Real Money Perspectives 2011

Real Money Perspectives 2011

How To Purchase Gold & Silver From Swiss America

1. Strategy
Your Swiss America broker can help you design a tangible asset strategy using U.S. gold and silver coins.

2. Funding
Once you have chosen your coins and know the exact amount, have your bank transfer the funds to our Client Purchase or Product Sales Account as follows:

Numismatic Purchases
(Swiss America Trading Corp.)
Wells Fargo Bank, N.A.
San Francisco, CA
ABA #121000248
Client Purchase Account #4159531235
For the account of SATC
For further credit to: (client's name)
Attention: (your broker's name)

Bullion Purchases
(Swiss America Product Services, LLC)
Wells Fargo Bank, N.A.
San Francisco, CA
ABA #121000248
Account #1327965453
For the account of SAPS
For further credit to: (client's name)
Attention: (your broker's name)

3. Lock-In
Your broker will walk you through our lock-in procedure with our trading desk. This guarantees price and availability of your coins

4. Shipping
Your purchases will be shipped by Registered, Insured U.S. Mail within 7-21 days.

5. Service
Your broker is available between 8 AM and 6 PM (MST), Monday through Friday to answer your questions and provide you with periodic updates of your portfolio and market performance.

Table of Contents

Introduction: What to Expect in 2011
By Craig R. Smith, Chairman, Swiss America, Author
The most important news story of 2010 went almost unreported because it happened during the same week in November that Americans ate their fill on Thanksgiving and shopped until their wallets were empty on Black Friday.
Page 1

Are You Prepared or Waiting for The Panic?
By James M. Carrillo, Sr. Broker, Swiss America
I see gold and silver as the biggest bull market we will see in our lifetime. This represents a massive wealth shift. When the panic arrives, everyone in paper assets will be rushing for the exits. If you wait for that panic you most certainly will get trampled
Page 2

Is the Fed Trying to Crash the Dollar?
By Lowell Ponte, Author, Columnist
On November 2, 2010, the American people voted overwhelmingly for smaller government and lower taxes. On November 3, the Federal Reserve Board imposed one of the biggest tax increases in world history.
Page 3

Think You've Missed The 21st Century Gold and Silver Rush?
Special Alert: Huge Opportunities Exist in Investment Grade Coins - Generic gold, silver and better date pre-1933 coins are at bargain basement levels, but not for long. Economists and experts worldwide agree, gold will continue its meteoric rise for years.
Page 5

Obama Embraces Globalism with Diminished U.S. Economy
By Dr. Jerome Corsi, Author, Columnist
In little-noticed remarks during the town hall meeting in Mumbai on Nov. 7, 2010, President Obama again embraced globalism, despite mounting evidence that globalism means prolonged unemployment in the United States as the U.S. middle class slips into poverty.
Page 7

We're Headed for "Weimerica," Unless...
By Craig R. Smith, Chairman, Swiss America
Most summer vacation readers in 2010 escaped into vampire novels or murder mysteries. In England, however, many of the world's most powerful bankers were paying up to $700 apiece for rare copies of a 1974 book...this was the hot summer's chilling bestseller
Page 9

2011: The Age of Four-Digit Gold
by David Bradshaw, Editor, Real Money Perspectives
Triple-digit gold price moves used to take a year or more, but in the coming years we should not be surprised to see dramatic daily price swings, according to the best and most accurate gold forecasters. Since decisively crossing the $1,000/oz. threshold, gold began a journey into uncharted four-digit territory Page 10 Crashing The Dollar: Quotables "The United States is digging the biggest economic hole in human history. This hole of debt is now so deep that, if you listen carefully, you can hear the voices of Chinese creditors asking one another if they will ever get back the $900 billion they have lent to us."
Page 11

What To Expect In 2011

By Craig R. Smith,
Chairman, Swiss America

The most important news story of 2010 went almost unreported because it happened during the same week in November that Americans ate their fill on Thanksgiving and shopped until their wallets were empty on Black Friday.

During Thanksgiving week, Russia and China jointly agreed they will no longer use U.S. Dollars when trading with each other.

This could do huge, and perhaps fatal, damage to the U.S. Dollar's special status as the world's "Reserve Currency" in global trade.

If, or should I say when, the dollar loses its global reserve currency status, the United States will find it much harder and more costly to borrow from nations such as China and Japan. Each of which has lent us more than $800 billion.

This is vital, because in 2010 more than 41 cents of every dollar our Congress spent was borrowed.

The weakening dollar makes foreigners reluctant to lend us money because America's current policy is to repay its debts with dollars worth less and less.

In its new QE2 (Quantitative Easing-2) policy, our Federal Reserve is printing at least $650 billion out of thin air - more than double the total number of physical paper dollars circulating today in American bank accounts, wallets and piggy banks.

This huge, new money creation effort will make every earned and saved dollar worth about 20 percent less, warns Bill Gross, manager of PIMCO, the world's largest mutual and bond fund. It could push us into dangerous inflation, maybe even hyperinflation, and higher prices for everything.

America is becoming a poorer credit risk every day.

In my new book Crashing the Dollar: How to Survive a Global Currency Collapse, I quote former Director of the New York Stock Exchange Kenneth Langone. He recently warned that, "the minute our foreign partners stop taking our debt [by lending us money], it's game, set,'s over."

The U.S. economy and dollar would then crash.

"The destiny of a currency determines the destiny of a nation," said the brilliant free-market economist Dr. Franz Pick.

Stated another way: as the era of American economic supremacy dies, the hopes and dreams of a brighter future for our children also die.

The Russia-China announcement takes us a giant step closer to that day.

