China's Secret Plan to Bankrupt Millions of Americans?

China's Secret Plan to Bankrupt Millions of Americans?

    A mountain of evidence compiled over the past 18 months makes it clear to us that China has put into place a covert plan that will extract billions of dollars from the U.S. government... and ordinary U.S. citizens.

    How you handle this situation will be one of the most important financial decisions you make over the next few years.

Dear Reader,

Hi, my name is Porter Stansberry.

I am the Founder and Chairman of Stansberry & Associates Investment Research, the largest organization of its kind in the world, with 440,000 paid subscribers in more than 120 countries.

    Today, I want to share with you the details on a remarkable development, which I'm 100% positive will have a tremendous impact on your life over the next few years--but may be a little difficult to comprehend and perhaps even believe at the moment.

I hope, however, that you can put your preconceived notions and skepticism aside.

Because the research I want to show you today is exactly the type of work that has enabled my company to become so successful over the past decade.

You see, we have earned a reputation for investigating and exposing financial stories most people in this industry are simply unwilling to touch.

For example...

Back in 2007, we were one of the first groups to publicize the problems with General Motors. We got tons of hate mail... but our analysis proved to be 100% correct, as the company went bankrupt a few years later.

In 2008, we were among the first to explain the scams being perpetrated by the government-sponsored mortgage entities, Fannie Mae and Freddie Mac. Sure enough, these firms collapsed, just as we predicted.

A few months later, we called out Goldman Sachs for what we concluded was a secretive deal with the insurance firm AIG. Again, many people thought we were crazy for making such "outlandish" accusations...

But soon after, Reuters interviewed me for their story called, "Goldman's share of AIG bailout money draws fire."

Then in 2008, when most people in the energy sector were warning about "peak oil," I sent my geologist to investigate the shale gas and oil formations in Texas and Pennsylvania.

Mainstream economists laughed at our analysis--which concluded that shale oil and gas would transform the energy sector in America.

Of course, four years later, we got the last laugh, as this story has become so mainstream it's appeared on the front page of major news magazines, including, Time, and BusinessWeek.

In recent years, our controversial analysis has continued...

We boldly and accurately predicted the collapse of Gannett newspapers, Lehman Brothers, and General Growth Properties (America's biggest mall owner).

Then, just a few months ago, we exposed one of the best retirement strategies in America, which is restricted by the government from being advertised to the general public.

We spent a lot of money making the story public. But one of the biggest companies in America (I'm sure you've shopped in their stores before) was not happy about how we used their name in this report... so they sent us a FedEx package threatening a major lawsuit.

The point is, you've probably seen some of our work before – even if you didn't realize it.

In fact, it's extremely likely you may have seen our recent analysis about the unsustainable levels of sovereign (government) debt in the United States and other major western democracies.

Since first airing a little more than one year ago, this work has been viewed by 22 million people. Sadly, other journalists and many of our competitors closely copy our original work--without giving our analysts credit.

We've called these problems the "End of America," not because we are predicting a literal end to our nation or political system... but because we know they portend a loss in the world's faith in the U.S. dollar system.

Since 2008, when we first issued this warning, most of our dire predictions have already come to pass. The U.S., for example, has printed nearly $2 trillion in new paper dollars, which has enabled Congress to add an average of $1.5 trillion in new federal debt–every single year.

As a result, inflation is way up – despite what the government claims. Gold for example, has gone up every year for the last 11 years and is up over 500% during that time. The price of oil is up 277% since 2003. Food prices have soared too.

And today, just as we predicted... in moves essentially unnoticed by regular Americans, the world's largest central banks have begun to abandon the U.S. dollar.

In fact, on the last trading day of 2011, CNBC stated that: "Holdings of U.S. Treasuries by foreign central banks has fallen by a record amount over the past four weeks."

Now--you might not think these currency moves by central banks directly affect you... but there's one aspect of this dire situation that certainly will.

And that is the subject of today's presentation...

    In short: We believe – and can prove with our research beyond any reasonable doubt-- that the Chinese Government has now put into place a covert plan that will extract enormous sums of money from both the United States government, and ordinary citizens like you and me.

This plan is designed to take trillions of dollars worth of assets and savings from Americans... and deliver this wealth to our Chinese creditors, who have finally lost faith in the U.S. dollar. I realize you may think I'm exaggerating. But I would simply like to show you the facts, via what's available as public record.

Then, you can decide for yourself.

And I want to make one thing clear before I continue: I DON'T blame the Chinese for what they are doing. Not one bit.

In fact, although I know this will sound very controversial... and perhaps even unpatriotic, or "un-American," I want to make it clear that I would do the exact same thing if I were in their shoes.

Our own government has essentially backed the Chinese into a corner, and we have left them no choice (I'll explain what I mean by this in a moment.)

To implement this covert plan, the Chinese are taking a series of dramatic steps. Some of these steps have been announced publicly. Others remain secret–although we believe it's fairly easy to figure out what they are doing, if you pay close attention to what's happening in the financial markets.

As China's plan plays out, I believe we'll see a complete disruption in the U.S. banking system. I expect we'll see a precipitous fall in the U.S. stock market, and a major disturbance of the U.S. mortgage and bond markets.

This, in turn, will affect everything about our normal way of life.

Most Americans won't know what to do when the U.S. government imposes a "bank holiday," forcing banks to close (and allow no withdrawals) for an extended period of time.

Most Americans won't know what to do when they can't get a loan for a car, a house, or even home improvements. They won't know what to do when prices for basic goods (like bread, gas and milk) doubles in a matter of weeks. And most Americans won't know what to do when their credit cards and ATM cards stop working... or when all government assistance (including Social Security and food stamps) is interrupted.

    And here is one thing I know for sure: How you handle this Chinese scheme over the next few years will be one of the most important financial decisions you make. As I'll show you, you have several options. But the absolute worst thing you can do is nothing.

Of course, I understand human nature.

So I realize most Americans will in fact do absolutely nothing. That's because right now, almost no one in the mainstream financial press is paying the least bit of attention to this situation.

But that will change soon, I assure you.

So today, in this presentation, I'd like to walk you through exactly what is happening. Getting a grasp on this situation today will give you a tremendous financial edge over the next few years.

To put this story together, I've made several trips to Hong Kong and the Chinese mainland. I have also spent well over $100,000 to send more than a dozen of my analysts and even a film crew to China to get a firsthand look at what is happening in China today.

Again, my aim is to simply show you the facts, via what's available as public record. Then, you can make up your mind for yourself whether or not I'm full of hot air.

As for me, I am 100% certain this Chinese plan will have a greater impact on your wealth and your future over the next few years than the stock market, the bond market, and even real estate, taxes, or the upcoming Presidential elections.

Let me get right to it and show you what is going on...

We are trapped.  And so are they...

For many years now, it's been clear that China would soon be pulling the strings in the U.S. financial system.

