the following presentation is controversial and may be offensive to some audiences viewer discretion is advised hello my name is Porter Stansberry a little over 10 years ago I founded Stansberry & Associates investment research it has become one of the largest and most recognized investment research companies in the world serving hundreds of thousands of subscribers and more than 120 countries you may know of our firm because of the work we did over the last several years helping investors avoid the big disasters associated with Wall Street's collapse we warned investors to avoid Fannie and Freddie Bear Stearns Lehman Brothers and General Motors and dozens of other companies that have since collapsed we even helped their subscribers find opportunities to profit from these moves by shorting stocks and buying put options to my knowledge no other research firm in the world can match our record of correctly predicting the catastrophe that occurred in 2008 but that's not why I created this video I reference our success and experience with Wall Street's latest crisis because we believe there is an even bigger crisis lurking something that will shake the very foundation of America and that is why I've spent a significant amount of time and money in the past few months preparing this video in short I want to talk about a specific event that will take place in America's very near future which could actually bring our country and our way of life to a grinding halt this looming crisis is related to the financial crisis 2008 but it is infinitely more dangerous as I'll explain in this video as this problem comes to a head I expect there to be riots in the streets arrests on an unprecedented scale and martial law and forced by the US military believe me I don't make this prediction lightly and I have no interest in trying to scare you I'm simply following my research to its logical conclusion I did the same when I tracked Fannie and Freddie's accounting the same with General Motors with bear stearns and the rest and when I began giving this warning in 2006 no one took me very seriously not at first back then most mainstream commentators just ignored me and when I presented my case and exposed the facts at economic conferences they got angry they couldn't refute my research but they weren't ready to accept the enormity of its conclusions either that's why before I go any further I have to warn you what I'm going to say is controversial it will offend many people Democrats Republicans and Tea Parties alike in fact I've already received dozens of pieces of hate mail and the ideas and the solutions I'm going to present might seem somewhat radical to you at first perhaps even on American my guess is as you watch this video you'll say there's no way that could really happen not here but just remember no one believed me three years ago when I said the world's largest mortgage bankers Fannie Mae and Freddie Mac would soon go bankrupt and no one believed me when I said GM would soon be bankrupt as well or that the same thing what happened to General Growth Properties the biggest owner of Mall property in America but again that's exactly what happened and that brings us to today the same financial problems I've been tracking from bank to bank from company to company for the last five years have now found their way into the US Treasury I'll explain how this came to be and what it means is critically important to you and every American the next phase in this crisis will threaten our very way of life the savings of millions will be wiped out this disaster will change your business and your work it will dramatically affect your savings accounts investments and retirement it will change everything about your normal way of life where you vacation where you send your kids or grandkids to school how and where you shop the way you protect your family and your home I'll explain how I know these events are about to happen you can decide for yourself if I'm full of hot air as for me I'm more certain about this looming crisis than I've been about anything else in my entire life I know that debts don't just disappear I know that bailouts have big consequences and unlike most of the pundits on TV I know a lot about finance and accounting of course the most important part of this situation is not what is happening but rather what you can do about it in other words will you be prepared when the proverbial hits the fan don't worry I'm not organizing a rally or demonstration and I've turned down every request to run for political office instead I want to show you exactly what strategies I'm using personally to protect and even grow my own money and how you can prepare as well you see I can tell you with near 100% certainty that most Americans will not know what to do when commodity prices things like milk bread and gasoline soar they won't know what to do when banks closed and their credit card stopped working or when they're not allowed to buy gold or foreign currencies or when food stamps fail in short our way of life in America is about to change I promise you in this video I'll show you exactly what's happening you can challenge every single one of my facts and you'll find that I'm right about each allegation I make and then you can decide for yourself well you act now to protect yourself and your family from the catastrophe that's brewing right now in Washington DC I hope so that's why I made this video I'm going to walk you through exactly what I'm doing personally and what you can do as well I can't promise you'll emerge from this crisis completely unharmed but I can just about guarantee you'll be a lot better off than people who don't follow these simple steps but I'm getting ahead of myself let me back up and show you in the simplest terms possible what is going on why I'm so concerned and what I believe will happen in the next 12 months in short I believe that we as Americans are about to see a major major collapse and our national monetary system and our normal way of life basically for many years now our government has been borrowing so much money very often using short term loans that very soon we will no longer be able to afford even the interest on these loans again I say these things as an expert in accounting and financial research you may not think things are that bad in the US economy but consider this simple fact from the national inflation association even if all US citizens were taxed at one hundred percent of their income it would still not be enough to balance the federal budget we'd still have to borrow money just to maintain the status quo that's absolutely incredible isn't it yet I've never seen this fact reported anywhere else normally I study these kinds of numbers when I'm looking at a business to invest in or to recommend to my readers but lately I've spent most of my time looking into our national balance sheet because as the banking system collapsed in 2008 all of the bad debts were absorbed by the world's governments for example when Fannie Mae and Freddie Mac collapsed in the summer of 2008 the US government responded by simply guaranteeing all of their outstanding debt since then these companies have recorded hundreds of billions of losses all of which were passed along to the government yes you can still get mortgages today and yes Freddie and Fannie are still in business but the costs associated with these programs are piling up at the US Treasury and they are enormous ly expensive these losses and trillions and other private obligations are now the responsibility of the US government the problem is even before this crisis our government was deeply in debt with each additional commitment we sink further and further into debt closing in upon the moment that we can simply no longer afford even the interest payments on our obligations according to even my most conservative calculations using numbers provided by the Congressional Budget Office a debt default by the US government would be inevitable were it not for one simple anomaly the one thing that has saved the United States so far I'm talking about our country's unique ability to simply print more money you see the US government has one very important weapon to use in this crisis the u.s. is the only debtor in the world who can legally prynt US dollars and the US dollar is known as the world's reserve currency the dollar forms the basis of the world's financial system it is what banks around the world hold in reserve against their loans that's a secret than most politicians don't understand as things stand now the US government can't go broke in any ordinary sense of the word because it can simply print dollars to pay for its bad debts that's what it's been doing since March of 2009 