1980s and early 1990s and the largest bailouts in U.S. history. But it was an election year.


The incumbent U.S. president — George H. W. Bush — desperately needed an economic miracle and Federal Reserve Chairman Alan Greenspan was determined to give him one. So the Fed began cutting interest rates like there was no tomorrow. The year began with interest rates at 8.25%. By September, Greenspan’s Fed had cut rates to just 3%. And not only did the Fed slash interest rates by 64% in just nine months ... it KEPT them that low for 18 full months ... Long after President Bush had been defeated at the polls and well into President Clinton’s first term in office; until March of 1994. Now, as you might expect, those low interest rates made everybody want to borrow money — and fast, before they began rising again. So suddenly banks were loaning money like there was no tomorrow. But what most people don’t know is that when banks loan money, they effectively create dollars out of thin air. Each new loan the banks make multiplies the amount of money in the economy. So thanks to the Fed’s easy-money policies in the early 1990s, the amount of cash in the economy — the U.S. monetary base — surged by nearly a third of a trillion dollars. Meanwhile, their cohorts on Wall Street and in the “pop” media began hyping the stock of companies in the Internet and technology sectors. So, it should come as no surprise that a big chunk of that cheap money found its way into the U.S. stock market, where it lit the fuse on an explosion in stock prices.


The great tech stock bubble of the 1990s began to grow. The Nasdaq stock index, which is loaded with technology stocks shot for the moon. It soared 840% between 1992 and early 2000. Wall Street’s elite made out like bandits. Each of Wall Street’s major investment banks made an estimated $1 billion in fees by underwriting Internet companies during the boom. And of course, Wall Street’s millionaires and billionaires funneled massive amounts of money to Washington’s elite. But then ... Just when it looked like the buying frenzy would continue forever ... THE FED PULLED THE PLUG. In 1998, it began gradually raising its key interest rate — to 3.5% ... 3.75% ... 4.25%. By January of 2000, interest rates had hit 5.5%. By March, they hit 6%. And by May, they had peaked at 6.5% Now, anybody who knows anything about economics or history could have predicted what would happen next. The flood of cheap, easy money had created a massive bubble in the stock market. Now, the Fed was closing the spigot. It was as certain as tomorrow’s sunrise: The tech stock bubble was about to burst. We did everything we could to sound the alarm.


We mailed tens of millions of free special reports to investors warning that the bubble was about to burst — urging them to sell their overpriced Internet, computer, and communications stocks. Anyone who listened and acted on our warnings and recommendations could have turned their huge paper profits into huge money in the bank before the crash ... avoided losses during the crash ... and, better yet, they could have multiplied their money many times over with put options — investments that soar when stocks sink. Here are just a few of our favorite picks we actually recommended in one of our trading services during the tech wreck of 2000-2002: A 158.1% gain in 71 days as Advanced Micro Devices declined ... A 162.1% gain in 30 days as Helix fell ... A 196.3% gain in 12 days as Lycos dropped ... A 200% gain in 23 days as Applied Micro Circuits plunged ... Plus, using these inverse investments, you could have grabbed ... A 215.2% gain in 42 days as in Hewlett-Packard declined ... A 217.4% gain in 50 days as RF Micro Devices fell ... 222.8% gain in 42 days as Tyco International dropped ... A 255.3% gain in 84 days as plunged ... And there were many more. But for nearly everyone else, the bursting of the tech stock bubble was a nightmare of epic proportions.