What will the New Year bring?

This question is harder to answer today than it has been for more than half a century.

Our future as a nation is no longer in our own hands, as the Russia-China agreement shows.

We have borrowed trillions of dollars abroad and become addicted to ever-increasing amounts of such borrowing.

We have given others, including nations such as China, we once regarded as enemies, weapons of economic mass destruction that could wreck our economy and end America's dominant position militarily and economically in the world.

Our weakening and loss of financial independence also make us vulnerable to global economic problems such as the increasingly likely collapse of the Euro when Germany runs out of money to bail other European nations out of the consequences of their profligate spending.

A solid majority of American voters in the November 2010 election cast their ballots in most states for candidates promising smaller government and lower taxes.

This widespread popular rejection of class warfare politics led to a modest rise in corporate earnings, employment and stock prices.

But economic recovery remains anemic, in part because so much remains uncertain to potential investors.

Like the productive individuals going on strike in Ayn Rand's novel Atlas Shrugged, corporations are holding back trillions of dollars, not investing or hiring new workers until they know what taxes, health care and regulations will cost.

The nominally pro-business party won control of the House of Representatives but not the U.S. Senate, gaining enough power to slow the government-expanding future agenda of President Barack Obama and his party. However, these gains may not be enough power to roll back Obamacare and other laws already put into place, nor to stop Mr.Obama from ruling by vetoes, emergency decrees and Executive Orders.

For decades, American liberals have urged us to imitate Europe's welfare states. But now, as European countries are shrinking their governments and spending less, Mr. Obama refuses to imitate their austerity and movement toward free-market capitalism.

Instead, President Obama insists the U.S. can tax, spend and borrow our way back to prosperity. But our businesses already pay the second highest taxes on Earth, second only to Japan, which is moving to cut its business taxes and may soon make America #1 in corporate taxation.

Politicians might dig in their heels until the 2012 Presidential election, with one side refusing to raise taxes and the other refusing to cut social programs.

Such political polarization could leave the government only two ways to fund itself - more borrowing, until the world's lenders cut off our credit completely, and then "monetizing the debt." Printing perhaps 150 trillion paper dollars to pay off what we owe with essentially worthless money.

th In this 29 anniversary edition of Real Money Perspectives, I will explain why we could soon become "Weimerica," a nation racked by hyperinflation as was Germany's Weimar Republic after World War I. I'll also offer specific ways to survive, thrive and even prosper during a collapse of the dollar.

Lowell Ponte, former think tank futurist and co-author of Crashing the Dollar, makes a persuasive case that our government is deliberately debasing the U.S. Dollar.

Dr. Jerome Corsi, bestselling author of America For Sale and my coauthor of Black Gold Stranglehold (and other best-selling books) shows how globalism is undermining America's economic future.

David Bradshaw, editor of Real Money Perspectives, offers his outlook for 2011, calling it the "Year of Volatility" as we move further into "The Age of Four-Digit Gold."

Craig R. Smith is Chairman of Swiss America Trading Corporation and author of the new book Crashing the Dollar: How to Survive a Global Currency Collapse. He is also a columnist at


By James M. Carrillo, Sr. Broker, Swiss America
Dec 15, 2010

In 2002 the U.S. printed what was the most money ever created in a single calendar year to prevent a market meltdown post 9/11. Concerns were that markets would seize up and we needed to add liquidity to the system.

This is what led to the dollar's buying power plunging for the following six years, as that money made its way into the streets. The dollar did what all things do when created on a massive scale - it lost value. Meanwhile, the price of gold (real money) soared.

Today we have absolutely dwarfed the money creation of 2002 and the world knows it. Economists and credit agencies alike are warning us that nations worldwide are preparing to abandon the dollar as the world's reserve currency.

"The U.S. Dollar is Doomed", says Warren Buffett.

Former Fed Chairman Paul Volker recently warned that, "The dollar's role is in danger as U.S. influence declines."

They are far from being alone.

The prepared are divesting themselves of cash. If you have savings, an IRA, an old 401K, CDs or are invested in what may be the biggest bubble of all time: bonds, T-bills or Munis, you'd better get moving NOW!

Liam Halligan of the London Telegraph writes, "Over the coming months, the world's appetite for dollar assets will be very severely tested - perhaps very close to destruction. America boasts the world's reserve currency, of course, but its ability to borrow from the rest of the world is not without limit. Last week's US tax move poses great dangers." (Dec. 11, 2010)

Our National Debt is rocketing out of control
Hard asset prices also skyrocket in times like these as paper money is debased further and further.

In my over thirty years in the investment arena, as well as being a student of economic history, I look to the past as my guide. I wish it could be different, but all indications are that we are in for a rough ride. This is all common sense - use yours and you'll be able to survive this.

I see gold and silver as the biggest bull market we will encounter in our lifetime. This represents a massive wealth shift. When the panic arrives, everyone in paper assets will be rushing for the exits. If you wait for that panic you most certainly will get trampled. Don't try to trade in this bull market, just add to your physically-held positions on corrections.

For a more complete list of these warning shots from the wealthy, economists, political figures, countries and seasoned investment advisers, contact your Swiss America representative today.

We will provide you with the tools you need to make an informed financial decision.

Is The Fed Trying To Crash The Dollar?

By Lowell Ponte

On November 2, 2010, the American people voted overwhelmingly for smaller government and lower taxes.

On November 3, the Federal Reserve Board imposed one of the biggest tax increases in world history.

The Fed will collect this tax increase - worth over years perhaps one-fifth of the entire monetary wealth of the United States - simply by authorizing the printing of at least $650 billion in its QE2 ("Quantitative Easing-2") policy.

