Wednesday, May 5, 2010

Trillions Phantom Economy Finally Ignites

I was shocked. And if you've read my irreverent commentaries on the madness of today's markets in the popular e-zine The Daily Reckoning, you'll know it takes a lot to do that.

I've known, and worked with (and even published) hundreds of financial analysts and economists over the past few decades. And I've been fortunate (mostly anyway) to be privy to a lot of diverse, unconventional and original financial ideas, radical predictions, and unusual investment styles in that time.

But recently one unique and private group of like-minded libertarian global investors has surprised me.

I've been reading financial reports from them for a number of years. And though I was impressed by their prestigious and extensive advisory team who were collected from all corners of the financial globe, and boasted everyone from Swiss bankers to asset protection masters, currency traders to commodity experts, I ignored their direst financial warning…

There was one special report that was originally sent out over four years ago that was truly remarkable. And there is certified evidence by the U.S. Post Office that this report was mailed to investors and influential decision makers in the U.S. and overseas.

You can bet it made its way to the corridors of financial and political powers in Washington and New York. Yet its message and urgent warnings were derided as "fear mongering" by people like the Fed Chief at the time.

Yet this report…published long before the word "derivatives" ever hit the front page… predicted with uncanny accuracy the global financial meltdown stemming from the untamable and unregulated growth of the now $592 trillion global derivatives market—a shadow market they called "the Phantom Economy."

This report warned of hidden financial time bombs, which were lying in America's banks, and which they believed could detonate at any time…setting off a devastating chain of events that would end up causing the greatest financial meltdown since the Great Depression.

The world now knows these financial time bombs as derivatives. And this rare group of global investors (call them financial shamans or money mystics if you like) were indeed right. For their apocalyptic prediction is of course what we are now bearing witness to on Wall Street and global markets today.

Just below is an updated copy of the original report. It's to warn you of the next great shocks that are about to rock the markets…and show you how to shield your wealth and turn disaster into opportunity in the continued fallout. 

You might have been one of those investors who received the original report, and maybe you'll recognize it. For they have been sending updated versions of this ominous market warning over the past four years. In fact, even well after this summer when many of Wall Street's so-called "best and brightest" money managers were telling investors that the worst was over, this group was warning that on the contrary - the worst was yet to come.

They couldn't have been more terrifyingly right.

As I watched in disbelief at the unprecedented chain of devastating financial events that unfolded weekly, sometimes even daily, in these past months, I remembered that contrarian global investment group. I remembered their warnings. While the world sat in shock and awe, unable to believe what was unfolding on Wall Street, watching their retirement portfolios go up in smoke, along with their credit and faith in the American economy, this group were not even surprised.

On the contrary, they were very well prepared for these financial shocks…and they've watched their investment recommendations fly in the face of falling markets everywhere. Their contrarian global approach, their trust in alternative assets, and in investments that lie far off the Wall Street radar, have rewarded them greatly.

And now investors have started to huddle at the gate of this private investment group. As one reader, John Shook, wrote:

"I used to subscribe to this service several years ago. I also used to get emails…that always warned of bank failures and the derivatives issue that would cause this. I cancelled my subscription back then because it seemed like too much boogie man stuff…well apparently it was all true. I am now watching my brokerage account dwindle away each day feeling very stupid and powerless… I should have listened back then and got my money the hell out a few years ago.  Im afraid most of my financial advice comes from my advisor who just wants me to leave it with him and ride this out forever….if u can send me a link to some sound advice Id appreciate it…" – John Shook, Arlington, VA

Your Invitation to Join One of the World's Most Contrarian (and Effective) Investment Groups

Below is the latest issue of their private investment letter, which is a special edition on the global financial crisis…including their latest predictions for where they see it going next. They urge you (as do I) NOT to listen to the Wall Street and Washington rhetoric…that no matter what kind of false sense of financial security they might be pedaling, the crisis is far from over.

But they also reveal a number of alternative investments that are poised to fly when almost everything else comes crashing to the ground…including one of the most depressed investments of the last generation, which they believe will return 2 to 10 times your money in the volatile years to come. Have a read of this contrarian group's advice, and if you find yourself nodding in agreement, then why not try a no-risk introductory membership to this organization? It might change the way you invest forever, as it's evidently done for thousands of others!

It is estimated that over 700 banks (with trillions of dollars in assets) will come crashing to the ground.  Hundreds of hedge funds will collapse, along with a number of major private equity firms. Corporate bankruptcies will soar. And another $20 Trillion will be wiped off Global stock markets of 2010. And no amount of Fat-Chance Packages or Bailout Band-aids from the Fed will help this time.

