Profit From What Insiders, Media and the
Government Won't Tell You About A
Dawning New Age of Desperation:

Your Savings & Retirement Are
In Danger From 3 Imminent Threats
Where The Old Rules Don't Apply

Learn To Protect What You Have,
Consistently Lock In Winning Investments,
And Bulletproof Your Financial Future


From the Desk of Graham Summers

Dear Investor,

You might think it's odd that I'm telling you about something that 'almost' happened well over a year ago on September 18, 2008.

But the revelation by Rep. Paul Kanjorski is one of the most chilling statements about this ongoing financial crisis you'll ever hear.

And a freshly-proposed government money market regulation has now created a new risk lurking ominously in your future.

The Shocking Truth:
How The World Almost Ended
On September 18, 2008


The following quote begins at 2:20 into the video ...

"On Thursday (Sept 18), at 11am the Federal Reserve noticed a tremendous draw-down of money market accounts in the U.S., to the tune of $550 billion was being drawn out in the matter of an hour or two.

"The Treasury opened up its window to help and pumped a $105 billion in the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks.

"They decided to close the operation, close down the money accounts and announce a guarantee of $250,000 per account so there wouldn't be further panic out there.

"If they had not done that, their estimation is that by 2pm that afternoon, $5.5 trillion would have been drawn out of the money market system of the U.S., would have collapsed the entire economy of the U.S., and within 24 hours the world economy would have collapsed.

"It would have been the end of our economic system and our political system as we know it."

-Rep. Paul Kanjorski (Democratic Congressman and Capital Markets Subcommittee Chair) describing disclosures from Ben Bernanke (Chairman of the Federal Reserve) and Henry Paulson (former Treasury Secretary)

Here's the background ...

It Almost Happened:
The End Of Our Economic
System As We Know It!

An electronic run on the banks was barely averted by a Federal Reserve that was caught totally unprepared despite their so-called 'expert' management.

We were mere hours from being wiped out!

Can you imagine what would have happened to your money? Your family? Your future?

And Kanjorski's no conspiracy nut, if you're wondering. He was the Capital Markets Subcommittee Chair at the time and was only repeating what then-Treasury Secretary Paulson told him.

But here's something else you didn't know ...

Nothing's been done to defend your hard-earned money from another electronic run on the banks except something that's perhaps even worse ...

The government's decided to "protect" you by freezing your funds just when you might really need them!

Yes, You Read That Correctly ...

New regulations proposed by the Securities and Exchange Commission are going to yank out one of the core pillars from underneath the entire $3.3 trillion money market industry.

Money market fund managers will have the option to "suspend redemptions to allow for the orderly liquidation of fund assets."

In other words ...

"Your" money is the fund manager's money until he decides otherwise.

Even if you don't think you own money market funds, think again:

"...today, money market funds account for approximately 39% of all investment company assets; about 80% of all U.S. companies use money market funds in managing their cash balances; and about 20% of the cash balances of all U.S. households are held in money market funds. Clearly, money market funds have become part of the fabric by which families, and companies manage their financial affairs."

-The SEC's Luis Aguilar on June 24, 2009

You see, it's very likely that funds you're invested in will be affected by this regulation.

The next time there's a market crash and you try to withdraw what you thought was 100% safe money, you'll instead be told, "Sorry - your funds are now frozen. Bank runs have become illegal."

This is a crisis on top of a crisis!

And There Will Be Another
Crisis in 2010. Here's Why ...

Everyone knows the US has a debt problem. But most individual investors fail to grasp the severity of the situation.

The US “officially” owes $12 trillion.

This debt is continuously coming due and so we have to “roll it over”. This means that we must convince our lenders to lend to us again for an even longer period (or else pay back the money -- or default).

The chart below (from the Treasury's own November 2, 2009 Quarterly Refunding report) shows the amount of debt maturing in the next 30 years. By the way, these debts are denominated in billions.

graph of maturing US government debt in 30 years

This “rollover” process happens all the time. And from the chart above it looks like "business as usual" with the odd spike here and there, right?

Wrong!

