It’s minus five outside but the heating’s still banned...
Outside your neighbour hurls another bin bag onto the mound...
Then the lights cut out.
Trade unions hold the government – and the country – by the throat.
With the cemetery workers on strike, corpses are being piled up in a factory.
This is not dystopian fiction or life in a war-torn nation.
It’s just how life was for Britons in the ‘70s.
It got so bad Prime Minister Ted Heath declared five ‘State of Emergency’ announcements in just three years.
“Britain is a tragedy. It has sunk to begging, borrowing, stealing.”
That’s how Henry Kissinger, the US Secretary of State, put it.
Sadly, he was bang on.
In the 1970s several wealth-destroying trends united to create a death trap economy for investors.
Here’s what you had to endure...
Your savings are getting decimated by 25% inflation...
And you’re handing over up to 83% of your pay packet to the taxman...
The UK stock market is down 73%...
UK bond prices are down by a third.
You can’t move your money abroad, because that’s banned.
You’re working to keep the state afloat – how you want to spend your money is of no concern to anyone.
It all came to a head in 1976, when the country had to beg the International Monetary Fund for a bailout of $3.9 billion.
But if you think Britain’s economy in the ‘70s was a one-off blip...
And you’re in for a terrible, wealth-destroying shock
The conditions that led to public sector strikes... blackouts... and mass unemployment in the ‘70s are about to return.
It’ll be a national nightmare.
And the hammer will fall heaviest on exactly the same people as last time…
Investors… savers… anyone who has been careful with their money…
In short… on YOU.
I am writing today to warn you that you need to take action (I’ll show you precisely what in just a second) to protect yourself, or you could face terrible losses, just as investors in the 70s did:
- Between 1973 and ‘74 the stock market dropped 71%. It didn't recover in real terms until 1983
- Any profits you did make were taxed by as much as 98%
- Bond returns were demolished by inflation. If you bought UK government bonds in 1973, you had to wait 13 YEARS to get your money back
“It was Armageddon,” said Brian Winterflood, founder of Winterflood Securities.
“I personally had tinned food in the attic and Krugerrands buried in the garden. I'm serious.”
If you can join the dots, you’ll see that all the factors that led to that miserable decade are back – and getting stronger.
That’s why, as publisher of Britain’s biggest independent financial research house, I’m stepping forward to declare…
The UK investor’s next
STATE OF EMERGENCY
Those who sit by and do nothing... who think that everything is now “back on track” after the financial crisis... that the government is “on my side”... are going to be taught a harsh lesson.
You need to be smart if you’re going to guarantee emerging unscathed from Britain’s economic decline.
In fact, you may need to consider ideas and investments you’ve never heard of to get your money off the grid and out of danger.
I’ll show you what I mean by that in a second.
The three threats I’ll show you today to the UK economy have been seen before.
We’ve seen the effect they have on individual citizens like you, and we’ve seen how governments react to them.
So let me be blunt: ‘hoping for the best’ is NOT a suitable plan of action.
Flashback Factor #1:
In the 70s Britain was terrorized by a two-headed beast.
Inflation ripped the heart out of the British economy, raging at 25%... snatching money from the wallets and savings accounts of ordinary working people.
But that was just the half of it – economic growth was also at a complete standstill.
This wealth-destroying phenomenon was called STAGFLATION.
And we could be about to see it all over again in 2018...
Inflation is SOARING.
It’s now at its highest point in 6 years – at 3.1%.
That may not sound like much, but consider that it was at 0% as recently as 2015 – and you see how quickly it’s shooting up.
The cost of living in the UK is rising faster than anywhere in the G7 group of leading global economies, according to figures from the OECD.
Coupled with that, the UK’s economic growth is virtually non-existent.
2017 was the UK’s lowest growth figure in five years.
Just like the 70s, we’re seeing the recipe for a period of stagflation that could cause plenty of heartache for British investors like you.
Let me show you what’s going on…
In simplest terms inflation is just a way to measure how much the price of many everyday goods are going up by.
Every time you go to the shops... fill up the car... turn on the heating... inflation is lurking in the shadows, making off with an extra pound here, a fiver there...
Every minute of every day, it will be there, eroding your money, even if it’s locked away in your bank and pension fund...
