Saturday, June 22, 2013
Federal Reserve Chairman Ben Bernanke spooked investors on Wednesday...
Bernanke's announcement that the Fed would continue its purchases (and continue monitoring the "improving" economy for a tapering point) should not have surprised anyone... It shouldn't have sent markets tumbling as it did. The Fed's continued currency manipulation has some of America's most successful investors complaining...
Bill Gross – co-CEO of PIMCO and manager of the world's largest bond fund – is a longtime skeptic of Bernanke and his policies. And he believes Bernanke's views of the economy are simply wrong. He told Bloomberg:
The financial blog Zero Hedge recently published an interview billionaire fund manager Stanley Druckenmiller gave to a Goldman Sachs research publication. In it, Druckenmiller admits the Fed has confounded his ability to read the market...
Always remember... We're playing in a rigged market. And history tells us this current experiment – the greatest monetary expansion in history – can't last.
It's that rigged market that Porter believes has created conditions that will result in a big bond market collapse. In the latest issue of his Investment Advisory, out a week ago, Porter said he believes the top in bond prices is here. And he says the taper risk could be part of the reason so many economic indicators are pointing to a top in the bond markets – high-yield bond prices are crashing, mortgage real estate investment trust (REIT) prices are falling, and Treasury bond prices are declining for the first time since the European crisis in 2011.
But Porter believes something much bigger is actually happening. As he wrote...
Over his career, Porter has proven to be especially prescient when it comes to calling tops... He correctly called the collapse of Fannie Mae and Freddie Mac... and General Motors. He predicted the housing and banking collapse. He warned subscribers of the risks in Europe before the economy fell apart.
And today, he says we've returned to crisis conditions in the U.S.
Whether the crash comes tomorrow or in the next two years, you need to start preparing. At the very least, you need to own physical gold and silver. We repeat: Own physical metals. And as Porter explains, make sure it's real, hold-in-your-hand physical bullion, and not some paper receipt or investment that claims to represent a share of some gold somewhere...
But owning gold is only the first step you should take to protect you and your family from the coming crash. This is the big one... Unlike in 2008, the Federal Reserve has exhausted all ways to "solve" the problem... Interest rates are already at zero. And the Fed has been pumping trillions of dollars into the economy for the past five years.
One of the most controversial things we've ever written at S&A is that Social Security is a Ponzi scheme.
Many people get very upset when we write it... but sadly, the evidence keeps mounting that Social Security is bankrupt...
The program taxes current workers to support retired workers... but the system will soon run out of cash.
A recent report shows just how close to the edge we are...
According to the Social Security Board of Trustees, the Social Security disability insurance trust will be completely depleted by 2016. This dire situation led the trustees to state in their summary that "more far-reaching legislative measures are required to maintain the solvency of Social Security relative to Medicare."
In other words, expect some more major changes to come in the near-term. According to consumer financial services firm Bankrate, one expert has even testified to Congress proposing the minimum age to start collecting Social Security be raised from 62 to 64.
Will this idea be approved in Congress? We have no idea. Social Security is often referred to as the "third rail" of American politics... because suggesting changes can be fatal to a politician's career.
Regardless of how things play out... It's clear you cannot and should not rely on government largesse to secure your retirement. And saving money in tax-advantaged accounts is critical... Because whatever solution is found... you can be sure your tax bill will go up as a result. There's no other choice.
That's why last week, we hinted at one of the best ways to grow your money tax-free. Your money grows much faster than it does in long-term CDs... You can take it out any time without penalty. And you don't need to report it to the IRS.
Our colleague Tom Dyson first brought this to our attention. Tom spent a full year researching before trying out this idea. Now it has become his single-largest position, with 20% of his family's wealth now in this account. Unfortunately, only one American in 1,500 has this account. We hope you'll take the time to learn more about it...
Tom has put together a presentation to share what he's learned about this investment for free. You can watch this video here.
Editor's note: The Weekend Edition is pulled from the daily S&A Digest.
Date Range:6/13/2013 to 6/20/2013
Date Range:6/13/2013 to 6/20/2013