In fact, the US has to roll over debt worth $125 billion in the first few months of 2010 alone ($26bn + $25bn + $48bn (whoa!) + $26bn) as the Treasury's own data illustrates below ...

table of maturing US government debt in just a few months

The impending crisis is that this is occuring at the exact same time that the US must issue $2 trillion in new debt to finance Washington’s massive budget deficit.

Fewer and fewer investors are willing to lend us money for any long period of time. Indeed, the US Treasury’s own data shows that foreign governments have actually begun selling our debt:

"Foreign holdings of dollar-denominated short-term U.S. securities, including Treasury bills, and other custody liabilities decreased $43.9 billion. Foreign holdings of Treasury bills decreased $38.3 billion."

-Treasury International Capital (TIC) Data for October, 2009

We have to come up with a whole lot more money at the exact same time that fewer folks want to lend to us.

And That's What's Got The Government
So Afraid ... That They're Trying To
Prevent A
New Electronic Run on the Banks!

The US Government Living
Beyond Its Means:
How Bad Is It Now?

Adjusted for inflation, gross tax receipts have only risen 40% in the last 39 years. However, total government spending increased 2,600% over the same time period!

Many observers made a big deal about the US running a $1 trillion deficit this year. Well, if you included the net value of unfunded Social Security and Medicare expenses we cleared a $1 trillion deficit in 2007, a $5 trillion deficit in 2008 and a $9 trillion deficit in 2009.

How bad will it get in 2010?

To give you an idea of how big a problem these deficits are, consider that the US government could tax its citizens 100% of their earnings and still not have a balanced budget.

The bottomline is this: The US has a major debt problem. Including future social security and Medicare expenses we owe $65 trillion.

We can't cope with that crisis without resorting to at least one of the 3 drastic measures I've highlighted to left.

And that reality is what's facing us head-on in 2010.

You see, 2010 is set to be a truly "interesting" year as a result of the upcoming explosion in US Treasury debt issuance.

Who's going to buy it all?

  • The Chinese are looking to invest internally and have already said that they're looking to diversify away from their US debt holdings.
  • Japan is a deflationary mess and has big problems of its own.
  • The UK is experiencing yet even bigger problems and aren't about to be buying large quantities of US government debt in the foreseeable future.

That doesn't leave a whole lot of sales prospects in the room. And the Fed's other options are bad, worse and unspeakable.

Here's what they could do ...

  1. More Quantitative Easing: Printing the necessary dollars to monetize all that added debt is going to crush the dollar and might trigger existing debt holders (China, Japan, the UK, Euro-land) into simply giving up and dumping what they have for whatever they can get.

    Your dollars will devalue in a hurry and the cost of imported goods will climb rapidly.
  2. Hike Up Interest Rates: This would collapse a lot of mortgage holders who are already just barely hanging on. Plus it would most likely spark runaway inflation almost overnight, and create even more problems than Option 1. Just think about it ...

    Would you be happy about carting around a shoebox of near-worthless dollars just to buy lunch?
  3. Collapse The Stock Market: At the moment, many people are in equities because of the perception that the government won't let the market fall. So where would they flee if stocks dropped 30% or more? Most likely right into the "safety" of U.S. Treasury debt -- how convenient! -- but not before taking a massive loss on their stocks.

    How would you feel about a 30% (and probably larger) haircut on your stock portfolio?

These are the 3 imminent crises I warned you about at the top of this page, and at least one of them's going to happen very soon.

If you're not concerned yet ... here's what historical hyperinflations have looked like (Source: "On the Measurement of Zimbabwe’s Hyperinflation." Cato Journal, Vol. 29, No. 2 (Spring/Summer 2009).

Either Option 1 or Option 2 from the list above could spark a catastrophe like any of these ...

Country Month with Highest
Inflation Rate
Highest Monthly
Inflation Rate
Equivalent Daily
Inflation Rate
Time Required For
Prices To Double
Hungary July 1946 4.19 x 1016% 207% 15.0 hours
Zimbabwe mid-Nov 2008 7.96 x 1010% 98.0% 24.7 hours
Yugoslavia Jan 1994 3.13 x 108% 64.6% 1.4 days
Germany Oct 1923 29,500% 20.9% 3.7 days
Greece Oct 1944 13,800% 17.9% 4.3 days
China May 1949 2,178% 11.0% 6.7 days

And what else will happen if Option 2 is used and the Fed jacks up interest rates?