Meanwhile, the UK economy is at a standstill – meaning people’s wages are falling ever further behind the cost of living.
A decade on from the financial crisis, growth is nowhere near where it was before the financial crisis in 2008 – and the forecast is grim.
No growth over 1.5% is forecast for the next 5 years. That is pitiful.
With wages going nowhere and unlikely to go up any time soon, it’s no wonder people are getting poorer.
Some claim the inflation we’re seeing is just temporary. That seems hugely complacent, from where I’m standing.
Central banks try to control inflation through interest rates.
But it’s a difficult thing to control...
If they are raise rates too quickly, they will stifle economic growth, risking a recession...
If they are too slow – a substantial risk – then inflation could spiral out of control.
It’ll be the 1970s all over again.
Inflation is already hitting you in the pocket.
So if you want to prevent the possibility of stagflation eating further into YOUR wealth for months, maybe even years to come… I believe you MUST take action yourself.
Because in reality… REAL inflation is much higher than those figures show.
It’s just hidden… invisible…
There’s a subtle trick businesses use to hide inflation.
It’s called shrinkflation.
It won’t show up on inflation measures. But the fact is you are paying the same money for less – hence it’s also known as ‘inflation by the back door’.
In the 1970s, US sweet manufacturers saw that inflation was soaring and that the money in people’s pockets wasn’t enough to cover the costs. So to maintain their profit margins, they made their products smaller.
It won’t show up in the government’s figures for the rising cost of living.
But shrinkflation is happening across the UK economy right now... and you’re taking the hit.
It works like this…
A Toblerone bar used to weigh 170g.
But in 2015, Mondelez, its manufacturer, decided to reduce the amount of chocolate to 150g.
The packaging remained the same size. So did the price.
So a Toblerone hasn’t “officially” become more expensive...
But you and I know it has in reality.
You’re paying the same money for less chocolate.
The more you look… the more you join the dots… the more you see how widespread this rip-off practice is.
- LOO ROLL: a standard Andrex four-pack toilet roll had been cut down from 240 to 221 sheets, a reduction of 8%.
- ORANGE JUICE: Tropicana reduced the size of its carton from one litre to 850ml.
- TOOTHPASTE: A tube of Sensodyne toothpaste has decreased in size from 100ml to 75ml, a 25% reduction. The price only fell from £3.60 to £3.49 – a 3% fall.
In fact, in 2017 the ONS revealed that OVER 2,500 products had been ‘shrinkflated’. Now, would companies do this if the economy was truly healthy? If the recovery had cured all the ills of the financial crisis?
Of course they wouldn’t.
As in the 1970s, the money in your pocket just isn’t going as far.
Manufacturers have tried to blame Brexit and the weak pound. But shrinkflation has been going on since 2012, according to the ONS.
Mars, the manufacturer of Maltesers – packets of which have shrunk from 121g to 103g – said they reduced the packet size “so our consumers can continue to enjoy an affordable treat."
I.e. because you, as a British citizen, are getting poorer.
And that all comes down to one thing – the economy is stagnant.
To keep in profit, companies are having to make you pay the same money for less product.
And here’s where things get really interesting…
We may never see the 25% inflation of the 1970s again.
Not because it won’t happen…
But because it won’t be allowed to happen.
How the government cons you
Ever wondered why things seem to be getting much more expensive than inflation figures suggest?
It’s all largely to do with something called ‘hedonic substitution’.
Let me explain...
Say the price of beef escalates rapidly due to increased demand.
Those consumers looking to save money will choose to swap beef for something cheaper, such as pork.
So rather than record the inflated price of beef in its figures, the government will compare the old price of beef with the new price of pork – on the grounds that they are ‘equivalents’ and that people are now buying (cheaper) pork.
This enables them to claim that the price has not gone up as much, and that inflation is not as high as it really is.
Can you see how they’re tricking you?
They’re claiming that the price of beef has not gone up as much as it really has... so inflation is not as high as you know it to be.
It’s a never-ending cycle of deceit. When pork goes up in turn, they’ll start comparing it to whatever people decide to buy instead – giving them another bogus set of low inflation figures.