But this one bombed-out investment (that's been trading at depression level prices for 18 years now) could soar two to ten fold as the world comes undone.

The nightmare scenario has begun.

We've been warning people about it for over 4 years now. And while the powers at be would love you to think that they've got everything under control, you'll soon see that once the next wave of the global derivatives disaster hits, no amount of Fed fiddling will be able to contain the crisis this time.

While we originally warned that JP Morgan might be ground zero for the global derivatives disaster, Jamie Dimon (who's been called the world's greatest banker) was soon employed to unwind their giant derivatives portfolio and reduce their exposure and risk.

Although he managed to do this with some success, other players took up the slack and the derivatives bubble continued to grow unchecked and unregulated.

We later sent out warnings of a new demon derivative that had begun to proliferate like wildfire…which threatened to take down banks like Wachovia, Merrill Lynch, Morgan Stanley, Deustche Bank, and hundreds of other hedge funds and financial institutions.

Bill Gross, the legendary bond investor, called this particular type of derivative one of the banks' most "egregious concoctions" to date! It's the now infamous investment, which goes by the name of the Subprime CDO (Collateralized Debt Obligation). The investment derives its value from the subprime mortgage markets.

These investments were basically bets on whether or not the average American homeowner with a poor credit rating could make his monthly mortgage payment on his inflated home.

For bankers and mortgage brokers, loan applicants who previously would have been considered bad risks suddenly became great clients. That's because the higher risk these borrowers represented, meant ultimately the lender could charge higher rates and fees…and then quickly sell the loan off to unsuspecting institutions.

And in a world of low interest rates, low inflation and easy credit they were a gloriously effortless way for banks and hedge funds to reach for yield. The risk was low and the reward high…at least until everything started to go wrong…and these miracle bets began to rapidly unwind…

Pop Goes the Largest Leveraged Asset and Credit Bubble in History 

You see, as we mentioned before, these derivative bets are bought on an enormous amount of leverage.

For example, any wealthy individual can go to a broker these days and put down $1 million, and then leverage this amount 3 times. The resulting $4 million ($1 million equity, $3 million debt) can be invested in a fund of funds that will in turn leverage this $4 million another 3 or 4 times and invest them in a hedge fund; then the hedge fund will take these funds and leverage them another 3 or 4 times and buy derivatives like subprime CDOs, which are often themselves leveraged 9 or 10 times!

At the end of this long credit chain, the initial $1 million of equity can become a $100 million investment, out of which $99 million is debt (leverage) and only $1 million is equity. So we get an overall leverage ratio of 100 to 1.

It was this kind of new Super-Leverage which helped create the largest asset and credit bubbles in the history of humanity, including a global real estate bubble, a mortgage bubble, a bond bubble, a credit bubble, a commodity bubble, a private equity bubble, a hedge fund bubble and the mother of all economic bubbles: the global derivatives bubble.

It's how global stock markets grew from $25 trillion to $50 trillion in just 5 years, and how the global derivatives market leapt from $100 trillion to almost $600 trillion. In economic terms, these bubbles grew in the blink of an eye.

And now they've all begun to bust at the same time—plunging us into the deepest de-leveraging since the Great Depression.

You see, when you have this kind of monstrous amount of leverage built into the system, a mere 1% fall in the price of the final investment (the CDO) can wipe out the initial equity, and create a chain of margin calls.

And here's where the real problem lies: The one we've been warning investors about for over four years now…the one at the very core of the credit crisis. 

The amount all these traders have to put down in order to place their derivative bets is based upon their credit rating. The stronger their credit rating, the less they have to put down.

Now if their credit rating is downgraded, they have to put up more money to cover the bet. In order to do that, the bank, hedge fund, money market fund, private equity fund, etc. must sell its investments. Problem is, it's unable to sell many of its investments (like CDOs) - because nobody wants them, so it has to sell its good investments (like its top stocks for 2011). And naturally when things sell, prices drop, which causes further selling, and further downgrades and so on…

And that's what we are seeing in global markets right now. It's why top stocks investments and markets that seem far removed from the subprime mortgage meltdown are being affected by it.

But the worst is yet to come.

The Catalog of Crises

It's not only that we have a financial crisis, we also have a banking crisis, a credit crisis, a food crisis, an energy crisis and a commodity crisis.

We've already seen $10 trillion wiped off global stock exchanges in just a month. And that was after trillions of dollars had been injected into the system from central banks the globe over…

And now the next demon derivative is about to whip down Wall Street and wipe a further $20 trillion off global exchanges, spinning the world into what might end up being a global deflationary collapse.