Right now the combined percentage of those in foreclosure and/or behind on mortgage payments is a staggering 14.41%. According to the Mortgage Bankers Association in a recent press release, that's the worst performance since records began in 1972.

How many more will go under if and when their payments increase?

But it gets worse ... because there's a relentless tsunami of adjustable-rate mortgage re-sets this year too.

There's serious doubts about the survival of many of these mortgages even without an interest rate hike!


the looming mortgage crisis in 2010

And for the sake of completeness, here's a good 'recent history' preview of what Option 3 will wreak upon the stock market ...

warning of the possible 2010 stock market crash

 

Are You Prepared For What’s Coming?
Let Me Show You How To Make A Killing

Fortunately there's a solution to every crisis and I'll show you exactly how to preserve your wealth and even profit handsomely as the multiple onslaughts of 2010 financial crises get underway.

Who am I, you ask?

My Name Is Graham Summers

... and for the last 5 years I've been helping investors like you avoid surprises ... lock in profits ... and retire securely and with as little worry as possible.

I've personally researched and analyzed over 1,000 companies worldwide after beginning my career as a research analyst at one of the largest financial research firms in Baltimore, MD.

I was the youngest Senior Analyst/Researcher in the firm's history and by the time I was 27, I was writing daily missives on investing, finance, and business to an audience of more than 140,000 investors and business owners.

I've since worked as a ...

  • Marketing Director
  • CEO, and
  • Corporate Consultant

... with an intense understanding of larger economic trends and capital flows.

I've even presented business and finance ideas to audiences in Aspen, Playa Del Carmen, Dubai, Zurich, and elsewhere.

What's more, my insights have been featured on

  • MoneyTalk Radio
  • Crain's New York Business
  • Financial Life Radio, Reuters
  • Rolling Stone Magazine and others

So why should you care?

I Predicted The Investment Banking Collapse
As Well As The 2008 Stock Market Crash
Months Before Both Occurred

What's so good about a crash?

Well, it took stocks 5 years to double from the 2003 bottom to the all time high in 2007. But in 2008 you could have doubled your money in just 3 months with a few short plays against the market.

I did it in 2008, and those very profitable days are coming again soon.

In fact ... in 2008, I warned my subscribers to get out of the long side of the market a full 3 weeks before the October-November nightmare began.

Instead we were prepared for profits with highly-targeted shorts while everyone around us saw their portfolios sliced by a third.

Then, when the market bottomed out ...

Anyone who had followed my '2008 crash' trades collected double and triple digit gains in the final months of 2008.

And of course 2010 is shaping up to be just as bad -- if not worse -- than 2008.

That might sound scary, but market chaos can be enormously profitable with the right strategy.

I beat the S&P 500 by 44% in 2008 and I can demonstrate that there’s a stable and even prosperous future ahead of you if you’re willing to do 2 things:

   Make money by going long or short as needed, and

   Listen to honest, transparent advice you won't find anywhere else

Here's How To Create Real Wealth
One Carefully-Considered Step At A Time

Worrying does nothing for your financial or emotional health. And getting angry at Wall Street (or the government) might make you feel good for 15 minutes, but it doesn't put any dollars in your account.

Instead, you can successfully beat the market by doing your due diligence, forming a thesis, and standing by that thesis unless the facts prove you wrong.

I’ve used these winning tactics to recommend proven gains including:

  • 98% with the UltraShort Financials ProShares (SKF)
  • 54% with Redback Mining (RBI.TO)
  • 47% with Iamgold (IAG)
  • 35% with Powershares DB Base Metals (BDD) and
  • 17% and 19% with the Gold Miners ETF (GDX)

You'll notice that I have a fondness for Ultrashort ETFs as well as more traditional ETFs and also individual stocks.

There's a good reason for that: when I see something that’s destined for a fall, I tell you how to profit from it. Sometimes an individual company is in trouble. Sometimes it’s an entire sector.

And I'm not married to any one investment strategy, either.

   If it's time to go short, we go short.

   If it's time to buy gold, we buy gold.