    After all, we the American people now owe the Chinese government nearly $1.5 TRILLION dollars.

I know big numbers don't mean much to most people these days, but keep in mind that this tab is now hundreds of billions of dollars more than what the U.S. government collects in both corporate and individual taxes each year.

It's basically a sum we can never, ever hope to repay--at least, not by normal means.

Of course, the Chinese aren't stupid.

They realize we are both trapped.

The U.S. is stuck with an enormous debt we can never realistically repay... and the Chinese are trapped with an outstanding loan they can neither get rid of, nor collect.

So the Chinese government is now taking a secretive and somewhat radical approach.

    They have recently put into place a covert plan to get back as much of their money as possible–which will extract enormous sums from both the United States government, and ordinary citizens like you and me.

    Via their "State Administration of Foreign Exchange" (SAFE), China is now engaged in a full-fledged "currency war" with the United States and the U.S. dollar.

    The ultimate goal, as the Chinese have publicly stated, is to create a new dominant world currency, to dislodge the U.S. dollar from its current reserve role. Doing so will enable the Chinese to get back as much of the $1.5 trillion dollars the U.S. government has borrowed, as possible.

And here's the most important part...

Understanding how the Chinese will execute this "currency war" over the next few years will likely mean the difference between the opportunity to make extraordinary sums of money, and potentially losing a fortune.

You may not think a "currency war" matters much to you as an ordinary citizen.

But I can assure you, this war will affect every American man, woman, and child, whether you like it or not.

To show you what I mean, all you have to do is take a quick look at what happened during our nation's last currency war.

It has many similarities to the currency war we are involved in right now.

Here's what I mean...

How we lost $600 Billion

Most Americans probably don't remember this, but our last big currency war took place in the 1960s.

Back then, President Charles de Gaulle of France denounced the U.S. government policy of printing overvalued U.S. dollars, which allowed U.S. companies to buy up European assets at artificially low prices, and devalued France's reserve holdings.

So De Gaulle took action...

In 1965 he took $150 million of his country's dollar reserves, and redeemed the paper currency for U.S. gold from Ft. Knox. De Gaulle even offered to send the French Navy to escort the gold back to France. Today this gold is worth about $12 billion.

Keep in mind: This occurred during a time when foreign governments could redeem their paper dollars for gold... but U.S. citizens could not.

And France was not the only nation to do this...

Spain soon redeemed $60 million of U.S. dollar reserves for gold. And many other nations followed suit. By March of 1968, gold was flowing out of the United States at an alarming rate. In fact...

    It's estimated that during the 1960s and early 1970s, we essentially gave away about 2/3rds of our nation's gold reserves... around 400 million ounces... all because the U.S. government was trying to defend the U.S. dollar at a "fixed rate" of $35 per ounce of gold.

So we gave away 400 million ounces of gold and got $14 billion in exchange. Today, that same gold would be worth $620 billion... a 4,430% difference.

Pretty stupid, right?

In 1950, our U.S. depositories held more gold than had ever been assembled in one place in world history (roughly 702 million ounces).

But in order to manipulate our currency (by artificially pegging the value of the U.S. dollar to gold at the low price of $35 per ounce), the U.S. government was willing to give away more than half of the country's gold, which we'd spent decades accumulating.

I don't know about you, but I have to believe that when the history books are finally written, this chapter will go down as one of the most incompetent political blunders in our nation's history.

Of course, as is typical, politicians managed to make a bad situation even worse...

On August 15, 1971, President Nixon went on live television before the most popular show in America (Bonanza) and announced a new plan:

The U.S. gold window would close effective immediately–and no nation or individual anywhere in the world would be allowed to exchange U.S. dollars for gold. To add insult to injury, the President announced a 10% surtax on ALL imports!

Nixon pitched these moves as ‘patriotic,' saying: "I am determined that the American dollar must never again be a hostage in the hands of international speculators."

Of course, the real reason for the run on America's gold was money printing and deficits, but like most politicians, Nixon was never one to let the facts get in the way.

Most Americans rejoiced, believing that an end to the flow of gold leaving the country and a 10% import levy would lead to more jobs, greater exports, and a booming economy.

But of course, nearly the exact opposite occurred...

Within about three years, America was in its worst recession since WWII, with an oil crisis, skyrocketing unemployment, a 30% drop in the stock market, and soaring inflation.

Millions of Americans got a lot poorer, practically overnight.

And that brings us to today...

Now, roughly 40 years later, the United States is in the middle of another currency war.

But this time, our main adversary is not Europe, but China. And this time, the situation is far more serious.

Our nation and our economy are already in an extremely fragile state. In the 1960s, the American economy was growing rapidly, with decades of expansion still to come.

Today, that's simply not the case.

And I believe this new currency war with China could wreak absolute havoc on the lives of millions of ordinary Americans, much sooner than most people think.

It is critical, over the next few years, for you to understand exactly what the Chinese are now doing, why they are doing it, and the near-certain outcome.

So let me address that now...

127,940%... the most important number in China

For most of the 30 years since the start of the country's "Reform Era" in 1978, China has been selling (exporting) more goods than they've imported.

And the way it works in China is simple: When a business earns dollars by selling overseas, it hands that money over to the People's Bank of China (or PBOC, the country's central bank), in exchange for Chinese currency (called either the ‘yuan' or the ‘renminbi') at a fixed rate.

There's nothing fair about this. The Chinese people do all the work, and the Chinese government keeps all of the money. But that's the way it goes.

So for the past 30 years, China has piled up a massive amount of U.S. dollars and other foreign reserves.

At first, the dollar inflow was small because trade between the two countries was tiny. In 1980, for example, China's foreign currency reserves stood at approximately $2.5 billion.

But since then, the amount of foreign currency reserves held by the Chinese government has gone up nearly every year... and now stands at $3.2 TRILLION.

That's a 127,940% increase! It's simply astonishing to look at the chart of the increase in currency reserves since the early 1980s...


The group in China that manages these massive foreign reserves is called the State Administration of Foreign Exchange (SAFE).

And for the past few years, SAFE has had one big problem:

    What to do with so much money?

What SAFE decided to do with most of these reserves is to buy U.S. government securities (notes, bills, and bonds).

As a result, the Chinese have now accumulated a massive pile of U.S. government debt.

In fact, about 2/3rds of China's reserves are believed to be invested in U.S. Treasury bills, notes and bonds. The next biggest chunk is in the Euro. Of course, all of this money is basically earning nothing to speak of in terms of interest because interest rates around the world are close to zero.

And while the Chinese would love to diversify their holdings, and ditch a significant portion of their U.S. dollar holdings, they are essentially stuck.

You see, if the Chinese starts selling large amounts of their U.S. government bonds, it would push the value of those bonds (and their remaining holdings) way down.

It would be like owning 10 houses on the same block in your neighborhood... and deciding to put five of these houses up for sale at the same time. Imagine how much that would depress the value of all the properties, with so much for sale at one time.

