This Ain't Your Father's America

The recent bickering between the two parties in Washington over the national budget all but proves one thing: honor has completely disappeared from our nation’s capital.

Listening to these sell out jackals – who are fighting over pennies when they need to cut more than $1 trillion from the annual budget – proves to me they couldn't care less about the deficit, their out of control spending, or the American people in general.

The big loud debate that's going on right now is just political maneuvering.

The next presidential election is only 19 months away. And they have to put on the regular dog and pony show for you.

They want to convince you they're actually doing something to help.

But the truth is, no single politician or administration can fix America's budget problem.

Moreover, the real problem lies in the fact that no single politician or administration wants to fix America's budget problem.

Let's face it, both parties represent the same thing: protection of the banking and corporate syndicates.

And these entities make billions with the puppets they're paying to push the paper in Washington.

America is owned by the banks. But that boat isn't going to float for long...

This Ain't Your Father's America

It's no longer about doing the right thing anymore. It hasn’t been for quite some time.

For the politicians, it's all about acquiring and controlling money and power. For the American citizens...

Well, I'm not even sure if they know what they want for themselves nowadays.

It's possible a large portion of the country simply doesn’t care anymore as long as they get their handouts.

Either way, we are all going to pay a terrible price for our fence-sitting.

Over the past few decades we've allowed Washington to run the country into the ground by running up the national debt.

And now it's gotten so out of control the government can't hide America's true debt problem.

Just yesterday, Standard & Poor’s downgraded its outlook on the U.S. credit rating to "negative", raising the likelihood the U.S. will lose its coveted AAA rating.

Large financial houses know the problem, too...

Bill Gross, founder of Pimco, the $1.2 trillion investment management firm that used to buy bonds, has stated very publicly that he considers U.S. Treasury securities to be high risk, low reward investments. Gross recently remarked:

If I were sitting before Congress, and giving testimony on our current debt crisis, I would pithily say something like this: "I sit before you as a representative of a $1.2 trillion money manager, historically bond oriented, that has been selling Treasuries because they have little value within the context of a $75 trillion total debt burden. Unless entitlements are substantially reformed, I am confident that this country will default on its debt; not in conventional ways, but by picking the pocket of savers via a combination of less observable, yet historically verifiable policies - inflation, currency devaluation and low to negative real interest rates."

Gross is not merely selling Treasuries, he is selling them short!

His flagship, $235 billion Pimco Total Return Fund (PTTAX), now holds a net short position in government-related debt securities, while also sitting atop an enormous $73 billion pile of cash.

This is coming from one of the most respected players in the financial world.

So far this year, the U.S. Treasury has raised $293 billion in net cash by selling Treasury securities. And so far this year, the Federal Reserve has purchased a net $330 billion of Treasury notes and bonds.

This translates to the Fed providing 100% of the net new cash the Treasury has raised this year, along with another $37 billion needed to mop up even more mess.

But who will buy Treasuries when the Fed doesn't?

No one. That's who.

And consider this, which most have not even contemplated yet...

With all that is happening in Japan right now, it won't be much longer before the Japanese government will have to start selling their main asset: US Treasuries.

We are getting very close and even accelerating toward the end game for the U.S. Dollar and the U.S. empire. 

All I can say is, “Have your life boats ready!”

You can rest assured the politicos in Washington do:

For now, they'll continue to act in the way all politicians do when they are trapped in such a manner; They'll lie, cheat, steal, spin the facts, cover their asses at all costs, abuse their power, and misinform on a massive scale.

But even with the help of the government controlled media, the time of consequences can no longer be held at bay.

Free market forces will win, governments and their political power structures are going to come tumbling down, just as we have been seeing elsewhere around the world these past six months.

The spoils will go to those who were prepared and understood the debacle years before it hit.

For the past several years, we at Wealth Daily have been educating and preparing investors for this exact scenario. We have consistently helped our members protect and increase their wealth by recommending the best ways to own precious metals, energy, real estate, and other real, hard assets.

Now, many of the investment analysts here are taking those profits and placing them in much higher-yielding assets -- like precious metals exploration, new energy deals, emerging markets... even nuclear power right now.

In fact, analyst Luke Burgess believes, as I do, that uranium has been way oversold in the market.

You see, uranium became a publicly traded commodity only about a year ago. That brought in a much higher level of speculation into the market as even retail customers could invest in the uranium futures market through ETFs.

These new speculators, in large part, drained the value of the nuclear fuel following the Fukushima disaster as overly nervous investors sold their uranium assets off.

But as Luke said last week, “The Fukushima disaster does not fundamentally alter the global demand for uranium oxide.”

And the bottom line is, he's right.

The sell-off in uranium was an emotional market reaction to a terrible disaster.

The market will recover. And that really does make right now a great time to buy uranium stocks.

After I read last week's Wealth Daily, I called Luke to ask about the stock. He told me the whole story and who was behind the company, and I became really interested.

Using historic information they've acquired from national archives, the company is looking to discover one of the world's largest kind of uranium deposits in Argentina.

Without many people knowing, this small $0.25 company quietly got their hands on over 1.2 million acres of grassroots uranium exploration property.

Like all other uranium companies, its shares took a hit to the chin after the Fukushima disaster. Before the disaster, shares were above $1.00. And Luke thinks that, once the Fukushima story blows over and the uranium market recovers, this tiny $0.25 stock will be headed back towards $1.00.

He recently put together a short video report that details the company and its truly incredible story. You can check that video out by clicking here.

Good Investing,

Greg McCoach
Analyst, Wealth Daily
Investment Director, Mining Speculator and Insider Alert

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