   If it's time to buy tech stocks or agricultural stocks, we do that too.

   If it's time to short bonds, well ... you can guess what I recommend.

The name of the game in today's market is to be flexible so we can be protected from the smoke and mirrors thrown up by Wall Street, the mainstream media and of course the government too.

Then we can capitalize on reality, not what they claim is reality.

After all, the changes that will occur in the US (and the world) within the next 12-36 months will be of epic proportions and will be unlike anything we’ve seen before.

You absolutely MUST prepare in advance for what will likely be a horrific period in the US’s history.

 

Ignore The Government & Mainstream
Media Lies ... And Make 2010 Comfortably
Profitable
For Your Portfolio

Private Wealth Advisory is my answer to the media, government and investment industry ineptitude.

The government might not care about destroying America's economic and financial standing in the world, but I do.

My advice is dedicated to helping you grow your capital and preserve your wealth.

I'm all about helping you understand what's really happening in the financial markets, and I'll ensure you profit with carefully selected and thoroughly-explained investment picks.

In fact ...

"You'll learn more in one month of
Private Wealth Advisory than years of
academic study or any MBA program"

your satisfaction is guaranteed

I offer a full 30-day RISK FREE trial of my newsletter.

That's 30 days to explore Private Wealth Advisory's historic archives as well as 2 "hot off the press" issues without risking a single cent of your money.

I personally guarantee that in the next 30 days as a Private Wealth Advisory subscriber, you'll ...

  • Save hours of your valuable time researching key trends, investments and opportunities in the U.S. markets (I've done all the hard work for you)
  • Discover how to conveniently buy and short entire sectors and asset classes using nothing more than your regular brokerage account (I explain everything in crystal clear detail)
  • Dramatically enhance your investment knowledge above that of many so-called financial professionals, including the media idiots who are slaves to Wall Street advertising dollars (and therefore willfully blind to certain secrets I'm all too happy to share with you)
  • Make more informed investment decisions with more confidence than you feel right now (I provide including realistic entry and exit point recommendations on all my picks), and ...
  • Learn more real investment knowledge from one month of reading Private Wealth Advisory than in years of academic study or any MBA program

In the next 30 days, you must agree that I've delivered on every promise above, or I'll provide a full, no questions asked, unconditional refund. That's plenty of time for you to make a profit on my recommendations!

I trust you'll be honest with me, because in a sea of sharks out to steal your hard-earned cash, I'm on your side.

I sincerely look forward to making you a more savvy and more profitable investor than you are now!

grahams signature

Graham Summers
Editor, Gains, Pains & Capital

And we do make money ...

Every two weeks I present you with 13 - 22 pages of investment insight detailing the real reasons the financial markets move the way they do. You'll be making informed investment decisions that will grow your brokerage account and minimize your losses.

In one year, you'll receive a full 26 issues of Private Wealth Advisory.

I also send out urgent Market Updates when I see a price movement or other opportunity that I feel will benefit you.

You get it all for a very reasonable $180, which translates to as little as 32 cents a page or about $12 an investment pick on average.

Private Wealth Advisory is one of the most affordable educational profit-making bargains available today.

We’ve seen gains of 14%, 17%, 19% and 35% all in a matter of weeks, and I want you to begin racking up the very same profits in your own account.

Get started by clicking the Buy Now button below...

There simply isn't another newsletter in the financial sector that provides such clear, concise and informative content for less than 50 cents a day.

Start protecting yourself from the upcoming stock crash right now.

The alternative is that you can continue as you are: feeling suspicious that things aren't right, unsure what to believe, and maybe even lying awake at night worrying about what could happen to your portfolio in this ongoing economic disaster.

After all, year over year real employment, real industrial orders, real housing starts, and real retail sales are all posting their largest drops since the production shutdown following WWII.

Does This Look Like A
Healthy Economy To You?

Industrial capacity at an all time low: In November 2009 industrial capacity was 71% -- roughly 3 out of every 10 of our plants are doing nothing at all.

Shocking real unemployment: The Center for Labor Market Studies at Northeastern University estimates that real unemployment now stands at 18.2%: this is higher than the posted rate at the end of the 1930s.

