Editor's Note: Due to popular demand we are re-broadcasting the Investment Alert regarding China's attack on the American Economy. This may be an opportunity that you do not want to miss. Please read below.
Addison Wiggin The Daily Reckoning ----------------------------------------
Daniel Denning, who predicted the massive profit explosion in the 2003-2004 gold market, begs you to heed this urgent message: Protect Your Money and Pile up as Much as 794% Profits During...
China's Deliberate ECONOMIC ATTACK ON AMERICA!
Beijing just unleashed a deadly three-prong attack that will levy a FINANCIAL FIRESTORM on the American economy. Before it's over, many billions of dollars will vanish into thin air!
But these two simple investments can protect you. In fact, not only will they "China-proof" your portfolio... they can give you super- safe-haven profits as high as 794%..
WATCH OUT!
China's "UNRESTRICTED" ATTACK on the American Economy Has Already Begun...
Find out about these two simple investments to completely "China-Proof" your wealth AND to rake in safe-haven profits that could go as high as 794%...
Dear Friend,
I hope you're ready.
Because whether you realize it or not, Beijing's military government has just declared a hidden WAR on the American way of life! Yep, that's right.
Over the next five minutes, you'll read about something so shocking, The Vancouver Sun calls it, "The big sword overhanging the U.S. economy."
The Irish Independent says it could "rip the heart out of manufacturing growth in Europe and America."
And the New York Times says this savage cycle of financial malice could actually destroy "the very stability of the global economy."
"The Chinese make the televisions. The Americans watch them."
Popular Chinese saying
I'm talking, of course, about China's jaw-dropping economic growth over the last several years running. History has never seen a country grow this fast.
I'm sure you already know there will be consequences. Big ones. Even the Asia Times is predicting a crisis "more devastating to the U.S. economy than any nuclear strike."
But what I doubt you know -- yet -- is just how deep and deliberate this financial havoc will be. Over the next five minutes, you'll see how this threat from the East was actually designed to DESTROY the U.S. economic advantage.
Intentionally.
What follows is an imminent DISASTER for the bond market... DEVASTATION for the already-weak U.S. dollar... and absolute ANNIHLATION of most of the popular stocks on Wall Street!
If you're not careful, you stand to lose everything.
Watch as it happens.
Interest rates are virtually guaranteed to skyrocket... America's real estate bubble will POP like a balloon at a porcupine party... and the voracious financial backdraft that follows will literally suck the life out of America's so-called "recovery"...
I don't paint a pretty picture.
But that's only the bad news.
The good news is you can protect yourself!
Two Powerful Moves That Can Protect Your Money
I'm about to show you a powerful strategy that cannot only protect you... but it can make you an incredible 794% profit. It's easy to do.
Of course nothing is a sure thing but this is pretty close. Just talk to any broker. Or log onto your favorite trading website on the Internet.
This strategy I'll reveal only takes about five minutes to execute. And you can get started with very little capital.
Because part of the strategy is a leveraged investment, you only risk what you put in. But you stand to make many, many times that in financial "safe-haven" profits.
This strategy I'll reveal starts with two simple investment opportunities. Do just one, and I predict you'll make as much as 350% to 400% Do the other, and you stand to make up to an additional eight times your money.
And combined, the whole package gives you a fortress in which you can safely park some of your wealth. Because I know already what this strategy is, I also know it's something you won't find anywhere else on the market today.
And I'll reveal it to you in just a second. But first...
How to Survive the Most Serious Financial Threat Since 1929
What follows is not a trend you can shrug off.
It's not a "recoverable blip" in the market.
Washington has no control over this. New York and Chicago brokers have no control over this. And Europe has no control over this either.
"Many economists believe that the Chinese currency is undervalued by as much as 40%, giving the country an unfair advantage in being able to underprice competitors in international markets."
The Washington Times ,Dec. 10, 2003
Which is why what I'm about to describe will turn out to be the most dramatic and serious financial threat America has faced since 1929!
