WORLD MOST DANGEROUS BUBBLE ABOUT TO BURST
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WORLD MOST DANGEROUS BUBBLE ABOUT TO BURST
The World's Most
Dangerous Bubble Is
About to Burst
A Chinese crash could wipe out your
retirement, disrupt the social order and make
life miserable for at least three years...
Unless you fight back TODAY to
protect yourself and your family.
Dangerous Bubble Is
About to Burst
A Chinese crash could wipe out your
retirement, disrupt the social order and make
life miserable for at least three years...
Unless you fight back TODAY to
protect yourself and your family.
Dear Reader,
My name is Justice Litle and I have a dire warning for you:
One morning very soon, you could wake up to the worst financial catastrophe in history.
I can't tell you exactly which day it will be. But once this disaster starts, it will change the world in a matter of weeks.
I can assure you it won't be because of a Greek default or another Arab revolt.
This is much bigger than those events combined.
I'm talking about a total Chinese economic collapse.
Everything the communists have built over the past decade could crumble around them in a matter of days.
The chaos it could create will be devastating within China's borders. There will be attempts at revolution. There will be a violent crackdown in Beijing and every major city across China.
Thousands of people will pay with their lives. Farmers could lose their land, their meager savings and their possessions. Millions will starve, trapped in a humanitarian crisis like the world has never seen.
It goes without saying that China's brief tenure as a world power will end.
The conditions on the ground throughout the enormous country will quickly resemble third-world squalor.
But forget about the disaster within China's borders for a second and consider this:
A Chinese economic collapse could wipe out your retirement in a matter of minutes.The Chinese economy is crashing as we speak. The totalitarian communist regime is hanging on by a thin thread.
Just like the U.S. crash in 2008, things are moving slowly. But once China starts its downward spiral, there will be no way to stop it.
Your retirement funds could be wiped out -- perhaps in a matter of minutes.
A Chinese crash will destroy every part of the market. No portfolio is safe.
Yet, very few investors are aware of this threat. Even fewer know how to protect themselves from financial ruin at the hands of China.
If you take one simple action before the end of the day, you could protect your family's wealth.
But you have to move right away... The pressure is building. If China exploded tomorrow, you would not be able to save your retirement.
Like I said, while the world is biting its nails over the euro and oil prices, they're missing the real danger...
A Chinese collapse will have a far more dire effect on world markets -- even world stability.
Let me show you...
Worse Than the Great Depression...
Over the past couple of years, mutual funds and managed accounts have poured their money into the only investments that were working -- and those investments were all heavily exposed to China.That's why retirement accounts will almost certainly be bled dry when China crashes.
It doesn't matter if you've never bought a Chinese stock or ETF. I promise, your retirement is dangerously exposed to the crisis.
This crisis could be way worse than 2008, worse than the dot-com bubble... worse even than the Great Depression for the global reach of the misery.
Just look at how all these sectors will be drastically affected. Then check to see if you're exposed to any of these investments.
GOLD BUGS CRUSHED
China recently overtook India as the No. 1 source of investment demand for gold. At its current pace, China will soon pass the U.S. as the largest holder of gold. Imagine what a drop in Chinese demand would do to gold prices. The yellow metal could fall to $700/oz... or lower.
Gold bugs will be ruined with their long-term gains quickly cut in half -- and no one rushing to take physical gold off their hands.
COMMODITIES COULD LOSE HALF THEIR VALUE
China currently accounts for more than 40% of global demand for commodities like cotton, aluminum and crude steel. Even worse, Chinese demand has single-handedly inflated copper and silver prices. A commodity crash will drag down the larger market and destroy the holdings of many mutual funds.
THE BRIC DROPS WITH A THUD
Australian and Brazilian mines have rapidly expanded capacity to service Chinese demand. Norwegian and Greek dry bulk shipping companies have added more ships to the fleet because of rising Chinese imports. To account for more ships, Singaporean and Korean shipyards have expanded capacity. What happens when China, the center of all this demand, no longer performs? Shares will sink in Brazil, Australia, Canada, India, Korea, Singapore and all over the world.
YOUR BONDS ARE DOOMED
China is the No. 1 buyer of U.S. Treasuries. The money for those purchases would evaporate with a Chinese crash, causing a drop in prices and potentially creating soaring costs for capital in the U.S. The bond market will crash, the U.S. dollar will plunge...
