For us, this approach to investing has been extremely successfulgiving us one of the world’s longest histories of impressive double- and triple-digit investing gains, with winners like
100% gains on Multicorp in a single month249% gains in four months on Phillip Morris114% gains on euro callsand another 170% gains playing put options on euro calls145%, 221%, 249%, 445%, 420%, 1,400%, and more
I could run that list for you all night.

The point is I’d like to invite you - in just a moment - to join that network. And to start making money with our help, on exactly these kinds of critical and potentially lucrative mega-trends. This is the smartest group of experts and insiders I know when it comes to the strategies for making money by understanding the true course of world events.

And giving their recommendations a little consideration, with their expertise and mine to guide you, couldn’t be more crucial to your wealth than right now, as you’re about to see. And the sooner you seize this opportunity, the better for us. But also, I believe, better for you.

Which is why I’m actually offering you this $100 incentive to get startedbecause it’s critical you act on this as quickly as possibleespecially as this dangerous new financial twist to the Terror War gets ready to present American investors with one of the biggest moneymaking-or-breaking mega-trends in decades!

Let me explain

How to Lose an Empire in 3,000 Years or Less

Here’s the backdrop: As far back as you can go in history, war and money share a vital connection.

Bank notes and Treasury bonds. National Debt. Hyperinflation and intentionally debased currencies. Central bankingall got their start in wartime.

Ancient Persia cranked out coins to “buy” a warpath that led to Greece. They lost, and Alexander the Great used their captured riches to finance his own war on Asia (paying the Greek armies alone used up half a ton of silver per day).

To fund the Punic Wars, Rome debased its money - and suffered so much inflation, it weakened its defenses against barbarian attacks. Debased coins bought mercenaries for the Anglo-Saxonsand helped William the Conqueror launch the Norman Invasion.

The Brits used debt to fight Napoleonand the American Colonies used hyperinflation to fight off the Brits, almost bankrupting themselves in the process (”Continental” coins were so debased, they were worth 1/1,000th of their original face value after the Revolution).

In the Civil War, the South went broke printing Confederate dollars. But the North almost did too, overselling over $853 million in war bonds. In World War I, the Brits took out the biggest loan in banking history. In World War II, the U.S. National Debt rocketed from $16 billion to over $260 billion.

War is money. Korea and Vietnam. Gulf War I and Kosovo. The country with the cash almost always takes the crown. But if that cash runs out, a whole new battle plan must emerge. Or you stand to lose more than your dignity.

Glyn Davies, a World War II vet and economist, said it best
“The military ratchet is the most important single influence in raising prices and reducing the value of money in the past 1,000 years, and for most of that time, debasement was the most common, but not the only, way of strengthening the ’sinews of war.’” (A History of Money, p. 646)
First the war. Then the financing crisis.

Followed by weaker currencies, soaring prices, and - if the citizens of a warring nation are not careful - an overall reduction in personal wealth. On a massive scale.

It has happened throughout history over and over again.

And it’s happening now, again

The Hidden Cost of Terror

There’s a cost to today’s Terror War that nobody wants to talk about.

Not the human cost, which is splashed all over the headlines. But something much more subtle. Much more difficult to detect or unravel. But, in ways, just as dangerous for the future of America and its economy. I told you earlier about a 2,347-page, 11-pound government document. This document is not top secret. It’s a matter of public record. You can find pieces of it online already. The headlines even covered its release.

But they barely touched on the massive impact this document will have on investorslet alone the shocking implications it makes about our future abilities, as a nation, to actually “win” today’s massive and mostly abstract War on Terror.

What this document represents is a complete lack of commitment or foresight on the part of our elected and appointed government to do anything whatsoever over the coming year to protect your individual wealth or investments.

It also represents over $2.77 trillion that will be sucked out of the U.S. economyand out of the pockets of U.S. taxpayers and investorsduring fiscal year 2007.

In case you haven’t guessed, of course I’m talking about the proposed U.S. budget, which the White House released earlier this year, in the first week of February. See if you can get your mind around this $2.77 trillion number

That’s $5.3 million per minuteor $53 billion per weekand well over the entire accumulated wealth ($2.6 trillion, per Forbes) of all 793 billionaires worldwide!

Without batting an eye, our government intends to spend that muchand add that big of a total expenseto our already dizzying National Debt. More than $439 billion of that total is earmarked for helping our military wage this ongoing Terror War.

Now, don’t get me wrong.

America is an empire. Empires have enemies. Empires need armies.