The Dow fell nearly 39%. The S&P dropped 51%. And the tech-heavy Nasdaq plunged a staggering 78.4%. Investor blood ran hip-deep down Wall Street. According to Bloomberg data ... More than 219 Nasdaq stocks lost half their value ... 170 lost at least 75% of their value. Citrix declined 94% ... Broadcom dropped 95% ... Juniper Networks fell 96% ... Level 3 Communications collapsed 96% ... Corning plunged 98% ... VeriSign plummeted 98% ... and both JDS Uniphase and American Tower crashed 99%. And at least 50 Wall Street darlings simply ceased to exist. EToys ... govWorks ... ... ToySmart ... BusinessMall ... ... and many others fell to zero, wiping out 100% of the money invested in them. Everyday stock investors got skinned alive. When the crash finally ended in 2002, more than $9.5 trillion of investor wealth had been wiped out. The news media was full of stories about everyday investors who had lost everything. This story, by the Los Angeles Times in March 2001, spoke for millions ... ’After racking up huge gains in the bull market, Tim Martin figured it would take at least a decade to recoup the "devastating losses" he suffered when the Nasdaq plunged. ’That is, if he ever puts his money back into the market. Right now, he wants nothing to do with it, after watching such former technology stock stars as CMGI Inc. and PSINet lose more than 95% of their values. ’Mr. Martin, 37, sold almost all of his stock holdings and says he doesn't even bother to open his monthly brokerage statements when they arrive in the mail. "’At one point I was one of those Nasdaq dreamers who thought I was literally a few months away from being a multimillionaire. I saw the gold pot at the end of the rainbow, and then right before my eyes, it was obliterated.’"


From coast to coast, all across America, the stories were the same — about investors who had recently been “millionaires on paper,” dreaming of the wonderful things they would do with their newfound fortunes ... Cancelling their vacation plans ... telling their kids they couldn’t go to college any more ... scrimping and saving again ... Suddenly forced to delay their retirement — or worse, to come out of retirement and return to work. It was an excruciatingly painful time — and we still haven’t recovered from that great crash. Even today — twelve years later — the tech-heavy Nasdaq is still down more than 40% from the high it hit in early 2000. But what’s worse is that immediately after the tech wreck began in 2000 ...

The Fed began inflating ITS NEXT great bubble — by driving interest rates lower again.
Its reasoning? America needed lower interest rates to help it recover from the stock market disaster that the Fed had just engineered! And so, the Fed cut rates from 6.5% in 2000 down to 3% in 2001 ... to 1.75% in 2002 ... to 1% in June of 2003 — and then kept them low through 2005. Once again, the low interest rates created huge demand for loans — and once again, the banks were more than happy to oblige. And again the monetary base surged — by another $184 billion.


The Fed’s rate cuts also helped drive interest on 30-year mortgages, and suddenly the real estate sector was red hot: Monthly housing starts exploded 50% higher — from 1.5 million in September of 2000 to nearly 2.3 million in January of 2006. It was a frenzy of massive proportions. Millions of families took advantage of low interest rates — and even lower rates on Adjustable Rate Mortgages — to buy far more house than they could possibly afford. Millions more took out second and third mortgages and spent that money on exotic vacations, fancy cars, clothes and jewelry ... and even to buy second and third homes. In Visalia, Riverside and Madera California, home prices surged more than 91%. In Honolulu, Hawaii and Los Angeles, they soared more than 95%. In Bakersfield, California, they surged 99.6% ... and in Miami, Florida they skyrocketed 106%. Unsurprisingly, real estate and construction stocks shot the moon. Then, just when the real estate frenzy was hitting its peak ... THE FED PULLED THE PLUG. First, it doubled its key interest rate — from 1% to 2.25% in 2004 ... Then, it nearly doubled them again; raising them to 4.25% in 2005. Finally, it raised rates to over 5% in 2006 — and held them there through most of 2007.


At that point, the handwriting was clearly on the wall. The Fed’s flood of cheap, easy money had created the greatest real estate bubble in human history. Now once again: The Fed was closing the spigot. And the outcome was as sure as tomorrow’s sunrise: Like the tech stock bubble before it, the housing bubble was about to burst. Once again, we did everything in our power to help investors avoid the carnage we knew would inevitably come. At that time, the Washington elites were swearing on a stack of Bibles that there could never BE a nationwide housing bust because there had never BEEN a nationwide housing bust ... And at that time, Wall Street fat cats continually told you not to worry about a national real estate crash because, after all, there had never been a national real estate bust ... In a bold headline on the front page of our flagship publication — Safe Money Report, we warned that a massive bust was not only “possible” — it was inevitable! We wrote that we were in the “final stage of the real estate bubble.” We wrote that “panic selling will replace panic buying ... crashing values will replace surging values ... fear will replace euphoria.” Then, literally days before of mortgage and banks stocks began their sickening 85% collapse — we publicly warned of a “mortgage meltdown.” And as if that wasn’t enough, we specifically named subprime lenders, prime lenders, and even traditional banks that would collapse as a result. We warned that the real estate bubble would burst and the fallout would be “Even worse than the tech stock bust of the 1990s!” We wrote, “There are many, many stocks that will likely get taken apart as the real estate and mortgage sector unravels. Among them: Home builders, mortgage lenders, mortgage insurers, and plenty of other financial firms.”