All the paper dollars in circulation worldwide add up to approximately $850 billion, two-thirds of which is outside the U.S. in bank vaults as reserve currency or stuffed into foreign wallets and mattresses.

What the Fed plans to print before July 1, 2011, is therefore more than double all the actual paper dollars in circulation in the whole United States.

Will this cause inflation? You betcha. In fact Fed Chairman Ben Bernanke boasts that QE2 is intended to cause inflation, his preferred antidote to the risk of deflation.

"The U.S. Government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost," said Bernanke, then a Fed Governor, in November 2002.

"By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. Government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services.

"We conclude that, under a paper money system, a determined government can always generate higher spending and hence positive inflation," said Bernanke.

"If we do fall into deflation," he said, "we can take comfort that the logic of the printing press example must assert itself, and sufficient injections of money will ultimately always reverse a deflation."

The ideal function of a central bank is to keep money honest so that a nation's currency can serve money's functions as both a medium of exchange and a store of value. From the moment of its shrouded birth in 1913, however, the private bank cartel called the Federal Reserve Board has involved politics in the money supply, just as Presidents Thomas Jefferson and Andrew Jackson warned was inevitable with any central bank.

In 1978 President Jimmy Carter's Administration and a Democratic Congress gave the Fed a second, contradictory responsibility: to adjust interest rates and the money supply to reduce unemployment.

Ironically, when Republicans like Rep. Mike Pence of Indiana have tried to undo this highly-political law they have been accused by President Barack Obama's Treasury Secretary of "politicizing" the Fed.

Left-liberals tend to see inflation as akin to Robin Hood. Inflation redistributes wealth from the "rich," those with enough money to save, and enriches government. Government can then give this extra money to its dependent poor who must spend it immediately on food and other necessities. (In legend, Robin Hood instead robbed government so he could return its wealth to those it robbed.)

Inflation, argue left-liberals, is a continuous stimulus program that creates more prosperity, because it increases spending in the economy via a "multiplier effect." Sadly, Liberals choose to ignore recent research by a team of University of Maryland economists showing that John Maynard Keynes' "multiplier effect" happens only when the money supply is stable, not inflating, and government redistribution of wealth is limited. (Even Mr. Keynes thought it insane to raise taxes during a recession.)

Keynes saw government stimulus as a way to bring rain to reinvigorate a dry economy. But today's economy is not dry. It's frozen, with corporations holding back as much as three trillion dollars because of government-caused uncertainty about taxation and the cost of hiring new employees.

When all this frozen money thaws, it will combine with trillions of government stimulus dollars in the economy to unleash potentially devastating inflation. The Fed knows this, and knows how easily inflation can get out of control, yet it continues to create more and more paper fiat currency.

"Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency," wrote Keynes, who agreed with this. "By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens...." To Lenin, inflation was a revolutionary weapon in his Marxian class war against free enterprise.

Mr. Bernanke was wrong to say the government can produce more dollars "at essentially no cost." A huge cost is borne by those who save money, lend money or are on fixed incomes when inflation sucks the value out of the dollars they save or are owed. The result is a sinking standard of living for all Americans and a crushing of the middle class.

Who would benefit from an explosion of inflation that crashes the U.S. Dollar as the world's reserve currency? Ideological foes of the United States and free-market capitalism would benefit. So would those who see America's national economic and military power as an impediment to global government and hence want the U.S. to be weakened.

Do these descriptions match Fed Chair Ben Bernanke? No.

Do they in some aspects describe former radical community organizer President Barack Obama? Perhaps. We report. You decide.

Lowell Ponte is a former Reader's Digest Roving Editor and think tank futurist. He is a Contributing Editor and columnist at Newsmax Magazine and co-author of Crashing the Dollar: How to Survive a Global Currency Collapse.

Crashing the Dollar Book Reviews

"WOW!" I'm so tickled - your book is as great as the cover! It is spot on! Thank you and The Derry Brownfield show, for publishing and airing this very timely information. I can't stop sharing it. Everyone must read Crashing the Dollar - NOW! After reading this book, if you didn't wake up, you're dead!"
-Butch J., Mansfield, MO

"Right on target! Crashing the Dollar is sure to help millions discover the most trustworthy yellow brick road to financial safety in a currency collapse."
-Jerome R. Corsi, Ph.D., #1 NYT bestselling author, senior staff reporter for World Net Daily, and managing director at Gilford Securities, NYC.

"Crashing the Dollar is outstanding! Once I started reading it I couldn't put it down. It is hard hitting and looks beyond the surface of our economic situation and reveals what is truly happening. The book gives practical advice on how to prepare for what lies ahead. I ordered another 30 copies to sell on my book table in churches where I speak."
-Bill F., Clinton, AR

"If you liked Trickle Up Poverty, you'll love Crashing the Dollar. You'll laugh, but liberals will cry. Why? Because it arms readers with evidence that Obama knows that his policies risk crashing the dollar and economy, then details how to survive and thrive a global currency collapse."
-Michael Savage, host The Savage Nation

"The dollar is crashing and burning! Prices are exploding. Jobs are vanishing. Wages are stagnant. Excuses are rampant. Answers are MIA. Do you smell smoke? DING-DING... "˜Ladies and gentlemen, the Captain has left the cockpit. Have a nice flight.' Crashing the Dollar offers critical, life-changing information about how to protect our loved ones and our country. Who knows, the family he saves may be your own!"
-Jerry M., New York, NY