But the simple truth is that it doesn’t matter who or how big you arenobody can continue to spend money he doesn’t have! And that’s the core of the crisis Wall Street and Washington refuse to warn you about

Living Like a Lottery Winner. . . on Someone Else’s Dime!

See, the America we’re defendingis barely even ours to defend! That’s right.

Over the last five years, our government has sold it off.

Piece by piece.

To whom?

With U.S. spending so out of controlwith war costs mountingand American consumers so deeply mortgaged or otherwise overextended, our government did what other governments throughout history have always done.

It borrowed without restraint.

Unbelievably, one of our biggest “merchant masters” in this lending exchange happens to be one of our biggest competitors: China. The Chinese alone already control over $262 billion in U.S. Treasuries. Japan, another former and future competitor, controls another $668 billion.

That’s just in public U.S. government debt. It gets worse.

In total actual U.S. dollar reserves, China has nearly $700 billion tucked beneath the mattressand Japan, more than $685 billion. Even Taiwan, Singapore, and South Korea have a combined $157 billion hidden away.

And we’re not even talking yet about how much foreign investors control our markets for U.S. corporate bonds and company shares. Right now, including both stocks and bonds, foreign investors own an incredible $8.4 trillion of U.S. assets. Meanwhile, the United States holds $5.3 trillion of foreign assets.

While everybody feels good about the future of America, all this helps our Fed print more dollars. It helps keep our real estate bubble afloat a little longer. And it helps give much-needed juice to the U.S. economy. It even helps finance our Terror War.

But how long will foreign investors keep this up?

Simple.

Investors hang on while their positions make money. Or when the risk remains low enough to justify the return. If the risk premium rockets upward, or those returns dry up, smart investors run for the exits. That’s exactly what I’m warning you about today, in the case of our foreign bondholders

America: A Business Not Worth Buying Let’s pretend you were buying America, the business. Even without considering the cost of the War on Terror, take a look - from that perspective - at what the foreign bond buyer now sees:

• Consumer buying is 71% of our total GDP. But consumers can’t buy anymore. Because they’ve just taken on an extra $4 trillion in mortgage and credit card debt, just in the years after Sept. 11. Consumer debt has grown twice as fast as consumer income over those same years, while savings have plunged

• Meanwhile, America spends 57% MORE on buying products overseas than we actually make exporting our own products to those same overseas customers - for a mind-blowing, record-setting trade deficit of $804.9 billionthat the FY 2007 budget puts at $1.1 trillion by 2011

• When you factor in Social Security reform, plunging federal revenue, and the usual growth in government spending, Yale University research puts the ACTUAL deficit figure closer to $5.93 trillion! Yes, that’s “deficit” spending - or money added on top of the debt we already owe, each year

• When you factor in “borrowing” from the Social Security trust fundplus underfunded federal pensionsthe new estimate of the National Debt is actually closer to $15 trillion, nearly double what the government admits

• All that before you factor in the estimated costs of paying out promised Medicare and Social Security to the tidal wave of retiring boomers over the years ahead, which some estimate could hit as high as $72 trillion!

As a sensible investor, would you buy shares in a company in which most of its customers were technically broke? Would you buy a business that spends over $200 billion more than it sells? Or understates its annual expenses by more than 86%? That has to steal from its employees’ pension funds just to stay afloat? Of course you wouldn’t. Yet that’s exactly what we’re expecting of overseas lenders who have socked away nearly $2 trillion worth of U.S. Treasuries and dollar reserves.


Not to mention the associated risk to the tune of $8.4 trillion in other overseas holdings that are based in the United States. Here’s how great historian Paul Kennedy summed it up, in his epic book The Rise and Fall of the Great Powers: Economic Change and Military Conflict from 1500-2000:
“The triumph of any one Great Power, or the collapse of another, has usually been the consequence of lengthy fighting by its armed forces; but it has also been the consequence of the more or less efficient utilization of the state’s productive economic resources in wartime, and, further in the background, of the way in which that state’s economy has been rising or falling relative to the other leading nations, in the decades preceding the actual conflict. For that reason, how a Great Power’s position steadily alters in peacetime is as important to this study as how it fights in wartime.”

Translation: If you don’t manage your money right, you go broke!

It doesn’t matter how big, how famous, how historical, or how powerful your empire. These are basic laws of finance. They apply to anybody.

Think about this. Even Poland, after decades under oppressive communism, has a National Debt of “just” 40% of its GDP. “It’s embarrassing,” one Pole recently told me.

Meanwhile, government spending in the United States as a percentage of GDP - and remember, this was once the most stable, no-risk economy in the world - is now 60%!