We named “25 key stocks to avoid like the plague” — including Fannie Mae, Freddie Mac, and most of America’s top lenders and homebuilders. And realizing that the fallout of a broad stock market collapse and recession would be enough to push other weak companies into bankruptcy, we even included General Motors in that list long before the company was forced to beg Congress for a bailout. Sure enough, by year-end 2008, eleven of the 25 companies we named had filed for bankruptcy, been bailed out, or bought out. Virtually all had suffered severe stock declines, with average losses of 81.3%. And sure enough — just as we warned, the crisis exploded into the headlines, then spread like wildfire — from the handful of lenders who specialized in sub-prime loans to the largest lending institutions in America. Suddenly, millions of homeowners were defaulting on their mortgages. Suddenly, mortgage foreclosures soared — exploding by nearly 260% between 2007 and 2009. Suddenly, millions of families were being evicted from their homes. Mega-banks like Washington Mutual and Wachovia either failed or were forced into shotgun mergers. Thousands of banks were pushed to the brink as borrowers defaulted on their mortgages and as the banks’ other real estate investments collapsed in value. Fannie Mae and Freddie Mac suffered hundreds of billions in losses, forcing them into the arms of taxpayers. Mega-brokers like Bear Stearns and Lehman Brothers ceased to exist. The stock market suffered its worst declines since the Great Depression. Investors who owned real estate stocks took a terrible beating. The average S&P 500 stock plunged by more than half — and many real estate stocks did even worse. In all, more than $15 trillion of invested wealth was wiped out as the stock market cratered ...


Plus a staggering $8.2 trillion in home equity — the Americans counted on for their retirement — was wiped away and that’s just the home EQUITY that was erased. Altogether a staggering $14.8 trillion of real estate value was gone with the wind.

All told, investors and homeowners lost $29.8 trillion!
Of course, that doesn’t even begin to include the financial agony suffered by the millions of Americans who lost their paychecks as the official unemployment rate exploded to 10%. And those are conservative figures, based on the government’s funnymoney accounting. Economist John Williams tracks unemployment measured the way the government used to track it — including all discouraged workers who can only find part-time or lowwage jobs or have given up looking for work altogether. According to Williams, unemployment surged to nearly 30% leaving an estimated 15 million former workers without paychecks. The Nation reported that there's a “Mad Max,” post-apocalyptic feel to daily life in many neighborhoods — and local papers all over the country are still telling the stories of desperation. Harriet left this post on the Internet in May of 2009, describing her anguish at losing her home ... ’I always wanted my name to be in the paper as a young girl. I never thought my name would be in the paper reflecting a foreclosure listing. ’I cannot begin to describe how difficult it has been to fight the mental anguish that comes with financial failure. ’I’m still shell shocked and in pain; still racking my brains for a viable solution; still faced with the daunting possibility of having to pick up, move and start over again in someone else’s property, still repelled by the prospect of having to file bankruptcy in a last ditch effort to save our home.” Among the stories of heartbreak, there are also stories of rage. According to the Springfield, Ohio News-Sun, an Ohio man actually bulldozed his own home rather than let the lender take it. MSNBC reports that 61-year-old Michael Vanatta of Vero Beach, Florida, was laid off last January from his $100,000-a-year job as a sales executive. Now, with little savings, he was about to learn to live on the pittance Social Security will pay him. He’s in the majority. Most Americans counted on their home equity to see them through retirement. Now, that money is long gone. Unfortunately, these are anything but isolated incidents. There are millions of victims like Harriet and Michael in America today — hard-working people who have had their lives destroyed.