EVEN BLUE CHIPS ARE EXPOSED
Even the supposedly safest U.S. equities will be hurt by their overexposure to China. I'm talking about blue chips like Wal-Mart, Apple, Microsoft and other big names. All have begun to count on China for new growth and steady profits. What happens when there are no more Chinese buyers?As you can see, no corner of the market is safe. When all of these investments start to go down, it will create a downward spiral effect that could take the Dow Jones to the bottom. And your retirement with it.
The mainstream media, the TV talking heads, mutual fund managers, stockbrokers... they've all been blind to what's happening.
Over the past couple of years, Wall Street became mesmerized by the idea that a totalitarian communist regime had figured out the key to prosperity. How ridiculous does that sound?
It was the same way in 2008 when the Wall Street bigwigs thought they had collateralized debt obligations all figured out -- until massive mortgage defaults crushed the market.
They did the same thing in the late '90s, pushing up dot-com share prices for companies and technology they didn't understand.
We know how that ended.
Have you ever been to China? Do you speak or read Chinese? Ever talked to someone who does business in China?
It's scary how exposed Americans' investments are to a closed, communist country no one knows anything about.
This error in judgment could soon prove very costly to millions of Americans.
Here's the ugly truth: Chinese growth may be no more than a lie. A global scam designed to rob average Americans of their retirement savings.
New fraud is being uncovered every day in China, at every level of society... And it could cost you a lot of money if you don't protect yourself right away.
But don't just take my word for it. See for yourself. Some of the smartest minds in the world have spotted China's fraud.
"China Is on an Economic Treadmill to Hell."
Jim Chanos is a big-money hedge fund investor. You've probably heard his name before in The Wall Street Journal or on CNBC.He made his reputation as the man who uncovered the infamous fraud at Enron.
He's now issuing stern warnings about China's economy. He sees the same kind of red flags in China as he saw at Enron.
"China is on an economic treadmill to hell," he said.
Jim Breyer of Accel Partners was recently featured on the cover of Forbes magazine as the top venture capitalist of 2011.
He says "there's craziness in valuations of Chinese companies."
And then there's the recent scandal involving Longtop Financial, a Chinese company listed on the New York Stock Exchange.
Near the end of May, international accounting firm Deloitte Touche Tohmatsu resigned from their post as auditor of Longtop Financial's books.
Turns out that when Deloitte employees went to the bank to double-check cash deposits, they were met with blank stares. Over $332 million in cash turned out to be fictitious.
Longtop's chairman responded to their questions matter-of-factly:
"There were fake revenue in the past... so there were fake cash recorded in the books."
When Longtop officials tried to block Deloitte from reporting the fraud, the group quit the account.
Longtop's been suspended from trading on the NYSE. And this wasn't just an isolated incident. Dozens of other Chinese companies have been suspended. The SEC has launched a task force to investigate all overseas companies listed on U.S. exchanges.
A little-known Hong Kong researcher named Carson Block recently released a report detailing fraud at numerous Chinese companies.
The biggest was Canadian-listed Chinese timber company Sino-Forest -- and it took down one of Wall Street's biggest players.
Hedge fund manager John Paulson lost an estimated $720 million when Block's report about vastly overstated timber acreage came out.
And his reports of widespread fraud crushed the shares of some other Chinese companies.
Rino International went down 60%. Orient Paper shares lost 50%. Duoyuan Global Water plunged 40%... and China MediaExpress was delisted.
This is just the beginning of what will happen to the larger market as more fundamental fraud is exposed.
This isn't just a corporate thing... scamming people is a part of everyday life in China.
A new story comes out every day, ranging from the bizarre to the deadly:
- Chinese scammers sold baby milk formula with little or no nutritional value in Anhui province. Thirteen infants died of malnutrition. Recently, Hong Kong sold out of formula because mainland Chinese refused to believe their milk was safe.
- China will sell $45 billion worth of counterfeit auto parts this year, including stuff like steering components and brake pads that could potentially cause deadly accidents.
- Chinese corporations have begun hiring white men to pose as executives to give the companies the appearance of being connected to the Western world.
- A series of stomach-turning Chinese food scandals has left many Chinese feeling helpless. Even Premier Wen Jiabao says, "All of these nasty cases of food-safety problems are enough to show that lack of integrity and moral decline have become a very serious problem."
- The rampant cheating throughout China is a house of cards, ready to tumble down. When it goes to hell, it will bring the whole world with it.