"The book definitely presents a clear picture of how "˜crashing the dollar' is the wrong direction for us. At least we have some great input on how to escape the coming of "˜Weimar' to the U.S.! Thank you for producing a great book!" -David and Kristine W., Franksville, WI

"It's hard to find enough superlatives to do justice to Crashing the Dollar. It should be in everyone's hands before it's too late. Crashing the Dollar is very open and readable, with a pull toward-the-next-page. I know Weimar (Republic) is coming and trust in God. I warn friends and relatives to prepare and will be passing the book around."
-J. Armstrong, Bardstown, KY

"Crashing the Dollar is not only interesting, it is scary. I didn't know what our government is doing to us until I read the book. I am ordering 3 more books for my close friends."
-Norma K., Warwick, RI

"Mr. Smith is full of common sense. His down-to-earth analysis of how America's Middle Class is slowly being crushed resonated loudly with my audience. Crashing the Dollar is on my '2010 must-read' list!"
-Jerry Doyle, host, The Jerry Doyle Show

Swiss America 2011 SPECIAL ALERT
Think You've Missed The 21st Century Gold and Silver Rush?

Huge Opportunities Exist in Investment Grade Coins

Generic gold, silver and better date pre-1933 coins are at bargain basement levels, but not for long. Economists and experts worldwide agree, gold will continue its meteoric rise for years. These coins significantly outpaced bullion for years, but have lagged this year. History says this sale won't last long!

2010 marked the 30th Anniversary of gold's earth-shaking 1980 surge to $850 per ounce, equivalent in today's dollars to more than $2,300 per ounce.

When gold hit $850 the Standard and Poor's 500 Index was at about 145. It fluctuated from 120-150 that year. So at its peak gold was trading for six times the S&P.

Today, with the S&P trading at 1,201, if we were to use the same multiple gold would be well over $7,100. Thus the opportunity for much more growth in gold. This addresses the concerns that the bull run in gold is over. Many people say gold is at an all-time high. They are incorrect.

In nominal terms it is, but when looking at investment return you always must adjust for inflation to arrive at the true value. That value would be around $2,300, again providing plenty of room for growth.

Precious metals are soaring again with gold bullion approaching $1,400/oz. and silver bullion nearing $30/oz. Clearly bullion is leading this phase of a secular (long-term) bull market in precious metals and numismatic coins that began in 2001. This current price surge reflects an unprecedented worldwide currency debasement event.

Amid these dramatic bullion price increases some investors have expressed concern that the prices of their U.S. $20 generic gold coins and/or Proof American Eagle gold coins have not risen as fast as bullion prices. Therefore, we want to bring you up to date on the latest developments affecting the bullion and coin markets.

Secular bull markets in commodities and collectibles can be volatile, as we have told our clients for nearly three decades. We have always recommended buying gold coins for safety first as "wealth insurance." Economist Doug Casey of Casey Research confirms our advice, saying, "Gold, especially at these levels, is NOT something to make money, it is something to preserve the wealth you have."

Back in 2002 Swiss America Chairman Craig R. Smith told CNNfn that the "premiums" (price above a coin's bullion melt value) on collectible U.S. gold coins fluctuate, depending upon supply and demand fundamentals at the time. Mr. Smith warned investors that prices are subject to decline if the supply suddenly rises (See our "Rare Opportunity" DVD).

With that in mind, here are the answers to three frequently-asked questions in 2010:

One major reason for the lagging price performance of $20 gold coins in 2010 is European bank liquidations of large numbers of $20 Liberty and Saint-Gaudens coins. These coins, which originally fled from the U.S. to Europe (in 1933 to escape FDR's melting pots, and again in the late 1970s and early 1980s as an inflation hedge), are now returning home to the U.S., but this limited supply will not last.

The global financial and debt crises of the last two years have forced many banks to come up with cash to pay down their debts, or risk losing their credit ratings overseas. Because all markets are governed by supply and demand, this liquidation has caused a temporary boost in the supply, a softening of premiums and a seeming disconnect from rising bullion prices. But fluctuations of numismatic premiums represent an opportunity for a classic "gold double-play" because their premiums typically return.

The chart above illustrates the wisdom of buying during the dips. $20 Liberty gold coins (MS-63) dipped this year following the supply spike, but prices are now rebounding. Prices are now up 380% since 2002, yet they are still 30% below the recent price peak, making them an excellent value right now.

Today the demand for U.S. collectible coins is almost entirely driven by U.S. citizens. But the international demand for classic U.S. $20 generic gold coins is also growing daily. With a finite (or fixed) supply of these coins available, it would only take a few major investors to soak up this limited supply, given the excellent track record of U.S $20 gold coins over the long term.

History has shown that U.S. numismatic and generic $20 gold coin prices trailed the great bullion run of 1979-80 substantially, but later prices rallied as much as 500% more than bullion! In 1980-81, when bullion prices fell sharply, the generic $20 gold coin market continued to rally, allowing investors time to liquidate near the highs.

Over the last three years we have seen periods where the premiums for $20 gold coins were substantially higher than bullion. Historically, generic gold coin premiums skyrocketed as the stability of numismatics became more attractive than the volatile bullion markets.

In September 2010 the U.S. Mint surprised coin investors and collectors by announcing plans to produce an additional 111,350 ounces of gold in 2010 and to issue Proof condition coins in 1 oz, 1/2 oz, 1/4 oz, and 1/10 oz. coins starting in October 2010. This news of rising supply caused Proof Gold Eagle premiums to fall sharply, despite bullion advances.