Altogether, more than four million families have lost their homes to foreclosure since 2007.
And after nearly five years, the toll is still mounting faster than ever. There were nearly two million foreclosures in 2011 alone. Meanwhile, though, a small group of investors who heeded our warnings had the opportunity to use the special class of investments we recommend to grab gains of 93.2% as the Dow fell ... 69.5% as the S&P dropped ... and 236.6% as the Nasdaq crashed. Plus, they could have used even more aggressive investments to grab gains of up to 553% as the economy sank into the most severe recession since the Great Depression — enough to turn a $25,000 molehill into a $163,250 mountain of cash. These investments — I’ll tell you about them in a moment — have never been more critical to own than they are right now. Because ...

In 2008, the elites in Washington, D.C. and Wall Street fat cats began engineering a THIRD great bubble — the ultimate bubble ...
It’s a bubble that dwarfs anything we’ve seen so far; the greatest asset bubble mankind has ever witnessed. And mark my words: When that bubble bursts, it will dwarf every financial disaster we’ve witnessed so far. It will destroy most of the wealth everyday Americans have left ... reduce millions of Americans to poverty ... and spell the end of life as we have come to know it. And as you’ll see in a moment, it will make a handful of investors — a small minority who heed this warning and take action immediately to protect themselves and profit — much richer. The Fed actually began engineering this “ultimate bubble” in early 2008 — while the housing bust was just beginning to unfold.


First, it slashed interest rates from a high of 5.25% in late 2007 to 3% in January of 2008. In April, it cut them again; this time, to 2%. Six months later, it reduced interest rates yet again; this time, by half; to just 1%. Finally, in December of 2008, the Fed slashed interest rates to just onequarter of one percent: The lowest level in U.S. history. Let’s just think about those numbers for a moment ... >> When the Fed reduced rates to 3% in 1992, it created the tech stock bubble that ultimately robbed everyday Americans of $9.5 trillion. >> When it cut rates to 1% in 2003, it created the real estate bubble that mugged homeowners and investors for another $29.8 trillion. Total losses: $38.3 trillion — an amount equal to about $262,000 for each American wage-earner. But despite the fact that its two previous forays into interest-rate cutting ultimately destroyed massive amounts of investors’ and homeowners’ wealth ...

The U.S. Federal Reserve did it AGAIN in 2008!
It slashed its key rate to NEARLY ZERO ... And it has kept interest rates that low ever since! But that was only the Fed’s first move; it had another, even more powerful weapon in its arsenal: Instead of simply allowing its interest rate cuts to increase the demand for loans ... Instead of waiting for America’s banks to increase the monetary base by making those loans ... The Fed began creating money out of thin air and dumping that money into the economy, too! Altogether, it dumped more than 1.8 trillion newly-created U.S. dollars directly into the U.S. economy.

Meanwhile, Congress and the White House embarked on a spending spree of historic proportions. First, they gave $594 billion to the rich bankers who helped them create the housing bubble and to the rich brokers who blew up the bubble in the stock market. They called it a “bailout” and swore it was needed to save the financial system. Then, they blew another $1.4 trillion on spending programs full of pork-barrel which they promised would stimulate the economy — but never really did. And they just kept on spending; squandering a record $16.3 trillion since 2007 ... running up the largest deficits in world history ... and adding more than $6.5 trillion to the national debt in just four years. So, to help pay all those bills, the U.S. Treasury borrowed $7 trillion from investors — and dumped that money into the economy, too. Needless to say, this tsunami of federal funny money made all previous Fed interventions pale by comparison: It made the huge amount of money the Fed used to create the tech bubble seem like a drop in the ocean. It made the mountain of money the Fed used to create the real estate bubble seem like a tiny molehill. Look at the first little bump in this chart. That’s how much the U.S. monetary base increased after the Fed cut interest rates in 1992. The second, slightly larger bump shows the increase in the monetary base after the Fed cut interest rates in 2003. Now, see that massive mountain that begins in 2008? That’s how much the Fed has pumped up the monetary base this time around!


The impact on the price of U.S. treasuries — investments that usually only rise or fall by tiny amounts — has been enormous. In fact, the price of the 30-year treasury has soared to the highest level in history. As a result, we are now staring down the barrel of the greatest bubble of all time: Not only have treasury prices exploded higher ... According to the U.S. Federal Reserve, the total amount of debt on the market today is more than $58 trillion. It towers over the housing bubble that began to burst in 2007 ... That dwarfs the tech stock bubble that burst in 2000 ... It dwarfs every other asset bubble mankind has ever seen!

