Don’t buy Wall Street’s B.S. about “inflation!” – Wall Street Underground

By Nick Guarino | March 9, 2009

The media spin is incredible. I’ve never seen anything like it. When you understand who OWNS the media, you connect the dots. No wonder so many people are totally confused. The insiders are getting ready to screw you again!

Here’s the inside story Wall Street doesn’t want you to know. The entire global financial system is built around the presumption of inflation. Everything the financial world wants to sell you – stocks, mutual funds, real estate, and gold – presupposes inflation.

As you probably know, financial conglomerates OWN the media. No surprise that they desperately want you to believe inflation is still here. In fact, they want you to think it’s about to make a roaring comeback.

If they can convince you of that, maybe you’ll take a chance on buying real estate at “rock bottom” prices. Perhaps you’ll invest in an index fund. Or maybe you’ll buy gold as a hedge against “hyper-inflation.”

Make no mistake: this is one of the greatest propaganda campaigns since Joseph Goebbels ran media for Hitler. It will wipe out millions more American investors.

To get people to buy their investment products, Wall Street must convince you we are NOT in a depression. They must convince you prices are not falling. Instead, the masses must believe we are about to enter a period of hyper-inflation.

I beg you, do not buy into this propaganda! That would be the single worst financial mistake of your life.

The masses already believe it. It will cost them the rest of their wealth. Or at least what’s left, that the crashing stock and the wiping out real estate markets have not already taken.

If we had inflation, prices would be going up. But prices are NOT going up. They are going down. In fact, they are plunging. From homes to cars to food to industrial metals, prices are plummeting worldwide. They will keep doing so for years to come.

Here’s why. The world is in a depression, not a recession. People are consuming less. Buying less. Paying less. And most definitely spending less. This is going to last for a decade or more.

It is critical that you understand this. The media is full of half-truths, mis-information and outright lies. Lies that will wipe you out if you are fooled by them.

Remember how Wall Street tried to get you to buy more real estate the past few years? How they told you $150 oil was cheap and here to stay… and that the 14,000 Dow was “a buying opportunity?”

Same thing with their drum beat about inflation. Once again, the markets have it wrong. Once again, they are leading the sheep to the slaughter.

Prices are falling everywhere in the world. They will keep falling for years. People from New York to New Delhi are losing their jobs. People without jobs do NOT buy things like homes or cars. They sell them. They have to, just to keep their heads above water. And massive selling brings prices lower and lower and lower.

That is precisely what we are seeing now. Falling sales. Falling prices. Falling business. This trend will continue for years. Perhaps decades.

The problem is, most people still don’t get it. All they have known their whole lives is “MORE”. More business, more spending, more consumption, higher prices, and more “inflation”. That is why they are about to be wiped out. They just can’t grasp the fact that this is a Depression.

We are living through the greatest financial crisis of the past century. Perhaps the greatest ever. For you and me, that means there are incredible opportunities. But not with traditional investments. Not with investments most people are used to making. Not with investments that count on more consumption, more business, more profits, and higher prices, as in inflation.

In a deflation, less is more. Investments you’ve heard little about, that seem sleepy and boring, are potential million-dollar money-makers.

Buying gold? Biggest mistake you can make. Gold is an investment for inflationary times. In a depression, gold is an unmitigated disaster.

Don’t be fooled by this suckers rally it will end in disaster for the gold bulls. Gold will soon plunge. Just like houses, oil, stocks and real estate did last year. And for the same reason. Like those other markets, gold is a bubble. It is trading near its all-time record high. Soon the bubble will burst.

Sure, gold salesmen tell you gold is in an 8-year bull market. They are partially correct. What they don’t tell you is that gold is at the END of an 8-year bull market.

It is incredible to me the masses always buy at the top LIKE NOW!

Don’t forget. When gold was selling for under $300 an ounce, I begged you to buy it with both hands. I am on record as calling gold at that time the bargain of the century. You know that’s true. You remember Wall Street called it the barbaric relic of the past that 3was at $300 a ounce. Now that its toping out near $1000 a ounce its on everyone from Wall Streets buy list.

But I believe in buying low and selling high. (Wall Street wants you to do the opposite: buy high and sell low. That’s how they make the most money.) Right now, gold is high. Sky-high, in fact. Its run is coming to an end. Gold is now a sell.

The gold salesmen are also right that there is a fortune to be made in gold. But the way to make it is the way THEY are making it: By selling, not buying, gold.

In my professional opinion as a dishwasher, you won’t make money buying gold at the highest prices in history. As we speak, the amateurs are rushing in with both feet.

They are buying gold like it’s about to run out. You make money by doing the opposite of them. You sell.

You also sure as hell don’t use futures these days. Way too volatile. The swings will kill you.