There aren't many direct reports out of China, few personal accounts of the fraud being committed. That's because of the strict censorship employed by Beijing's leaders.
But you can follow the money... Like a Bain and Co. report recently did. Here's what they found...
Over 60% of China's wealthiest people are thinking of leaving the country.Private Chinese offshore assets quadrupled between 2008 and 2010, according to the international consultancy's report.
The number of "high net worth individuals" in China seeking immigrant status abroad rose 73% in the past five years.
Many of these people made money hand over fist in the past decade. The fact that so many of them now want to leave should be just as scary to you as it is to the communist rulers.
These people know something is up.
They know a Chinese collapse is not just imminent... it's already started.
Sadly, most American investors have no idea the kind of danger they are in.
Bear Stearns failed in March 2008... that was the first domino in the subprime mortgage crisis. But, the real crash played out over June, August and September.
Just like 2008, there will be a lot of unexpected pain. And it could happen any day.
When the Chinese economy suffers, average Americans will be suffering too, unlucky victims of a fraud committed thousands of miles away.
The first domino is falling as we speak...
It's a crash in the white-hot Chinese real estate market and it starts in a strange city you've never heard of.
Kangbashi: The Epicenter of China's Collapse
At first glance, Kangbashi is a modern marvel.Just five years ago, the city was a barren piece of dusty land in Inner Mongolia.
Now, building is complete and it's one of China's hottest new properties. It was built to serve as the urban center for Ordos City, an affluent coal-mining town nearby with over 1.5 million people.
Kangbashi is a maze of high-rise office buildings and thousands of houses.
The brand-new city has museums and theatres, outdoor spaces -- even brand-new sports facilities.
It's part of a push to move the Chinese population to the city.
By 2030, China hopes to have 70% of its citizens living in urban areas -- right now it's only 45%.
Kangbashi is the model for what China hopes its cities will look like in the future.
Except for one big problem:
It's practically empty.
On any given day, you may see a few Communist Party vehicles around, but there's hardly a soul on the street or in any of the buildings.
Time Magazine calls Kangbashi, "a modern ghost town." Australia's version of Dateline produced a disturbing report about it. (Look up China's ghost towns on YouTube and you'll find it.)
In the United States' old west, ghost towns were the remnants of hastily built mining towns. When the gold dried up, the people left.
And they left behind hotels, saloons, houses... none of them occupied.
But in Kangbashi, the people never came.
Massive stimulus measures by the Chinese government since 2008 have created a property boom.
Easy credit -- usually conducted by sketchy lenders -- has Chinese people rushing out to buy properties in cities like Kangbashi, often as second homes.
Kangbashi is a drastic example of the larger problem in China. Experts say there are 64 million homes sitting empty in the country.
One communist think tank said property prices in major Chinese cities were overvalued by 70%.
China's ratio of average home price to average household income is 10-to-1. In most developed nations, it's less than five.
Real estate speculation is rampant. It's all eerily similar to the 2008 U.S. mortgage crisis that crushed the stock market.
The London Daily Mail said, "the onset of the 2008 global recession was a bursting of the real estate bubble in the U.S. and experts fear a similar situation in China could prove catastrophic for still struggling economies and banking systems."
Premier Wen Jiabao has said the central government is "determined to bring property prices down in some cities," according to The Wall Street Journal.
The Christian Science Monitor says the Chinese government fears a housing bubble would set off a massive economic collapse and the onset of social unrest.
What's happening now is a dangerous game of chicken between property speculators and Chinese regulators.
Back in December, the Chinese government suspended mortgages for third home purchases.
How whacked-out does that sound?
A communist government has suspended third mortgages? Seems like it's only been a couple of years since Chinese citizens got the right to buy and sell property.
This is a real estate bubble, plain and simple. And one of the worst in history.
The Chinese have no experience handling bubbles like this. Their markets are hardly "free." They're even less equipped to deal with the ensuing bust.
And of course, the Chinese government is making the same mistakes others have made throughout history.
Prior to the Great Depression, the Federal Reserve raised interest rates multiple times to cool off a hot market. The sudden tightening squeezed the market and resulted in the dramatic crash of 1929.
The same thing is already happening in China. The communists have raised interest rates four times in six months and boosted banks' reserve requirement ratio eight straight times, to no avail.
Now, they've begun cracking down on a shady real estate scheme using copper as collateral.