Of course, it goes without saying that the elites are having a heyday thanks to the latest, biggest historic bubble ...
The enormous explosion in money printing and borrowing has Washington’s elite showering trillions of dollars on their constituents — and by doing so, expanding their power bases and ensuring their re-elections. Wall Street firms like Goldman are feeding at the government trough, earning record bonuses by helping Washington sell those mountains of treasuries. They’ve made billions more as this tidal wave of federal funny money food and gasoline prices through the roof ...

And of course, Wall Street fat cats are funneling massive amounts of campaign contributions to the elite in Congress and the White House. But the average guy on the street? Mom and pop investors? You and me? Our parents? Our kids?

We got bupkiss!
Sure — Washington claims the unemployment rate is falling, thanks to their spending, printing and borrowing spree. But that’s just another lie. The truth is, the White House is shamelessly cooking the books: It actually changed the way it counts unemployed workers in order to make gullible voters believe things are getting better. The highly revered, independent economist John Williams still measures unemployment like Washington used to. And using the formula Washington elites USED TO swear by — Mr. Williams has proven that the real U.S. unemployment rate is still a staggering 22.5%! That’s more than one in five American workers without a paycheck — nearly as bad as things got during the Great Depression! Meanwhile, despite everything the Washington elites have done — everything they swore would save the real estate market — housing prices are still falling; our home equity still evaporating. And now, thanks to the trillions of dollars the Fed is pumping into the economy, your buying power is evaporating. That’s why ground beef is up 16% ... Potatoes are up 17% ... Butter has jumped 22% ... Gasoline has soared 35% ... And coffee has skyrocketed a mind-boggling 42% — All in a single year!

Plus, to add insult to injury, the Fed is now waging war on savers; its near-zero interest rates have made it impossible for you to earn a decent yield on your money. But the bubble in government debt is just the beginning ...

The government ITSELF is a HUGE bubble!
It’s much BIGGER. It spends more. It’s more directly involved in everything we do. FACT: The Heritage Foundation reports that since the December 2007, the private sector workforce has shrunk by 6.6%; shedding more than 7.5 million jobs ... But the federal government workforce has grown by 11.7%; adding 230,000 jobs. And now, President Obama’s 2012 budget proposes the hiring of thousands MORE government employees! FACT: American dependence on government has soared 23% to an alltime high under the Obama administration. CNN reports that one in every five Americans now relies on federal assistance. Nearly 46 million Americans need food stamps to keep body and soul together — 34% more than just two years ago. The average recipient of federal aid collects $32,748 in benefits — about $300 more than the average taxpaying family has in disposable income. FACT: According to President Obama’s 2013 budget, federal spending will soar by ANOTHER 53%. And that’s just what Washington will spend if current policies are continued until 2022 and future presidents don’t add a penny of new spending on top of it. Actual spending will probably skyrocket even faster! FACT: The administration claims that his budget will “cut” the deficit by $4 trillion. But that simply isn’t true. His budget proposal never cuts spending. It only reduces the increases in spending that were previously baked in. Under the Obama plan, federal spending increases every single year between 2013 and 2022.

FACT: Each year, the government is enacting more than twice as many new rules as the prior administration did. In fiscal 2010 alone, the Obama administration adopted a record 43 rules. The Federal Register — the daily record of regulatory changes — has exploded in size to an average of over 82,000 pages. According to the Government Accountability Office, between October 2010 and March of this year, 1,827 rulemaking proceedings were completed, 37 of which were classified as "significant" or "major," meaning their expected economic impact surpassed $100 million per year. Seven proposed rules on the environment and transportation ALONE would cost U.S. companies at least $38 billion per year and could cost as much as $100 billion annually.