I'm so worried about it, I've put together a FREE resource for investors. I will e-mail it to you, no charge. It's called " Total Profit Protection From the Coming China Crisis!" And again, it's FREE.
You'll find out exactly how - step by step - you can pile up as much as 794% gains while you fortify your wealth against the winds of crisis ahead. I've promised you that much already. But then I'll also e-mail you three moreFREE reports that show you...
How to make up to 455% on a buy-and-hold mutual fund! A dozen ways to make Asia gains without buying Chinese stocks! How to lock in up to 953% profits on the next leg of the gold-market boom! And how to sock away as much as 10 times your money on what I firmly predict will be a breathtaking 20-year boom in commodities! It's all FREE, as part of the STRATEGIC PROFITS PROTECTION LIBRARY I've put together just for you. But I'm getting ahead of myself.
First, let's dig into the sordid details of the crisis ahead...
"Beijing's Secret War on America"
How China Expects To Win
"The first rule of unrestricted warfare is that there are no rules, with nothing forbidden."
- Col. Qiao Liang & Col. Wang Xiangsui China's People's Liberation Army, and co-authors of Unrestricted Warfare
Has there ever been a rising power, in the pages of history, that has picked up economic momentum... packed on military might... and then decided not to flex it's muscles? The answer, as you well know, is that there hasn't. Power is power. The nations that have it chomp at the bit to use it. Which is exactly what China is doing now. But you don't have to take my word for it.
Roger W. Robinson Jr -- head of the U.S.-China Economic and Security Review Commission -- gave this testimony to the U.S. House of Representatives back in October 2003. He laid out the Chinese blueprint for undermining the U.S. economy:
First, they devalue their currency by as much as 40% Then they issue tariffs on foreign goods They cut foreign firms off from local marketing channels They chaperone and handpick partners for international joint ventures They give preferential loans to their own factories from state banks Chinese companies get privileged listing on the Chinese stock market Chinese companies get special tax breaks not available to foreigners This assault on the American economy is already well under way. Whether they'll succeed or not we don't yet know. But for a long time to come, you'll need to protect yourself and your money. But you can also profit -- by as much as 794% or more. Click the "Subscribe Now" button below to send for your FREE set of the STRATEGIC PROFITS PROTECTION LIBRARY.
Look, by now you might be wondering if I've got some sort of personal vendetta against China. No! That's not the case at all.
I've got nothing against China or the Chinese. In fact, I'm making plans right now to go there and all around the rest of Asia do research on the massive investment opportunities already under way.
China has an unbelievable history. They have lots of culture. Three thousand years ago, they were building palaces... while my ancestors were making mud patties on the English moors. So no, I'm under no delusions about the greatness China is capable of.
But that doesn't change the rest of the facts I'm about to show you.
When I show them to you, I'm confident you'll come to the same conclusions I have. You'll see instantly that what's quietly unraveling the fabric of the American economy... the exploding deficits, the massive trade gap, the joblessness, and even some secret aspects of the war on terrorism... is not only no accident, but it can all be traced back to, shockingly enough, Beijing.
Here's the "real" truth: Without a doubt, China's military government has actually masterminded adeliberate assault on the American way of life. I'm going to show you how they've done it.
It's a war. Not with tanks or missiles.
Not with jets, bullets, or guns. Or hand grenades.
The "combatants" in this battle wear business suits. They hit you with handshakes, contracts, and smiles. But don't be fooled. This is war without rules. In the words of one of their own military officers, "nothing is forbidden." Without drawing a drop of blood, Beijing fully expects to win... and here's how they plan to do it:
Guerilla Economics!
Step back for a second. And remember...
When we talk about modern China, we're not talking about a democracy. We're talking about a military dictatorship. Even now, in 2004. This is the way they do business.
I'm calling it "guerilla economics."