This crackdown is the spark for China's meltdown.
Domino #1: Chinese Real Estate
If you follow the markets closely, you may have noticed slumping copper prices recently.Copper is down nearly 33% in the past six months.
But you probably have no idea why copper prices have started going down -- and why that's the first step in China's downfall. The proverbial canary in a coal mine.
You see, normally when copper prices rise it's because of heavy demand in the manufacturing sector. That's usually a sign of robust growth.
And that's what most investors assumed when Chinese copper demand drove prices of the useful metal up 62% from June 2010 to February 2011.
But it turns out this was likely just another Chinese scam. Many experts agree that most of that copper is probably just sitting in a dark warehouse. It's certainly not being used to build anything.
So, what really happened with copper prices?
Chinese speculators, many of them corporations, were buying copper to use as collateral for real estate financing. This includes clothes makers, food manufacturers and others who had never before bought copper.
The copper helped them acquire cheap letter of credit (LC) financing, which allowed them to buy property at speculative prices. As the property market continued to go up, the value of the collateral, copper, also went up.
According to the Financial Times' blog, warehouse sources reported substantial copper inflows after the Chinese New Year holiday. But very little of that copper had been sold to the domestic market.
In fact, estimates say 550kt of copper was stockpiled in bonded warehouses in Shanghai in late February, most of it tied to financing deals.
Banks were happy to comply with this type of lending because it was off the balance sheet, and bank clerks in China get paid a direct commission on LC loans. The more they do, the more they profit.
It's exactly this type of speculative scheme that has pushed property prices to bubble status in China... and made the communist leaders very nervous.
Vikram Mansharamani is a Yale lecturer and author of a book about spotting financial bubbles before they burst. Here's what he had to say about the situation:
In China today, higher prices in many of its asset markets are generating demand more rapidly than supply. Such dynamics are rarely stable and create situations prone to rapid corrections.The Chinese central bank recently struck the first blow for reality. According to Goldman Sachs, they've cracked down on the copper as a collateral scheme. Hence the recent drop in copper prices.
Consider property markets in which willingness to lend and prices rise together in a self-fulfilling manner. Chinese bankers have been lending money against collateral, the value of which is rising because of the banker's willingness to lend.
As property prices rise, banks' collateral is worth more; the bankers feel more secure and smart, so they lend more. The cycle repeats.
Unfortunately for the bankers, they'll eventually discover that they themselves created the sense of safety and intelligence that they enjoyed. As happened with the subprime collapse in the West, reality eventually sets in, bankers step back and collateral values fall.
The loss of valuable loan collateral, plus the policies of China's central bank, will burst the real estate bubble.
When that happens, expect a dramatic drop in demand for copper... and all commodities.
This second domino is starting to fall too, as we speak.
Domino #2: Commodities
The recent commodities boom was built on the backs of Chinese demand. When that demand recedes, prices are headed down.And unfortunately for Americans saving for retirement, most brokers and mutual funds plowed money into commodities investments over the past two years. China's crash will cut many of those inflated prices in half, or worse.
Take everybody's favorite precious metal: gold.
Earlier this year, China became the No. 1 source of investment demand for gold. And the Chinese central bank has embarked on a plan to increase its gold reserves by 800% in the next decade.
Over the past couple of years, it's been Chinese gold demand, particularly from the government themselves, that's raised the price of the yellow metal.
Now, thanks to higher interest rates and tighter lending, demand is waning. Gold prices have steadied and even dropped in the past two months alone.
The same thing happened with silver prices. China imported 14% of all global silver produced in 2010.
After prices reached an all-time high of $49.79 earlier this year, they suddenly pulled back. In early May, after China cracked down on the copper scheme, silver prices fell 30%.
Imagine what would happen if Chinese society completely breaks down. The communists will rush to sell off gold and silver, commodity demand will slow to a crawl, and prices will plunge around the world.
You could see some commodity prices nearly cut in half. Look at how much of global commodity demand comes from China:
China & Commodities, as % of Global Demand
Economist Gary Shilling says China's economy will experience "a hard landing within this calendar year."He also says that when copper drops -- which it already has -- it will cause a similar nosedive in agricultural products like cotton, wheat and soybeans.
As soon as prices start dropping, more and more speculators will sell off their commodity shares. Then the large institutional investors will be forced to sell.
It's a race to the bottom and Joe Investor will be the one who loses big.