We'll tell you about this demon derivative in this Special Crisis and Opportunity Issue on the derivatives time bomb…and we'll show you how you can not only protect yourself from it, but multiply your wealth many times over by buying the small clutch of alternative investments, which are poised to leap 2-10 fold when the derivatives bubble finally blows. 

We'll tell you about the countries that leveraged the most, and those that leveraged the least, and we'll show little-known ways to make money off them all…more money than you may have ever made in your life.

We'll introduce you to radical new financial innovations that can give you access to exotic currencies, booming markets and opportunities that were once reserved only for the world's richest investors. We'll show you how to invest more like the world's best-performing university endowments, but for no more than it would cost you to purchase a best stock to buy or mutual fund on American markets.

But before we do, let me first tell you why no amount of fed fiddling, bailout band-aids or fat-chance packages will save the markets this time.

Wall Street's Next Demon Derivative Delivers Final Blow

You've heard of the subprime CDO (the derivative at the core of the current crisis). Now another kind of demon derivative is about to take the spotlight. It's called the CDS (Credit Default Swap). And you'll soon understand why, no matter what central banks do, it will deal the final blow to the global financial system. 

At its very simplest a CDS is an insurance contract. And it's made between two parties, one of whom is giving insurance to the other in hopes that he will be paid in the event that a financial institution or corporation, fails. However, Wall Street big-wigs have been very careful not to call this investment an insurance contract because if it were insurance, it would be regulated. So instead they use a magic substitute word called a 'swap,' which by virtue of federal law is deregulated.

And this is where we run into trouble. Because what was originally intended as insurance has now often become once again a highly leveraged speculative bet. Now in a typical CDS deal, a hedge fund will sell protection to a bank, which will then resell the same protection to another bank, and such dealing will continue, sometimes in a circle. And this practice has the potential to put investors into webs of relationships which are not transparent.

Since the U.S. Treasury has not classified these derivatives as "insurance," they trade free of any government regulations. Because of that, the firm selling the CDS is not required to set aside any reserves from the premiums received to insure against possible future loss claims.

This obviously makes the sale of the Credit Default Swaps potentially very profitable. But if the bet goes sour, and the company defaults or goes bankrupt, then that small bet can get very expensive.

So what was essentially supposed to be a safe insurance contract is now a series of highly leveraged dangerous bets. And in the past seven years trading in this market has leapt a mind-boggling hundred-fold.

This new CDS market now stands at a size larger than the entire capitalization of all the world's top stock markets of 2011 combined.  

And since these bets are all based on the future credit worthiness of a country, company or consumer (basically a bet on the ability of a party to repay his debts), they're all about to go horribly wrong.

In a global economy made up of thousands of corporations and institutions, many of which borrowed 10-100 times their capital in the past few years, most will be un able to repay their future debts – meaning these new demon derivates are going to unwind at a rapid rate…with fall-out so large it will dwarf the current damage caused by the crisis so far. 

Why Bailout Band-Aids Won't Save the System

Central banks around the globe have already injected trillions of dollars into the system. And while these bailout band-aids have helped, the problem is too big now. A band-aid might be good to cover a blemish or an abrasion, but we now have a gaping hole in the financial system: One that is growing larger every day.

Plus the government's ability to deal with a crisis of this magnitude is unfortunately limited. Over 700 banks are already in critical condition…150 of them (with a trillion dollars in assets alone) have Texas Ratios of 1:1. (A Texas ratio is a measure of the banks' credit troubles. And historically when banks have reached 1:1, they fail.)   

While the Fed does have the ability to bail out banks, how many more will they have to bail out before investors start to lose faith in the whole American financial system. But even if they were to take the unlikely action of bailing out every bank, it still wouldn't be enough.

They'd need to bail out the hundreds of non-banking institutions too, including all the hedge funds, money market funds and private equity funds that are also on the brink. And they'd need to bail out the thousands of crashing corporations and the millions of already bankrupt mortgage holders. That's what is needed to save the system…to prevent a tsunami of foreclosures, an implosion of the corporate sector, not to mention the coming torrent of defaults on credit cards, auto loans and student loans.

And the tragic reality is it can't be done. These kind of non-banking bailouts lie beyond the abilities of the Fed.

In fact, in another urgent investment bulletin we sent out to investors in the summer of 2007 entitled "Gluttons at the Gate" we warned about the coming bursting of the Private Equity bubble. Ten of the biggest Private Equity outfits (Ex-president's clubs, as we called them), were busily buying up hundreds of companies on extravagant amounts of leverage. And they weren't just buying up small firms, they were buying up some of America's most iconic brands, including: Hertz, Dunkin' Donuts, Baskin-Robbins, Metro-Goldwyn-Mayer, Warner Music, Neiman Marcus, J Crew and Toys "R" Us.