that might sound pretty good at first since we can always just print more money what's they're worried about well let me show you you see as things stand today America is the only country in the world that doesn't have to pay for its imports and a foreign currency let's say you're a German and you want to buy oil from Saudi Arabia you can't just pay for your oil in German marks or the new euro currency because oil is priced in u.s. dollars so you have to buy dollars first then you buy your oil and that means the value of the German currency is of great importance to the German government to maintain the value of its currency Germans must produce at least as much as they consume from around the world otherwise the value of its currency will begin to fall causing prices to rise and a standard of living to decline but in America we can consume as much as we want without worrying about acquiring the money to pay for it because our dollars are accepted everywhere around the world in short for decades now we haven't had to produce anything or export anything to get all the dollars we needed to buy all the oil and other goods our country required all we had to do was borrow the money and boy did we take a look at this chart even as late as the 1970s America was the world's largest creditor but by the mid 1980s we become a debtor to the world and since the late 1990s we've been the world's largest debtor today our government owes more money to more people than anyone else in the world and that was before the financial crisis in short with all of these bad debts piling up we've had to begin repaying our debts by printing trillions of new dollars the impact of this is only just now beginning to be felt once our creditors figure out what's happening they're going to be very angry I believe they will either completely stopped accepting dollars in repayment or greatly discount the value of these new dollars I'm sure you think that sounds crazy but as I'll show you it's already happening and that will make our consumption lead way of life and possible to afford just think about the price of oil access to cheap oil has been America's number one gift of owning the world's reserve currency this has made gas cheaper in the US than almost anywhere else in the developed world I know you may think gas prices have skyrocketed in recent years but look at how much less we pay than other developed nations in the u.s. we pay around two dollars and seventy two cents per gallon of gasoline but in Norway it's seven dollars and 41 cents Berliners pay six dollars and 82 cents the Brits fork over six dollars and sixty cents a gallon it's 640 in Rome 604 in Paris Tokyo gas costs five dollars and forty cents a gallon and our neighbors to the north are paying three dollars and eighty one cents in Toronto if oil is no longer priced in dollars the price of oil for Americans will skyrocket immediately it will change our lives overnight airline travel will get much more expensive the cost to ship goods by truck to grocery stores around the country will get much more expensive farming itself will get a lot more costly so will commuting to work taking a taxi just about everything we do will suddenly get much more expensive and remember an order for prices to start skyrocketing all that has to happen is that other countries start preferring payments and something besides US dollars the US dollar has been the world's reserve currency for decades now so most Americans don't have a clue about what the repercussions are of losing this status you might think this could never happen but it happens all the time and countries get too far in debt or when they consume too much or produce too little in fact the same thing happened to Great Britain in the 1970s most people don't know this but British sterling was the reserve currency for most of the world for nearly 200 years for most of the 18th and 19th centuries it continued to play this role until after World War two when America was forced to prop up Britain's economy with foreign aid remember the famous Marshall Plan when we gave billions to help European countries rebuild unfortunately though Britain pursued a socialist national agenda the government took over all of the major industries like Barack Obama Britain's leaders wanted to quote spread the wealth around pretty soon the country was flat broke the final straw for Britain came in 1967 when things got so bad the Labour Party which is the Socialists decided to devalue the British currency by 14 percent overnight they believed this would make it easier for people to afford their debts and reality all it did was make anyone holding British sterling 14% poorer overnight it made everything in Britain much much more expensive in the coming years for the country as a whole it assured in one of the worst decades in modern British history most Americans don't know anything about Britain's winter of discontent in the late 1970s when the government put a freeze on wages there were continuous strikes in nearly every sector grave diggers trash collectors even hospital workers things got so bad at one point that many hospitals were reduced to accepting emergency patients only in 1975 inflation in Britain skyrocketed to 26 point nine percent in a single year the government also imposed known as the three-day week in 1974 and short businesses were limited to using electricity for only three specified consecutive days each week and they were prohibited from working longer hours on those days television companies were required to cease broadcasting at 10:30 p.m. to save electricity the extreme problems in the economy led Britain to being nicknamed the sick man of Europe just how bad were things exactly we'll listen to the experiences of several Brits their stories were collected recently by the BBC television channel John Blackburn from Richard Evans from London recalls they told her she couldn't come in my grandmother had to bring in food to eat and clean towels and bedding and David Stoker from Guildford said I lived in the northeast near Newcastle and I vividly remember my grandmother and I walking from one shop to another in search of candles all was sold out innovative butchers play string down cartons of drippings which he bought these works although the smell and risk of fire made them less practical than candles imagine Britain was a global superpower for a hundred and fifty years but when they started intentionally devaluing their currency things went straight downhill maybe you don't think something similar could happen here but I'm telling you it's already underway in fact the exchange value of the US dollar has fallen about 8% so far this year and its rate of decline is accelerating what happened to the British currency is now happening to the US dollar not only will the price of gas oil and other commodities skyrocket in America almost everything we consume will immediately get more expensive all the clothing furniture and house goods we import from China all the food we get from Central and South America all the electronics television computers and cars we get from Asia and Europe in fact is happening right now before our eyes the price of gold is up 85 percent since the start of the financial crisis oil prices have doubled so amines are way up copper prices are up more than a hundred and seventy percent since 2009 cotton prices are up 80 percent in just the past few months since July of this year as Wesley Card the head of a clothing company that includes brands like Dockers and Ann Klein was recently quoted by The Epoch Times it's really a no choice situation he said prices have to come up this chart shows how much a few key commodities have skyrocket in price just since the beginning of 2009 of course skyrocketing commodity prices are just the beginning there are other disastrous consequences to the US dollar losing status as the world's reserve currency for example there would be much less demand for US dollars around the globe so interest rates will skyrocket instead of getting a mortgage at today's incredibly low rates of four and a half percent it might cost you eight percent or even ten percent or 15 percent imagine what that would do to housing prices stock prices would likely plummet by at least 40 percent in a matter of weeks as a result of this event in the currency markets it will cost every American business a lot more money for supplies and materials no one will be able to get a loan and no bank will want to make loans and short when the US dollar loses its spot as the world's reserve currency it will cause a brutal downturn in the economy which I expect would be about 10 times worse than the mortgage crisis of 2008 you see what will also happen as a result of