It’s a ridiculous, desperate tactic. They’re basically saying that your choice as a consumer is irrelevant – just buy something cheaper and deal with it.
‘Hedonic regression’ is another trick they play on you, whereby they use improving technology to lower inflation figures.
For example, they’ll say that if computing power doubles every year, they’ll say prices have halved – on the basis that you’re now getting double the power. But the actual price of your computer hasn’t halved at all.
So if you’ve ever wondered why everything seems to be getting more expensive – when the inflation figures are so low... it’s because they are getting more expensive.
The government needs to convince the electorate that they’ve got the cost of living under control.
This is for political reasons, obviously.
But it’s also a swindle.
Some government bonds are linked to inflation. So keeping the inflation figure down allows them to pay less than they’d otherwise have to if the figures reflected reality.
Sleights of hand like ‘hedonic substitution’ and ‘hedonic regression’ make that considerably easier.
But you and I know it’s baloney.
“The nominal inflation number is cooked like a thanksgiving turkey,” as the former US government advisor Byron King put it.
In 2016 the US financial writer Charles Hugh Smith wrote,
“The grim reality is that real inflation is 7+% per year. What would happen if the real rate of inflation was revealed? The entire status quo would immediately implode.”
That’s why inflation doesn’t have to officially hit the nose-bleed heights it did in the 1970s to cause you a massive problem.
Conditions today can produce the same 70s-style MISERY for investors as inflation remains high and standard of living falls.
But I want you to know something CRUCIAL.
You don’t have to just sit there and take it...
You can fight back.
Before I’ll reveal the strategy that could not only PROTECT you from the effects of inflation but also help you potentially PROFIT from it...
I want you to be fully aware of another worrying economic factor from the 1970s that’s rearing its ugly head once again...
Flashback Factor #2:
A New Sterling Crisis?
Between 1973 and 1976, sterling fell 40% against the dollar.
Humiliated, our once proud nation went cap in hand to the International Monetary Fund and begged for $3.9bn to stop the rot.
I believe Britain could be on the verge of a major new currency crisis.
If the pound does plummet again, it will hit you where it hurts – your cash savings.
The most recent downgrading came in the wake of the Brexit vote, but the pound’s decline goes back much further than that.
Just consider how it has fared against rival currencies:
The pound almost reached parity with the euro in 2016 – but that was simply a part of a larger, longer decline.
In 2017 the pound hit its lowest point in eight years against the euro.
We’re down about 20% since 2015, meaning you’re significantly poorer compared to a German, Frenchman or Spaniard.
As you saw on the previous chart, it’s the same story with the dollar – a steady progression downwards.
What’s causing this decline?
From my point of view, it’s the steady adoption of stupid and corrupt economic ideas that are slowly making Britain a much less stable economy.
This country just isn’t a safe bet any more.
Debt is the curse of the nation.
Public and private is at record levels for peacetime.
Low interest rates make it easier to borrow money. That's why the government and the Bank of England have pushed interest rates down to an all-time low.
Take a look at the following chart:
In fact, rates are now the lowest they have been in over 5,000 years!
That represents the systematic destruction of our national currency.
Money printing is the other way they’re obliterating your savings.
The response to the financial crisis was supposed to be £50 billion.
The final figure was £375 billion.
Money printing is like a drug – and the Bank of England is addicted.
Remember what happened when the UK voted to leave the European Union?
Yes, they revved up the printing presses again and poured another £60 billion into the financial system.
It wasn’t necessary. There was no recession.
But this is the era we live in. It means nothing to the Bank of England to print tens of billions of pounds into existence.
So, are you happy leaving your money in an ISA?
Saving used to be a prudent activity. It was honourable in living within your means.
But saving is now being punished by a government that doesn’t know the meaning of the word.
There used to be a saying, “as safe as the Bank of England”. You don’t hear it anymore – for good reason.
Morgan Stanley analyst Hans Redeker is betting on the Pound to remain under pressure as long as the prospect of General Elections and a Labour victory remains real.
He says that the chance of Labour victory, “would put GBP under immediate selling pressure.”
Even the Labour Shadow Chancellor John McDonnell admitted that there would be a “run on the pound” in the event of a Labour government.
We’re living in a highly vulnerable time for sterling...