One thing China tried to do in recent years was to speculate in the U.S. stock market.

But that did not go very well...

The Chinese government bought large amounts of U.S. equities just before the market began to crash in late 2007. In fact, back then they purchased a nearly 10% stake in the Blackstone Group (an investment firm)... and a similar stake in Morgan Stanley.

Blackstone's shares are down about 65% since the middle of 2007, and Morgan Stanley is down about 61% since the Chinese purchase.

In other words, the Chinese got burned big time by the U.S. equities markets, and they received a lot of heat back home. So they aren't real eager to return to the U.S. stock market in a meaningful way.

That is why in China the U.S. d0llar reserves just keep piling up.

In fact, according to a statement by the government: "SAFE will never be a speculator. It mainly seeks to protect the safety of China's foreign exchange reserves and to ensure a stable investment return."

This essentially leaves just one investment, which can help the Chinese government grow their wealth, preserve their savings, and return to a position as the world's #1 super-power.

The investment I'm talking about, of course, is gold.

But why, exactly, do the Chinese want gold? And what do they plan to do with it?

Understanding this is critical to successfully managing your money over the next few years, so let me explain the situation now...

China's Big Secret... Revealed

It was no surprise to us when, in 2011, China became the No. 1 buyer of gold in the world.

For many people in the gold market, this was a big shock – India has always been the world's leading gold buyer. In India, people traditionally save and display their wealth in gold. Their entire financial culture is based on gold. Historically, silver has played the same role in China... but not anymore.

Of course, China is also producing the most gold in the world each year... by far. And every single ounce that gets produced in China--whether it's dug out of the ground by the government or a foreign company--must by law be sold directly back to the government.

    And here's the main reason:

    I believe with 100% certainty that the Chinese are now clearly on a path to accumulate so much gold that one day soon they will be able to restore the convertibility of their currency into a precious metal... just as they were able to do a century ago when the country was on the silver standard.

Back then, of course, China was a complete mess, looted and humiliated repeatedly by Russia, Japan, the British, and the United States.

But today it is a very different story:

Now, China is the fastest growing country on Earth, with the largest cash reserves on the planet. And as befits a first-rate power, China's currency is on the path to being backed by gold.

China desperately wants to return to its status as one of the world's great powers... and they recognize the enormous power of having a dominant world currency.

The Chinese know that in a time when nearly all governments around the globe are printing massive amounts of currency, backed by nothing but an empty promise, China can gain a huge advantage by backing their currency with a precious metal.

A century ago, China used silver to back their currency. Today, it appears they have chosen gold... and as a result, they are basically buying up the world's gold supply.

    * China is essentially now attempting to "corner" the gold market.

As the great financial historian Richard Russell wrote recently: "China wants the renminbi to be backed with a huge percentage of gold, thereby making the renminbi the world's best and most trusted currency."

Over the next few years, this is going to cause some assets to skyrocket, and others to plummet. It will cause some types of gold to become worth many times the price they fetch today... while other types of gold to become nearly worthless (I'll explain why in a minute).

Obviously this will have major implications for you and me.

Now maybe you think I'm exaggerating when I say China is trying to "corner" the gold market.

But take a look at a cable that was leaked by the U.S. embassy in Beijing on the non-profit website Wikileaks last year.

This cable was prepared by the U.S. Embassy in Beijing, and was sent back to officials in Washington, DC.

The embassy was reporting on a recent report about China's National Foreign Exchanges Administration. The cable quoted the China Administration as follows:

    "China's gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries. The U.S. and Europe have always suppressed the rising price of gold.

    They intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency.

    China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB [China's currency]."

And of course, this is simply what the government is saying...

But remember: No government--or any savvy investor for that matter–wants to announce publicly what they are doing, not when they are in the middle of such a major investment play.

So instead of simply relying on what the Chinese government is saying, we think it is much more telling to look at what the government is doing.

And here the evidence is overwhelming...

China's secret plan, in action

You can see the Chinese government's covert gold plan in action if you take a careful look at three simple things:

    1. The Chinese government's massive and secretive purchases of gold

    2. Their "concealed" stakes in many foreign gold mining firms

    3. And their ongoing changes to the international gold system

First, have a quick look at how the government is purchasing gold on the open market...

We can say with near 100% certainty that the Chinese government has been secretly purchasing massive amounts of gold in recent years.

That's because we know for a fact, according to the most recent figures, that China produces more than 300 tons of gold a year–that's almost 50% more gold than Australia, the world's 2nd largest producer.

And remember, by law, ALL of this of this gold must be sold directly to the Chinese government.

No gold mined in China... not a single ounce... is allowed to leave the country.

It all goes to the government's reserves.

Yes, the Chinese government allows foreign companies to enter China, and to form joint ventures with local Chinese firms.

But even so: While foreign companies are free to mine as much gold as they want in China, every single ounce must be sold to the Chinese government, at current market prices.

So the government is piling up every ounce that's mined in China... at least 9.6 million ounces a year (the equivalent of 300 tons).

And that's just the beginning...

We can also say with near 100% certainty that China is also buying massive amounts of gold from the IMF and other sources, but keeping these purchases secret.

We feel confident about saying this because this is exactly what the Chinese did back in 2009.

If you remember, back then, China suddenly announced that its gold holdings had risen by 75%, because of secret purchases that took place between 2003 and 2009.

These purchases moved China into 6th position on the list of countries with the most foreign gold reserves. But keep in mind, even with these giant purchases, China's gold holdings still account for less than 2% of their foreign reserves. That's a pittance when you compare it to places like the U.S. and Germany, which hold roughly 70% of foreign reserves in gold.

In short, we believe China is at it again.

In fact, on January 11th of this year, Bloomberg reported that mainland China bought 3.6 million ounces of gold from Hong Kong over the past few months... that's 483% more than during the same time the year before!

This data, of course, comes from the Census and Statistics Department of the Hong Kong government. The Chinese government, on the other hand, does not make such information public.

In fact, the Chinese have not announced their gold reserves since 2009. And when you look at the massive amounts of gold "disappearing" from the world markets, it's obvious that the Chinese must still be buying.

As Reuters recently suggested in an article that detailed the sale of 130 tons of gold to "unnamed" buyers: "among the most likely candidates is China, which has the largest currency reserves, at $3.2 trillion."

When you are buying this much gold, it's almost impossible to keep the entire thing secret. That's why many stories of China's secretive purchases have been mentioned in the mainstream press...

For example, CNN Money interviewed Boris Schlossberg, director of currency research at Global Forex Trading, and reported that:

    "China is considered a stealth buyer of gold... As the world's largest producer of the metal, China often buys gold from its own mines and doesn't report those sales publicly. Analysts suspect the country is continuing to buy gold and could in fact, be the world's largest buyer consistently. It simply doesn't reveal it's pro-gold stance... Announcing an aggressive gold buying spree is not in China's best interest because, for one, it might push gold prices higher. Secondly, it could devalue the U.S. dollar, which would subsequently lessen the worth of the country's portfolio of U.S. government bonds."