They de-listed these companies from the public exchanges, stripped them down, cut their costs and their workforces, loaded them up with debt, charged them questionable fees and rushed them back to public markets at warp speed.

To quote industry insiders, they "bought them, stripped them and flipped them."

But the success of this buyout binge hinged on one very important factor: a booming economy.

You see Private Equity firms use the rising sales of the companies they acquire to pay back their enormous debt loads. But in a recession when sales tumble, they will be unable to make the crippling repayments. They will default. This is what we're starting to see happen. Since they bought up trillions of dollars worth of companies (a significant swath of the global economy) the impact will be enormous. Corporate bankruptcies will soar. Private Equity firms will be unable to launch them back onto public exchanges. They'll be stuck owning ailing assets. And many will get crushed under the burden of their huge debt loads.

Global Stock Market's Next $20 Trillion Culling

Corporate default rates were a mere 0.6% in 2006 and 2007. But in a typical U.S. recession these rates surge above 10%. In a severe recession they'll soar even higher. 

And once the tsunami of corporate bankruptcies start to flood the market, it is then that we will bear witness once again to the devastating power that these demon derivatives carry. For the intricate web of relationships, including all the banks, hedge funds, money market funds and investors that bought insurance on these faltering companies, will want to be paid. Problem is, many won't have the funds to pay up. They'll go bankrupt.

It's why AIG – the world's biggest insurance company— fell and had to be bailed out by the banks.

And it's why Lehman Brothers also went bankrupt. And even if the Fed had saved them it would've only slowed down the meltdown. It wouldn't have stopped it. Because this time, the bets have been too big, and they've burrowed too deep into the global financial system…

Nothing will be able to stop the coming catastrophic implosion of the Credit Default Swap market. Even if the Fed could inject funds into every hedge fund, money-market fund and corporation (which they can't), the sums would need to be so large that it would destroy the very fabric of the American financial system anyway. 

Once the CDS marker starts to implode, there will be a run on the banks…and a run on top stocks to buy for 2011. And expect the coming CDS—driven global stock market crash to dwarf the last crash, which saw $10 trillion wiped off global exchanges in a matter of weeks, as investors priced in a global recession. This time they'll be pricing in a severe recession and maybe a depression. Expect a further $20 trillion to get wiped off. And because of the lack of transparency in the CDS market, everyone will hoard cash, making the credit crunch even worse…leading to a complete systemic financial collapse. The curtain will have finally fallen on the Wall Street era.

In this time there will only be a few profitable money havens left: A small clutch of markets who were not built on phantom finance…whose stock, real-estate and bond markets were not pumped up on super-leverage and hot financial air…whose governments support massive surpluses NOT crippling deficits…and whose citizens rank among the world's greatest savers, not the world's greatest spenders. Some of these economies are also awash in natural resources, others are sitting on trillions of dollars in cash. Their banks are among the best capitalized in the world. They barely dipped their toes into the risky subprime CDO and CDS markets. They are thus far better equipped to weather the coming financial storm than most other bubble economies.

And thanks to The Sovereign Society, and their vast array of global contacts, you'll be able to access them more easily and cheaply than ever before, including:

"The One Investment that ALWAYS Flies When Almost Everything Else Falls!"

The world's biggest credit and asset bubbles ever created in the history of humanity are all starting to burst at the same time. So where do you go for safety and profits?

I'll tell you where: The one investment on Earth that didn't get pumped up on cheap credit and phantom finance…the one investment that didn't boom when almost everything else did…the one investment that went nowhere in the last 18 years, only enjoying brief booms when the rest of the world started falling apart – like in 1998 after the collapse of LTCM, 9/11, etc.

This investment thrives on chaos…flies when everything else falls…dances when everything else dies…

I'm talking about the Japanese yen. Ironically it was the yen (and the Bank of Japan) that was also the single biggest source of cheap money, which helped fuel the recent and unprecedented bull markets in top stocks to buy for 2011, real estate and commodities. But it didn't do it to inflate global asset bubbles. It did it in hopes of jump-starting its own depressed economy. So it offered investors the globe over the cheapest source of financing on the planet…loans at near 0% interest. It was basically FREE money. And so irresistible was it, that investors came from everywhere to dip their toes into the deep waters of this enchanted money pool. Everyone from Private Equity firms to hedge funds…from money market funds to Japanese housewives dived in.

These firms and investors borrowed up every cent they could – some estimates say the sums reached as high as $2 trillion.