this currency crisis and the end of the US dollar as the world's reserve currency will be massive inflation the likes of which we've never seen before when everyone is trying to get rid of their dollars the government is printing more and more to pay debts and no one wants to own them the crisis will reach epic proportions just look for example what happened to one European country that faced this type of crisis in the 1990s this is what happens during a major hyperinflation in the real world by the early 1990s the national government of one european nation had spent nearly all of its savings what did they do next simple they began to steal the savings of private citizens by limiting people's access to their money and government controlled banks to finance the daily operations of maintaining their basic infrastructure the government started printing money big time even so the country's basic infrastructure began to fall apart there are potholes in the street broken water pipes elevators that never got repaired entire construction projects simply shut down at this point the unemployment rate was more than 30 percent not too bad right but it got worse much worse you see once you start down the dangerous road of printing money things can get extremely bad very quickly a San Jose State University economics professor dr. Thayer Watkins explains the government tried to counter the inflation by imposing price controls but when inflation continued the government price controls made the price producers were getting so ridiculously low that they simply stopped producing Baker stopped making bread slaughterhouses refused to sell meat to the stores and other stores closed down so what did the government do next to try to curb inflation well one bright idea they had was to for stores to fill out government documents every time they increase prices they thought this would slow down price increases because the paperwork would take so much time but like many government plans this one had terrible unintended consequences since stores had a dedicated employee to do nothing but register the paperwork and since the process took so long the stores began to raise prices on basic goods at even higher rates so they didn't have to come back and file a more paperwork incredible isn't it then of course the government did what all government to do during periods of hyperinflation they created a new currency which basically removed six zeros from the old one so 100 million old units were soon worth 100 new units of course this didn't work either it never does between October 1993 in January 1995 prices increased by get this five quadrillion percent that's a ridiculous number in other words a loaf of bread that costs $1 in 1993 suddenly costs 50 trillion dollars yes that's 50 trillion I know it's laughable but I can guarantee that the people of this once proud European country weren't laughing one bit especially those living on a fixed income of course at this point the country completely fell apart as dr. Thayer Watkins wrote quote the social structure began to collapse thieves robbed hospitals and clinics of scarce pharmaceuticals and then sold them in front of the same places they robbed the railway workers went out on strike and closed down the country's rail system at this point businesses and citizens across the country basically refused to take the local currency instead everyone started dealing in German marks keep in mind the daily rate of inflation was nearly 100 percent can you imagine the panic in a society when the price of just about everything doubles every single day it was absolute pandemonium and the economy came to a grinding halt it was like living in a war zone trucker stopped delivering goods stores restaurants gas stations all shut down in fact the only way to get gas was to buy it on the side of the road from someone selling it out of a plastic can Steve Hankey an economics professor at John Hopkins wrote people couldn't afford to buy food in the free market they kept from starving by either waiting in long lines at state stores for irregularly supplied rations of low-quality staples were by relying on relatives who lived in the countryside for long periods all the gas stations were closed with the exception of one station that cater to foreigners and embassy personnel people also spent an or net amount of time at the foreign exchange black markets where they traded huge piles of near worthless money for a single German mark or a US dollar note the number of operating buses dropped by 60% and buses were so crowded that drivers could even collect fares government ordered blackouts left people without heat and electricity for long periods of time and another ridiculous government move they actually made it illegal not to accept a personal check imagine you could write a check and in the several days that it typically takes for a check to clear inflation would wipe out almost all of the costs of covering your check of course as is typical the government took none of the blame as dr. Thayer Watkins reported the government's official position was that the hyperinflation occurred because of the unjustly implemented sanctions against the people and state again I know what you're thinking just because it happened in Europe does it mean it can happen here well guess what the same thing that happened in this European country Yugoslavia also just happened in Iceland and Greece but on a less dramatic scale of course the only reason the situations in Greece in Iceland weren't worse is because of giant foreign bailouts that's right there's more debt to solve the problem of already existing insurmountable debts it's all coming to a head soon much sooner than people think remember too that in roughly the past 100 years this type of debt crisis has reared its ugly head in Germany Russia Austria Poland Argentina Brazil Chile Poland the Ukraine Japan and China I believe it will soon happen right here in the United States don't believe me well the truth is that it's already happening at the local and state levels take a look according to the Center on Budget and Policy Priorities a Washington dc-based think tank at least 46 states face huge budget shortfalls for 2011 on top of the deficits they still haven't completely figured out for 20 10 the center reports at the total state budget shortfall could reach a hundred and sixty billion dollars in 2011 and although many states got federal help over the past year that aid is now gone so what are these desperate government's trying to do you won't believe their proposals the state of Arizona for example announced earlier this year that it is selling seven hundred and thirty five million dollars worth of government owned buildings but will still occupy them by paying a 20-year lease the government is selling the legislative buildings the House the Senate the State Capitol executive tower the state fairgrounds even prisons in California the state has taken the radical step of opening its prison doors and releasing thousands of inmates about 11% of the state budget goes to the penal system that's more than they spend on higher education so California is slashing the number of inmates by six thousand five hundred people next year in other words they're cutting loose about four percent of the prison population incredibly other states including New York may do the same thing in Georgia the government is proposing taking out dead peasant policies on state employees when these folks die the money won't go to the dead person's family but to the state's coffers to help pay for more programs insurance and pension liabilities it's simply incredible isn't it state and municipal governments are so broke and so desperate that they are taking unprecedent steps to at least temporarily avoid bankruptcy nearly every state in the Union is talking about legalizing some form of gambling to boost tax revenue California still wants to legalize marijuana even though it was defeated in the recent election of course none of these ridiculous steps will work in the long run and the truly amazing thing is that the US federal government is in even worse shape than the local governments the only reason we haven't seen the full brunt of this crisis yet on the federal level is because we've just continued to pile on more and more debt the states can't print money but the federal government can at least for now and for the moment this is all that is preventing a currency collapse of proportions this is the important point what most people don't realize is that the US government can only continue printing dollars as long as the US dollar remains the world's reserve currency in other words this is all going to fall apart much sooner than people