Our trade deficit alone just topped $804.9 billionmore than the stock market value of Alcoa, American Express, Boeing, Caterpillar, Coca-Cola, DuPont, General Motors, Hewlett-Packard, Home Depot, Honeywell, 3M, McDonald’s, Merck, SBC Communications, and Walt Disneycombined!

At that record level, our trade deficit alone accounts for a full 6.4% of our total economic output - the worst ratio in the world. Including all those countries we’re supposed to be bigger, better, and richer than. Past research shows anything above 5% pushes the needle into the red.

So again, I’ve got to ask you: Does America, the business, sound like the risk-free guaranteed moneymaker it used to be? Increasingly, less and less.

Now, don’t get me wrong. I’m not ignoring the obvious. The U.S. stock market is still the largest and most liquid in the world. The U.S. economy is still the biggest. And our military, however overstretched, is still the most powerful in the world. We’ve got better birth rates, lower taxes, and a more entrepreneurial economy than just about any place on Earth. That’s the way it’s been for nearly a century. But for how much longer can that last?

Not much longer. And that’s why I’m so anxious to get you a FREE copy of my new report, The Trade of the Decade: Make 9 Times Your Money During the Debt-Market Blowout Ahead, as soon as humanly possible.

This report gives protection against exactly these kinds of uncertain and potentially devastating financial trendsplus a chance to turn those trends dramatically in your favor, in this case by as much as 390% on the dollar. You’ll find this is as easy to set up as buying a stock. But with a leveraged “payout” that grows the more serious this inevitable catastrophe gets.

And I believe that this will get very serious indeed, once foreign investors start giving up on America. And there’s plenty of evidence right now that they already have!

Right from the beginning - over 19 years ago - Strategic Investment has had a history of getting the world’s most profitable trends rightand helping readers protect their moneyand get richer!: 113% gain on September 86 euro FX calls 76% gain on Dow DIAMONDS June ‘03 76 puts 65% gain on Dow DIAMONDS June ‘03 88 puts Our readers have socked away 28% on Allied Defense We made 89% in ASA Ltd., a South African gold fund There is a comfortable 13.3% so far accumulated in Walgreen Co. Up 38% in Curtiss-Wright, a mid-cap defense stock Readers locked in 87.6% on Ducommun Inc. Just under 40% gains on the iShares Emerging Markets Index Fund Another 26% so far in the Hong Kong Index Fund Plus, we’re up 26% on our iShares Japan Index Fund We’ve seen gains of 15% on a Singapore fund and 12% in a Taiwan fund Readers’ holdings in Glamis Gold are already up 50% and we’re recommending that they buy more Up over 50% on Newmont Mining Up 46% on the Prudent Bear Safe Harbor Fund. No question, the “Big Picture” is the way to invest if you want to build real wealthby spotting big trends before the restand raking in very substantial profits ahead of the crowd! Join us in our next long round of gainsI’ll even give you $100 to help you get started! See the end of this letter for details.

Catastrophe Countdown: Just 11 Months to Prepare

Already, the Chinese are talking about “shifting away from exposure to the dollar.”

Last year, China removed the dollar-peg behind its currency, the yuan. And replaced it with a peg to the value of a basket of world currencies. Why now? China’s domestic demand is up, so its U.S. dependence is down. China’s gold buying is up. So is its buying of euros.



The Chinese are clearly knitting themselves a newer, better safety net.

Meanwhile, Japan’s buying of U.S. Treasuries has almost completely leveled off. South Korea - the fifth largest creditor to the United States - has also rebalanced its reserves away from the U.S. dollar.

What’s more, 65 other central banks, controlling over $1.7 trillion, also say they’re looking to move more money out of the United States and into the eurozone in the near future. But here’s where the countdown clock really starts to tick

At this very moment, as foreign investors slow down their buying of new U.S. debt, the already existing debt is suddenly coming due - creating a “perfect storm” behind the dollar-dumping mega-trend ahead.

America has less than two years to make good on $614 billion in long-term debt and another $900 billion in short-term debt that will all come due this year. That’s a combined total of $1.51 trillionmore than half the proposed FY 2007 budgetmore than three times the current annual deficitand a virtual guarantee that we’ll need to borrow as much as $2 trillion more from foreign lenders, just to cover the interest rates on those loans!

When do the lenders give up?

The White House has already asked Congress to raise the legal debt ceiling four times since 2000. It’s the only way we can legally take on more loans to “cover our arrears.” How can you convince other countries to lend you more money if you can’t even obey your own laws about spending limits?

You can’t.