Forbes also quoted William Purpura, one of the world's leading authorities on the subject. Purpura is Chairman of the COMEX Governing Committee, and he said China makes it a practice to camouflage its gold purchases by not reporting them so as not to affect prices in the market.

Forbes also ran a story recently that stated China could amass some 5,000 tons of gold over the next 5 years–about five times what they report as their official reserves today. I would not be surprised if China amasses double that amount.

The thing to remember here is that if China is going to continue to purchase massive amounts of gold, the last thing they want to do is make this information public, until they really have to. The less they say, the cheaper the price they have to pay.

I interviewed Eric Sprott recently on this subject.

Eric is a billionaire, and is probably one of the top 5 authorities in the world on precious metals. He has purchased several hundred million dollars worth of gold and silver in recent years for his firm, Sprott Resource Management. Here's what he told me:

    "I'm sure China's buying gold. I just have no doubt that it's the most logical thing in the world that they would be buying gold. They're seeing their value of their Treasuries declining almost every day now with the weakness of the U.S. dollar. They are losing a lot of money, and they see the gold price essentially go up every day. Well, it's not a difficult decision to say, "Well, we should be buying gold and getting rid of dollars." That's got to be the easiest call in the world."

The point is, as my multimillionaire colleague Chris Weber wrote recently:

    "By consistently accumulating all the gold they produce, and most likely buying more in global markets on any dips, they [China] are saying much more than any official statement ever could."

So that's one way China is trying to corner the gold markets... with massive and secretive government purchases of gold mined in China and elsewhere around the globe.

Here's the second thing the Chinese are doing...

Step #2: Quietly buying up massive amounts of gold in the ground

The Chinese government is now in the process of quietly buying up part or all of dozens of the best gold mining companies around the globe.

The government basically has a slew of investments in the gold markets, which it reveals as little information about, as possible.

For example, very few investors realize is that the government's China National Gold Group Corp (CNGGC) owns about a 40% stake in China Gold Intl. Resources Corp (listed in Toronto: CGG). And over the past few years, between deals in the works and those completed, China Nat'l Gold Corp is spending over $1.1 billion in gold mining acquisitions, which includes the purchase of a Canadian company called Mundoro Mining, and several others.

Most investors also don't know that the China Investment Corporation, which manages about $1.5 trillion dollars worth of government money, has major stakes in some of the best mining companies in the world, including:

    * Anglogold Ashanti: 100,000 shares

    * Kinross Gold Corp: 250,000 shares

    * Goldfields Ltd: 350,000 shares

    * Teck Resources: 101 million shares

And it gets even more complicated...

China's biggest state-owned gold companies are fully acquiring and buying equity stakes in several dozen other gold mining firms.

For example...

One of the biggest recent purchases was by the Chinese gov't-owned Shandong Gold Group (the 2nd biggest producer in China), which made an offer to purchase Jaguar Mining for $785 million in cash–that represented a 77% premium on Jaguar's stock price.

Keep in mind: This is the biggest premium EVER paid for a large gold mining firm.

Since then, they announced plans to purchase another gold company called Jinshi Mining.

Then there's the state owned Zijin Mining Group (China's biggest gold producer by market value), which said it would spend as much as $1.6 billion a year on acquisitions. Last year, the company bought 17% of Australian gold miner Norton Gold Fields and a 60% stake in the gold company called Altynken LLC.

And keep in mind, the Chinese government, via Zijin, has already bought major stakes in a slew of gold mining companies in recent years, including:

    * Long Province Resources

    * Gold Eagle Mining

    * Inter-Citic Gold

The point is, the Chinese government has quietly made dozens of gold acquisitions that we know about, and could have many more in place they haven't yet revealed.

So that's the second way that China is trying to "corner" the gold market... by making very large purchases of hundreds of gold companies around the globe.

What's interesting is that when you look at the gold China already has in reserve... and what they control that's still in the ground, the Chinese may already have more gold than any other nation on Earth.

And that brings me to the third thing the Chinese are doing to corner the gold market...

Step #3 How China will shake the gold markets in 2012

Right now, the Chinese government is reinventing both their own internal gold markets and also the international gold markets as well.

Here's what I mean...

For decades, Chinese citizens were barred from owning physical gold under penalty of imprisonment. That lasted until 2002. Then, in September 2009, China became the only country in the world that I know of to actively promote gold ownership to its citizens.

In fact, the government started a major campaign to encourage all citizens to buy gold. Locals can now buy gold bars, which come in four sizes, at ANY Chinese bank in the entire country. If you don't think that's unusual, try buying gold at ANY bank in the United States, and watch the funny look you get from the teller.

The government has also set up thousands of gold "stores" around the country, which look like jewelry stores, but instead sell bars of gold.

As Forbes recently reported at the scene of one such gold store:

    "The crowds surge shoulder to shoulder... It's one dramatic example of the gold craze in China, which is officially and unofficially promoted by the Communist government."

My friend Simon Black also visited one of these Chinese gold stores on a recent trip, and said:

    "On the inside, these gold stores look like jewelry shops–armed guards, glass viewing cases, etc. But instead of diamond crusted earrings and white star sapphires, you see bars. Lots of bars.

    "The government mints bars in sizes ranging from 5 grams to 1 kilogram. The prices are updated instantly ... and the bars are all serialized and .9999 purity, the same as you would get from Switzerland.

    "We went into several stores and saw Chinese people buying like crazy... all with cash... the inventory was flying off the shelf."

Why would the Chinese government do this?

Well, China wants to control the world's gold markets. And if they can get Chinese citizens to purchase large amounts of gold in the coming years, it gives the government the potential for easy access to several hundred more tons. Remember, this is a Communist country. They could ask their citizens to sell all the gold to the government, or could even confiscate it if necessary.

You see, just like the United States, the Chinese government has a history of telling citizens how much gold they could own, and at what price.

Here's a famous photograph from a 1949 issue of Life Magazine, of Chinese citizens rushing to exchange currency for gold. In an effort to promote confidence in their currency, the government offered citizens the chance to exchange currency for gold at a rate better than could be found on the black market, but had to quit the offer after just 21 hours because of the hysteria that ensued.


The point is, the Chinese government has turned their population into gold-crazed investors and savers.

And they've taken further steps too.

For example, recently, the Chinese made available the first yuan-denominated spot gold contract, called the Renminbi Kilobar Gold. As Dow Jones Marketwatch reports that analysts see it as "a step toward making the yuan a global reserve currency."

But here's the thing...

Both of the developments I just mentioned may, at the end of the day, pale in comparison to the big move coming up later this year...

In June 2012, China has announced plans to open something called the Pan Asia Gold Exchange (PAGE).