think in fact it's already happening the first steps are already well underway it's happening right now before our very eyes I can't stress this enough you need to act now in order to protect your assets and grow your savings in the next few years in the next few minutes I'm going to show you exactly how I'm protecting my own money and what I recommend doing with yours but first let me show you exactly what's going on right now like I said most Americans don't believe the US dollar could ever lose its spot as the world's reserve currency but I am here to tell you this process is already well underway for example although it went almost completely unreported in the US press last fall a group of the world's most powerful countries including China Japan Russia and France got together for a secret meeting without the United States being present or even knowing about the meeting veteran middle-east reporter Robert Fisk reported on this event in Britain's independent newspaper in the most profound financial change in recent Middle East history Gulf Arabs are planning along with China Russia Japan and France to end dollar dealings for oil moving instead to a basket of currencies including the Japanese yen Chinese yuan the euro gold and a new unified currency plan for the nations and the Gulf Cooperation Council including Saudi Arabia Abu Dhabi Kuwait and Qatar Fisk also interviewed a Chinese banker who said this these plans will change the face of international financial transactions America and Britain must be very worried you will know how worried by the thunder of denials this news will generate and sure enough after Fiske published the details of this secret meeting US officials and central bankers from around the globe denied these plans but as the old central banking adage goes how do you know exactly when a currency will be devalued the answer right after the head of the central bank goes on television to adamantly deny any such transaction will occur and guess who just went public in recent weeks with a statement about how the US will not devalue its currency you guessed it the US Treasury Secretary Tim Geithner you see the last thing a central banker wants to do in the midst of a devaluation is to give people a warning before he can devalue so they have to deny deny deny after the announcement is made it's too late for citizens and investors to get out like I said what's incredible is that this story of a secret meeting among most of the major powers besides the US was greatly underreported in the American press but you know what the way I see it it's much more telling to look at actions rather than government press releases for example here is what is happening right now in the real world when you read these facts I think you'll agree with me that the u.s. dollars days are numbered as far as remaining the world's reserve currency China is getting out of the dollar Shuang suea a former vice chairman of the Standing Committee said that China is going to stop putting so much money into US dollars and once-dead look to the Japanese yen and the euro China holds more US dollars than anyone else on the planet but China is getting out of the US dollar as fast as they can without crashing their own economy look at this chart it shows that China's holdings of US dollars peaked in 2009 but China is unloading as many dollars as they can as quickly as possible this is just one sign of the end of the US dollar standard there are many more like this one as I'm sure you are aware for years the US dollar has been accepted almost universally and around the globe heck many times when I've traveled I never even bothered to convert to the local currency because I knew everyone would take my dollars well that's simply not the case anymore HSBC one of the largest banks in Mexico no longer allows you to deposit US dollars into their banks they've done this on the heels of money laundering allegations but we suspect they also simply don't want to be stuck with tons of US dollars as the currency continues to decline this move would have been unimaginable ten years ago that a big bank in Mexico would no longer accept US dollars for deposit but today it's the harsh reality in Mexico is not the only place this is occurring Reuters reports that the same thing has happened in 2008 and one of Europe's most popular tourist spots currency exchange islets and Amsterdam have been reportedly turning away customers who want to exchange their US dollars for euros as one travelling American tourists Mary Kelly from Indianapolis Indiana told the Reuters news agency while standing in front of the Anne Frank House in India the country's tourism master said in 2008 the US dollars will no longer be accepted at the country's heritage tourist sites like the Taj Mahal and the US dollar is no longer good anywhere in Cuba the New York Times reports that now many shops in China no longer accept dollar based credit cards issued by foreign banks and foreigners cannot convert American dollars into renminbi beyond a given quota Iran of course has already moved all of its reserves out of US Dollars and Kuwait D pegged his currency from the dollar a few years ago Bloomberg News recently reported that China and Russia planned to start trading in each other's currencies to diminish the dollars role in global trade ba new ba Waja of UBS Bank said given the risk to the dollar in u.s. assets from their fiscal position they want to reduce their dependency on the dollar as an invoicing currency it's even happening here in the USA most Americans don't know that some states in the Midwest are already using alternative currencies and NBC News affiliate in Michigan reports that new types of money are popping up across mid Michigan and supporters say it's not count but rather a competing currency right now for example you can buy a meal or visit a chiropractor without using actual US legal tender what most Americans don't realize is that this is all totally legal the US Treasury Department website says that according to the coinage Act of 1965 there is no federal statute mandating that a private business a person or an organization must accept currency or coins for payment for goods and/or services I saw one report that says there are now a hundred and fifty of these alternative local US currencies being accepted around the country USA Today reports that the largest of these local currencies is a currency called BerkShares which are being used in the berkshire region of western massachusetts according to the paper since its start in 2006 the system the largest of its kind in the country has circulated 2.3 million dollars worth of BerkShares and even in places that do not yet have local currencies store owners may now actually prefer foreign currencies rather than US dollars in washington d.c just 25 miles from my office some stores have been accepting euros of course the euro isn't much more stable than the dollar right now but my point is that most people don't understand there is no federal requirement in the United States for private store to accept dollars for non debt transactions you see no matter what the government decides stores and businesses will accept whatever they believe is a strong currency as Texas Representative Ron Paul wrote recently if you walk into a 7-eleven to buy a soda the clerk doesn't have to accept your dollars he could demand Euros silver or copper but because legal tender loss backing the dollar have caused the dollar to try but other currencies out of circulation right now it's easier for stores to accept dollars well all that is quickly changing many places in Texas now accept Mexican pesos for payment euros accepted signs like this one are popping up and of all places Manhattan and not only Manhattan but in New York's favorite summer playground camp since they're an art gallery assistant was quoted by the real deal I wouldn't want to discourage a sale in any way because of a currency issue it's not just small stores that are accepting other methods of payment besides US dollars the Chicago Mercantile Exchange the world's largest futures and commodities exchange board now accepts gold to sell a futures contracts until recently the exchange typically only accepted US Treasuries and bonds as payment these guys obviously see the writing on the wall this would have been unthinkable ten years ago but today it's a reality and this trend is going to keep moving incredibly fast that's why the smartest investors are taking action Bill Gross who probably knows as much about currencies and debt as anyone in the world runs the world's biggest bond fund he was quoted by Bloomberg we've told all of our clients that if you only had one idea one investment it would be to buy an