Problem was, instead of plowing this money back into Japan's depressed market, as the authorities had hoped, the bet back-fired. Instead these investors took the cheap money and plowed it into greener financial pastures, which largely was anything that could offer them a bigger yield than 1%. They piled into New Zealand and Australian dollar currency CDs, Chinese, Brazilian, Russian and Indian stocks for 2011, emerging market bonds, Eastern European banks, oil, gas, copper, corn, Google, global real estate, DOW stocks and a whole lot more.

And why not? If you can borrow money at near 0% interest, then deposit it elsewhere and reap 3, 10 even 20% annual returns, it's a license to print money. And for a long time it was.

The market has a name for this kind of fairy-tale bet.

It's called a carry trade.

Problem is this carry trade is coming to a tragic end.

Make 2-10 Times Your Money as the World's Biggest Bet Unwinds

You see in order for the Japanese yen carry trade to continue, it depends on one very important factor.

Japan and the yen have to stay depressed.

Japan in effect has to sacrifice itself in order to save everyone else. For if its market and currency start to take off, so too could its interest rates, which would be catastrophic for the thousands of betters who borrowed these cheap Japanese yen loans. Their loan payments would quickly soar.

All those who become unable to make their higher monthly payments would have to start to cash out of the investments they bought with the loan. Many would start to panic too, in fear that their interest rate would continue to climb and the yen would continue to strengthen, making their payments increasingly harder to make.

This would lead to a massive global sell-off of all these high-yielding bubble assets, and money would flood back to Japan, which would in turn enforce the trend even more. And the cycle would feed on itself.

The world's biggest bet would rapidly unwind, deflating asset bubbles the globe over, but it would also finally turn one of the world's worst-performing investments (the long-depressed Japanese yen) into one of the world's best.

And that's what we're seeing happening in global markets right now. But it's only just beginning. When the Credit Default Swaps market implodes, it will spin the world into deeper chaos, and more and more money will flood back to Japan, setting off a yen currency rally like the world has never known. 

The yen is the ultimate crisis-proof investment.

And we'll show you the best ways to play it, including revolutionary new financial instruments that can allow you to invest in the yen currency just as easy and as cheaply as you would a DOW stock. Plus we'll show you little-known ways to magnify the returns on this currency play 10, 20 - even 30 times. That means every 10% that the yen appreciates against other major currencies, you could make up to 300%.  

You'll learn all about it in a special investment alert we'll send you absolutely FREE when you sign up for a risk-free trial membership to The Sovereign Society. It's called The Great Unwind: How to Make 100-1000% on the Collapse of the Carry Trade.

And that's just one of the many extraordinary benefits you'll receive as a member of The Sovereign Society.

Easy Profits on the "Recession Currency" When the DOW Goes Down, the YEN Goes Up

(You see, whenever the DOW takes a hit, the yen rallies. Few investors know this: but the yen has been an almost fail-proof hedge against sputtering best stock markets. This isn't some random coincidence. In truth, Japan is the "black market" of credit that funds the DOW - to a very large degree. And when that credit becomes more expensive, the world's biggest investors have no choice— they MUST sell off assets and repay their loans. This cycle feeds on itself: As yen loans are repaid, the value of the yen rises— pushing other debtors' interest rates higher. And as more and more debtors sell off investments to repay their ballooning loans— a massive deflationary effect spreads across the world.  Cash becomes scarcer... Nearly everything is worth less. Except the Japanese yen. It flies! 

The Harder the Crash the Bigger Your Yen Currency Gains Will Be

In the last 21 years, three major market crashes were coupled with huge rises in the yen's value.

The One Investment that May Even Trump Japan's Juggernaut

In times of crisis, people grasp for tangible investments, things like gold and silver, and other essential commodities that the global economy simply can't do without.

In the last commodities bull market, gold went up a staggering 23-fold. That was through the inflationary '70s – one of the worst periods for U.S. stocks in economic history. In times of uncertainty, investors rush to gold. And in the oil-credit-confidence and commodity-shocked-times ahead, gold will shoot to the stars.

This won't be like the gold bull market in the '70s. It will be much bigger. For we now have a lot of new players on the global stage. And as energy shocks, commodity crunches and derivatives disasters continue to rock global markets, these new players will get very hungry for the immortal metal. The 2.3 billion Chinese and Indians have already begun to show their voracious appetite for the metal. But this is only the beginning. When gold lust spreads from the contrarians to mainstream investors to the general public, then you'll truly see that there is no rush like a great global gold rush.

What's more, there hasn't been a big gold discovery for many years. And despite soaring global demand, the World Gold Council expects gold production to stay flat or even decline over the next few years. The infrastructure is already woefully inadequate to meet current demand. But once demand really heats up, a massive supply gap will open up, causing the price of gold to skyrocket.

