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When the economy went bust, the government threw money (we dont have) at the problem and

we didnt get the desired results. Heres the bottom line The United States cannot indefinitely borrow itself out of its problems. The people that lend us money so we can pay our bills will eventually get concerned and turn off the money tap. In total, foreign holdings of long-term U.S. Treasuries sit at $4.49 trillion (Source: Bloomberg). As we move from a national debt ceiling of $16.4 trillion to $20 trillion or more, who will buy that extra debt? There seem to be only two buyers in the marketplace for U.S. debt: foreigners and the Federal Reserve (the latter, only if it starts another round of quantitative easing printing more money). At what point do China and Japan say, Thank you, but we have enough U.S. debt on our books? And who will ultimately be smarter? Can the U.S. succeed in keeping interest rates low, bringing in inflation and paying foreigners back with devalued U.S. dollars? More than likely, it will be China and Japan that succeed in demanding higher interest rates on U.S. debt, while they debase the U.S. dollar as the worlds reserve currency. While we love our country and are pro-American, the writing is on the wall. Chinas economy is expected to grow at least 7.5% this year, while we will be lucky to grow a third of that. China was once a third-world country. Now, were peddling them what may soon be classified as our third-world junk debt. If we go back through history, when we see past great countries exposed to great dependence on foreign investment, the debtor nation has eventually faced sovereign debt problems and high inflation. Do we really think the U.S. will escape the same fate?

Recession Part IIHere We Go


If we split the economy into consumers and businesses, both groups are pointing to a slowdown in the economic expansion that started in 2009. Starting with the American consumer

The Commerce Department figures show real disposable income in the U.S. is lower today than it was four years ago. Current consumer disposable income growth is not keeping up with inflation! Instead of increasing their spending, which usually happens after a recession, consumers are going the other way and cutting back on their spending! A great majority of Americans are worried about their future. And they are responding to that worry by saving as opposed to spending. The same thing happened to Japan during its lost decade. A higher personal savings rate results in consumers spending less and the economy stalling. Who can blame Americans for their concerns? They are not stupid people. They see whats going on in this country. The unemployment rate remains high and low interest rates have failed to spur the economy. Turning to businesses From the White House to the average American, encouraging businesses to spend the cash they have accumulated due to strong corporate profits would translate into jobs being created, which would obviously help turn this economy around. But what people are not looking at is how much corporate debt is sitting on the balance sheet of these same corporations. According to the Federal Reserve, nonfinancial corporations are carrying corporate debt to the tune of just over $12 trillion!

My pointeven if we could get this economy growing again, how much can corporations really spend when they arejust like the average consumertied down with so much debt?

The Four Risks You Face in 2013


What will happen to you and your family as the other shoe of this economy drops? Are you really prepared? Very bluntly, you face several personal risks. Risk #1 The first risk is a reduction in income. U.S. austerity measures could lead to a reduction in old-age security or, at the very least; the law could be changed as to what age a citizen qualifies for old-age security. France has increased its "official" retirement age. Our neighbor to the north, Canada, is toying with changing the official retirement age to 67 from 65. The U.S. may have no choice but to follow suit. You need to act now by insuring you have enough incomeenough money coming into provide for you and your family. Investor appetite and attitudes has already changed from capital growth of investments to income. We need sure, steady income to pay our bills.

Risk #2 Your second risk will be the devaluation of your money. As the Federal Reserves balance sheet has grown into the trillions of dollars, the Fed has printed more and more money. As we recently heard from Ben Bernanke, while testifying at a House Financial Services Committee hearing in Washington, the Fed remains ready to act again to save the economy. This means even more money printed. And the more dollars printed, the less the greenback is worth, and the less your money will buy in the future. This is how rapid inflation starts. The greater the circulation of a currency is, the less its worth. Thats economics 101. But, I dont see anyone in the government warning its citizens about this. Risk #3 Your third risk will be simple security of your money. Some of the biggest banks in Greece, Portugal, Spain and Italy have seen their stock prices collapse. Italy is the fourth biggest economy in Europe. The stock price of its biggest bank, UniCredit SpA, is down 50% over the past 11 months. Why? Because all banks have exposure to their respective countrys bonds and when those bonds fall as in value, the banks get hurt. What will happen to Wells Fargo, Citigroup and other major American banks when foreigners demand higher interest rates from U.S. bonds? The price of our bonds will collapse and the big banks will get hit. Just look at Bank of America. Its stock was down 50% last year! The Federal Deposit Insurance Corporation (FDIC) is already cash-strapped. Our government doesnt have the money to bail out big banks. You need to get a portion of your hard-earned money in a safe place. Risk #4 Risk number four is your non-fiat money. Hopefully, youve invested some of your hard-earned money in gold-related investments.

The bull market in gold has lasted 10 years so far. People like Michael Lombardi, who first started recommending gold to his readers when it was trading at $300 an ounce in 2002, expect the price of gold to hit $3,000 U.S. per ounce. In the end, when the greenback falters under insurmountable government debt, the U.S. dollar will fail as the official reserve currency of world central banks and dollars will once again need to be backed by gold bullion. The question: will the U.S. confiscate the gold of mining companiesthe same companies youve likely diversified some of your assets into? Well, its happened before. In March 1933, under Executive Order 6102, President Roosevelt declared it illegal for private citizens to own gold (in an amount exceeding US$100 belonging to any one person) and U.S. citizens were given less than two months to turn in all of their gold to the Federal Reserve Bank in return for $20.67 U.S. per ounce. It could happen again. But this time the gold mining companies themselves could be at risk. Thats why you need to get some of your gold-related investments in a major nonAmerican gold company the U.S. government cant expropriate.