investment in a non dollar currency that should be on top of the list Jim Rogers one of the world's most successful multi-millionaire investors writes the dollar is not just in decline it's a mess if something isn't done soon I believe the dollar could lose its status as the world's reserve currency and medium of exchange something that would lead to a huge decline in the standard of living for US citizens like nothing we've seen in nearly a century I know you probably still don't believe it can happen here in the United States but think about it are we as Americans really immune to the laws of economics and finance I don't think so and every circumstance I know of in which a government has tried to inflate its debts away has ended in disaster it will happen here too as Jim Rogers says history teaches us that such imprudent monetary and fiscal behavior has always led to economic disaster this is why World Bank president Robert Zoellick and a speech at the school for Advanced International Studies at John Hopkins University recently said the United States will be mistaken to take for granted the dollars place as the world's predominant reserve currency looking forward there will increasingly be other options to the dollar and this is why the International Monetary Fund recently published a paper calling for a new global world currency a paper entitled reserve accumulation and international monetary stability written by the strategy policy and review Department of the IMF recommends that the world adopt a global currency called the bank or with a global central bank to administer the currency the report is dated April 13th 2010 and no unfortunately this is not just a bad rumor this is a deadly serious proposal and an official document from one of the most powerful institutions in the world do you see where this is all heading as Brazilian economist and strategist Ricardo Amaral wrote recently the US dollar served its purpose since the end of World War two and became the major foreign exchange reserve currency but the days of the US dollar playing that special role has reached the end of the line since today that system is very sick and is dying a slow death mr. Amaral added that we will soon see the major collapse of the US dollar creating the biggest international monetary crisis the world has ever seen this is why gold and silver prices are soaring it's not a matter of if the US dollar will lose its status as the world's reserve currency it's simply a matter of when investors know there are serious serious problems with the US dollar so they are fleeing to precious metals which have historically been very reliable when a country has major currency problems it's not hard to see why people are no longer accepting US dollars why many foreign countries are pushing for a new world reserve currency the good news is no matter what happens I found several ways for you to protect your savings and you could potentially even make three to five times your money over the next few years I'll show you exactly what to do in a more but first let me explain why the collapse of the dollar as the world's reserve currency could happen much sooner than most people expect I know many of my friends colleagues and family members are still in serious denial in the world of psychology they call this the normalcy bias you see the normalcy bias actually refers to our natural reactions when facing a crisis the normalcy bias causes smart people to underestimate the possibility of a disaster and its effects in short people believe that since something has never happened before it never will we are all guilty of it it's just human nature the normalcy bias also makes people unable to deal with a disaster once it has occurred basically people have a really hard time preparing for and dealing with something they have never experienced the normalcy bias often results in unnecessary deaths and disaster situations for example think about the Jewish populations of world war ii as barton biggs reports in his book wealth war and wisdom by the end of 1935 a hundred thousand jews had left Germany but four hundred and fifty thousand still remained wealthy Jewish families kept thinking and hoping that the worst is over many of the German Jews brilliant cultured and cosmopolitan as they were were too complacent they had been in Germany so long and were so well established they simply couldn't believe that was going to be a crisis that would endanger them they were too comfortable they believed that Nazis anti-semitism was an episodic event and that Hitler's bark was worse than his bite they reacted sluggishly to the rise of Hitler for completely understandable but tragically erroneous reasons events moved much faster than they could imagine this is one of the most tragic examples of the devastating effects of the normalcy bias the world has ever seen just think about what was going on at the time Jews were arrested beaten taxed robbed and jailed for no reason other than the fact that they practiced a particularly religion as a result they were shipped off to concentration camps their houses and businesses were seized yet most Jews still didn't leave Nazi Germany because they simply could believe that things would get as bad as they did that's the normalcy bias with devastating results we saw the same thing happened during Hurricane Katrina even as it became clear that the levee system was not going to work tens of thousands of people stayed in their homes directly in the line of the oncoming waves of water people had never seen things get this bad before so they simply didn't believe it could happen in Haiti in Pakistan and other third-world countries sure but they never thought something like that could happen in our country and as a result nearly 2,000 residents died again it's the normalcy bias we simply refuse to see evidence that's right in front of our face because it is unlike anything we have experienced before the normalcy bias kicks in and we continue to go about our lives as if nothing is unusual or out of the ordinary well we're seeing the same thing happen in the United States right now we have been the world's most powerful country for nearly 100 years the US dollar has reigned supreme as the world's reserve currency for more than 50 years most of us in America simply cannot fathom these things changing but I promise you this things are changing and faster than most people realize for a moment just look at a tiny fraction of the evidence around us did you know that there are now nearly 42 million Americans on food stamps that's nearly 13% of the entire population those numbers are up seventeen and a half percent from last year and the number of Americans on food stamps has gone up every month for nineteen months can a country really be in good shape when 13% of the population can't even afford to buy food or how about this although it's gone almost completely unreported in the mainstream press a dozen or so cities across the nation like Fresno Sacramento and Nashville have hundreds of people living in modern-day depression-era shanty towns the Fresno shanty town has received the most publicity after a visit by Oprah Winfrey there about 2,000 residents are homeless they even have a security desk at the shelter because the encampment has gotten so large city officials say they have three major accounts near downtown and smaller settlements along two local highways also according to a recent article on MSN money about 43 percent of American families spend more than they earn each year look at this chart it's unbelievable the average household carries $8,000 from credit card debt and personal bankruptcies have doubled in the past decade how in the world can we possibly spend our way out of the current crisis we certainly can't do it with savings the only answer is to print more money which will hasten the fall of the US dollar as the world's reserve currency there's simply no one better at bending statistics than the US government take the unemployment rate for example back in the 1930s anyone without a job but not retired was considered unemployed today however the government calculates unemployment mainly by Counting the number of people receiving unemployment benefits so when people's benefits expire they are no longer counted and the unemployment rate actually Falls ridiculous I know the reality is the true unemployment rate is much higher than what the government is reporting if you don't believe me look at two recent job postings that read about last week in Long Island City an estimated 2,000 people waited in line at the local unemployment office some for as long as four days to apply for one hundred elevator mechanic apprenticeship positions and an Massillon