And now, this enormous government bubble — by far the largest in the history of planet Earth — is about to burst.
But this time, it’s different: This time, the Fed doesn’t have to pull the plug by raising interest rates. This time, the bubble it has created is so enormous — and so vulnerable to any kind of shock — it will simply collapse of its own weight. You’ve already seen this kind of collapse in Europe right now — in Greece, Portugal, Italy, Spain and France: First, their political elite ran up massive debts that could never be repaid ... Just like ours did. But when it came time to pay the piper, they didn’t have enough money. Neither do we. And now they’re already doing what America must do next: Cutting social programs and entitlements right and left; breaking promises they made to their own people ... And creating trillions of euros out of thin air in a desperate attempt to avoid defaulting on the patently unpayable debts they owe to bond investors ... But these kinds of desperate, stop-gap measures have never worked. Despite all this, Greece had no choice but to default on a huge chunk of the debts it owned to bond investors. The toll in human suffering has been devastating:

Unemployment is skyrocketing; while the UK's youth unemployment rate is was 20%, the European authorities report that it hit 28% in Portugal ... 29% in Ireland and Italy ... 36% in Greece and 44.3% in Spain. Hundreds of thousands of citizens have taken to the streets in Greece, Spain, Italy, the U.K. and other countries to protest cuts in government spending. Many of those demonstrations have turned violent.

How deadly can this kind of crisis get?
The Guardian reports that in Greece, the nation has been shocked by stories of parents forced to give up their own children because of the crushing poverty — and charities are warning that the trend is accelerating. Even before Greece’s economic crisis engulfed his own home, Dimitris Gasparinatos and his wife, Christina found it impossible to provide for their six sons and four daughters. Deep in debt, the couple owed money to the butcher, baker and grocer — the very people who had kept them going in the port of Patras, west of Athens. In their tiny flat, the family slipped increasingly into a life of squalor. And so, with Christmas approaching, the 42-year-old took the decision to put in an official request for three of his boys and one daughter to be taken into care. The next day, his 37-year-old wife visited the local town hall and asked that her children be "saved." According to the local deputy mayor, pleas for help are on the rise. From cases of newborn babies wrapped in swaddling and dumped on the doorsteps of clinics, to children being offloaded on charities and put in foster care, the nation's struggle to pay off its debts is assuming dramatic proportions. Propelled by poverty, 500 families had recently asked to place children in homes run by the charity SOS Children's Villages. One toddler was left at the nursery she attended with a note that read: "I will not return to get Anna. I don't have any money, I can't bring her up. Sorry, Her mother." The Athens headquarters of one charity is filled with cots for babies who were abandoned in hospitals, found in windowless homes or taken from unfit parents or even discovered in garbage dumps. That’s the kind of pain that comes with this kind of debt implosion. And never forget: The European Union has bailed out Greece and these other debtor nations — but there is simply no institution on Earth large enough to save America. Yes, in the tech wreck and housing bubble, we could turn to Washington to bail out the economy.


But now, the government ITSELF is the bubble and there’s nobody left to save it when it begins to burst. Sure — the Washington elites and Wall Street fat cats will tell you that the bursting of this great bubble is impossible. But that’s the same thing they said when they fat cats promised you that the “new technology economy” meant the tech boom of the 1990s would go on forever ... And when they swore on a stack of Bibles that there could never be a nationwide crash in the real estate market. But mark my words: This crisis is real.

This unprecedented bubble of government debt cannot ... WILL not ... survive much longer.
Nearly half of every dollar Washington spends is borrowed money. We owe China $1.1 trillion ... Japan another $1 trillion ... the OPEC nations $259 billion and now they’re mad as hell. They’re simply not going to take it anymore. They’ve made it crystal clear: Either Washington gets its house in order, or the flow of easy money will simply stop. The handwriting is clearly on the wall: Our leaders now have NO CHOICE but to burst this bubble. They must radically slash spending and dramatically shrink the size of our government. To do that, they must radically slash America’s military budget and delay or even cancel payments to seniors, veterans, the poor, the disabled and to pensioners. Because if they don’t, our creditors have made it clear that THEY WILL! All they have to do is begin lending less money to Washington! Of course, those kinds of massive budget cuts will take massive amounts of money out of the U.S. economy and push America to the brink of disaster. So, after they’ve cut all they can, they’ll do what governments always do when they run out of options — what the European Union is already doing:

They’ll run the money printing presses until the value of every single dollar in your pocket is destroyed.
The impact on the U.S. economy will be immediate and painful: Millions who count on government checks will suddenly find themselves on the ropes, struggling to survive. Millions more who still earn a paycheck will find that it busy them a LOT less than it used to.