Falling revenue and profits: Even after laying off people and cutting costs, year-over-year Corporate Revenues and Operating Earnings fell 17% and 43% in 2009.

Food stamps in America? There are more than 35 million Americans on food stamps.

Falling incomes, rising debts: REAL incomes (not using massaged data), are down 40% since 1973 even while consumers still owe $2.46 trillion in credit debt

A creeping socialist tide: A full 18% of incomes are coming from an already broke government.

Unemployment desperation: No less than 53% of people falling off unemployment numbers are doing so because they've exhausted their benefits. This is an all time record.

Plunging state coffers: Individual tax receipts are down 29% year over year in October 2009 (the most recent data available). Keep in mind that this is a drop from 2008 levels! How is government going to pay debt or provide services?

Bankrupt governments: California is the first state to go begging for a bailout, but you can be sure that others will follow. Fully 48 states are running deficits. Even if Obama doubled the bailout efforts, US states would still be underwater.

In very simple terms, the entire U.S. Government (state and federal) is bankrupt.

(The last time the US economy fell this hard this fast, we were intentionally shutting down the juggernaut that was the US war machine in WWII.)

This Is No Recession

We're already on our way to a Depression (a GDP contraction of 10%) and possibly even another Great Depression.

So I don't buy the "green shoots" theory at all.

Having things get horrendous at a slightly slower rate is not a sign of a recovery. Green shoots can pop up anywhere including the asphalt in the parking lot outside my office. That doesn't mean the parking lot is about to become a lush meadow!

No, the US is heading for a really, really rough time.

  • The US monetary base doubled in the last year.
  • We owe $65 trillion in liabilities.
  • The US government could tax every company and every American 100% of their annual incomes and still not pay everything off.

Typically when a bubble bursts it takes 10+ years, possibly an entire generation, before the assets that participated in the Bubble return to new highs (sometimes they never do).

But I can give you risk-free peace of mind for less than 50 cents a day.

Please do act now to give yourself the maximum time to prepare for what is certain to be a very bumpy year ahead.

The sooner you act, the sooner you'll feel at ease about your hard-won assets. Bear markets and currency gyrations destroy wealth faster than bull markets create it, and you do not want to see your future wash away in a sea of red ink this year!

Sincerely,

grahams signature

Graham Summers
Editor, Gains, Pains & Capital

P.S. Still curious about what you'll learn?

Here are a few more hidden gems that Private Wealth Advisory subscribers find out about in every bi-weekly edition delivered straight to their inbox...

(Each 'Click here' link will toggle topic-specific Private Wealth Advisory secrets and strategies you should know)

The Inflation Acid Drip: Eating Away Your Savings (Click here)

  • -40% in Just 6 Years: Did you know the U.S. dollar has lost 40% of its value between 2006 and 2009? It's only going to get worse over time but I have just the solution to protect your savings.
  • Why the Dollar Has No Clothes. The masses may be impressed with Bernanke and the rest of the imperial Fed strutting about, but Private Wealth Advisory subscribers know better. Do you know which sectors will do best when the fraud is revealed?
  • When Is An "Inflation Trade" Profitable?The Fed has forced large waves of money back into risky equities and commodities while doubling the monetary base in less than a year.

    You need to defend your portfolio from an inflationary attack, but the "Inflation Trade" isn't always profitable and there are times when you need to enact Private Wealth Advisory's "Deflation Trade" instead.

Extraordinary Popular Delusions and the Madness of Crowds (Click here)

  • Inflation Mania For The Masses: How to profit from hysteria when the puppet-masters play the crowd too well. Understand what the banks are doing with the Fed's money and you'll know which way the dollar is going next.
  • Do You Know The 3 Features Of A Bear Market Rally? I explain what they are, and it's more than just short covering.
  • Which Technical Red Flags Signal A Market Top? They made an appearance in the summer of 2007, only a few months before the market made an all-time high and then collapsed. Those same indicators are flashing again and you don't want to be caught when this market plummets.
  • Efficient Market Malarkey: The market was 500 trades away from full systemic meltdown and the Ivy League economics professors and the Wall Street bigwigs didn't see it coming.