And a highly vulnerable time for you.
Keeping your money in a savings account or an ISA is doing nothing but making you poorer, I’m afraid.
There’s another reason why I reckon investors are fleeing our currency...
One which could return the country to the humiliation of 1976, when we had to beg the IMF for a bailout...
Flashback Factor #3:
The threat of nationalisation
Nationalisation was the norm in the 1970s.
The taxpayer was on the hook for everything from the steel industry to telecoms.
Like all enterprises protected from competition, they were inefficient and poorly managed.
You had to wait six months for a telephone installation from British Telecom.
In response to the oil crisis of 1973, the government held the price of gas down at an artificially low rate, prompting everyone to switch to gas to heat their homes...
This caused a gas shortage, forcing the government to import more gas at the market rate...
But the low price couldn’t hold for ever.
Eventually the government was losing so much money it had to let the gas price return to the market rate – meaning everyone who had switched took a hammering.
Government largesse was not limited to state-run industries.
When Rolls Royce (1971) and the long-struggling Upper Clyde Shipbuilders (1972) ran into difficulty, the government bailed them out.
Britain was an economic basket case and the rest of Europe was leaving us behind.
Writing in the Harvard Business Review in 1992, the Right Honourable Lord Moore opined [highlights mine]:
“The plain if unpalatable fact is that nationalized industries do not have to succeed in order to survive, and everyone working in them knows it. State industries are dependent for their survival on the government, not the market. Financiers and analysts never ask their hard questions, and that eliminates an important spur that would otherwise drive private industry to innovate, increase productivity, improve efficiency, and do its utmost to meet consumer needs.”
Unions held the government by the throat in the 70s.
The bakers went on strike. Even the people who made nappies went on strike.
Strikes by coal miners were so prevalent that in 1974, to conserve energy, Ted Heath limited businesses to three days' consumption each week, and prohibited from working longer hours on those days. People sat at their desks wrapped in blankets.
Successive governments were helpless to do anything about it.
“By the late 1970s, people thought we were becoming a bunch of losers, with strikes and managers who were unable to manage,” said former P&O chairman Lord Sterling.
We didn’t learn our lesson!
Jeremy Corbyn is in the running to be the next Prime Minister.
Nationalisation… borrowing… wage caps.
Labour has promised to spend an EXTRA £500 BILLION if it gets into power.
That money would have to be borrowed.
He has explicitly stated that a Labour government would take control of rail, water, energy and mail, amongst others. (I must stress: this is not an attack on Jeremy Corbyn. There is considerable public support for re-nationalising various industries.)
The Centre for Policy Studies has calculated that this would add 10% to the national debt, which is already £1.73 TRILLION.
That’s the equivalent of nearly £6,500 for every household in Britain.
History tells us this would be a disaster.
But put the effect this would have on public services to one side.
Can you imagine what message this would send to investors?
A vote for a programme of industrial nationalisation would mark Britain as unequivocally hostile to private enterprise.
On 25th September, the shadow Chancellor John McDonnell made it clear what existing shareholders could expect by way of compensation for their shares being nationalised.
“The market value will be determined by Parliament.”
In other words, they’ll steal the assets.
Own shares in those companies?
Tough. Have some worthless government bonds in return.
A recent report from the Social Market Foundation on the potential nationalisation of the water industry warns of [emphasis mine]
“Higher public sector borrowing costs in the event of a government intending to significantly increase public sector debt levels through a programme of nationalisation and increased spending.”
I.e. bond prices would tank – as investors realised Britain was no longer serious about balancing the books.
“With foreign investment, access to talent and tax burdens already such an unknown quantity in post-referendum Britain, the last thing UK Plc needs now is concern that a wave of nationalisation could sweep away incentives for private enterprise.”
Edward Hardy, economist at World First.
Nationalised industry didn’t work in the ‘70s... and it won’t work today.
Don’t expect much help from the Tories, either.
The stock of Centrica, the owner of British Gas, dropped to its lowest level since 2003 in October 2017 after the Prime Minister Theresa May renewed her promise to cap the most common type of energy deal.
A Labour government would go much further. Their nationalisation plans would almost certainly panic investors into getting their money out of UK assets immediately.
