DON’T LOST SLEEP OVER ANOTHER “EE UU CREDIT
DOWNGRADE” We take absolutely no pleasure in saying 'we told
you so'. ‘The
trading report’
If you have been a regular reader of ours you might remember how last year at this very same time we warned investors about a possible lowering of the U.S. credit rating. Well it happened, and today, we may be looking at a second downgrade as the U.S. falls deeper into debt and the global financial markets are heading into unchartered territory.
The worst part of another 'downgrade' by the S&P is how it is going to affect an already bad situation.
Senior Democratic Party members are still talking about raising taxes in an already troubled economic climate.
As the debt-ceiling & credit rating crisis unfolds in Congress, the mayhem is just a symptom of a much larger problem.
The debt crisis in America is becoming insurmountable.
43 states are still staring at monster budget deficits.
Many cities and towns are in worse shape. Just last week the city of Stockton, Cailfornia was forced to file for bankruptcy.
S&P's one-notch downgrade of the U.S. sovereign credit rating to AA-plus last year, while not totally unexpected, adds another level of uncertainty as summer approaches.
Loss of this gold-plated status for the world's benchmark interest rate risks pushing up borrowing costs on everything from car loans, mortgages and corporate debt to government bonds worldwide.
The country is already struggling after several years of zero percent interest rates, imagine what rising rates would do to this fragile economy.
The world's largest, greatest and safest economy is no longer the safest, close to not being the largest and with the revised GDP numbers from the first quarter of 2012, certainly not the greatest.
In one day, $2.5 trillion dollars were wiped off of the global markets.
China has gotten in on the bashing...
"The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone," China's official Xinhua news agency said in a commentary.
Xinhua scorned the United States for a "debt addiction" and "short sighted" political wrangling. China, it said, "has every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets."
But it looks like the party is about to end. The well has dried up. And no one has a solution...
Governors around the country are slashing budgets like never before.
What's happening in our country today is unprecedented. You have to go all the way back to the civil war to find a time when this many states defaulted on their debt obligations.
And even during the Great Depression in the early thirties, only the state of Arkansas defaulted on its debt! Now our entire country is a few days away from a possible default...
So it appears the day of reckoning has finally arrived for states teetering on the edge of bankruptcy right? Well, maybe not.
If you have been a regular reader of ours you might remember how last year at this very same time we warned investors about a possible lowering of the U.S. credit rating. Well it happened, and today, we may be looking at a second downgrade as the U.S. falls deeper into debt and the global financial markets are heading into unchartered territory.
The worst part of another 'downgrade' by the S&P is how it is going to affect an already bad situation.
Senior Democratic Party members are still talking about raising taxes in an already troubled economic climate.
As the debt-ceiling & credit rating crisis unfolds in Congress, the mayhem is just a symptom of a much larger problem.
The debt crisis in America is becoming insurmountable.
43 states are still staring at monster budget deficits.
Many cities and towns are in worse shape. Just last week the city of Stockton, Cailfornia was forced to file for bankruptcy.
S&P's one-notch downgrade of the U.S. sovereign credit rating to AA-plus last year, while not totally unexpected, adds another level of uncertainty as summer approaches.
Loss of this gold-plated status for the world's benchmark interest rate risks pushing up borrowing costs on everything from car loans, mortgages and corporate debt to government bonds worldwide.
The country is already struggling after several years of zero percent interest rates, imagine what rising rates would do to this fragile economy.
The world's largest, greatest and safest economy is no longer the safest, close to not being the largest and with the revised GDP numbers from the first quarter of 2012, certainly not the greatest.
In one day, $2.5 trillion dollars were wiped off of the global markets.
China has gotten in on the bashing...
"The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone," China's official Xinhua news agency said in a commentary.
Xinhua scorned the United States for a "debt addiction" and "short sighted" political wrangling. China, it said, "has every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets."
But it looks like the party is about to end. The well has dried up. And no one has a solution...
Governors around the country are slashing budgets like never before.
What's happening in our country today is unprecedented. You have to go all the way back to the civil war to find a time when this many states defaulted on their debt obligations.
And even during the Great Depression in the early thirties, only the state of Arkansas defaulted on its debt! Now our entire country is a few days away from a possible default...
So it appears the day of reckoning has finally arrived for states teetering on the edge of bankruptcy right? Well, maybe not.
Recent Rumblings Coming out of
Washington May Anger You.
Washington May Anger You.
Word is already starting to spread that states, and local municipalities may consider bankruptcy as a way to wiggle out of their mess. (We already told you how the city of Stockton, California was forced to file for bankruptcy just last week.)