Asian net purchases of U.S. Treasury bonds hit $215 billion in 2004. For 2005, it fell by two-thirds, down to $69 billion. So the source of war funding - and other U.S. government borrowing - is already drying up.

With loans coming duespending still soaringand the dollar getting weakerit’s only a matter of time before a complete collapse. Eventually, interest rates will be forced to rocket higher, in a last-ditch attempt to save the dollar. But it will be too little, too late. And that’s when the inevitable cycle that could wipe out your investments really begins: A bond market collapsefollowed immediately by even more dollar devastationmore panic hikes in interest ratesand a stock market collapse that will be like a skyscraper on detonators

Here’s what you should do

You need to protect yourself and your money long before that cycle starts.

And I lay out an extremely effective way for you to protect yourself and your wealth against this collapse, in your FREE copy of The Trade of the Decade: Make 9 Times Your Money During the Debt-Market Blowout Ahead.

Here’s a glimpse of how it works

Portfolio Protection Move #1:
Bond-Market Blowout “Insurance” That Can Yield 390% for Every Dollar Invested

As I said, I call this portfolio “wealth insurance,” because it’s both protective and the payout goes higher the worse this crisis gets. Only, it isn’t actually insurance, per se. With none of the inconveniences insurance presents.



For instance, with this, there are no annual premiums. You set it up once and you’re set. And you never wait for approval or have to file a claim. When the market unravels, as I’m forecasting it will, you watch the amount of your “claim check” go up.

The deeper and faster the debt market falls, the more your personal holdings go up.

But I illustrate all this for you in the FREE report.

By the way, readers of my monthly advisory letter have already had the chance to profit from this twice in recent months. Even on the much smaller moves the market is making right now.

And this is just a sample, too, of the many different ways I can show you how to get richer on exactly these kinds of mega-trends. For instance, here’s what Ian McFaye, another investor who reads Strategic Investment, wrote in to say
“Hello, Dan. Thank you for the great advice. I bought my Dow September 90 puts at $1.40 and sold them for $9.60 - a very substantial profit, thanks”
That’s a 586% return.

But Ian’s not alone.

Here’s another note from investor John Asher, also a Strategic Investment reader and member of our intelligent insider’s global network of potential investors
“Thanks for getting me to check out those December put optionsI sold half at $780 each, and I’ve gotten all my money back and then somethey’ve been up to almost $1,200, and we still have three months to go!”
Again, not bad.

Now read what Strategic Investment reader Mark Manor had to say
“Dan, I ended up making four times my original investmentwho’s complaining when the profit margin is 300%?”
I’ve got piles of letters just like these. And I could run them past you all night. My point is simply this - when you have the right insights, and the right insiders feeding you information, you can do almost anythingin any kind of marketand I share all these kinds of strategies regularly with readers in my monthly issues of Strategic Investment.

I’d like to send you the next issue - in fact, up to a year’s worth of issues - absolutely free.

Even before I do that, I’d like to find out where to send your FREE copy of the report that details this protective 390% strategy, which you’ll find inside The Trade of the Decade: Make 9 Times Your Money During the Debt-Market Blowout Ahead.

But what if I’m wrong about all this?

It’s certainly possible. But not likely. The evidence is just too strong, all by itself.

Let me show you what I mean

The World’s Riskiest Investment

See, what Washington is afraid to tell us is that it turns out fighting terror just isn’t like fighting Germans in 1918Japanese in World War IIor Korea, ‘Nam, or even the battle in Kosovo.

It’s more like fighting a hurricane. You never know how hard or exactly how it’s going to hit. And until you can, there’s really not much you can do to stop it.

Markets and investors hate uncertainty. Especially the kind that adds a whole new risk premium to an investment that was supposed to be “risk free,” like foreign investments in U.S. stocks and U.S. debt.

A full-blown, target-less Terror War introduces that kind of uncertaintyand that kind of riskwhere foreign investors had never counted on any before. A direct financial risk that makes these investments prime candidates for panic dumping in the very near future.

Considerthe combined spending on Iraq and Afghanistan alone, so far, has already surpassed a staggering half trillion dollars. That’s more than we spent on Korea. It’s more than we spent in 13 years in Vietnam. In fact, out of all the wars in U.S. history, only World War II cost us more.

And still, that’s only if you low-ball the real costs.

Professor Gordon Adams, an analyst from George Washington University, estimates the real cost per soldier - with all his high-tech equipment and today’s high fuel costs - much higher, enough to make this the most expensive war America has ever fought.

And those costs don’t stop at the Pentagon



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