If I’m right (and I’m sure I am), you make a killing in gold by using specific instruments designed to profit as gold DROPS in value. The same way oil dropped from $140 a barrel a year ago to $35 a barrel today. I describe the specific steps you need to take in my new report, HOW TO MAKE A FORTUNE SELLING GOLD IN 2009.

And guess what? Gold is not the only way to skin the depression cat. There is another contrarian investment that has not been worth a damn for a long time. One I now think you could make a killing with.

You already know what it is. The investment that does great in a depression is U.S. government bonds. People think of them are their grandfather’s investments. For the last 50 years, they were non-stop money losers. That’s because we were in a period of steady, relentless inflation.

But the days of inflation are long gone. The game has changed forever. The greedy bankers wiped out the accumulated wealth of 3 generations. They lost hundreds of trillions in derivatives, in just about every industry and every investment.

Now all that spending is over. Inflation is dead. Contrary to the bankers — contrary to Wall Street’s self-serving spin — inflation will be dead for years to come.

That means bonds are NOT money losers any more. In a deflation, the right bonds make huge amounts of money. I tell you about this in another new report, TRADING THE LONG BOND.

Wall Street prays you never touch bonds. That’s because hedge funds — which are really fronts for the dead-broke banks on government life support — hold MASSIVE short positions in bonds. Over the past year, they’ve been losing their shirts. Their losses are in the hundreds of billions.

As a result, the billion-dollar hedge funds are doing what anyone who controls the media would do in such a situation. They are desperately spinning lies. The lie they are spinning this time is a fatal one for average investors:

They want you to believe that central banks are about to print massive amounts of money, creating inflation.

If that were true, it would make bonds lousy investments. People would DUMP their bonds. Bond prices would fall. The hedge funds, who have bet their lives on that, would recoup their massive losses.

Just this past weekend, the G7 met. That is the world’s 7 largest, most powerful economies. Central bankers from all these countries announced they will do the same as the U.S.: lower long-term interest rates through Quantum easing. Incredibly, no one believes them! As I’ll show you in this email, that could be worth a fortune to you.

Wall Street and its bought-off politicians want you to believe a recovery is just around the corner. Inflation will be breaking out all over, they say… and… surprise, surprise!… they just happen to have the investments you should buy right now (stocks, gold, homes, mutual funds). And people believe this b.s.??

The entire world is going through the same crisis as America. Housing prices are collapsing worldwide, from Australia to Ireland. Banks everywhere are going out of business. Unemployment is soaring.

For the past year, central bankers the world over have lowered short-term rates. They’ve tried to kick-start their economies. But it hasn’t worked.

The global credit markets are still frozen solid. No one is lending money. The global economy keeps getting worse, not better.

U.S. short-term rates are zero. Japanese rates are zero. England’s rates are damn near zero. And European rates are set to go to zero. Yet all these economies sink deeper into a depression by the day.

So central banks have only one choice left. For the first time ever, central banks in all the key industrial economies are lowering LONG-TERM rates. They do this by buying long-term government bonds.

Hedge funds hate it: it could quickly wipe them out. Wall Street won’t whisper a word to you about it. But soon you will see a massive, worldwide, coordinated program of quantum easing: that is, central banks will buy up hundreds of billions’ worth of government securities. Bankers at the G7 meeting just told us this.

Quantum easing, while rare, is not unprecedented. Japan did it in the 1990′s. They were trying to fight their own severe depression. Remember the Asian banking crisis?

Japan ran up massive debt, as they lowered both short-term and long-tern interest rates to damn near zero. In fact, their debt was 3 times their annual GDP.

But even with all that debt creation, Japan saw no inflation. No massive printing of money. Just the opposite. They saw massive DEFLATION.

Japan’s deflation lasted a decade. Japanese real estate prices fell and stayed down. Short-term interest rates plunged to below zero. Long-term rates went down to a fraction of a percent.

What does this mean for the U.S.? U.S. debt is currently only 60% of GDP. In the next few years it may hit 90%. That is less than one-third as much as Japan’s. And Japan still had no inflation! Neither will we.

If the world’s central banks, true to their word, lower long-term interest rates — the only way to stimulate economies in a massive depression like we are in – the right bonds could double very quickly. Maybe even triple. I tell you all about it in my report, TRADING THE LONG BOND.

What you are reading right now has the potential to make you very rich. I mean every word of that. Remember, almost everyone alive today has spent their entire lives in inflation. They just don’t get deflation.

One investor in a million understands what I am revealing to you right now. The masses are panicked by a crashing stock market… by banks and mutual funds that keep wiping out… and by real estate that is worth less by the day. They are convinced the “recession” can’t last. They believe because of massive stimulus programs inflation is just around the corner. Wrong, Wrong, Wrong!