The argument for gold today is so compelling, there really is few greater investments for the volatile times ahead. In a special investment alert we'll rush you when you sign up for a risk-free trial membership to the Sovereign Society you'll learn all about some of the best ways to invest in this precious metal. It's called: Dirt Diggers: 7 Great Ways to Profit from $2500 Gold and $75 Silver!

Plus, in the special private monthly bulletins and daily e-letters we'll send you when you join, you'll also learn about many more little-known ways to profit safely from gold, silver, silver bullion coins, precious metal mining top stocks to buy and mutual funds, platinum, rare coins, colored diamonds and other commodities…

4 More Depression-Proof Investments!

Sign up for a 2-year membership to The Sovereign Society and we'll also send you another investment alert called Four Steps to Depression-Proof Wealth.

In it you'll learn about:

The European telecom giant that is about to explode into the emerging energy empires of the East.

The world's most cash-rich, debt-free, lowest-cost mining company.

How to trade one of the world's greatest investors entire portfolio with one simple investment!

The World's Most Explosive Exotic Currency Play. The Chinese yuan is still not traded on foreign exchange markets. Retail investors, hungry for a piece of what they're confident is sure to be an historic currency play, have no clue how to get in on this amazing investment opportunity. Most think it's only for billionaires like Buffet and Soros. But anyone with even as little as a few hundred dollars can play the meteoric rise of the Chinese yuan. Just like the yen rose to a stunning degree against the dollar as it leapt from an economic backwater to the center of global commerce, so too will the yuan enjoy a similar rise, but the yuan's will be even bigger, faster and stronger. And we'll introduce you to a little-known way to get in on it way before the crowd – even before the yuan officially hits the Forex market. 

Join the World's Most Powerful Private Investment Research Alliance

As a member of The Sovereign Society you'll get access to information from our unrivalled team of over 30 financial and professional researchers, many of whom are masters in asset preservation. They will show you what to look out for…and help steer you through the volatile times ahead…

You're probably thinking that access to these experts' research is going to cost you a small fortune. But don't worry. It's not.

Through the Society's special monthly research advisory letter (The Sovereign Individual) and the daily e-letter (The Offshore A-Letter) you'll learn from this unrivalled team of financial and professional researchers. In The Sovereign Individual and The A-Letter you'll find out the latest updates from banking and financial insiders about what's unfolding in the global derivatives markets. Plus you'll learn how best to prepare for it, including specific investment recommendations in global gold stocks, offshore funds, emerging market investments, foreign currency plays and precious metal investments.

You'll also find out about private banking strategies, computer privacy techniques, offshore tax management, second passports, global business opportunities, offshore e-commerce strategies, asset protection techniques and many other things that can help protect you…your capital…your business…and your investments in the volatile times ahead. And offshore investment research is just one part of The Sovereign Society. The Society's global network of contacts scour the globe each month for the finest opportunities the world can offer you…opportunities that can make your life richer, safer and better.

YOURS FREE: 4 Crisis-Proof Investment Alerts!

In addition to The Sovereign Individual, The Offshore A-Letter and your offshore bank introductions, you'll also get four revolutionary investment reports.

The Derivatives Time Bomb: How to Turn the Coming Mega-Catastrophe into Explosive Profits. This special report details the series of events that are about to unfold…that will burst the greatest economic bubble in history. It clears up many of the greatest mysteries and myths that surround these controversial financial instruments. It will help you understand why derivatives are the most important and dangerous financial development of the past decade. But above everything this special hot-off-the-press exposé will show you how you could turn the mega-catastrophe into explosive profits. Through offshore bank accounts, foreign annuity policies, special types of funds, commodity investments and foreign currency investments you'll be able to ride safely through what could be the most cataclysmic period in economic history. You could come out of it richer than before.  

The Great Unwind: How to Make 100%-1,000% on the Collapse of the Carry Trade. This report will introduce you to radical new ways to cash in the rise of the yen— one investment that always thrives in the midst of global chaos.

The Dirt Digger: 7 Great Ways to Profit from $75 Silver and $2500 Gold ! In this special report, Eric Roseman, one of the world's leading commodity experts, will tell you why gold and silver are headed to the stratosphere. Plus he'll let you in on 7 of the best ways to play these two precious crisis-proof metals! 

The Offshore Convenient Account. When the banks go belly-up…and the Dow is in free-fall…and millions of Americans are trapped in American markets…your assets can be safely invested in some of the world's strongest private European banks…enjoying unrestricted access to markets and investments that will soar when almost everything else comes crashing down. One of the major benefits you'll receive when you join the Society is the opportunity to open up a private offshore bank account in Austria, Denmark and/or Switzerland. Opening a bank account in a leading offshore haven usually requires introductions and references...but as a member of The Sovereign Society we will make the introduction for you. In fact, these accounts are already waiting for you at some of Europe's oldest and strongest financial institutions. And this report will tell you all about your exclusive offshore banking options. You'll learn about the powerful banks and the leading financial havens where your accounts are being held...plus you'll learn how to use your account legally and efficiently. Your offshore bank account is your gateway to a whole new world of investment opportunities.

