Coming crisis

If history teaches us anything, it’s that when even ONE major government defaults on its debts, economic chaos follows. Unfortunately, it’s a lesson that few investors have learned.

The truth is, when investors even suspect that such a thing could happen, the economic damage can be crippling. The following crisis unfolds in four, quick steps:

FIRST, since a sovereign debt default would inevitably cause ALL bonds to crash, investors stampede for the bond market exits, dumping as much as they can as fast as they can.

SECOND, as the bond market reels, interest rates skyrocket and credit tightens. The rates on 30-year fixed-rate mortgages, auto loans and other long-term debts soar. Rates tied to short-term money markets — on credit cards and variable mortgages — follow.

THIRD, consumers — whose spending represents fully 70% of the economy — snap their pocketbooks shut.

FOURTH, corporate earnings and stock prices crater. As the economy hits the skids, unemployment soars.

Clearly, these events would be the coup de grâce to an economic recovery as fragile as this one is.

They would almost surely transform a Great Recession into a Great DOUBLE-DIP Recession ...

Plunging us into the second bear market in three years ...

Lighting the fuse on a second explosion in unemployment, and ...

Triggering a second surge in personal and corporate bankruptcies.

Indeed ...

This disturbing scenario is already
beginning to unfold before our very eyes —
not just in ONE major Western country,
but in TEN of them!

We’ve known for some time that Italy and Ireland are at risk for default — and just this week, we saw how investors’ fears have caused them to begin dumping British pounds and gilts (bonds) like there’s no tomorrow.

Plus, the soaring cost of Credit Default Swaps — “insurance policies” that protect investors against default — on the debt of Greece, Portugal, Romania, Lithuania, Latvia, Iceland and the Ukraine is a clear sign that investors believe they are also at elevated risk of default.

Put simply, it would only take ONE sovereign debt default to crush this anemic recovery ... but no fewer than TEN major Western countries are now at risk!

What’s more, no fewer than THREE powerful forecasting tools are confirming that a great bond market conflagration, stock market decline and double-dip recession are now on the horizon ...

CYCLICAL ANALYSIS CONFIRMS IT: The cycles identified by the Foundation for the Study of Cycles have accurately anticipated nearly every major shift in market direction ... in every major asset class ... in advance ... for 39 years.

* And now, as the Foundation’s Research Director, Richard Mogey and I demonstrated in Nine Shocking New Forecasts for 2010-2012, the current cyclical analysis is confirming that a major new decline in the economy is coming later this year.

* U.S. stocks will decline starting this year and continue falling in a zigzag pattern through 2012.

* The U.S. dollar index may continue to firm somewhat as the European debt crisis drives investors into dollar-denominated investments. But then the greenback will collapse until late 2011 as the U.S. sovereign debt crisis runs its course.

* Serving in its capacity as a global crisis hedge, gold will skyrocket FAR higher than $2,000 per ounce by the end of 2011.

* Crippled by soaring interest rates due to the U.S. debt crisis, our economy will suffer a devastating double-dip recession in 2011.

POLITICAL ANALYSIS CONFIRMS IT: If the rise of the Tea Party movement or the results of recent elections in Massachusetts mean anything at all, it’s that many Americans are fighting mad.

They’re fed up with Washington’s bailouts of failed bankers and CEOs ... skyrocketing federal deficits and debts ... out-of-control borrowing by the Treasury ... mindless money-printing by the Federal Reserve ... and now, the specter of higher taxes ahead.

The handwriting is on the wall: With midterm Congressional elections only seven, short months away, any politician who votes for more of the same is practically begging to be thrown out of office.

That means the days of Washington bailouts and stimulus are numbered. And that, in turn, means that the momentary economic stability which that spending bought will soon come to an end.

VOLATILITY ANALYSIS CONFIRMS IT: Right now, the volatility indicators professional traders rely on — in the bond market ... in currencies ... and more — are signaling that the economic stability and investment trends most investors have depended on for the last year or so are coming to an end.

The smart money is now beginning to bet on major directional shifts in all major asset classes — and on the recovery coming unraveling before our very eyes.

Our conclusion is clear:

Huge investment dangers
and enormous profit opportunities
directly ahead!

All of this promises both unprecedented dangers and unprecedented profit opportunities that few investors understand — in every single asset class, including gold, stocks, bonds, currencies and more.

In fact, it’s with precisely this scenario in mind that we created our Million-Dollar Rapid Growth Portfolio: To help you protect yourself and profit in the chaotic days ahead.

Since 1971, the time-honored, scientific research upon which the portfolio is based — from the Foundation for the Study of Cycles — has anticipated almost every major directional shift in stocks, gold, bonds, commodities and currencies.

And based on my analysis of the Foundation’s materials published long before each major market turn, I calculate that, when applied to a diversified portfolio, their research could have helped you ...

* Beat the S&P 500 four to one ...

* Enjoy 18 consecutive winning years since 1992 ...

* Multiply your money more than 25 times over since 1971 ...

* And turn $10,000 into more than $258,000 ... $100,000 into nearly $2.6 million ... or $1 million into more than $25.8 million ...

* In nearly every imaginable investing environment — even as investors who trusted Washington and Wall Street lost their shirts!

In fact, Dr. Weiss is so confident in this revolutionary approach to building the optimal growth portfolio, he’s putting his money where his mouth is, using this strategy to invest $1 million. And I am personally investing some of my funds as well.

The best part: The Weiss Million-Dollar Rapid Growth Portfolio gives you the opportunity to invest your money the way I invest mine, with one major exception:

You can actually beat us to the punch by getting two full business days’ notice before we buy or sell anything!

The sheer size and power of this great debt crisis make this the ideal time to begin trading
a rapid growth portfolio.

In fact, I’m already eyeing an ingenious trade that’s designed to profit BOTH when the euro collapses AND when gold prices explode! I’ll give you explicit instructions on precisely how to make this trade.
And in each Trading Alert I send you, I will ...

* Name the asset classes the Foundation’s signals have identified as having the richest profit potential now ...

* Reveal what percentage of our capital I’ll invest in each asset class ...

* Name the individual vehicles — the stocks and ETFs — I’m recommending in each asset class ...

* Give you the precise percentage of your money to invest in each vehicle.