Here's the worst part: China doesn't even have to crash to cause a severe pullback in commodity investments.
In fact, Vikram Mansharamani of Yale argues:
"Might China slow to a more sustainable GDP growth rate, say 5 percent, in the coming years? Significant evidence suggests that such an outcome is not as outlandish as the global investment community believes."
"A Chinese slowdown of this magnitude would have material impacts on commodity markets..."
Chinese commodity demand even applies to oil prices.
They're expected to need 900,000 more barrels a day of oil in the next two years -- barring economic collapse.
Chinese demand continues to "dwarf" other regions, according to the International Energy Agency.
"The strength of China's oil demand is consistent with other indicators suggesting the economy is in danger of overheating," the IEA said.
All of this growth, combined with instability in the Middle East, has driven oil prices as high as $120. But in May, oil prices dropped 8% in one day.
Even while Libya was under siege and riots were breaking out in Syria.
Yes, China's influence on oil prices is even more important than Arab revolts. And while that's good for drivers, it's horrible for any energy investments you may have.
That includes big oil companies like Exxon Mobil, Statoil Hydro, Petrobras, etc.
Natural gas and pipeline investments will likely see profits shrink.
Because oil will become cheaper, the need for alternative energy sources could dwindle in the near term. Shares of alternative energy companies, especially those who make solar power products, could plunge.
And then, of course, there's the impact this will have on OPEC, especially Saudi Arabia.
The Saudis have recently staked the future of their oil empire on China.
Khalid Al-Falih, the president and chief executive of state-owned Saudi Aramco, recently said as much:
"We believe this is a long-term transition. Demographic and economic trends are making it clear -- the writing is on the wall. China is the new growth market for petroleum."
Over 1 million barrels a day went from Saudi Arabia to China last year.
What will the Saudis do when Chinese oil orders slow down? What if Saudi Arabia lost that consistent income?
It's a safe bet the revolution all over the Arab world would spread to the Saudi kingdom. There could be blood in the streets. Any uprising would only encourage Iran, throw oil supplies into flux and put the world on the edge of its seat.
And that's not the only part of the world that will be crippled by the China-related drop in commodity prices.
The next victim will be emerging markets.
Domino #3: Emerging Markets
The emerging market miracle of the past few years didn't happen in a vacuum.Most of it came on the back of China's growth.
Look at the gains made in these emerging market exchanges from their lowest to highest point between 2008-2011:
- Brazil's Bovespa up 132% in 2 years.
- Australia's All Ordinaries Index, up 31% in 13 months.
- Canada's Toronto Stock Exchange, up 88% in just under two years.
- Singapore's Straits Times Index, up 104% in two years.
- Korea's Seoul Composite Index, up 134% in 2 1/2 years.
And all of them will suffer majorly as China slows... In fact, some of these markets, especially Brazil, Australia and Canada could go bust without Chinese commodity buying.
Or as Yale's Mansharami said, "How China goes, so goes the world economy."
On the global economic front, China's voracious appetite for commodities has motivated significant expansions throughout the global commodity complex, and many industrial markets, including shipping, capital goods, and more, continue to be driven by Chinese demand.Take a look at the recent performance of those same emerging markets I mentioned earlier.
Unfortunately, the forthcoming slowdown may arrive at a particularly inopportune time. Many Australian and Brazilian mines have undertaken massive capacity expansions. Likewise, many Norwegians and Greek dry bulk shipping companies have expanded their fleets in anticipation of rising demand. To accommodate this need for more ships, many Singaporean and Korean shipyards expanded their capacities.
What happens if the foundation upon which these expansion stories are built is faulty? Might the emerging markets tale that's been the darling of global investors be less compelling than widely believed?
- Brazil's Bovespa down 34%.
- Australia's All Ordinaries down 23%.
- Toronto Stock Exchange down 23%.
- Singapore's Strait Times down 20% in 3 months.
- Korea's Seoul Composite down 24%.
The losses will start hitting investments from all sides. As gold prices drop, and emerging market economies are thrown into chaos, China's crash will deliver the hammer blow to American retirement accounts.
A global slump will affect the U.S. stock market... and potentially trigger another depression.
Domino #4: Equities
Are you familiar with the concept of "portfolio contagion"?It's the idea that investors tend to buy what other investors are buying. Research has shown that mutual fund managers are more likely to hold or trade certain stocks if their mutual fund peers do.