Ohio 700 people recently applied for a single janitorial job paying 16 dollars an hour plus benefits the point is our country is not growing jobs because the government makes it harder and harder for businesses with current regulations in place our country will never experience the type of growth necessary to dig our government out of the hole they put themselves in I'm sure you think I'm exaggerating but just look at what the CEO of one of America's most important companies said a few weeks ago Intel CEO Paul Otellini said in a recent speech I can tell you definitively it costs 1 billion dollars more per factory for me to build equip and operate conductor manufacturing facility in the United States he said that 90% of the additional costs are not from higher labor rates but from higher taxes and regulatory charges which other nations simply don't impose Cypress Semiconductor CEO TJ Rogers agreed that the problem is not higher u.s. wages but anti-business laws he was quoted in an interview with CNET news the killer factored in California for a manufacturer to create say a thousand blue-collar jobs is a hostile government that doesn't want you there and demonstrates it in thousands of ways few Americans today realized that we have the second highest corporate tax rate in the world and since Japan's new prime minister announced that he plans to reduce the country's corporate tax rate by fifteen percent the US will soon have the highest corporate tax rate in the world why would anyone want to start a business here when they can do it for less money and keep more of the money they make by locating elsewhere it's just another good reason to avoid the US dollar so is this did you know in 1979 there were 61 American companies that aren't a top-level triple-a credit rating from Moody's today there are only four automatic data processing Exxon Johnson & Johnson and Microsoft does this sound like an economic recovery to you when only four companies in the entire country are stable enough to earn a triple-a credit rating it certainly doesn't to me but it's nothing compared to what's going on in the housing sector you want to know how crazy things are in the u.s. right now consider the bizarre state of the Las Vegas housing market where the New York Times reports that building is booming again in a city where nearly 10,000 new houses are empty thousands are in foreclosure thousands of regular people have simply stopped paying their mortgages and average prices are down more than 60 percent since 2006 what could possibly be driving this building mania well it turns out that buyers don't want homes that were built during the boom because they sit in neighborhoods that look ghost towns and because many of these never occupied houses are filled with cockroaches and other critters so local builders are doing the worst possible thing they could be doing in Las Vegas right now they're building more homes similar scenarios are taking shape in Phoenix and other US cities of course this might look good for economic numbers but all it does is make the situation much much worse in the long run want to see another crazy trick some businesses are using to artificially boost their earnings this is just incredible to me if you've been reading my work at all over the past few years you know that I am extremely bearish on the for-profit education sector such as the University of Phoenix what could possibly be wrong with institutions that offer inexpensive education to tens of thousands of students across the country well to me it's just another symptom of how distorted and crazy our economy and our country have become here's what I mean one of the crazy practices some institutions employ is to actually seek the enrollment of homeless people into their programs you probably think I'm making this up but Business Week recently ran a report on this practice why would they do this well because these folks qualify for federal grants and loans that are used to pay college tuition fees according to the reports I read the University of Phoenix for instance relies on federal funds for more than 85 percent of its revenues at another for-profit school Drake College of Business almost five percent of the student body at its Newark New Jersey campus is homeless Businessweek reported of course the majority of these students will never be able to repay their loans but the colleges don't care that's the government's problem not theirs once again if the taxpayers like you and me who will be left holding the back and here's another good reason why investors are afraid of holding dollars right now one of the most worrisome problems in the stock market is that we're basically repeating the exact same situation that occurred from 1937 to 1942 most Americans think we've had this amazing stock market recovery since the financial crisis of 2008 and we have to a certain extent but we are not out of the woods in fact during America's last real economic collapse in the 1930s and 40s we saw a similar drop and recovery before the markets crashed all over again the situation is eerily similar look at this chart it's one of the scariest I've seen in a long time it shows an overlay of what happened in the stock market in 1937 compared to 2008 in both situations we saw big crashes of about the exact same magnitude and then a big recovery again of about the same size but what will happen next well if history is any guide we could well have another big leg down in the stock market that's exactly what happened 70 years ago and with all the problems left unresolved in our economy today it certainly happened again especially if the US dollar loses its reserve status as the Wall Street Journal reported over the last year the stock market has followed a path eerily similar to 1937 first a strong rapid run to a recovery high same pace same magnitude then a correction again the same will we continue on the path that led to the correction of 37 into a collapse and 38 the point is the cards are seriously stacked against us this looming currency crisis is inevitable almost every state in the country is on the verge of bankruptcy we have borrowed an impossible amount of money which we'll never be able to pay back our economy is an absolute mess taxes are sky-high already and we'll certainly go much higher over the next few years and nearly all of the world's major financial players are preparing for an alternative to the US dollar as the world's reserve currency to me it is so obvious that we are about to experience a serious currency crisis that I can't believe people can deny this reality with a straight face again if you don't believe a currency crisis is coming just take another look at the price of gold and silver compared to the US dollar over the past decade it's obvious that smart investors want to hold gold and silver not US dollars anyone with any sense or basic understanding of economics can tell the US dollar is doomed and it's going to have major repercussions which the average American has not yet even considered so what can you do well I've done a lot of research on this and I found that there are a surprising number of simple things you can do to not only protect what you've currently got but also to potentially make quite a bit of money as its currency crisis unfolds so what should you do to protect and possibly even grow your wealth in the next few years well there's a series of pretty simple financial moves I believe you should begin making immediately and here's something I want you to keep in mind I'm really only going to talk about your finances here as far as protecting your family well it depends on your circumstances if you live in an urban area I recommend making sure you've got somewhere you can go in case there are riots or food and water shortages I think there's a very good chance we'll see that in the next two years wherever you're going to wait out the chaos I recommend you have basic food water and medical supplies to last you for at least six months remember you won't be able to count on the government during this crisis think about it if the government couldn't even save the city of New Orleans during Hurricane Katrina how in the world will it save an entire country when all hell breaks loose as I said earlier the truth is the government won't even try to save individual American citizens the government will be much more concerned with saving itself as far as taking care of your money to make sure you don't lose money and even use the situation to come out quite a bit ahead well that's where I can help you all of the moves I recommend are simple and fairly straightforward to implement at least right now if you wait to do these things however they will almost certainly get