Conversely, in 2009 the Mint canceled production of Proof Gold Eagles as a result of the increasing demand for bullion coins. This lack of production caused premiums to rise sharply. The 5-year chart illustrates the jump in the premium was as much as $1,200 per coin over bullion prices. Today that premium has shrunk by half, to $600 per coin. So the U.S. Mint's announcement of increasing or decreasing production can temporarily affect premiums.

Currently Proof Eagles are over 30% below their recent peak. With limited supply and consistent high demand this sale may end quickly.

We anticipate that the 20% per year price growth since 2005 of Proof Eagle gold coins will continue, * but, as with all collectibles, prices fluctuate, at times outperforming and underperforming bullion. We recommend a minimum 3-5 year holding strategy.

CONCLUSION: $20 Double-Eagles Are the Buy of the 21st Century
Market cycles produce ups and downs on various types of U.S. gold and silver coins. For example, even within the bullion market gold has led the rally with silver prices sometimes lagging 1-2 years behind. This explains why silver bullion prices have recently grown twice as fast as gold prices. We expect this anomaly will also correct itself over time as the cycle again changes.

Large-scale bullion purchases by Wall Street hedge funds via gold electronically traded funds (ETFs), along with mega-buying by foreign central banks, have helped to propel gold prices in recent years. Like 800-pound gorillas stomping into calm waters, these mega-buyers have helped splash bullion prices skyward. But, if and when they decide to take short-term profits, watch out! Gold bullion prices could temporarily come down quickly!

Meanwhile $20 generic prices are likely to remain stable because speculators were not responsible for artificially lifting generic gold coin demand as they have bullion demand. Beware of all paper gold promises. We feel strongly that physical delivery of your gold is always safer and more rewarding over the long term compared to speculative paper gold investments.

"The national economy has fallen so far that it could take years to climb back," reports The New York Times. The U.S. middle and lower classes are running scared. Sadly, massive investments are being driven into what could prove to be the worst place of all, the "not so safe haven" of Treasury Bonds and Bills. When inflation hits (and it most certainly will) these investors will be running for the exits and into a very limited supply of hard assets.

Presently the amount of money going into U.S. bond funds is about to exceed the amount that went into stock funds during the Dotcom bubble, stoking concern that fixed-income markets are ripe for collapse. Much of that smart money is now on the lookout for the best values in the gold market, i.e., undervalued market niches such as $20 generic gold coins.

The premium price lag between $20 gold pieces and bullion is a short term phenomenon. As the PCGS chart below illustrates, this present price dip is the 7th dip over the last decade, with each rebound taking prices to higher highs and higher lows.

If your reason for holding U.S. gold coins is as a long-term insurance policy against a collapsing currency system, then stay the course and you will be rewarded.

Historically, numismatic coins have also provided the maximum privacy of ownership. Under current law, numismatic and generic $20 gold coins are private and non-confiscatable. The Federal Government left numismatic and generic coins in owner hands when it confiscated gold bullion in 1933.

Your Swiss America representative can explain a "ratio-trading" strategy that can help increase your total ounce gold holdings over time without new investment capital. Call today to discuss this strategy at 1-800-289-2646.

* Past performance is no guarantee of future performance. All investments have risk.


Mineweb (10.13.10) -- "Total net investment in gold in the first 7 months of 2010 was $2.7 billion.

Yet, during the same period, investors poured $22 billion into emerging markets mutual funds, and some $155 billion into bond funds."

The Casey Research chart shows investment gold holdings as a percentage of global financial assets.

Yes, diversification into gold has doubled over the last five years - from one-quarter percent to over one-half percent! But that is still a long way from the 1980 level of 2.77%, which was 500% higher than 2010.

Doug Casey: "If you think of a manic peak similar to that of 1980, you get an inflation-adjusted gold price of $2,250/oz., just to match that peak. If you use John Williams' Shadow Government statistics, which I believe are much more accurate, you get a number over $3,500/oz.."

"Just to redeem the approximately $7 trillion owned by foreigners would need gold at about $25,000 an ounce. But if you take the U.S. national debt - say $14 trillion, which is a gross understatement - and divide it by the 262 million ounces of gold thought to remain in Fort Knox - you get a number in excess of $50,000 per ounce." - Doug Casey on Gold's New High, the Fed, and the Greater Depression, Interviewed by Louis James, Editor, International Speculator, 11.12.10

Obama Embraces Globalism with Diminished U.S. Economy

By Dr. Jerome Corsi, WND Red Alert

In little-noticed remarks during the town hall meeting in Mumbai on Nov. 7, 2010, President Obama again embraced globalism, despite mounting evidence that globalism means prolonged unemployment in the United States as the U.S. middle class slips into poverty.

The United States, Mr. Obama acknowledged, is headed toward a diminished economic future: "For most of my lifetime...the United States was such a dominant economic power, we were such a large market, our industry, our technology, our manufacturing was so significant that we always met the rest of the world economically on our terms.

"And now, because of the incredible rise of India and China and Brazil and other countries, the United States remains the largest economy and the largest market but there's real competition out there."

Recently listed 20 reasons why globalism means economic hard times for the United States:

1) American workers are being merged into a global labor pool where they must directly compete for jobs with workers on the other side of the globe that make less than 10 percent of what an average American worker makes. Jobs flowing away from areas where labor is expensive to areas where labor is cheaper are unlikely to return.

2) Globalization has caused the U.S. trade deficit to absolutely explode. In 1985, the U.S. trade deficit with China was $6 million for the entire year. In the month of August alone, the U.S. trade deficit with China was over $28 billion.

3) Today, the United States spends approximately $3.90 on Chinese goods for every $1 that China spends on goods from the United States. This represents a massive transfer of wealth from the American people to China.