The goal is to destroy the competition. And at the same time... create a guaranteed money-making environment for China's own entrepreneurs. Is it working.
For China, absolutely...
Ding Lei is 32 years old. He's also the richest man in China. His NetEase.com outfit didn't crank out a nickel of profit until 2003. But his stock is up 50-fold thanks to ecstatic American investors, and Ding is now personally worth $900 million!
Chen Tianqiao is just 30. In 1999, he ran a cartoon Web site. Now he runs Shanda Networking, an online gaming business out of Shanghai. New York venture capitalists helped him get started. Now he's personally worth $480 million.
Larry Rong's dad is Rong Yiren, founder of CITIC. CITIC is the biggest company in China and a magnet for U.S. investment dollars. Larry is personally worth $850 million. His family is worth closer to $2 billion.
The military government of China has their hands deep in the pie too. Take China's biggest TV and cell phone maker, TCL Corp. It's state owned. Last year they exported 3.83 million TVs. They expect to ship 5 million more!
"All Beijing has to do is to mention the possibility of a sell order going down the wires. It would devastate the U.S. economy more than any nuclear strike."
Asia Times, Jan. 23, 2004
The top 100 richest people in China now have an average wealth of $230 million. Another 10,000 or so more Chinese are worth at least $10 million so far. And that's up from zero millionaires in China as recently as 1979.
Of course, most of the companies listed on the Shanghai exchange are still state-owned. The top 14 Chinese car-makers are state owned -- with bloated bureaucratic budgets. But that doesn't matter -- in 2003, U.S. investors poured millions and millions of dollars into China Brilliance Automotive shares -- and it's stock shot up 232%!
For all appearances, it looks like China has cracked the code of Western capitalism.
Three years ago, for instance, China didn't manufacture a single laptop. NOW they make 40% of all laptops sold worldwide! They're also ranked as the world's biggest maker of computer hardware... consumer electronics... even steel (remember when that used to be Pittsburgh?).
China cranks out 38% of the world's cell phones. And half of the world's shoes. Plus most of the wooden furniture, video games, and televisions in the United States.
But guess what happens when you take a look at the other side of the coin...
Is This the End of the American Miracle?
We're feeling the China boom right here at home, too.
But somehow it's not the same...
Here in the United States, American Metal Ware had made nearly 2.5 million pots in their Wisconsin factory... before they had to shut it down. Chinese manufactures stole the design and cranked out copies at half the price. To compete, Metal Ware had to move over to China.
Levi's were the all-American brand. They once had 63 U.S. plants. They just closed the last two and fired all the workers. Levi's will be made in China now.
Walt Disney was an all-American success story. But Disney's "Winnie the Pooh" dolls are made not here, but in the same place as Dr. Scholl's sandals and Foster Grant Sunglasses -- China.
How about Wilson tennis balls or Black & Decker drills? Silk flowers, sneakers, wood furniture, and hand-held "Game Boy" video games? All sold here, but all manufactured in... China.
A mind-blowing 80% of all the toys, bikes, and Christmas tree ornaments sold in the Unites States came from China. Along with 90% of the sporting goods and 95% of the shoes.
Motorola spent over $1 billion moving operations from the US to China. Thousands lost their jobs -- replaced by 10,000 Chinese workers in four new plants on the coast of the Yellow Sea.
Look, there's nothing wrong with making money. And you can't fault anybody for just doing business and looking out for their own best interests. But at what cost? And whose expense?
A New Hampshire radio show made a public dare:
"Take $400 an hour at Wal-Mart. Buy as many 'Made In America' goods as you can."
Two listeners took the challenge.
An hour later, they hit the checkout line with a basketful of 40 items. Guess how many actually were made in America? Just 10.
It's no wonder. Sam Walton, Wal-Mart's founder, wrote an autobiography called "Made In America." But today, Wal-Mart alone imports a mind-blowing $12 billion of goods from China every year...
That's more than China's trade with either Russia or the United Kingdom! How did this happen?