very expensive difficult and even impossible to do if you do these things now not only will you be better prepared to weather the coming storm I believe you could also make quite a bit of money over the next few years and if I'm wrong well that's the best part I think you'll still make very good gains even if all we get out of this crisis is a mild inflation you can still be set up to do very very well here are the specific steps you should take step number one get some of your money beyond the reach of the US government it's perfectly legal and a lot easier than you think I know you probably don't believe me when I tell you through the US government is going to implement policies to save itself which are unimaginable right now but remember desperate government's will do very desperate things that's why they outlaw the ownership of gold 80 years ago that's why they are already talking about nationalizing automatic 401k and retirement plans and why it might soon be against the wall to open a foreign bank account or to move your money overseas without paying outrageous taxes the good news is I met recently with a man who is considered one of the top asset protection attorneys in America I learned that there are four simple investments you can make right now which you do not have to report to the US government don't get me wrong when and if you ever sell these things years down the road you are still required to pay taxes on your gains but the great thing is while you are holding these investments so long as you play by the rules neither you nor anyone else is required to report them to the government this benefit should be obvious the less the government knows about where you have your money the better they simply will have a very hard time taking what they don't know you have I am personally putting a fairly significant portion of my portfolio into one of these assets now I'm not going to tell you exactly what I'm doing here in this video but I will explain everything in full detail in my new report called the for investment assets you do not have to report to the US government and I will gladly send you a copy free of charge in addition to explaining how I'm protecting my own money I'll show you three other places you can put your money which you legally do not have to report to the US government of course normally it would cost you thousands of dollars to meet with this asset protection attorney and to take advantage of his best strategies but I'll reveal everything you need to know to get started in this report plus I'd like to send you the information on the second step you should take to protect yourself that is step number two how to acquire the world safest assets which are likely to perform best during this period what I'm talking about here is buying as much gold and silver as you can reasonably afford I know gold has had a huge run jumping more than 300% in the past decade but believe me when the US dollar loses its status as the world's reserve currency this early run is going to be a mere afterthought I will be surprised if gold does not reach 5,000 or 6,000 dollars an ounce in the next few years the smartest money managers in the world people like George Soros David Einhorn and John Paulson have all recently taken huge positions in gold and I think you are crazy not to do the same how should you do it there are many options and my research firm has recently published a great book called the gold investors Bible which details in full all of the best ways to own and hold gold bullion in this volume revealed dozens of secrets about the gold industry specifically the best ways to buy sell and store your gold it explains why some gold coins are better than others how to buy gold with zero dealer markup how to easily and safely store some of your gold overseas very cheaply where to hide it and much more not regularly available for sale this book is valued at $24 I'd like to send you a copy totally free of charge and what about silver well I believe silver will serve a unique role during this currency crisis let me explain for most of recorded history the price of gold has been around 16 times the price of silver this ratio the so called silver ratio has fluctuated from time to time based on silver discoveries and attempts by governments to regulate the silver to gold ratio but in a free market where demand for silver as money exists I'd expect the natural supply and demand balance to lead to a silver price around 1/16 the price of gold based on the historical ratio with the price of gold around $1,400 the price of silver should be around 87 dollars of course it's not today silver is trading around $27 today then gold is selling for more than 50 times the price of solar what explains the difference between hundreds of years of history and today why is silver still so cheap relative to gold when silver is demonetised as it is now meaning it's not being used for money but just for industrial purposes supplies soar as people sell silver for gold and other currencies on the other hand during periods of monetary crisis demand for silver as money pushes the silver ratio heavily in Silver's favor for example the ratio returned to its historic range during World War one it happened again in the early 1970s when Nixon abandoned the gold standard it also happened most famously in 1979 1980 when it seemed as if America was really entering a serious money crisis most people don't know this but silver is actually the best performing asset of this century not gold as my friend Chris Webber pointed out in his November first newsletter gold has risen from 256 dollars an ounce to 1365 dollars an ounce since 2000 that has a rise of 433 percent silver has risen from four dollars and two cents an ounce to twenty four dollars and 96 cents an ounce that has a rise of 521 percent in short silver is the best hedge against a money crisis as the dollar fails silver will once again be in demand as money and as this demand materializes the free market price of silver will likely return to around 1/16 the price of gold when gold has $2,000 an ounce assuming the price of gold is 16 times the price of silver silver shall be worth about a hundred and twenty five dollars per ounce my multi-millionaire friend and currency expert Chris Webber believes silver will likely hit 187 dollars an ounce if that happens you could make gains around 600 percent if you invest at today's prices so what are the best ways to buy silver well my firm has done a ton of research on this precious metal we have found great ways to hold the metal personally to have it stored in a secure location in the United States or overseas and more we've put everything we know into a valuable guide called secrets of the silver market I'd like to send you this valuable resource also free of charge I'll show you how to get it in a second but first let me get to the third financial step I recommend you take right now step number three learn the stock market quitters secret if you want the opportunity to make a lot of money during the coming crisis once you're a way to do it is to learn the intricacies of an unusual investment strategy that is now making some investors an absolute fortune and my research firm we have been teaching readers this method for several years and get this you don't have to buy a single stock to begin using the strategy and it has nothing to do with shorting in a nutshell this is an approach that can enable you to safely extract gains of exactly 100 percent from the market over and over again without ever owning or touching a stock keep in mind the most you can make using the strategy is one hundred percent and as with all investments there is some risk involved also it's important to note that this strategy will probably not be right for everyone but it can be so safe and easy once you learn how it works you might decide to never buy ordinary stocks ever again like these folks I taught the secret to in recent years last March for example Peter costs of Boise Idaho quit stocks and use this secret instead he says he now makes an average of 10 thousand dollars per month with his investments Randy Bowman of Annapolis Maryland also quit stocks so far he's made over eighty seven thousand five hundred dollars Bernard Henderson of Carmel Indiana now collects an average of one hundred dollars a day another investor Harold Welch ik of New Brunswick New Jersey has made over $20,000 using this technique Tim Hewitt from Sacramento probably put it best when he wrote me and said this has saved my portfolio I repeat to begin using this investment strategy you do not have to touch the stock market you do not have to buy anything in the options market either that's why financial author Lee