4) According to a new study conducted by the Economic Policy Institute, if the U.S. trade deficit with China continues to increase at its current rate, the U.S. economy will lose over half a million jobs this year alone.

5) The United States has lost approximately 42,400 factories since 2001.

6) The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.

7) Even high technology industries are leaving America. Manufacturing employment in the U.S. computer industry is actually lower in 2010 than it was in 1975.

8) In 1959, manufacturing represented 28 percent of all U.S. economic output. In 2008, it represented only 11.5 percent.

9) As of the end of 2009, fewer than 12 million Americans worked in manufacturing. The last time less than 12 million Americans were employed in manufacturing was in 1941.

10) With so much manufacturing leaving the United States, is it any wonder why people can't find jobs? The "official" unemployment rate in the United States has been at nine and a half percent or above for more than 14 consecutive months.

11) Today, there are at least 1.5 million "99ers" - those Americans who have completely exhausted all 99 weeks of unemployment benefits and that still do not have jobs.

12) Our dependence on foreign oil also represents an absolutely shocking transfer of wealth from the American people to the oil exporters of the Middle East. Back in 1980, the United States imported approximately 37 percent of the oil that we use. Now we import nearly 60 percent of the oil that we use.

13) Energy imports account for approximately one-fourth of the U.S. trade deficit.

14) In states such as Mississippi, people spend approximately 6.35 percent of their income just on gasoline, according to a recent report by the National Resources Defense Council.

15) Americans end up paying to support American workers one way or another. Either they buy American-made products and services that provide jobs for American workers, or they pay to support unemployed American workers on welfare. Today, more than 42 million Americans are on food stamps. A record number of Americans are receiving long-term unemployment benefits. One way or another, Americans are going to pay to take care of American workers.

16) The U.S. trade deficit is running about $40 or $50 billion a month in 2010. The United States spends $40 to $50 billion more on goods and services from the rest of the world each month than they spend on goods and services from us. This means that by the end of the year, approximately half a trillion dollars (or more) of our wealth will have left the United States for good.

17) All of this wealth leaving the United States is having a huge impact on the standard of living of average Americans. Ten years ago, the United States was ranked No. 1 in average wealth per adult. In 2010, the United States has fallen to seventh.

18) It is now just a matter of time until India is going to pass us as an economic power. In fact, the economy of India is projected to become larger than the U.S. economy by the year 2050.

19) It is now being projected that China will soon dwarf us as an economic power. One prominent economist now says that the Chinese economy will be three times larger than the U.S. economy by the year 2040. According to one recent study, China could become the global leader in patent filings by 2011.

20) China has been accumulating a gigantic mountain of dollars from all of the wealth we have been sending them each month, and they have been lending massive amounts of this money back to us. Over the past few decades, the communist Chinese have been able to accumulate approximately $2.5 trillion in foreign currency reserves, and the U.S. government now owes them close to $900 billion. We constantly have to send top government officials over there to beg them to continue to lend us money. This is a direct threat not only to our financial system, but also to our national security.

Judging from Obama's comments in Mumbai, he is well aware globalism means a diminished economic prospect for the U.S., but he still embraces it.

"This will keep America on its toes," Obama told the town-hall meeting in India. "America is going to have to compete."

Jerome R. Corsi, Ph.D., is the author of America for Sale and other bestselling books. Dr. Corsi is a Senior Managing Director in the Financial Services Group at Gilford Securities as well as senior staff reporter for

We're Headed for "Weimerica," Unless...

By Craig R. Smith, Chairman, Swiss America

Most summer vacation readers in 2010 escaped into vampire novels or murder mysteries.

In England, however, many of the world's most powerful bankers were paying up to $700 apiece for rare copies of a 1974 book, reported the London Telegraph. In their elite inner financial circles of power and wealth, this was the hot summer's chilling best-seller.

This non-fiction book, Dying of Money: Lessons of the Great German and American Inflations by Jens O. Parsson, explores in frightening psychological detail how the debasing of money first seduces, intoxicates, confuses, surprises and then devastates people, nations and cultures.

Modern paper currency is what economists call "fiat money." Its only backing is a government declaration that it is legal tender for the payment of debts denominated in that currency. Yet government makes no guarantee that its money can or will be convertible into anything - not gold or silver or even beans.

Money works only because people believe it is a store of value over time and agree to use it as a trustworthy medium of exchange. So what happens when people lose their faith in paper money, as sophisticated London bankers fear is happening to the U.S. Dollar and many of the world's other major currencies?

Money's value can go to zero, as Germans learned to their horror in the early 1920s under the left-liberal Weimar Republic.

As bankers and economists know, the collapse of money in Weimar could soon occur again. And this time in our economically interdependent world, a crash of the U.S. Dollar or the Euro could set off a domino effect, toppling one major currency after another and bringing down the worldwide system of money and trade.

A "global Weimar" is fast approaching unless today's policies change, the first President of the European Bank for Reconstruction and Development Jacques Attali warned readers of the Wall Street Journal.

Billionaire investor Warren Buffett has urged people to read another 1975 history of this horror, When Money Dies: The Nightmare of the Weimar Collapse by former Member of the European Parliament and journalist Adam Fergusson.

My new book Crashing the Dollar: How to Survive a Global Currency Collapse, offers a chilling look back at Weimar - how its hyperinflation happened, what damage it did and why it suddenly ended. This could be a glimpse of America's future.

Crashing the Dollar also offers ways to prevent, survive and even profit from the dying of today's money.

Like most other countries that plunged into World War I in 1914, Germany set aside its successful gold-standard currency so that it had no constraints on printing as much money as it wished. These nations assumed the war would be short, that they would win, and that they could then force the losers to pay the war debts of the winners.