This is basically a direct competitor to the London Metals Exchange and the COMEX in New York.

The way things work right now, the futures market in London "fixes" the spot price of gold each morning and afternoon, based on trading in London and on America's COMEX market.

But both of these markets back gold contracts with only 10% of the actual metal. The new China PAGE market could have a much larger gold backing, and could forever change the way gold is traded.

As James Turk's GoldMoney site recently reported:

    "The potential effects cannot be underscored enough – PAGE is clearly preparing the world for a Chinese world reserve currency, and is doing this by bringing gold, and by extension silver, back into the Chinese economy."

Forbes also wrote about this development, and said:

    "It means the spot market in gold could be headed for China– and away from London's Metals Exchange or the COMEX in New York."

This new gold exchange is a huge development--a big step towards backing China's currency with gold.

Clearly, you can see that the Chinese government is determined to make gold a much bigger part of their financial system in the coming years.

But where is all of this headed?

And what does it mean for you and me right now and over the next few years?

Here is what you have to understand...

How China's Secret Gold Plan Will Affect You

To me, it is now abundantly clear that China is accumulating so much gold for two simple purposes...

    #1. First, they want to diversify as much of their foreign reserves as possible away from U.S. dollars and other devalued currencies, which are backed by nothing but a foreign government promise.

    #2. And second, China wants to establish a world-class currency, backed by as much gold as possible, which can eventually be integral to the world of international trade... and perhaps even become the world's top "reserve currency" one day soon.

This is going to affect me and you in two significant ways:

First, I think it's going to continue to drive gold prices higher... much higher in the years to come. And it's going to make some gold investments extremely lucrative over the next few years.

That's the good news.

The bad news is that China's gold-backed currency is likely to help make the U.S. dollar much less important in the world of international trade and finance. As Barron's reported last year, "China wants to establish the yuan as a reserve currency that could someday challenge the almighty buck."

As the dollar loses its current "reserve currency" position, it's going to cause dramatic changes to our way of life here in America.

Why?

Because in the United States, for the past 50 years, we've been basically able to consume as much as we want without worrying about acquiring the money to pay for it.

We've been able to do that because our dollars have been accepted and sought after, everywhere around the world.

In short, for decades, because the U.S. dollar has been the world's "reserve currency," we haven't had to produce or export anything to get all the dollars we needed to buy all the oil (and other goods) we need.

All we had to do was borrow and print more money.

And boy did we. Take a look at this chart...


Even as late as the 1970s, America was the world's largest creditor. But by the mid-1980s we'd become a debtor to the world. And since the late 1990s we've been the world's LARGEST debtor.

Today, our government owes more money to more people than anyone else in the history of the world.

And that was before the financial crisis!

Today we still borrow about $2 million every single minute, and we borrow 40% of ALL the money the federal government spends. With all of these bad debts piling up, we've had to begin repaying our debts by printing trillions of new dollars. And now, finally, the impact of this is being felt in a big way.

I believe our creditors (which include not only China but dozens of other foreign countries, plus other investors here and abroad) are likely to soon completely stop accepting U.S. dollars in repayment... or greatly discount the value of these new dollars.

What will that do to America?

Well as other nations begin to prefer gold or even an alternative currency to the U.S. dollar, it will basically wreak havoc on our entire society.

And if we can't borrow money, banks will shut down. Government services will be disrupted and more likely, eliminated. No business, local government, or citizen will be able to get a loan at a reasonable rate.

Everything we import... food, furniture, clothing, and oil, just to name a few, will get much, much more expensive.

Our quality of life will plummet... in a matter of weeks.

As Sam Zell (one of the richest men in America) recently told CNBC:

    "My single biggest financial concern is the loss of the dollar as the reserve currency. I can't imagine anything more disastrous to our country. I'm hoping against hope that ain't gonna happen, but you're already seeing things in the markets that are suggesting that confidence in the dollar is waning. I think you could see a 25% reduction in the standard of living in this country if the US dollar was no longer the world's reserve currency. That's how valuable it is."

Like I said, the Chinese are not stupid.

They understand the power of having a gold-backed currency, which could ultimately become the world's new reserve currency.

As a result, they're buying up as much of the world's gold as possible.

The Chinese know that nearly every country around the globe is in massive debt... and nearly every country in debt is printing money (and thus, going deeper into debt), and debasing its currency.

So the Chinese have come to the logical conclusion that gold is the one thing that can help them protect their current reserves, and perhaps even establish a true world currency, while almost every other currency gets printed to the point of worthlessness.

    That is why China is on a secret mission to corner as much of the world's gold market as possible.

For several years, we've been warning about the loss of world reserve currency status for the U.S. dollar.

With roughly half of our national debt held by foreigners, we have long believed efforts to print away our obligations will prove catastrophic for our dollar in its position as the world's leading reserve currency.

But until recently, we were unsure of the exact mechanism by which the dollar would be replaced.

Now, we see how it will likely unfold...

The Chinese will increasingly hedge their exposure to the dollar by becoming the world's leading gold investors. By taking over the world's gold markets and building a huge stockpile of gold, they would be able to back their currency with the world's traditional form of money.

Once they are ready to make the yuan freely convertible, they will have created tremendous demand for their bonds and bills by making their currency the world's most reliable... and the only one backed with gold.

The impact on the dollar could be catastrophic... And every day the dollar falls, China's gold stockpile will grow more valuable (and more powerful).

No, it is not possible to predict the future with 100% accuracy...

But when people ask me "How will you know when to sell your gold?" I explain that I believe the end game for this gold bull market will likely be a situation where you can exchange gold for currency that is convertible into gold at some official price.

I believe there's a very good chance that currency will one day be the Chinese yuan.

No, it doesn't make me happy to say this. I feel very sorry for the millions of Americans who don't understand at all what is going on. These folks unfortunately are in for a rude awakening, and a big decline in their quality of life.

But it doesn't matter whether we like what's happening or not... it's just basic economics.

China is going after all the gold it can. And clearly, gold is going to be much more important to the financial system–and much more valuable–in five years than it is today.

Of course, here's the best part...

Even if I'm completely wrong about the yuan becoming the next reserve currency, the simple fact is that China has more cash reserves than any country in the world.

And China is on a mission to accumulate as much gold as possible over the next 5 to 10 years... which makes it very easy to position yourself to make money.

In other words, if you ignore this trend, you are ignoring what is probably the easiest, safest, and most reliable way to make money and also protect your family from the inevitable financial crisis in the U.S. dollar.

So what should you do about this situation?

There are two very important moves you need to take: The first move is to protect what you've got. The second move is to learn how to set yourself up to maximize your returns, as this inevitable currency trend plays out.

So let's look at how to accomplish both of these things right now, starting with...

Move #1: Protect What You've Got

The first thing you need to realize is that what is happening between China and the U.S. is incredibly dangerous for people who have the majority of their assets in U.S. dollars and dollar denominated investments (like stocks and bonds).