    There are two main market delusions right now and both should be tossed right out of your investment consciousness immediately.
  • Wall Street Thinks Junk Food Is Better Than Blue Chip Steak: Did you know the 50 smallest stocks have outperformed the largest 50 stocks by 7.5%? And that the 50 most shorted stocks have beaten the 50 least shorted stocks by 8.8%? The current market rally is nothing more than a short squeeze (more on this in a moment).

Market Manipulation: The Finest That Money Can Buy (Click here)

  • The Crystal Ball of the Stock Market: What single sign of stock market manipulation should you look for first? The mainstream media won't report on this, but I give you specific details and examples.
  • Playing Poker With An 800 Pound Gorilla: You can have a winning hand and still get beaten up. Learn when to stay out of the market until the timing is right.
  • What Cows and Institutional Traders Have In Common. It's all about seasonality and stampedes. Did you know the S&P 500 has staged similar triangle patterns in both 2008 and 2009, almost to the very day?

(I expect Private Wealth Advisory's
2010 trading to be quite profitable for this
and several other important reasons)

  • Why Financial Firms' Earnings Are A Load Of Nonsense. Do you know which accounting gimmicks they're using to claim blowout earnings which don't exist? Learn the details of the bond scam and insider sales as well as where that bailout money is really going.

Media Shenanigans a.k.a. Business as Usual (Click here)

  • What Meredith Whitney Really Said About The Banks. Wall Street and the mainstream media hyped her words for a 2% market gain including 5% in the financials. Her real insights (the bearish ones) were a lot more grim and I discuss what you can learn from them.
  • Do You Know The Difference Between Earnings and Revenues? If so, you're more honest than the mainstream media about "better than expected" company earnings being more important than declining revenue.

Do you know which companies & sectors
are reporting ghastly numbers that
Wall Street isn't talking about?

Profitable Trends For 2010 and Onwards (Click here)

Foreign Affairs of a Financial Persuasion (Click here)

  • Chinese Whispers In The Wind. China may be THE commodity story in the markets. Did you know they follow predictable stockpiling patterns, and commodities prices follow those patterns?
  • The One Country You Can Easily Trade Based On Oil Prices. No, it's not in the Middle East. But I show you exactly which vehicle to use when there's a profitable divergence.
  • What Does China's Latest Warning Shot Mean For U.S. Stocks? Ben Bernanke has to appease our #1 U.S. Dollar creditor while propping up the stock market. One's going to give way and there's an action plan for each scenario.

The Extraordinary Power of Seasonality (Click here)

  • How to Make $26 Profit on $10,000 in 57 Years. Invest during the wrong season, and $26 is all you get. Yes, it's really that bad! But invest in the right season, and you get $362,890 profit.

I'll show you how to make seasonality
do the heavy lifting for you

  • What The Fall of 1987 and 2009 Are Likely To Have In Common. They already share the twin vultures of declining volume and higher highs circling over their heads. What followed in 1987 wasn't pleasant and it won't be any nicer in 2009.

How Wall Street's “Insider” Trading is Rigging the Market (Click here)

  • Is the Fed Leaking Insider Information to Key Market Participants? There are tantalizing, not-so-subtle signs if you know where to look. I present the proof and show you why the SEC is looking the other way.
  • How Wall Street Makes Profits Even When the Price Doesn't Move. The real story behind high-volume trading programs and how they're used to rob investors and the institutions you're depending on for your retirement.
  • 40% of the NYSE Is Program Trading. There's one thing that can kill it off, and it's starting to happen now. This is so fragile that only 5 stocks out of several thousand are accounting for that 40% of all trading!
  • How Machines Have Manufactured a -0.98 Correlation Between the Dollar And The Stock Market: It's ugly but it's happening, and foreign investors aren't happy about it. You won't be happy either when you understand what's been going on.

All of the above information is discussed at length in the Private Wealth Advisory archives (open to all subscribers). I add a new issue every 2 weeks and compose special updates on the fly as circumstances require.

So go ahead, try a subscription to Private Wealth Advisory risk-free for 30 days. You'll save yourself from the coming triple chaos and learn what Wall Street doesn't want you to find out. Just click the link below ...




Copyright 2009 - 2010 by Gains, Pains & Capital. All rights reserved.