The Best $49 Investment You'll Ever Make!

For just $49 – you'll get access to all of these extraordinary benefits, including:

Regular and reliable investment intelligence from an unrivalled team of more than 30 financial and professional experts. (A single consultation with just one of our experts would be upwards of $700 an hour – plus airfares and flying time! But you'll get access to all of their knowledge – as a benefit of membership).

The Sovereign Individual. Your monthly exclusive research advisory letter – packed with alternative investment opportunities and strategies that you won't find on the pages of Wall Street Journal or Barron's…plus asset protection techniques, privacy strategies, offshore retirement havens, e-commerce opportunities, tax strategies and much more!

The opportunity to open offshore bank accounts at one or more top European banks…where your money can be safer…and you can gain unrestricted access to investment opportunities everywhere.

The Sovereign Society Offshore A-Letter. The world's most popular offshore e-letter with more than 154,000 readers worldwide, it will keep you in touch with global events that can affect your wealth and safety.

Plus your 4 FREE online reports:

The Derivatives Time Bomb: How to Turn the Coming Mega-Catastrophe into Explosive Profits (a special report on the global derivatives disaster).

The Great Unwind: How to Make 100%-1,000% on the Collapse of the Carry Trade.

The Dirt Diggers: 7 Great Ways to Profit from $75 Silver and $2500 gold.

The Offshore Convenient Account (includes everything you need to know about getting the most out of offshore bank accounts).

I'm sure you'll agree this is an unbelievable bargain.

Powerful Financial Secrets – at No Cost!

For an even better deal, sign up for two years for just $98 and we'll send you two more free investment reports, including 4 Ways to Depression-Proof Wealth (which will introduce you to revolutionary new ways to invest in the Chinese yuan, gold, undervalued commodities and the world's best mining companies) AND Forbidden Knowledge – the ultimate report on how to survive and thrive through the volatile years ahead.

Forbidden Knowledge combines many of the greatest secrets The Sovereign Society and our prestigious international researchers have revealed over the years. In it you'll learn about secret banking techniques …the perfect sleep at night investment strategy…how you can legally live in paradise almost tax-free…and offshore retirement programs the government doesn't want you to know about. This report is the ultimate roadmap for your financial future…and it's yours FREE with a 2-year membership!

Respond Within 7 Days – and Save a Fortune in Tax!

To help you protect your wealth even further – I'm going to offer you an enormous tax secret of the super rich – absolutely free.

Respond within 7 days, and I will also send you a special free report – that will show you how to invest in many of the opportunities I've mentioned in this letter – without getting killed by taxes! And believe it or not – it's all perfectly legal! It's a special offshore retirement plan…that's only available from some of the world's strongest financial havens. It's actually one of the safest and most powerful offshore investment vehicles available today. It's been used by kings, sheiks and the world's wealthiest families for decades to protect and boost their wealth. But these days, they come with even more benefits – currency management options, access to the world's top money managers and the ability to compound your profits privately and safely! And there has never been a more critical time to employ this powerful investment vehicle…

I'll make sure you get this special report on this dynamic, wealth-preserving investment vehicle – so you can not only rack up enormous gains offshore – but also learn to further enhance them by legally sheltering them from excessive taxes. Just click below or for even faster service, call toll-free NOW on 1-888-856-1403. Your membership will be activated immediately and a whole new world of financial possibilities will be opened to you.

Don't Risk a Penny – Until You Are Convinced!

I'm hoping our track record alone - has more than convinced you to join us. But just in case you have any doubts, I want to give you a unique opportunity to take a risk-free look at us. In other words – you won't have to risk a penny until you are convinced that a Sovereign Society membership is right for you. If at any time you decide The Sovereign Society is not for you – just cancel your subscription – and we will give you a pro-rated refund on your fees (with full money back within the first 30 days). No questions asked. But you can still keep your free reports – whatever you decide. That's our guarantee to you.

Over 30 of the world's leading financial
and professional experts on your side…

You may be wondering how the Sovereign Society has managed to maintain such an impressive track record in the midst of all this market mayhem. As I said, we've merely paid homage to history…and taken advantage of major new economic mega-trends. However, our unrivalled financial team of more than 30 international experts has had something to do with it. This is your unique opportunity today to learn from them…and to start profiting from their wisdom. My colleagues and friends will help guide you through the volatile times ahead…and help you pick up gains of 1,794%…797% … 150% …when world markets crash around us!