The first and obvious thing you need to do is buy gold and silver bullion. If you haven't done this yet, don't worry, it's easy, straightforward, and a lot simpler than most Americans think.

I've recently published two guides to show you everything you need to know. The first is called The Gold Investor's Bible. It's a 90-page guide that explains all the secrets and inner workings of getting the best deals on acquiring and storing gold bullion. There's nothing else like this guide, anywhere, at any price.

As for silver, you'll want to read our Guide called: Secrets of the Silver Market, which shows you the #1 way to buy silver bullion and the #1 way to buy silver via the stock market. I'll show you how to access both of these guides, momentarily, and free of charge.

But owning gold and silver bullion are just the beginning. There are other, more sophisticated ways to protect your wealth as well.

For example...

How the Rich get richer in a currency crisis

A few years ago, I learned about a very clever strategy, which allows you to protect the value of your current savings during a currency crisis like the one we are experiencing today...

And at the same time potentially see gains of 250% or more.

It's a strategy that enables you to benefit from a unique set of assets that will do spectacularly well as the U.S. government continues printing

Now this has nothing to do with gold or silver or any other type of precious metals investment. Also: You don't have to open up a foreign bank account, or speculate in foreign currencies, or anything like that.

In fact, what I want to introduce you to is something that is extremely safe, and very easy to buy and sell, from any regular broker. That's why some of the world's best investors use a strategy that is very similar to what I'm going to show you how to do.

For example, you might have heard of Ken Fisher.

He runs Fisher Investments, a money management firm for about 25,000 wealthy individuals (you typically have to have at least $500,000 to get started).

Well Ken Fisher recently took more than $200 million worth of his firm's money, and put it to work using a similar strategy to the one I want to show you how to implement.

By putting this strategy to work back in 2004, you could have seen gains of 150% in less than a year.

Of course, there are many other multimillionaire investors and money managers now taking advantage of similar strategies too, including: Chris Davis, Ron Baron, Monish Pabrai, Ken Heebner, and Andreas Halvorsen.

Perhaps you've never heard of these guys, but they are some of the richest and most powerful men in the financial sector.

Monish Pabrai, for example, is typically referred to as the "next Warren Buffett." He manages more than $500 million and after starting his fund in 1999, earned 600%+ gains for his investors (after fees and expenses) in just his first 8 years in the business.

Ron Barron is one of the 300 richest men in America according to Forbes. Chris Davis' business manages more than $93 billion.

And ALL of these guys are making a critical move with their money to protect and grow it over the next few years. I want to show you how to do the same thing.

Very rarely do you get the chance to make simple yet sophisticated financial moves, along with some of the richest people in the country, but that's exactly what I'm going to show you how to do.

We'll show you how to make nearly the exact same move as these very wealthy guys–which will protect your savings and potentially earn you a small fortune. I realize I'm being a bit vague about it here... but it's important to keep this strategy to ourselves, until we have established a position.

Keep in mind, starting back in the middle of 2005, this strategy produced gains of over 800%, in just three years.

The good news is, now is the perfect time to do it again.

Everything you need to know is in our new Research Report: How The Rich Make a Fortune During a Currency Crisis.

There's also one more step I recommend you take, to protect what you've got in the coming years, and that is:

Get a 20% Dividend by Holding Gold

Beginning in April of last year, there was a big change in the gold industry...

And today it could enable you to own gold, while at the same time collect thousands or even tens of thousands of dollars a year in extra income.

Here's how it works...

Thanks to surging gold prices, gold mining companies are generating record income.

Take $50 billion gold major Barrick Gold (NYSE: ABX). In the fourth quarter of 2011, the company's quarterly earnings are estimated by Bloomberg to have risen 54% since the fourth quarter of 2010.

Big producer Yamana Gold Corp. (NYSE: AUY) is another example. The company's 2011 third quarter revenue rose 22% to over $500 million.

So what are gold companies doing with all this new influx of cash?

Well, several smart gold firms have created a very interesting dividend program, in which the dividend rises significantly as gold prices continue to climb.

In other words, in order to attract more investments, several companies have come up with a simple pitch: As gold prices go up, you get paid bigger dividends... in fact MUCH bigger dividends.

For example, there's one extremely safe and profitable gold company that is generating cash at an astonishing rate. And they just created a "rising gold" dividend program.

According to Barron's, the final numbers aren't yet in for 2011, but the company is expected to earn about 140% more money in the past year than it did three years prior. And the company's gold earnings could shoot up another 24% in 2012.

Right now, the company pays a solid 2% dividend.

But I believe the price of gold could easily triple or more from today's levels. There is simply no way in the world most governments can stop printing money. And gold prices are likely to explode as inflation takes off.

If I'm right, you could make a fortune by owning one of the best gold companies in the world, and ultimately be collecting a nearly 20% dividend... every single year.

Think about that.

Do you realize how fast your money grows if you are compounding your gains, and collecting 20% a year?

    2 Years: 44% gains
    5 Years: 148% gains
    7 Years: 258% gains
    10 Years: 519% gains

And remember, I'm talking only about the dividends you'd be receiving!

When gold prices move higher--which to me is one of the only sure bets in the financial world right now--the share price of this company should move up in a very big way as well.

The one thing to keep in mind about these gold dividend programs is that your dividend rate is based on the price you pay. In other words, I recommend you get in on this opportunity now, while the price is ridiculously low.

In a year or so, this may still be a good buy, but I don't think it will be nearly as good a deal as it is today.

Right now, almost no one in the investment world is paying attention to this situation. As word spreads, I expect the price to be bid up considerably.

This situation was brought to my attention by Matt Badiali, my resident geologist, and the leading gold expert on my staff. If you want to get the full details on how it works and how you can take advantage of it, all you have to do is read Matt's recent Research Report, called: How to Earn A Huge Gold Dividend.

So that concludes my immediate recommendations on how to protect your savings.

But remember, I said there are essentially two things you need to be thinking about right now. The first is to protect what you've got. I just talked about how to do that.

The next move is to set yourself up for the biggest gains possible as this important gold trend continues...

Here's how we recommend you do that...

Move #2: How to Potentially Make
a Fortune from China's "Ft. Knox"

As you may know, the United States has the majority of its gold stored in three very secure locations.

The first is the U.S. Mint in Denver, which holds about 44 million ounces in an underground vault.

The second is at the U.S. Mint on the grounds of the United States Military Academy at West Point, which houses roughly 54 million ounces.

But the largest depository of government gold by far is stored at the world famous United States Bullion Depository, in Ft. Knox, Kentucky.

Here, the granite lined walls and a blast-proof, 22-ton door protect about 147 million ounces of gold--about three times more government gold more than is stored at any other location.

In addition to traditional cameras and security guards, the facility is protected by the Army units based at Fort Knox, which includes Apache helicopter gunships, the 19th Engineer Battalion, the 16th Cavalry Regiment, and the 3rd Brigade Combat Team of the 1st Infantry Division–all totaling roughly 30,000 soldiers with tanks, attack helicopters, and artillery.