Germany lost and was hit with a huge bill for reparations, 132 billion gold Reichsmarks, roughly four times Germany's maximum annual national product and greater than Germany's entire national wealth.

After the war Germany kept printing money. At first this produced the illusion of prosperity and little inflation. But as people began to realize their money was nothing more than unbacked paper, its value started to plummet.

By 1923, when its currency collapse came, Germany had printed more than a sextillion (21 zeroes) Marks. By then people rushed with wheelbarrows to carry the money needed to buy a loaf of bread. Money literally lost value by the hour. A cup of coffee ordered at a cafe might be priced 5,000 Marks when ordered but 8,000 Marks when the bill was presented.

In Berlin, foreign exchange students using their tiny stipends from home were able to buy an entire block of apartment buildings.

The old values of hard work, morality and thrift were destroyed by the Weimar hyperinflation as people found that what they saved all their lives was now too little to buy a single postage stamp. But those who speculated, had foreign currency or their own personal gold standard got rich. This shattering of traditional values caused social upheaval and later paved the way for Hitler.

The Weimar inflation cooled only when the German government led its citizens to believe their new currency would be backed by gold.

The U.S. Government already uses slow inflation as a hidden tax. Your dollar today has lost at least 96 percent of the purchasing power it had in 1913. The dollar's last link to gold convertibility was severed in 1971. By 2008, when the current economic crisis began, the dollar had shrunk to only 19 percent of its 1971 purchasing power and is still falling.

The Fed is now printing another $650 billion for its second round of Quantitative Easing with a distinct possibility of more to come. Couple that with the dollar's race, with other major currencies, to the bottom in a contest to see who's will be the weakest. All the while making our export goods less expensive. Clearly this policy of deliberate inflation could easily run amok.

America turning into Weimerica is more than theoretically possible. In the end our politicians will be unwilling to double taxes on everyone or cut all government spending in half, as the International Monetary Fund in Summer 2010 calculated would be necessary to prevent America's bankruptcy.

What politician would vote for such painful policies when a printing press can become an unlimited credit card for government spending?

Because the debts politicians have run up are already too large to ever repay any other way, our politicians will be tempted to run the presses and create Weimerica.

2011: The Age Of Four-Digit Gold

by David Bradshaw

We'll all be surprised at what gold can do when the jig is up for paper money"¦We'll see days when gold is up $100, and then down $100. We should start thinking three digits in terms of intra-day moves on the gold price."
-John Hathaway, Tocqueville Gold Fund, 12.1.10 - King World News

Triple-digit gold price moves used to take a year or more, but in the coming years we should not be surprised to see dramatic daily price swings, according to the best and most accurate gold forecasters. Since decisively crossing the $1,000/oz. threshold in September 2009, gold began a journey into uncharted four-digit territory. In the early stage of this 21st Century bull market cycle, gold prices systematically grew by three digits ($100/oz.) per year. The price of the shiny yellow metal averaged $300 in '03, $400 in '04, $500 in '05, $600 in '06, $700 in '07 and $800 in '08.

In 2009 gold prices blasted past $900, $1,000 and $1,100 to top $1,200/oz., marking the beginning of the next stage of this bull market supercycle (15-23 year) in commodities, precious metals and numismatic coins.

In 2010, a typical healthy correction sent gold prices dipping below $1,100 before rushing back to near $1,400. Today scores of experts are forecasting $1,500-$1,700 gold in 2011 on the way north of $2,000/oz. For over a decade we've been right on the money and so have our readers.

-We said 2007 would be a "˜Year of Opportunity'. We found 30 economic experts who agreed gold would top $2,200/oz. We warned that the days of a "stealth" bull market were numbered.

-We said 2008 would be a "˜Year of Surprises'. Craig Smith announced the beginning of gold's "public era" and that government economic stimulus was a terrible idea and would fail.

-We said 2009 would be a "˜Year of Change'. We warned of the coming great inflation, bond market risks and explained why bailouts could not stop the natural course of market cycles.

-We said 2010 would be a "˜Year of Challenge'. We said the "recovery" was just a rest stop on the road to economic ruin and explained why a falling dollar would soon crush the middle class.

Today we're saying 2011 will be a "˜Year of Volatility'. As political worldviews clash, so will markets and currencies buckle under the weight of unsustainable spending and debt. The economic confidence game will be exposed by the brightest financial light in the world, Gold.

The bullion and coin markets will not escape the coming volatility. 2011 will be a year to hold on tightly to your family, friends, faith and tangible assets. I envision millions of Americans adding to their physical gold and silver holdings as the truth about real money goes mainstream.

Speaking of real money, twentysomething years ago Craig Smith and I asked a simple question at every "Economic Solutions" seminar nationwide. It's also a key question on our "Rare Opportunity" 30- minute DVD. I leave you with the same question: "Would you invest your life savings in a company (or currency) with a 95-year track record like this?"

The culmination of thirty years of economic and market research concerning the future of the U.S. Dollar can be found in Mr. Smith's newest book Crashing the Dollar: How to Survive a Global Currency Collapse. It is a word fitly spoken during America's greatest time of need.

David Bradshaw has served as editor of Real Money Perspectives since 1987 updated daily at He also published Rediscovering Gold in the 21st Century (2001), and Crashing the Dollar: How to Survive a Currency Collapse (2010),

Crashing the Dollar QUOTABLES


"Debt, like other addictive drugs, requires an everincreasing dose for users to keep feeling the high that first stimulated and then hooked them. This produces a death spiral of ever-greater debt dependency."