Therefore, with massive government programs slashed or cancelled altogether ... With millions of consumers paralyzed in fear ... With the U.S. economy in intensive care ... With tax revenues plunging ... And with your cost of living surging ...

Here is the worst-case scenario; the scenario I fear most ...
Hunger and homelessness explode to pandemic levels from coast to coast. The victims take to the streets. Rallies turn into demonstrations ... then, into protests ... and finally, into riots. With law enforcement severely crippled by the spending cuts, crime skyrockets. With fire departments running at austerity levels, cities burn. With emergency services and hospitals out of money, people die. To restore order, Washington elites revoke many of your personal freedoms. Hard to believe? I understand. But don’t take it just from me. Look at what’s already happening at the city and state level:
New Jersey has laid off many of its police officers. Many states are following suit. Several states are putting prisoners back on the street before their sentences are served because there’s not enough money to house them. Philadelphia, Baltimore, Sacramento and many other cities are laying off firefighters and emergency medical personnel and shutting down firehouses. Many states, including New York, have refused to pay their pension funds. Governor Chris Christie slashed New Jersey's budget by 26 percent. He has laid off thousands of teachers ... fired 1,300 state workers ... and drastically reduced funding to cities and counties. And despite all those cuts, S&P slashed New Jersey’s credit rating anyway! Illinois recently jacked up income taxes by 67% — and it’s still not enough to solve its deficit nightmare. Also in Illinois, pharmacies have closed because the state failed to make its required Medicaid payments, and


State employees are being evicted from their offices for nonpayment of rent. Arizona was so desperate, it SOLD its state capitol, Supreme Court building and legislative chambers and now leases the buildings from their new owner. Arizona also eliminated Medicaid funding for most organ transplants, causing at least three deaths so far.

As a result, even the New York Times recently warned that, for the first time since the 1930s, we’re likely to see U.S. states default on their debts!

So what’s next for the U.S.? You need only look at Europe.
Every time there’s a new threat that Greece, Italy, Portugal or another country could default ... Every time we get news of slowdowns in the European economy ... The European Central Bank prints more money. And every time the E.C.B. prints more money, the Bank of England isn’t far behind! As a result, the euro has plunged ... European’s cost of living is skyrocketing and poverty is spreading like wildfire. And now, the same happening here. The total of the Fed’s recent money printing has ALREADY swelled a whopping 218% to nearly $3 trillion — and that hasn’t done anything to re-energize the U.S. economy. Now, despite the fact that his previous money-printing programs were utter failures, Fed chief Bernanke is all but promising to crank up his money-printing presses again! Plus, even though the Fed’s historically low interest rates have also failed to lift the economy out of the doldrums ... the Fed recently announced that it will nail short-term rates to the floor through late 2014 — a full year longer than previously indicated.

It goes without saying: All of this fits perfectly with Einstein’s definition of insanity — doing the same thing over and over again, expecting a different result! To you, all of this means two things: The spending cuts will drive the U.S. economy into another devastating recession as spending cuts kill corporate profits and drive unemployment sky-high again and as I just pointed out, your cost of living will continue to explode. The price you pay for food ... to heat and cool your home ... and to fuel your automobile are already skyrocketing, thanks to the Fed’s massive money-printing. Even the so-called “core” inflation rate the Fed apologists like to cite just jumped at its fastest pace in 40 months! But those increases are likely to be little more than a sneak preview of the price explosions we’ll see as the Fed tries to fight this crisis. How bad will it get? These are ten former heads of the president’s Council of Economic Advisors ...

They are the men and women who served under the presidents of both major parties, including President Obama and have since left office ... They recently wrote that the next debt crisis could — and I quote —

’Dwarf 2008!”
That’s an absolutely shocking assertion: In 2008, Wall Street came within a hair of a massive, devastating meltdown.