The interesting thing about China is that they are building their own version of Ft. Knox--but they are doing it in a radically different manner. And while you can't invest in or (even visit) America's Ft. Knox, anyone can actually become an early investor in China's very different version.

You see, what few investors realize is that China is partnering with a few publicly traded companies, to assemble their own version of "Ft. Knox."

As I mentioned, they are accumulating and storing vast gold supplies in a very different way... and while investing in China's "Ft. Knox" is nothing at all like investing in the American version, it's an extremely profitable way to own large stakes of Chinese government gold.

And here's the thing: If you know which companies are participating in this project alongside the Chinese government, I believe you could see enormous returns in the coming years.

China's accumulation of gold is the biggest and most important trend in the financial world today. And there's a little-known but very easy way for you to take advantage of the situation.

You'll own a stake in hundreds of millions of ounces of gold, which are growing at an incredible rate. You could make several hundred percent gains as the amount of gold being accumulated increases... and as gold prices continue to rise.

Again, I asked Matt Badiali, the leading gold expert on my staff, to put together a full Research Report on this opportunity. It's called: How to Be an Early Investor in China's "Ft. Knox."

Please keep in mind: This research is not available anywhere else that I know of, and I think it offers a safe and prudent way for you to make hundreds of percent gains as well, without having to put a single penny into China.

Matt Badiali probably knows as much about this situation as anyone on the planet, and I think you will be astonished about what he has uncovered.

And there's another great way to make spectacular gains from this situation as well...

A Huge Anomaly in the
Gold Markets Right Now

When looking at gold stocks, one of the key numbers to pay attention to is what a company's gold reserves cost, per ounce.

For example, Barrick Gold (symbol: ABX) is one of the biggest gold miners in the world.

To buy up all of Barrick's 140 million ounces of gold in the ground (their "reserves"), it would cost you $353 per ounce on the stock market.

Or take Allied Nevada (symbol: ANV), another large gold producer–to buy up all the company's gold reserves, you'd have to pay about $1,310 per ounce on the stock market.

But here's the thing...

There are a handful of gold companies that right now--today--are selling for much, much less per ounce than the companies I just described.

In fact, from among all the publicly traded gold companies in North America, we found 6 firms that are selling for less than $235 per ounce of gold reserves.

Here's the list:


This list of companies offers some pretty enticing opportunities.

They give you a chance to buy a stake in massive amounts of gold, at the lowest possible price in the market.

But check this out...

Do you see the company that is blacked out at the bottom of the list?

This company has one of the biggest gold reserves in all of North America. And get this: Their price per ounce of gold reserves is just $23... that's 80% less than Golden Star, the next cheapest!

This is a huge anomaly in the gold markets–which is why I sent Matt Badiali to check the situation out in person.

It's an incredible opportunity.

Keep in mind that this ultra-cheap gold is not in Somalia or Mongolia or some other political hellhole... it's right here in North America!

Obviously, this North American firm represents by far the cheapest and best value in the entire gold market today. I feel very confident saying this situation will not last long.

What we recommend you do is buy this company today, tuck it away for a few years, and potentially make 1,000% gains in the not-too-distant future. I know that sounds like a somewhat outrageous statement, but it's absolutely true.

Perhaps the Chinese will come along and pay $235 per reserve ounce for this gold (still a bargain)–that would give you 10-times today's stock price.

Of course, it's impossible to predict which mining companies the Chinese will buy. But the truth is, it doesn't matter one bit. Today this company has so much gold, and is selling so cheap, that it is far and away the best deal in the entire gold industry.

If you want to safely own gold stocks, with massive amounts of gold in the ground, and the potential to make 10- times your money in the coming years, this is the firm you absolutely MUST own.

Everything you need to know is included in our latest report: A Huge and Profitable Anomaly in the Gold Markets.

So those are the moves I recommend you make right away.

Do the several things necessary to make sure you protect what you've got. And then set yourself up to maximize the potential gains as this inevitable trend continues over the next few years.

What's the best way to get started?

Well, if you want to take advantage of these opportunities, I will send you all of the research you need to act on each one–and I'll send it to you free of charge.

Here's what I mean...

I will include all of this Research—everything mentioned here--at no extra expense when you start a no-risk, trial subscription to our monthly publication called: Stansberry & Associates Resource Report.

It's written by Matt Badiali, my on-staff geologist, whom I've been telling you about in this presentation.

I hired Matt six years ago, because he's a very smart guy with tons of real-world experience in the resource sector: He's spent time on drill rigs and in dozens of mining operations.

He has taught at three prestigious universities, and has presented his research findings to the best natural resource companies in the business, including Anadarko Petroleum and ExxonMobil.

Over the past few years, I've sent Matt literally around the globe in search of the best natural resource opportunities for our subscribers...

From Papua New Guinea... to the Yukon Territory... Haiti... Australia... Mexico... the Western U.S.... you name it, Matt's been there in the past few years, looking for the best opportunities in gold, other precious metals, and energy.

This is one of the main reasons why Matt has been able to identify many of the biggest gains in the entire financial markets over the past few years, including:

    - ATAC Resources, up 343%

    - Silvercorp, up 269%

    - AuEx Ventures, up 198%

    - Premium Resources, up 160%

    - Silver Wheaton, up 335%

    - Mag Silver, up 156%

    - Veritas, up 101%

    - Rainey River, up 161%

    - Carbo Ceramics, up 143%

    - Northern Dynasty gold, up 322%

    - Royal Gold, up 77%

    - Petrobras, up 166%

Matt and I started looking closely at the gold situation in China about 5 years ago.

Back then, China was just starting to accumulate massive amounts of gold, and was consolidating the country's gold mining industry. In our early investigations, we found that there was a huge opportunity to invest in local Chinese companies that had partnered with the government.

One of the companies we identified, and recommended to subscribers, for example, was Jinshan Gold Mines. The stock went up 339% after our recommendation. Another company we found, called Eldorado Gold, went up 61% after our recommendation.

The point is, five years ago, the way to take advantage of this huge trend in China was to buy up shares of companies partnering with the government.

But today the opportunity is very different–but I think even more lucrative.

That's why, when you take a trial subscription to our Resource Report, you will receive:

1. Research Report #1: How The Rich Make a Fortune During a Currency Crisis. Many of the wealthiest money managers on Wall Street are making a simple and safe move with a significant amount of their capital right now. This move has the dual purpose of protecting savings, and potentially making incredible gains. Remember, just a few years ago, following a similar strategy, you could have seen gains as high as 800%. Matt will show you exactly how to do the same thing today.

2. Research Report #2: How to Earn a Huge Gold Dividend. For years, the problem with gold mining stocks has been that you don't get any income. Well now, one of the best gold companies in the world has created a ‘dividend program' that escalates your dividends as gold prices rise. You could make a fortune, even if the share price never moves another penny. I think there will be no safer way to make extraordinary amounts of money in the coming years.