Nationalisation poses a serious threat to your wealth.
It will affect every single person – and every financial market – in Britain.
We saw investors lose faith in the country in the 1970s.
UK government bonds were sold by our foreign creditors who became fed up with the government’s inability to sort out the economy.
This culminated in the humiliating bank bailout from the IMF in 1976.
When investors don’t have confidence in a government, financial markets take a pounding...
The Decade of Decimation
If you thought the financial crisis was a bad time for UK investors, think again...
The 1973 oil crisis resulted in a stock market crash that left investors in ruins.
By January 1975 the FT 30-Share Index had fallen 73% from its 1972 peak.
That meant a loss of 80% in real terms after inflation.
Sure, other countries were hit but the oil crisis – but none as hard as Britain.
With sky-high inflation, 0ur economy was in no position to handle it...
The market didn't recover until 1983.
Bonds were similarly annihilated.
The chart below shows the real (i.e. after-inflation) losses incurred by gilt investors during the period.
Anyone who bought gilts in 1973 lost over a third of their money in this “low risk” asset class. More to the point, they had to wait until 1985 before they broke even.
These charts show what a nightmare it was in the 70s.
But really… show investors’ faith, trust and confidence in the UK evaporating.
And you know what?
We’re going to have to learn the same lessons today.
Even if you’re not invested in UK stock and bond markets directly, if you pay into a pension fund it will almost certainly hold both of these assets.
Are you prepared to risk your retirement fund by doing nothing today?
Are you happy watching your savings get decimated by inflation?
Are you prepared to say you “did nothing” when the economy finally went belly up?
I didn’t think so.
The signs of British decline are all there.
How these alarming trends play out exactly remains to be seen.
If they continue to worsen, you will almost certainly be poorer.
Many won’t be aware of these threats – or understand why they pose such a threat to their wealth…
But I know YOU do.
The fact that you’ve read this letter means you have NO excuse for doing nothing.
Now, the threat of stagflation, a plummeting pound and nationalisation would be terrifying if the economy was fighting fit.
But despite what you’ll read in your newspaper – and what most of the population has been led to believe – it isn’t.
The UK “recovery” is a myth
Since 2008, the UK national debt has skyrocketed.
Despite the economy returning to growth in the wake of the global financial crisis, the debt has only got bigger – trebling since 2007.
Britain's debt has exploded by over £1 trillion in less than a decade
According to Trading Economics, the UK’s debt-to-GDP ratio has increased from 76% of GDP in 2010 to over 89% currently... Which means we’re on the brink of an ominous milestone.
In 2010, Harvard economics professor Kenneth Rogoff looked into how debt levels affect an economy’s ability to grow and get itself out of trouble.
He looked at 200 years of data for 44 countries.
Here’s the critical finding [emphasis mine]:
“First, the relationship between government debt and real GDP growth is weak for debt/GDP ratios below 90% of GDP. Above the threshold of 90%, median growth rates fall by 1%, and average growth falls considerably more.”
So countries with a debt to GDP burden of over 90% find it significantly harder to grow, as paying off the interest on existing debt becomes such a hindrance it constrains growth.
You can see this with Italy and Greece – suffering with national debts of 131.80% and 178.60% respectively.
Britain is perilously close to the 90% threshold. A bad quarter would push us well over that mark, I expect.
As I said before, this is the highest peacetime debt we’ve ever had.
We’ve been living beyond our means for decades.
In 2017 we paid almost £50 BILLION in interest on our debt. That’s more than we spent on defence and housing combined – and equivalent to approximately 2.5 per cent of the country’s GDP So do not be fooled by media reports that the UK economy is “back to normal”. It isn’t.
I'm not making a political argument here. It's an economic one. Pretty much every government of the last 50 years shares the blame for arming this debt bomb.
Here’s the critical point...
When the next recession strikes, we will be in a much weaker position than we were when the financial crisis started in 2007.
When that crisis started, interest rates were up at 5%.
The Bank of England (BoE) lowered them to 0.5% to encourage lending...
But right now, more than 10 YEARS on from that disaster, interest rates are still at that same level.
The BoE is scared of putting them up as they worry it will stifle growth (by encouraging people to save rather than to invest).