They are hoping against hope that these markets will make a miraculous turn-around…that after a brief bear market, stocks and their precious real estate will make a comeback…and the inflationary expansion will continue.

They really believe all they have to do is hang in there long enough. Then their real estate values will come back. The stock market will rally. Their retirement and mutual funds will return the money they are losing.

They believe the consumer will go shopping again en masse. Just like in the good old days. Wrong, Wrong, Wrong, Wrong!

Here’s what you must understand. Once a century or so, the inflationary cycle comes to an end. It is replaced by a Depression, a period of massive DEFLATION.

Depressions squeeze the excesses out of the system. Sometimes in the past, these economic depressions were called “Dark Ages”. I am sorry to have to be the one to tell you. We have just entered a depression, that in the future will be called a dark age.

That does not mean all is lost. During the dark ages, mankind made its greatest strides in the arts and sciences. New wealth was created. New power bases established.

Unfortunately, it is true that most people get wiped out in times like these. The good news is, a precious few acquire great wealth. Here’s what makes the difference between getting rich or going broke: do you know what is REALLY going on? And more important, do you know what to do?

For us, the answer to both questions is “YES”. We know what is happening. Better yet, we know what to do about it. We know how to take advantage of the great depression we are in. Everyone you know is still in denial.

These deflationary spirals last DECADES. If you get caught up in one, your traditional investments — like real estate, gold and stocks — will lose money for generations. Do you want to go through 30 to 40 years of hell, before you recoup your losses?

If you follow the advice of Wall Street and the media (which it owns), you’ll do the exact WRONG things. The nasty truth is that the top bankers actually DO understand what is going on. They simply don’t care. If selling small investors worthless investments — that will wipe them out — helps their banks survive, so be it. That’s their attitude.

If they can hide their derivatives losses, cash in their bonuses and stock options -– but bankrupt America in the process — they accept that as “collateral damage.”

Similar deal with gold salesmen. I promise you, they are not looking out for your best interests. Neither are real estate or mortgage brokers.

Ask yourself this question. If gold and real estate and stocks are such great investments, why are so many people begging you to BUY them?

Why are so many people going broke in them?

The vast majority of Americans are in a state of panic. They have no idea what to do. So they listen to people who, intentionally or not, put them in the exact wrong investments. They are going to lose the rest of what little money they have left.

Meanwhile, the smart money is stashing money, in their mattresses and in government securities. They know things get cheaper by the day. The more they wait, the lower prices go. With each month, their money is worth more.

For you, this can be the world’s biggest bonanza — if you have cash or government securities. Over the coming years, the bonanza will get bigger and bigger. In the not-too-distant future, pennies will buy what dollars buy today!

Fully 70% of America’s economy is built around the “shop-till-he-drops” consumer. My friend, that consumer has just had a heart attack. He’s now in intensive care, hooked up to life support. His days racing around to Porsche dealerships are over. The swimming pools, 4 wheelers, second homes, vacations on the islands and 100 dollar dinners are gone.

The spending orgy you’ve seen for the last 30 years — all on credit — is history. It will never be repeated.

Understand that, and you could become fabulously wealthy. I show you how in my two new reports – HOW TO MAKE A FORTUNE SELLING GOLD IN 2009 and TRADING THE LONG BOND. Get fooled by the b.s. about hyper-inflation, and you will end up in abject poverty. Just like most everyone did in the last depression. They weren’t ready either.

They woke up every day believing the government would bail them out. They waited, watched, and lost everything. Most never recovered their former wealth or lifestyle.

In 2004, a tsunami struck Southeast Asia. The vast majority of people living there did nothing. They couldn’t believe their own eyes. (You can see videos of them on YouTube.) That’s because the waves, at first, didn’t look that big. By the time most people realized the gravity of the danger, it was too late. They were swept out to sea.

A tiny handful of people, though, quickly realized something was seriously wrong. They didn’t hesitate. They took action at once. They climbed trees. Raced up stairwells to the roofs of buildings. Even climbed on top of cars.

250,000 people did not understand what was happening. They perished. A handful of people, who saw what was about to happen, survived.

Well, a tsunami is heading straight for us. Right this second. It’s a tsunami of DEFLATION/DEPRESSION. It will wipe out the vast majority of people.

Most people, while worried, are doing nothing. They’re hoping the water will subside. It won’t. The tiny handful who act quickly — who take the simple steps I describe — could end up inheriting almost unimaginable wealth.

Don’t end up with the wiped out masses. Click on the link below and read my special report on how selling gold and buying bonds are the lifeboat you need when the deflation tsunami hits.

To find out more about surviving deflation, click here.

–Nick

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