Beijing's Ugly SECRET #1: "Crush the Competition With Slave Labor!"
Chinese workers average 61¢ an hour. US factory workers average $16 an hour. In other words, US workers make more in two weeks than most Chinese laborers make in a whole year!
Nobody outside of China can compete with that.
"We are beholden to the Chinese by our Treasuries. That worries me."
Carla Hills, Former U.S. trade representative
China gets an endless supply of labor for just pennies. And there's a waiting list nearly 200 million people long to take over those jobs when the current workers drop from exhaustion (they work 12 hour days, 7 days a week).
Moral or not, Beijing's slave-labor strategy does exactly what they hoped it would...
It's sucked the life out of America's more costly industrial complex!
Just check out the numbers: Over 450 U.S. companies are based in China. That's more than 10 times the number of U.S. companies there in 1990. They've got combined annual sales of $23 billion. And more than 250,000 employees. In fact, U.S. investment in China is now a record $33 billion a year!
Meanwhile...
Nearly 2,250 American manufacturing jobs here in the Unites States have disappeared... every single day! That's a not something new... it's been the trend day in and day out, over and over again... for 40 months straight!
What are the Chinese up to? They learned this trick from the Americans. Especially mega-rich superstars like Andrew Carnegie, John Rockefeller, and J. Pierpont Morgan.
It's the genius strategy of any savvy monopoly maker: First, move in and CRUSH the competition with cutthroat pricing. Then... take away his business and leave him high and dry!
Thanks to slave labor, Chinese companies can crush U.S. competition with lots of cheap goods that USED to be made right here in America. In exchange, they not only get our purchases... they get our companies, when they're forced to pack up and move over to China so they can take advantage of the same cheap labor strategy.
What's more, China also gets to send a whole new kind of export to America... Chinese STOCKS! And in return for that, they get billions more in investment capital. Straight from the trading accounts of private U.S. investors. Imagine.
We're literally paying Beijing to "rip the heart" out of the U.S. heartland!
But it gets even better. Because that's only the FIRST dirty strategy engineered and overseen by Beijing. Here's the second...
Beijing's Dirty SECRET #2:"Bait the Trap With Treasury Notes!"
Another fallout from Beijing's supercheap labor strategy is America's massive trade deficit with China. It just keeps exploding.
As you can see in this chart, it's already passed a gap of over $120 billion. That means we actually BUY $120 billion more in goods from China than we manage to SELL to them. A household can't get rich... or stay rich... if it spends more than it takes in. Neither can a nation.
Yet, no matter what we try to do to stop the gap from growing... weaken our dollars, create trade tariffs, perfect production and slash costs... America just can't keep up.
The trade deficit is now exploding $1.5 billion per day. Putting that in perspective... that means we spend an additional $1 million on Chinese products... every single passing minute!
But that's not the worst part. Guess what China is doing with all that money?
First, the money we send China gets reinvested in the PLA, China's massive military. (New reports say China has just built low-profile military bases on several disputed reefs in the Philippines!). Second, it goes back into funding more huge Chinese factories. With 200 million Chinese looking for jobs, China needs to build places for them to work! It also needs to buy HUGE stockpiles of raw resources to keep the factories running. Third, and most dangerous of all, the Chinese government uses a lot of their extra exporting income... to pile up an absolutely SICK number of U.S. Treasury bonds! That's right. China spends nearly $7.8 million an hour... or $187 million a day... snapping up US Treasuries and dollars. The movers and shakers in China now hold the U.S. hostage to over $120 billion in Treasuries!
Now ask yourself:
If it's obvious that U.S. interest rates have nowhere to go but up... if it's obvious the U.S. dollar has nowhere to go but down... and if it's obvious that Washington right now is literally spending America into oblivion...
Why would the Chinese government sock so much faith in U.S. treasuries?
Simple. It's not a vote in America's future at all. Instead, it's Beijing's way of backing America into a corner! Think about it.
