What Happened: The IMF just reported that the US budget deficit will reach 10.8%
of GDP this year. No other major developed country has a bigger deficit.
What It Means: The US government spends more than it makes. So it has to borrow
money to make up the shortfall. US debt is now over $14 trillion.
Why It Matters: The IMF says the US needs to reduce its debt. Otherwise, along
with increasing debt, the US will have to pay higher interest rates. Add it up
and US debt payments should double over the next decade, says the CBO. The US
now pays around $225 billion a year to service its debt.
Suggested Action: As interest rates go up, the price of US Treasuries go down.
Now is not a good time to hold US Government Bonds.
80% to 100% Potential Gains by 2012
Earlier this year, Liberty Street League investment experts pinpointed a Chinese
company that stands in the center of an economic "perfect storm." Right where
the global population explosion, the exponential expansion of the Chinese middle
class, and the world's largest auto market meet.
Since April of 2010, it's made a steady
17.8% gains. If you'd bought 50 shares in April... You could be sitting on an
$835 gain!
And there's no reason to believe it won't keep on climbing. This company could
hand out 80% to 100% gains in the next 12 to 18 months!
Learn the identity of this under-the-radar pick – and how to get regular
recommendations on the world's most powerful, long-term trends – by reading on
right here.
Circle November 2, 2011 on your calendar.
That's the day the Federal Reserve will be forced to acknowledge the large (and
growing) elephant in the room.
And it will set off a chain of events that could make you at least 100% in the
next three years. (In just seven months, members of the Trend Trader portfolio
have gained 11% on this recommendation.)
It all boils down to one thing: inflation.
This fall, the Fed will finally have to admit that (1) there is persistent
inflation, and (2) it will take action to slow it down.
As an investor, this isn't bad news. The more inflation we see, the more money
we can make.
Just look at the Consumer Price Index. It shows inflation already creeping in.
In the previous 12 months ending in February, the CPI jumped 2.1%. And that is
the ridiculously manipulated government figure.
So its enough to say that profitable investment opportunities lie
ahead. Just keep on the watch.
Extract from Early to Rise Investor's Edition
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