This applies to brokers and individual investors too, but as China crashes, it's the fund managers that will make the difference.
See, when a whole sector of stocks starts going down, fund managers will start selling in larger quantities. Thanks to portfolio contagion, the bottom could drop out of the stock market in minutes, not days.
Remember the so-called "flash crash" of May 6, 2010?
That was portfolio contagion on steroids, thanks to computerized sell orders.
Once one larger institutional investor sold, share prices dropped below another's automatic sell price. And then when they sold, it triggered another... and so on until the S&P 500 lost 998.5 points in less than two hours -- a 9% drop.
It was the largest intraday loss in stock market history.
After China's real estate bubble pops, commodity prices will crash. This will trigger the selling of everything China and commodity related.
That means every commodity and emerging market ETF will be sold. Chinese equities will crash. Gold and silver miners, solar companies, oil producers, natural gas pipelines... all of these will get caught up in the death spiral.
You might think regular U.S. blue chips would be the one safe place to stash your money. But I promise you; they'll start dropping as quickly as the commodities.
Why?
Because over the past few years, many large U.S. companies have gone where the money was... and that money was in China.
Take Wal-Mart, for example...
The chain of superstores across the United States has become something of a blue-chip hero to investors in the past decade because of steadily rising profits and consistent dividends.
But even an all-American company like Wal-Mart is caught up in China's web.
Wal-Mart recently bought out Chinese supermarket operator Trust Mart and 360buy, the top Chinese online seller of consumer electronics and communications products.
Wal-Mart had over 333 outlets in China at the end of April. Those stores generated a whopping $7.5 billion in sales last year.
It's safe to say, if Chinese society breaks down, far fewer people will be shopping at Wal-Mart. In fact, they'll probably be more likely to throw a brick through the window and light the store on fire.
They won't be buying Cokes, McDonald's fries or Kentucky Fried Chicken either. When China goes down, shares of those companies will be hurt.
Same with Microsoft, Apple, Amazon, Citigroup... all have massive exposure to China.
A drop in the share price of these blue chips will bring the rest of the market down with it.
This will be the most devastating domino to your retirement funds. Millions of American investors will cash out and scramble for a safe place to put their money.
Quite a few will probably buy low-risk bonds, like U.S. Treasuries, as a safe haven of last resort. But that plan will end badly too.
Bonds and the U.S. dollar will be the final victim in the economic perfect storm.
Domino #5: Bonds and the U.S. Dollar
In times of severe crisis, bonds -- especially those issued by the U.S. Treasury -- are considered super safe.But, after this anticipated crash, they will be toxic.
Corporate bonds will be hurt by falling reserves and massive exposure to China.
But, it's U.S. Treasuries that could suffer the steepest losses. A slump in T-bonds could have a scary effect on the U.S. government and our enormous deficit.
You see, selling T-bonds is how we fuel our enormous budget. Need credit to buy a new fighter jet? Sell some T-bonds. Need to build a road in your district, or give a tax break to a special interest group? Sell some T-bonds.
Until now, we've never had a problem finding buyers for our bonds... we're the U.S. and everyone knows the dollar's status as the world's reserve currency means we can print however many dollars we want.
China's our best customer. They buy more Treasury bonds than anyone in the world.
They also hold billions of U.S. dollars in reserve. And their currency, the yuan, is pegged to the dollar.
When the growth stops -- and I believe it already has -- the Chinese government will have to spend their money elsewhere. They'll stop buying U.S. bonds... even worse; they may begin selling them and their U.S. dollar reserves.
The flood of dollars into the market could create hyperinflation. The increased supply and sudden diminished demand for T-bonds will cripple capital markets... And lead to more money printing by the Federal Reserve.
The world will be thrown into chaos and there will seemingly be nowhere to turn with your money, if you have any left.
Your retirement, and the value of all your assets, could be wiped out.
But you don't have to sit back and let it happen. There's something you could do to fight back.
You must act right away, however, if you want to have any chance of protecting your finances.
The Only Way to Survive?
Become a "Vigilante Trader"
In every economic calamity in history, there's always a small group of people who spot the warning signs early and protect themselves.Become a "Vigilante Trader"
A lot of these people even make a profit.
They're called "vigilante traders"... And I'm one of them.
During happy times, "vigilante traders" remain in the shadows, watching bull markets and bubbles with a suspicious eye.
When they try to sound the warning alarm, they're often ignored or even laughed off by the market.