Society's Chairman and Economic Forecaster, John A. Pugsley. I have written many books and reports on economics, investing and politics.My first book, Common Sense Economics (1974) accurately predicted the inflationary explosion that followed the final abandonment of the gold standard in the early 1970s. In 1980, my second book, The Alpha Strategy, accurately warned that the United States would experience "the largest deficits in the history of the nation in the next five years" and showed investors how to protect themselves. I am now honored to sit as the Chairman of The Sovereign Society – one of the world's most powerful private financial publishing alliances.

Our Investment Director…Eric N. Roseman is also editor of Commodity Trend Alert, a weekly eletter which focuses on the strongest global trends in commodities-based securities. Eric is a shrewd value investor. From him you'll discover many unusual foreign investment strategies that you may otherwise not get to hear about. These are high-value strategies you won't learn about in the Wall Street Journal or Barron's…They've been showing our members excellent returns amid extended periods of stock market declines and economic distress..

Our Award-Winning Retirement Guru and one of Wharton School's Finest, Larry Grossman has achieved a number of unique accomplishments in the financial world. Larry is one of only 1500 American financial advisors who have been awarded the prestigious designation of Certified Investment Management Analyst (a designation awarded in conjunction with the top Wharton School of Business). Larry was also one, if not the first, financial advisor in the country to develop a compliant method for helping clients take IRAs and pension plans offshore for asset protection and greater investment diversification (a move that is preserving many of our members' capital against America's ongoing stock and mutual fund massacre). You'll learn about Larry's unique financial strategies and his retirement planning techniques in The Sovereign Individual.

One of Our International Tax and Asset Protection Experts, Mark Nestmann is one of the world's most sought after writers and speakers on offshore topics. Mark has written many books on financial privacy and asset protection, including the well-known How to Achieve Financial Privacy in a Public Age and Asset Protection 2000. You'll learn about many of his top international tax and asset protection strategies in The Sovereign Individual – they are strategies that, until recently, have mainly been enjoyed by the super rich…

Our Offshore Insurance Expert, Colin Bowen is the Deputy Chairman of Isle of Man Assurance, Ltd.—one of the oldest and largest insurance companies on the island. From Colin you'll learn about the unique life insurance products available on the Isle of Man—some of which are among the strongest insurance products in the world – and can allow you to invest without excessive taxes.

Marc-Andre Sola is a Managing Partner with NMG International Financial Services, Ltd. and specializes in insurance and financial consulting, pension administration and in tailoring investment solutions for private clients. Active in more than 16 countries with clients among the world's leading financial service providers, Marc helps create sophisticated financial structures in an international environment designed to guarantee privacy, protect assets and provide diversification.

Sovereign Society Executive Director Erika Nolan has been Executive Director for The Sovereign Society since its inception in 1998. She travels extensively throughout Europe, the Caribbean, and Central America to find the most knowledgeable financial experts and banking opportunities for Sovereign Society subscribers and in 2007 started her own offshore consulting firm with a partner.

Sovereign Society Legal Counsel Robert Bauman is a former Member of the United States House of Representatives from Maryland (1973-1981).  Robert currently serves as Legal Counsel for the Sovereign Society. He has authored, or co-authored, a number of books and reports.  Robert has also been interviewed on CNBC and Worth Magazine for his insights on offshore havens.

The Best Financial Protection Available Today

There has never been a more critical time to diversify your assets into safe havens offshore. As banks crash, credit ratings slide, liquidity dries up, and the derivatives disaster continues to wreak havoc on the global economy - U.S. markets may close (just as they did after September 11)…and a whole generation of stock and mutual fund investors will find themselves locked in a crashing market. They will be powerless to move. But you won't. Your assets will be safely diversified offshore. You'll never be left powerless to move. It's an essential hedge in today's economic climate – yet only the smartest of investors have it in place.

Plus while the U.S. stock market is crashing – you could be racking up huge gains – offshore! Because when top stocks for 2011 slide – hard currencies, commodities, alternative funds and precious metals - will soar. You could be positioned to profit – big time – from any disaster the future may have in store for you! It's a win-win portfolio…and a completely new way of organizing your finances that the average American mutual fund investor will never know.

You will not only survive through the volatile years ahead…but you could thrive. Your wealth could stand tall against whatever shocks and surprises the world throws at it. While terrorist attacks, wars, oil shocks, commodity crunches and derivatives disasters break out in America – you can be sitting smug far removed from the evils of Wall Street…racking up huge gains offshore…

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