Virtually ALL of our largest banks were pushed to the brink of failure. The entire country was only a few hours away from a fatal collapse. Now, these ten former White House advisors are warning that this next debt crisis could dwarf the last one. And these ten former presidential advisers are not the only ones ringing the alarm bells.
Senator Mark Warner says, “We’re approaching financial Armageddon.” Senator Joe Manchin calls this crisis, “A fiscal Titanic” Admiral Mike Mullen, the chairman of the Joint Chiefs of Staff, is warning that this crisis is, “the biggest threat to our national security.” Economist Robert Samuelson warns that this crisis has the power to trigger, “An economic and political death spiral.” Democrat Erskine Bowles, who headed up the president’s deficit commission, warns that this crisis is, “like a cancer; it’s truly going to destroy the country from within.” Senator Mike Crapo says it is “a threat to not just our way of life, but to our national survival.” It has the power to “... guarantee that this nation becomes a second-rate power with less opportunity and less freedom.” And David Walker — the former U.S. Comptroller General and director of the Government Accountability Office says, “The bottom line is: We’re not Greece. But we could end with the same problems!”

These men are not extremists. They have nothing to gain by trying to scare you. They are merely following the facts to their logical conclusion.
That’s what I’ve done in this presentation. The warnings I’ve given you are based on nothing more — and nothing less — than economic reality and historical fact. And once again, just as we did before the Tech Wreck in 2000 ... And just as we did before the housing bust, banking crisis and recession began in 2007 ... We’re doing everything we can to warn you before it’s too late. Once again, greedy and power-mad CEOs, politicians and bureaucrats are playing us for suckers; blatantly mugging good, hard-working people to save their own necks and line their own pockets.

They’re about to get richer. They’re about to grow more powerful. Unless you take action to protect yourself and profit immediately, you’re about to get taken to the cleaners. Your opportunities to build a better life: Crushed. Your hard-earned money: Ruthlessly stolen from you. Your financial security and independence: Utterly destroyed. Your hopes for a comfortable retirement: Heartlessly dashed.

Worst of all ... if history is any indication ... they’re going to get away with it!
After all: Where’s the punishment for the scoundrels who engineered the tech wreck? Where’s the retribution for the elite in Washington and on Wall Street who engineered the housing bust? The politicians who made it a virtual crime to deny anyone a mortgage? The bankers who got rich making loans they knew would never be repaid, then turning them into securities and selling them to investors? The bureaucrats who were supposed to regulate the entire process but who never did? Where’s their punishment for the lives they destroyed? Where’s the retribution for the money they stole from all of us? Where are the investigations? The trials? Why aren’t we hearing of long prison sentences?

You and I both know the answer; and it makes me fighting mad ...
They’re the Washington and Wall Street elite. And that birthright means they never have to worry about paying for their crimes. The crooked and incompetent politicians simply get re-elected. The failed regulators keep their lifetime jobs, lavish perks and fat retirements. The bankers get massive bailouts, huge bonuses and just keep on getting richer. And to add insult to injury, YOU — the victim of their schemes — get to pay through the nose to clean up the mess they made with bailouts and stimulus schemes ...


Giveaways BY the elite TO the elite that only make them richer and more powerful but that somehow never really seem to help the little guy. Nevertheless, if the crisis I’ve just described is hard for you to imagine, I certainly understand.

We’ve never seen anything like this happen before in America.
We always believed we were somehow insulated from these kinds of catastrophes. Besides: Things still seem so “normal” for most of us today — so routine. It’s hard to imagine that such terrible things could happen to us, and ... That it could happen so quickly, in the twinkling of an eye. But isn’t that always the case? Isn’t there always a calm before the storm? Aren’t people always caught by surprise when historic crises strike? After all — nobody believed the Soviet Union would collapse virtually overnight — and when it did, it caught everybody by surprise. Even our own C.I.A. failed to see that one coming! In Japan, even though they had been repeatedly warned, nobody believed the nuclear power plants would suffer multiple meltdowns. Once again, their denial was costly in the extreme. So I’m under no delusions here. I know that the vast majority of Americans will fail to heed this warning and fail to get ready for this crisis. I sincerely hope — for your family’s sake — that you are not one of them. Because the precautions required to weather the coming tempest are not difficult. And even if the storm turns out to be less severe than I fear it may be, the worst that’ll happen is that you’ll sleep better at night and make some money in the process. So WHEN should you expect to see this cataclysmic event — the moment when Washington runs out of money? Soon. VERY soon.


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