How to Protect Yourself and Actually Profit from the Risks Headed Our Way
The first thing you need to do is get a steady flow of incomefrom a secure sourcethat will provide for you and your family in the troubled times ahead. Two of the largest banks outside the United States pay a dividend yield of 4.6% and 4.7%, respectively. These banks were not affected by the U.S. recession. Each bank has customer deposits of about a quarter-trillion dollars. Each bank has regularly paid dividends for a minimum of 100 years. Heres the best part Within five years, if you buy the stocks of these two banks now, which are located in what I believe is the strongest and most financially sound country in the world, both banks will be paying you a dividend of 10%.

A special research report we just completed, Safe & Steady Double Income From Two Untouchable Banks, will show you how your secure dividends of 4.6% and 4.7% will double to 10% within five years. Next, you need to get some of your money in a safe place that no one can touch. Forget American banks. Get your money in a strong G7 foreign bank where your deposit is denominated in non-U.S. dollars. You want to put your money in a bank whose currency is rising in value against the U.S. dollar. So, when you pull your money out, youll be able to convert it into more U.S. dollars than you put in. Hence, you want to achieve two goals. You want to protect your moneyput it in a safe haven where you dont need to worry about the bank going underand you want to take advantage of the decline in the value of the greenback. We can help you achieve both goals. A special research report weve just completed, How Your Deposits in the Safest Bank in the World Go up in Value as the Greenback Depreciates , will tell you all about our favorite non-U.S. bank. Its located in the strongest economy in the world. The bank has 72,000 employees and half a trillion customer deposits, and has been in business for 147 yearsestablished in 1864. Most importantly, you can deal with the bank right from the comfort of your own home or office. Moving to your gold-related investments Remember, under Executive Order 6102, President Roosevelt declared it illegal for private citizens to own gold (in an amount exceeding US$100 belonging to any one person) and U.S. citizens were given less than two months to turn in all of their gold to the Federal Reserve Bank. As the price of gold bullion flies towards $3,000 an ounce, you need to ensure your gold investments are safeuntouchable by the U.S. government. Our research analysts have made their top picks amongst the major goldproducing companies outside the United States. These companies do not have operations in the U.S., they operate in free countries, they mine gold at cheap prices, they are cash positive, cash-rich and their stock prices are booming.

You can learn about them in our recently completed research report, The Two Best Non-U.S. Gold Stocks an Investor Can Own.

Putting it All Together for You Before the Other Shoe Drops
As I said at the beginning of this presentation, I have the privilege of being the head of research at our company. When I look at Lombardi Financial, I see that we publish 26 different newsletters on topics varying from options, to micro-caps, to penny stocks, to biotech stocks, to resource stocks and more. But, in the midst of what I call America in peril, when I survey our great roster of financial advisory services, I see that we did notuntil nowhave a financial letter specifically targeted at helping average investors protect themselves from the inevitable decline of the once-great American empire. The solution Ive come up with may be radical, but in todays day and age, with America on the brink, we owe it to our customers to show them how to protect their assetseven to profitas the other shoe drops for the economy and for America as a country. Introducing... Empire of Debt: A Survival and Profit Bulletin. Yes, a long name, but thats exactly what the advisory isa service to help investors protect themselves as the devastating debt their country has accumulated during years of misguided management finally cripples America. You access issues of Empire of Debt: A Survival and Profit Bulletin, published monthly, on a secret password-protected web site. As you will see below, I will send you the first issue right to your e-mail inbox. Each issue of Empire of Debt: A Survival and Profit Bulletin starts by addressing the most recent challenges facing debt-ridden America, tells you about any government actions that might undermine your investments, and updates you on any changes in our recommended investment portfolio. If something changes with one of our recommendations and it cant wait until the next issue, we issue an Investor Alert sent directly to your e-mail inbox. The protection strategies and stocks recommended in the three research reports mentioned above are reviewed in each issue of Empire of Debt: A Survival and Profit Bulletin.

Speaking of those three special research reports, when you accept a charter membership to Empire of Debt: A Survival and Profit Bulletin today, Ill gladly send you the three reports with my compliments just for trying out Empire of Debt: A Survival and Profit Bulletin. The three research reports included with your subscription: Safe & Steady Double Income From Two Untouchable Banks How Your Deposits in the Safest Bank in the World Go up in Value as the Greenback Depreciates The Two Best Non-U.S. Gold Stocks an Investor Can Own Regularly, monthly advisory services of Lombardi Financial run $195 a year. I told our publisher I wanted to give potential members to Empire of Debt: A Survival and Profit Bulletin the best deal ever. He agreed to knock $100 off the price for the first 5,000 members who sign up forEmpire of Debt: A Survival and Profit Bulletin. Hence, you pay only $95 for one-year of service. Please, this offer will be blasted over one million times. And I desperately want to protect you and show you how to profit as the other shoe drops for the U.S. economy. As a final giveaway, if there is ever a time, anytime, you are not happy with Empire of Debt: A Survival and Profit Bulletin, just let us know and well send you a prorated refund of your undelivered issues. The three special survival and profit research reports; they are always yours to keep! Please join me today! Yours truly,

A. Newman
Adrian Newman Chief Research Director, Lombardi Financial

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