Lowell writes I've been a professional trader for 17 years but many people have never heard of this strategy let alone used it this is a great way to get your hands on instant cash Pulitzer Prize winning author James Stewart learn this secret recently and said these payouts are so rich I consulted a colleague to make sure they were real this seldom understood strategy is how we've helped dozens of people make incredible gains even in a terrible stock market and in all likelihood when the stock market gets really bad as I expected soon we'll this will be an incredibly lucrative and safe strategy I'll show you exactly how this investment strategy works and how you can take advantage of it immediately starting today everything you need to know is in my new report called the stock quitters secret the easiest way in the markets to make 100 percent as the stock market begins to unravel this incredible technique will likely get more and more lucrative and that brings me to step number four make sure you own the one asset that can help save you and your family no matter how bad things get there's no telling exactly how bad things are going to get as this crisis unfolds I firmly believe there could be riots marches in the street bank runs massive arrests and periods of uncontrollable mayhem at least for several months as things begin to unravel but the good news is that there is one asset you can own now widely available in America which should help protect you and your family from this chaos and it could also likely make you a fortune of the years to come I'm not talking about guns or bonds or gold other precious metals and or anything like that and of course this has absolutely nothing to do with the stock market what I'm talking about is a very powerful asset that wealthy families have used for centuries to protect themselves and to preserve and build their fortunes one study tracking this asset shows it has absolutely crushed the stock market between 1970 and 2009 by returning more than 10,000 percent more than stocks during that period this investment absolutely destroyed the returns of gold as well beating it by more than 9,000 percent over the same period look at the gains of the blue line on this chart compared to the returns of stocks and gold multi-millionaire investor barton biggs wrote this type of asset throughout history protected both your wealth and your life during World War Two for example when millions of families lost their entire life savings through inflation or government seizure this was the one asset that enabled some families to protect preserve and grow their money what the average American doesn't realize is that many of the richest people in the United States have a significant ownership stake in this asset the walton family of Walmart Fame Bill Gates Ted Turner the Hilton family Charles Schwab Microsoft billionaire Paul Allen the hunt family of Texas oil Fame the Hearst family the Ford family and more as I mentioned you can easily make this investment today here in America probably less than 1% of the population owns it today but it is readily available and fairly inexpensive I've written up all the details on everything you need to know my full report is called the world's most valuable asset and a time of crisis there are several ways to make this investment I'll show you what they are like I said this has nothing to do with stocks bonds precious metals guns medicine or anything like that yet it could save your family it could make you very wealthy in the coming years as my multi-millionaire friend Doug Casey says it's the one thing you should own in the years to come I don't want to say any more about it other than that here in this video the truth is the fewer people who know about this investment secret the better so how can you begin taking these simple steps right away well my company Stansberry and associates Investment Research is a financial research firm we have a staff of about 50 people and our main objective is to find safe and profitable investment ideas that you are not likely to hear about anywhere else since we started this business a decade ago the ideas we publish have helped a lot of people make a lot of money harold Thiessen for Montana wrote recently to say to the present high of nine hundred and fifty two thousand dollars I can only think your redditors for changing my life so much Dan coffin from San Diego also contacted us recently to say since joining my portfolio has grown by several hundred thousand dollars I look forward to a long and prosperous relationship we even got an interesting note recently from a reader named Ulysses Reuter who says he's been making a small killing enough to buy this nice sized boat and a house in Mexico he writes we took delivery of her three weeks ago and are cruising the Bahamas in October we will take her through the Panama Canal over to the Pacific side this is I just bought a home in Mexico then there was a nice note from Mitchel Donovan from Ithaca New York he said when I joined you excellent results have allowed me to retire early believe me nothing makes me feel better than receiving notes like these but I have to tell you right now I am really worried that a lot of our subscribers and many many hardworking Americans are going to get caught totally by surprise when this inevitable crisis hits that's why I created this video that's why I like to send you the full details on exactly how I believe this is all going to unfold and exactly how to protect yourself and even prosper during this crisis remember the government's not going to save you you can either let things happen to you or you can take a few simple steps and take charge of your family's fate please just give the work I've done a look I believe you will have all the information you need at your disposal the best part is you can take a look at my research and receive everything I've mentioned here at absolutely no risk or obligation simply let me know you'd like to take a trial subscription to my monthly newsletter called Stansbury's investment advisory and I will immediately rush you research report number one the for investment assets you do not have to report to the US government research report number two the gold investors Bible research report number three secrets of the silver market research report number four the stock quitter secret the easiest way and the markets to make a hundred percent research report number five the world's most valuable asset and a time of crisis also on the second Friday of each month I'll also send you my monthly newsletter Stansbury's investment advisory I'll keep you up to date on exactly what's going on regarding this financial crisis and I'll show you some unusual and incredible ways to make money now and as it begins to unfold we have found some great ways to make a fortune as the government continues to try to bail out one failing industry after another I'll also keep you up-to-date on the best asset protection strategies that come across and any changes to the laws or government interventions that could affect them and every day the markets are open I'll send you my paid subscribers only email call the Stansberry and associates digest I report on all the work my firm is doing the most interesting investment ideas what we're researching now and what we expect to happen in the months to come so how much does my work cost and how can you get started well a one-year subscription including everything I've mentioned here normally cost $99 per year that's what many others have paid but right now you can try my research for half off the normal rate you'll pay just 49 dollars and 50 cents for an entire year why so cheap well to be honest our business really only works if our subscribers stick with us for the long term we realize you've got to try our work first to see if it's right for you and that's why through this video we're making it so cheap and essentially risk for you to try what I mean is you'll have the next four months take a look at the research reports I've just described plus the next four issues of my newsletter and the next four months of my daily digest reports if you decide for any reason my work is not right for you just let us know and you can receive a full refund and keep everything you've received so far in other words by taking me up on this offer you are only agreeing to try my work to see if you like it I hope you'll consider this offer seriously I know in my heart it will be one of the best financial moves you will ever make to get started simply click on the link below which will take you to a secure order form your order we processed immediately you'll have access to all of my 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