3. Research Report #3: How to Be an Early Investor in China's "Ft. Knox." This is an incredible opportunity to not only protect your money in the coming years, but to also potentially make hundreds of percent gains as well. I don't think you will hear about this opportunity anywhere else, and I think you will be astonished when you see what Matt has uncovered.

4. Research Report #4: A Huge and Profitable Anomaly in the Gold Markets. One company in North America has so much gold, and is so inexpensive in the stock market that it represents by far the cheapest and best value in the entire gold market today. This is a huge anomaly that is not likely to last very long. Take advantage of the situation today if possible—this report explains everything you need to know.

5. The S&A Gold Investor's Bible and our Secrets of the Silver Market Report. Please don't buy a single ounce of gold or silver till you've read these reports. We've spent more than a decade figuring out the best, most affordable, most efficient, and safest ways to do it. If you don't follow this advice and you get ripped off, you have no one to blame but yourself.

6. Stansberry & Associates Resource Report. Of course, every month (for the next year), you'll also be getting our monthly reports on the best opportunities in the precious metal and energy sectors. Matt Badiali heads up the Resource Report, and he has gained a huge following in recent years, primarily because he has an extraordinary track record, and has helped a lot of people make a lot of money.

For example, we recently got a note from a guy named Doug P. in Albany, who told us: "I have subscribed to several newsletters in the past but none have delivered the kind of returns I am seeing here."

We got a similar note from a guy named Karl B. in Austin, Texas, who said: "Matt, I have used your research advisories a lot. On Northern Dynasty Minerals I made 167% and on Parker Drilling Company 161%." And a guy named Jason Murdock from Delaware wrote to tell us, he was "up $31,552.93."

The point is not that every one of our recommendations in the Resource Report will make you rich, but that we have a reputation--and track record--of consistently finding huge, low-risk opportunities.

You'll receive our S&A Resource Report on the first Wednesday of each month, right after the markets close that day.

7. Also, every evening after the markets close, I'll send you by email our subscribers-only Digest. If you are already a subscriber to one of our paid services, you already know about The Digest.

If you are new to our business, I think you'll quickly see why so many readers say it's their "favorite financial news source," and the "one thing they must read every day."

What my research team and I do in The Digest every day is to analyze the most important financial stories, and show you exactly how these stories affect you and your money.

The Digest is also where we post reader feedback (both the good and bad) and share the details on what we're working on next.

So how do you get started?

Well, before I give you the details, there's one more thing I think you must have to prepare yourself for the huge changes coming to America over the next few years...

The Best Way to Prepare for What's Coming Next

We as Americans are going to see some major changes to our normal way of life over the next few years. I am more confident in that fact than of anything else in the financial world.

As I've outlined in this presentation, one of the things you must do is learn about the best ways to buy and own gold. Matt Badiali will show you how to do that in his Research Reports and his monthly newsletter—all the work I've described here.

You also want to learn how to own energy companies, which will be another big beneficiary of these changes coming to America. Again, Matt will show you exactly how to do that in his Resource Report newsletter. Matt is a real expert on the great companies leading America's charge into shale oil and gas.

But there are other steps I recommend you take too.

And these are things Matt does NOT cover in his newsletter.

For example, I recommend you learn how to protect yourself (and even profit) from the coming collapse of the U.S. Treasury market. This is a really simple and easy thing to do. And it could be incredibly profitable too, over the next few years.

I also recommend you learn how to buy "capital efficient" businesses, which will be protected from inflation, because they don't require major new capital investments. There are a handful of very good opportunities to do this now, which I am showing my readers how to buy.

There are many more things I'd like to show you too... like how to get some of your money beyond the reach of the U.S. government, and how to own a few assets that are better than anything else at preserving wealth.

And that is why, when you take advantage of this trial offer, not only will you get the S&A Resource Report, and all the Research I've described here...

You'll also get a full year and all of the current research in MY monthly publication, called Stansberry's Investment Advisory.

This is not something I normally do.

I don't normally give away my research for free when you purchase one of our other products.

But I think we are living in unprecedented and dangerous times, and I want to make it as easy as possible for you to get all the information you need.

Now normally, a subscription to our S&A Resource Report costs $99 for one year. A one-year subscription to my Stansberry's Investment Advisory also costs $99.

But today, you can get The S&A Resource Report, AND my letter, called Stansberry's Investment Advisory, plus everything else I've described here in this presentation... for just HALF THE REGULAR PRICE of one of these letters on their own.

In other words, instead of spending $198 for these two letters, you'll receive both for the next year... for just $49.50.

Even better, you can try out all of this work for the next four (4) months before making up your mind.

In other words, have a look at all the research I've described here, plus the next four issues of The S&A Resource Report and the next four issues of my Stansberry's Investment Advisory.

If you are not happy with anything for any reason, simply let us know and you'll receive a FULL REFUND for every penny you paid.

The point is, we're not asking you to make any commitments whatsoever, but to simply TRY our work, to see if it's right for you.

If you like it, great.

If not, just let us know and we'll give you your money back, and part as friends. That's the only way I'll do business.

Also: If you already receive my newsletter (Stansberry's Investment Advisory), we'll simply add a full year—at no extra charge—to your current subscription.

And there's one more thing I'd like you to please keep in mind.

You've probably noticed that this presentation isn't like most of the sales presentations you've seen before.

We've given away far more information than you'd normally see—including the names of quite a few stocks and a lot of very sophisticated information the Chinese government would rather you not know.

The truth is... with the facts in this presentation alone, you already know most of the critical information you need to protect yourself and your family.

Why would we give so much away...?

We believe it's absolutely critical that every American understand the risks we face as a nation. We are now printing money in record amounts, and we're involved in a major currency war with China. I believe this is guaranteed to lead to hyperinflation and a U.S. dollar collapse.

Of course, all of this has been brought on by an entire generation of politicians who don't understand even the most basic principles of finance.

A decade ago, our Vice President (a Republican) claimed "deficits don't matter." Today, our President (a Democrat) is attempting to prove it.

Our total debt is now more than $15 trillion—that's more than our country's annual GDP. According to all of human history, debts this size are never repaid, not without a huge devaluation of the currency.

The Chinese (our biggest creditors) know this. They are not stupid.

And now, as our debts begin to compound at ever-faster rates... and as we continually have to print more money to pay for them... America will suffer the most grave crisis in our nation's history.

Unfortunately, as I see it, this crisis is now unavoidable. All I can do is help my fellow citizens survive the problems I see coming. That's why we will NEVER charge anyone for the information necessary to understand this crisis, and why we continue to spend millions promoting free research presentations like this one.

We hope you'll help support our efforts.

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Sincerely,



Porter Stansberry
Founder, S&A Investment Research

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