In other words, you could be picking up the tab again!
But where is the money going to come from? Today our national debt is more than $15.3 trillion.
The Fed already holds more than $1 trillion dollars of U.S. treasuries - that's more than 70% of all outstanding debt - making it the largest lender to the U.S. in the world.
No it's not China anymore. Heck, they've wised up and don't really have our best interests at heart anyway.
For every dollar the government spends about 50 cents of it is borrowed! Our debt is about 500 times larger than the size of our economy. That's the real story.
But up until recently, most of the mainstream media seem to be missing this. They're fascinated with the rallies, protests, political strategies and senators gone awol, but fail to see how this can seriously affect all Americans. Not only today, but generations down the road.
It's no wonder gold is still to an all time high, people are starting to stock pile food in their homes, and the dollar has lost more than 500% of its value since 2001.
Will the Fed once again ignore the will of the American people and bailout the states? Nobody knows for sure. But as in investor, I'm not losing any sleep over it. And neither should you. Let me explain.
Don't Lose
Another Wink of Sleep Over
Unrest in the World Today.
Last summer, the real fireworks began.
With totally unprecedented lowering of the U.S. credit rating, monster deficits and states on the edge of bankruptcy, could we be staring at the tip of the iceberg.
Over time, we have warned you that continuing turmoil in Europe could soon lead to oil prices hitting $100 a barrel. That means you could be paying as much as $7 a gallon at the pump. Gas has hit $5 in many places this summer.
While that may sound far-fetched, so did the prediction of gold prices hitting $1,900 when just a short time ago it was trading at $350. Today it is trading at $1,593 after touching the $1,900 level last September.
In many cases it is already beginning to happen, and you need to be prepared. If you are holding any stocks in your portfolio especially for "the long term," please read this special report below.
It's reveals a plan that only a small group of investors know about, but can help protect your hard earned money during volatile times like these.
This small group of investors many former buy-and-hold investors whom were burned by the market crash of 2007-09 quietly turned just $10,000 into $81,191.37 in just 44 weeks using the miracle of what I call "compound trading."
Many of them followed my step-by-step compound trading plan, and checked on it once a week. Most of their money was made while they were out spending time with their spouse, playing golf, or fishing on their favorite lake.
Today, not a single one of them is losing a wink of sleep over geopolitical unrest, the price of oil, quarterly earnings, new housing starts, or any other economic or political news of the day.
I only sent this letter to a select group of investors but due to the circumstances we find ourselves in today, I thought it was critical for others to have access to this right now.
As a citizen I'm worried. But as an investor I'm not losing one more minute of sleep over the craziness in the news.
And neither should, you.Sincerely,
Scott NeptuneUnrest in the World Today.
Last summer, the real fireworks began.
With totally unprecedented lowering of the U.S. credit rating, monster deficits and states on the edge of bankruptcy, could we be staring at the tip of the iceberg.
Over time, we have warned you that continuing turmoil in Europe could soon lead to oil prices hitting $100 a barrel. That means you could be paying as much as $7 a gallon at the pump. Gas has hit $5 in many places this summer.
While that may sound far-fetched, so did the prediction of gold prices hitting $1,900 when just a short time ago it was trading at $350. Today it is trading at $1,593 after touching the $1,900 level last September.
In many cases it is already beginning to happen, and you need to be prepared. If you are holding any stocks in your portfolio especially for "the long term," please read this special report below.
It's reveals a plan that only a small group of investors know about, but can help protect your hard earned money during volatile times like these.
This small group of investors many former buy-and-hold investors whom were burned by the market crash of 2007-09 quietly turned just $10,000 into $81,191.37 in just 44 weeks using the miracle of what I call "compound trading."
Many of them followed my step-by-step compound trading plan, and checked on it once a week. Most of their money was made while they were out spending time with their spouse, playing golf, or fishing on their favorite lake.
Today, not a single one of them is losing a wink of sleep over geopolitical unrest, the price of oil, quarterly earnings, new housing starts, or any other economic or political news of the day.
I only sent this letter to a select group of investors but due to the circumstances we find ourselves in today, I thought it was critical for others to have access to this right now.
As a citizen I'm worried. But as an investor I'm not losing one more minute of sleep over the craziness in the news.
P.S. The U.S. credit rating may be downgraded again as soon as this summer. You need to have a plan in place now. With my compound trading plan you'll only spend five to ten minutes a week on your investments. And it's easy to follow.
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