Today I received a pretty interesting email sent out by Exotic Fx. It is not an usual HYIP newsletter and you will understand why not.
Please read the newsletter.
“Foreign investors own trillions of this asset
This market determines Americas standard of living, their role in the world, and their prestige as a nation
It directly influences the global price of food and oil since most of the worlds other markets depend on this market, too
The price of every fixed-income security in the world is based directly on this market
Most of the world’s other markets depend on this market, too
This market is the key to the future value of bonds, stocks, and the U.S. dollar
Most important, the U.S. dollar depends on this market.
HOWEVER
This market is collapsing. Its downfall began in late 2008.
LISTEN UP.
This is the most important financial advice we can give you. We’re talking about the collapse of the largest bond market in the world the market for U.S. Treasuries.
You see, as the market collapses, foreign investors will sell. As they sell, they will also unload dollars, which will diminish the dollars purchasing power. That’s why the decline of this market is the only trend that matters.
LET US EXPLAIN.
The best illustration of this trend is the chart below. We urge no, we beg you to pay attention to this chart. Put a copy of it on your refrigerator. Update it weekly. Keep your eye on it. And make sure you truly understand what it means.
The chart compares the value of long-dated U.S. Treasury bonds (TLT) to the price of gold (GLD). When we say “long-dated,” we mean U.S. government debts that don’t come due for more than 20 years. This chart shows the value of the bond market compared to gold since December 2008.
Whenever someone tells you he believes the risks of the American government’s debt load and its dependency on “quantitative easing” (aka printing money) are exaggerated, show him this chart.
This chart demonstrates the collapse of the purchasing power of U.S. currency as gold rises. And it shows the corresponding collapse in the credit of the U.S. government as bonds fall.
Just to be clear about this We are not alone in our claims. Others echo the same sentiments. Here’s what another analyst wrote:
None of the government’s bailout plans will solve any of the problems. The government can only shift the burden of the failures. Instead of bondholders and shareholders being wiped out, taxpayers are put on the hook. These actions will temporarily resuscitate the economy but cause a permanent decline in the value of the dollar inflation will wipe out much of the value of long-dated U.S. government bonds, causing their prices to plummet.
At EFX, We have warned our investors “Get out of the U.S. Dollar as fast as you can.” Invest in the currencies of cash and resource rich nations. We’re repeating these warnings again because the market for U.S. Treasuries recently “broke down” through an important level. The big government bond fund (TLT) just struck its lowest low in nine months. The decline seems to be accelerating.
It is not too late to protect yourself, your family and your very way of life.
At ExoticFX we have strived to simplify the process by providing you with a Hands-off approach. We work diligently to research the Exotic currency pairs, stay on top of the Majors, determine the ETF trends and discover Emerging Market Opportunities. We participate in these markets every single day and provide you with a simple plug and play portal to this Multi Billion dollar industry.
When you join ExoticFX – youll immediately gain these five key advantages.
1. You earn a faster growing, independent income, with less riskwith no need for day trading.
2. You can stay insulated from the Global debt crisis and become diversified outside your own currency.
3. Youll avoid costly errors and steep learning curves that reduce your confidence and can wipe out your bank balance.
4. Youll enjoy a new financial status, and confidence knowing strict risk management is used to maximize profits.
5. And youll get back in control of your money, minus costly brokers and their profit-grabbing commissions.
ExoticFX could very well be your number one best chance to profit in 2011 and beyond”
Speak Your Mind