The Feb. 5, 2004 Wall Street Journal has already reported that other Asian countries -- who altogether with China and Japan included -- hold an eye-popping $1.9 TRILLIONin U.S. foreign reserves -- are starting to dump U.S. debt.
Korea and Thailand dumping is one thing. But when a massive holder like China stops buying U.S. debt and starts dumping, it's a much, MUCH bigger deal. Pressure on U.S. bond yields will skyrocket. Other foreign investors will run from dollar-priced securities in a panic. Long interest-rates will jump. And U.S. consumers, businesses, and investors will get crushed in the jaws of a very powerful "Treasury Trap"!
It won't take more than a whisper - "sell." And that's your signal. I promised earlier to show you how to protect yourself from exactly this kind of disaster. And that's precisely what you'll discover in your FREE e-mail report "Total Profit Protection From the Coming China Crisis! "
But before we dig into all that, let me share with you just one more piece of this sinister puzzle...
Beijing's Dangerous Strategy #3:"Lock the U.S. Dollar in a Death Struggle"
To finance all its foreign debt, the United States has to spend a breathtaking $55 million per hour... or $1.3 billion per day... just to keep enough liquidity in the system to cover overseas interest-payment obligations.
Washington treats the Federal Reserve like a money machine: Walk up, punch the buttons on the printing press, and out comes the cash!
Why? Because the more dollars there are, the less they're worth. And the less they're worth, the easier it is to cover those interest obligations without wincing.
"America's growing reliance on high quality, low-price Chinese imports eventually might undermine the U.S. defense industrial base."
US-China Security Review Commission Report
Trouble is, no government -- not even one as large as America's -- can keep up with that kind of program. Especially when you're overextended on your own personal spending budget by nearly half a trillion (with a "t") dollars!
So just by holding U.S. Treasures, Beijing already has us trapped.
But they haven't stopped there.
China has ALSO hoarded piles and piles of ever-cheaper U.S .dollars. They've now got more than $310 billion in U.S .dollar reserves! Again, you have to ask:
If U.S. dollars are backed by an overextended federal government... and if other major governments worldwide are already talking about switching reserves to gold and euros... if America's money isn't worth the paper it's printed on...
Why would China want to keep so much of their newfound wealth in the U.S. dollar, a currency that's already down more than 50% since October 2000?
Again, it's simple.
Since 1995, the Chinese currency -- the yuan -- has been pegged to the dollar at the weak exchange rate of 8.28 to the dollar. No matter how low the dollar goes, the yuan goes with it.
So no matter how low the dollar goes... it's virtually impossible to close any currency-related trading gap we've got with China! It's like seeing how long two enemies can hold their breath under water.
Whoever can withstand having a dirt-cheap currency the longest wins. But so far, judging just by the trading deficit, it looks like China is winning. And the U.S. is running out of options.
Could a stronger dollar shake loose the yuan's death grip?
Not at all. This is how the sinister yuan strategy works. If the dollar rises, the yuan rises in lock step. If the dollar drops, so does the yuan. China's trading advantage never disappears... but we risk popping our own real estate bubble, slashing trade with Europe, and knocking the legs out from under stocks and bonds.
Meanwhile, China still has $310 billion in dollar reserves... which it can trade for euros or gold at any time... and use to throw the dollar into a final death spiral.
When Beijing starts dumping, what follows could be worse for dollars than anything since Nixon broke with Bretton Woods in the 1970s.
Your FREE copy of "Total Profit Protection From the Coming China Crisis!" will also show you to protect yourself against this inevitable dollar collapse... with a strategies that can turnsevery $1,000 invested into as much as $78,400 or more. But first...
Still wondering how or why all of this could have been a planned economic attack... rather than just an accident of free-market capitalism? Still think all this is a coincidence?
That's ok.
But before you make up your mind to the contrary, you'd better read this... click here to continue .