"Debt cannot be seen, tasted or touched. It, too, is like the ghost of the once-valuable U.S. Dollar. But the specter of debt can turn our hair gray, shorten our lives by causing stress, and - as President John Adams understood - snuff out the torch of Lady Liberty that used to enlighten our values and ideals."

"We are rapidly plunging into a Debtocracy in which our future will not be governed by Republicans or Democrats but will be ruled and then ruined by an ever-expanding debt monster so large that it devours everything we, our children and our grandchildren earn and own."

"What will happen when people wake up and realize that - in inflation-adjusted dollars - they are earning no more today than they did three decades ago?"


"Today's paper dollar is a faith-based currency. Officially convertible to nothing, the U.S. Dollar has value only so long as people believe in it. This is why John Exter, who was a Fed board member and a Vice President of the Federal Reserve Bank of New York, called the post-1971 dollar "an I.O.U. Nothing."

"The ancient Chinese invented not only money but also paper money, which they called 'wind money' because it could so easily be blown away.

"Inflation destroys the social cohesion and morality of capitalist countries. It is therefore a weapon and tool of revolution for socialists."

"Today the U.S. Dollar is a fiat currency backed only by the promises of the same politicians who created today's economic problems."

"When you invest your life savings in paper fiat dollars in our growing welfare state, you are buying the equivalent of junk bonds in a government with debts too large ever to be paid. You are betting your and your children's future on politician paper promises that can be made worthless almost overnight, as happened in the Weimar Republic, during 1922-1923."


"Government is run by people who can screw up a one-piece puzzle."

"Those who wait for the government to bring their financial salvation should remember the three things one can always assume are lies - 'The check is in the mail,' 'I will respect you in the morning,' and 'We're from the government, and we're here to help you.'"

"The fallacy of government stimulus, of course, is that it must take the money from somewhere before spending it, and this taking prevents what would have been spending by private businesses and individuals. Keynesians have always justified this by claiming a 'multiplier' effect for money spent by government - but the Great Recession appears to disprove the Keynesian claim."

"Since socialist welfare states destroy the work ethic and drain the capital from capitalism, they always consume more of a society's wealth than they produce and, sooner or later, inevitably slide into economic death spirals, as European welfare states such as Greece have done."

"In the wild West stagecoach robbers would cry out 'Your money or your life!' But in truth your money is your life.

Each of us has only a limited number of hours on this Earth, and we exchange many of these, literally a large piece of our lives - to earn money for our families."

"When Democrats tax away more of our dollars to give them to cronies and political supporters, they are taking more and more of our lives that could have been spent helping our own children or fulfilling our own dreams, our own individual pursuit of happiness."

"This expropriation of our life, liberty and pursuit of happiness violates our most fundamental human rights set forth in the Declaration of Independence. At what point does taxation become slavery?"


"Under a properly-functioning gold standard the economy is self-regulating and needs no government master to tighten or loosen credit or juice the system."

"[A] gold standard, as [economist Alan] Greenspan indicated, would undermine the entire economic and political infrastructure of today's democratic socialist welfare state."

"[T]he yellow brick road also led to Oz, and that is no coincidence. Some scholars believe that L. Frank Baum's 1900 tale The Wonderful Wizard of Oz is actually a parable about monetary reform in which the sure road is gold, Dorothy's slippers were in the original book silver instead of ruby, and Oz is the abbreviation for Ounce, the measure of gold and silver.

"The story reflects the great debate of the 1890s in the upper Midwest, these scholars say, over whether government should issue gold-backed or silver-backed currency. This debate gave us 1896 Democratic presidential candidate William Jennings Bryan's famous 'You shall not crucify mankind upon a cross of gold' speech.

"Baum at the time was editor of a South Dakota newspaper in the midst of such populist activism, and his book was published in 1900, the year of Bryan's second presidential run."

For more information about Craig R. Smith's new book Crashing The Dollar, please visit


1. Over 300 years combined experience in U.S gold & silver coins.

2. Serviced over 700,000 inquires in 29 years of business.

3. Serviced over 50,000 clients in 29 years of business.

4. No unresolved complaints with any agency.

5. U. S. Coin Industry Affiliations:

* American Numismatic Association (ANA) - Life Members
* Industry Council for Tangible Assets (ICTA) - Member
* Numismatic Guaranty Corp (NGC) - Dealer
* Professional Coin Grading Services (PCGS) - Dealer
* Canadian Numismatic Assoc. (CNA)
* National Silver Dollar Roundtable (NSDR)
* World Proof Numismatic Assoc. (WPNA)
* Certified Acceptance Corporation (CAC)
* Numismatic Consumer Alliance (NCA) - Sponsor

About Craig R. Smith

Craig R. Smith is of Swiss America Trading Corporation, an investment firm specializing in United States gold and silver coins. Smith founded the company in 1982 out of a bedroom in his home with $50.00. It has since grown into one of the largest and most respected firms in the industry. An expert in tangible assets, he is an author, commentator and frequent radio and television guest because he instantly engages audiences with his commonsense analysis of economic trends. He writes a weekly column for and publishes Real Money Perspectives newsletter.

DISCLAIMER: 1. Swiss America Trading Corporation, its principals and representatives, in no way guarantee a profit or guarantee against a loss on any coin purchased. 2. Significant price swings in a short period of time are possible. 3. The degree of liquidity for certified coins will vary according to the general market conditions and the particular coin involved. 4. Swiss America and its representatives are not certified to provide tax, legal, insurance or investment advice. You are solely responsible for determining whether any investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an accountant, attorney or tax professional regarding your specific legal or tax situation.

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