But "vigilante traders" don't care what the mass market thinks. They take orders from themselves. And they do what they have to do to survive during crisis.
That's why they normally come out on top.
Look, when markets crash, you're on your own. No government or bank or fund manager can help you.
The only way to protect yourself is to fight on your own, as a "vigilante trader."
I've been watching the China situation for some time. While the same old troubles with the euro and the Middle East have distracted other people, I've studied China's finances, pored over news reports and gotten a feel for the big picture.
And now that the dominoes of a Chinese collapse are falling, I'm making a move to protect myself.
I can show you how to save your retirement from destruction, even as the market is crashing around you.
But I can also do you one better...
I can show you how to collect wild profits as a direct result of China's collapse.
Keep in mind... this type of profit is not for everyone. But, in the next few months, you may not have another option to survive.
You can either sit back and become a victim, living out your retirement in misery and frustration.
Or, you can step up and do something about it. Yes, you'll be making money from someone else's ruin -- but it's perfectly legal. And if it weren't them, it would be you.
You've worked hard your whole life to be able to relax in retirement. You don't deserve a negative outcome.
Don't let China's downfall bring you with it. Take action now...
Look at the kind of money you could make.
Vigilante Trading: Profiting in a Crisis Situation
Vigilante trading is nothing new. In fact, it's been around as long as we've had markets.Very few know who we are... and even fewer know how we're so successful.
But we're always out there, finding the profits amongst the lies and economic ruin.
In fact, just over the past two years, readers following my "vigilante trades" could've made large profits...
Look at some of the gains I showed my small group of followers:
And that's during one of the more perplexing markets in history.
- 233% on FNK
- 108% on RTH
- 109% on GDXJ
- 150% on GLD
- 156% on FWK
- 119% on DNN
- And many more...
I also expect to see big gains during China's collapse.
Remember, I described all the ways China's crash will affect the markets?
Commodities, emerging markets, U.S. stocks and bonds... all of them will go down.
The good news is, as a "vigilante trader," this means you'll have even more chances to profit.
The farther these sectors drop, the more money you could make.
In fact, I've already booked my first big gain from China's collapse.
Back in May, as copper prices dropped, I executed a "vigilante trade" on Freeport McMoran.
The Phoenix-based company mines for copper. And Chinese demand brought them fat profits for the past couple of years.
But, when China cracked down on the copper for credit scheme, I knew Freeport would be hurt bad.
Over two weeks in May, my Freeport McMoran "vigilante trade" made 114%. If you had put $5,000 into this vigilante trade, you'd have $10,700 now.
And that's just the start.
As commodities and emerging market shares keep falling, and the market sell-off begins, you'll literally have hundreds, even thousands, of opportunities for vigilante trades.
Just like the one I made on Freeport McMoran.
I can show you how to become a "vigilante trader." Not only will you be able to protect the money you already have... but you could make a fortune in a short period of time.
I've prepared all the details on my next vigilante trade... if you decide it's a move you could make, and execute it right away -- it could provide you insurance against losses from China.
phoenix777- Moderator
- Posts : 13701 Credits : 16143 Reputation : 1704
Join date : 2011-02-03
Location : Malaysia
Job/Hobbies : eating good food
Stock Exposure : 1 year
Stock Portfolio : empty handed
Re: WORLD MOST DANGEROUS BUBBLE ABOUT TO BURST
contributed by cals
phoenix777- Moderator
- Posts : 13701 Credits : 16143 Reputation : 1704
Join date : 2011-02-03
Location : Malaysia
Job/Hobbies : eating good food
Stock Exposure : 1 year
Stock Portfolio : empty handed
Re: WORLD MOST DANGEROUS BUBBLE ABOUT TO BURST
maxims wrote:ask the author go fcuk himself la
you mean shoot aeroplane? [You must be registered and logged in to see this image.]
xettie- Member
- Posts : 1509 Credits : 1562 Reputation : 48
Join date : 2011-08-18
Re: WORLD MOST DANGEROUS BUBBLE ABOUT TO BURST
lol in honour of vigilante traders!
Cals- Administrator
- Posts : 25277 Credits : 57721 Reputation : 1766
Join date : 2011-09-08
Location : global
Comments : “My plan of trading was sound enough and won oftener that it lost. If I had stuck to it Iâ€d have been right perhaps as often as seven out of ten times.â€
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis
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