But if the base rate of interest is just 0.5%... what happens if they need to put them down?
You need a drop of 4% to have a meaningful impact on the economy.
If the Bank voted to do that today, interest rates in the UK would be MINUS 3.5%!
So the government has no wiggle room when the next crisis strikes – without essentially robbing savers of their money.
You need to understand...
This is NOT a ‘normal’ situation
We’ve had financial crises before...
But we’ve NEVER been in such a helpless position to deal with one as we are now.
Debt has NEVER been this high in peacetime...
Interest rates have NEVER been this low...
That means we are in no position to handle the emerging trends I’ve told you about today:
- WEAKENING STERLING
And here’s the real kicker – the most important factor in why I’ve written to you...
Who do you think is going to have to pay the government’s bills when the economy heads downhill?
You will be forced to.
Desperate governments do predictable things
Financial coercion of its own citizens is what desperate governments do. Always have done, always will.
That’s what happened here in the 1970s.
Income tax was as high as 83%.
Investment profits were taxed at 98%.
It was a disastrous policy, and did nothing to cure the country’s accelerating deficit.
“Unsurprisingly, very few people chose to pay tax at the extortionate rates seen under Labour in the Seventies. Many of the brightest emigrated to the US in the so-called brain drain,” said Mike Warburton, an accountant throughout the period.
“Others simply didn’t bother to work hard or push for promotion and a pay rise on the basis that it didn’t make much difference to their take-home pay. Those with their own companies decided not to take dividends.”
The government were so paranoid about people fleeing the country that you were only allowed to take up to £50 out of the country.
Want to take your family away on holiday? Tough.
Such repression is far from a thing of the past.
In 2015 Greece imposed capital controls after it failed to renegotiate its debts with the ECB. Greeks were only able to withdraw €60 per day from their accounts.
In that same year Denmark’s central bank expressed a willingness to impose capital controls to stop the inflow of money pushing up the value of its currency (and threatening its fixed exchange rate with the euro).
Just think about that for a second...
The Danish government is actively trying to make its citizens poorer.
But wealth repression on this scale is about more than the value of your investment portfolio.
It threatens everything you value about living here in Britain.
The Death of the Freeborn Englishman
The problems our economy faces require drastic measures to counter...
Measures which threaten you directly.
In light of how vulnerable the economy is to the dangers I’ve warned you about today, I believe you need to be extremely wary of how the government is acting.
Whoever is in power when the economy folds next, they will have to be seen to act.
That is an extremely dangerous position for you to be in.
As a British taxpayer, it’s your money the government has squandered.
And as always, when thing start spiralling out of control, it’ll be your money they come for to get them out of trouble.
You may think Britain is an exception, a ‘free country’. Far from it, I’m afraid.
The 1970s was the worst period for government repression in recent history.
Income tax was as high as 83%, and capital gains tax up to 98%. You were effectively working for the government. Capital controls prevented you taking more than £50 out of the country.
The liberalisation of the economy eventually followed, but these things are cyclical.
And we’re heading back to that dark decade at an alarming rate... except today, it’s going to be a lot worse.
If these means – many of which have been set in motion already – don’t lead you to put your money out of harm’s way, nothing will...
It doesn’t matter who’s in power, if higher taxes are popular with the public, politicians will offer it to them – and the pressure for higher tax rates in a recession would be extreme.
What they’ll say: “We’re raising income tax to invest in public services and to make society fairer.”
The real reason: The first step of a desperate government is to raise taxes. Stagflation means rising prices and low growth – i.e. lower tax revenue from businesses. So they’ll come for more of your income.
N.B. Inheritance Tax is also a well for increasingly desperate governments to tap. The number of UK citizens required to pay the tax is now at its highest level since 1979, when a 75% tax was levied on inherited assets above £25,000. Labour will lower the threshold from £850k to £425k if elected – AND impose an £80,000 ‘death tax’ bill.
- THE WAR ON CASH
Governments and central banks hate cash. Across the world, authorities are fighting to eliminate it.
What they’ll say: “Eliminating cash will hit criminals and make life easier for you.”
The real reason: Remember what I told you about interest rates. In the event of a recession, a drop of 4% is required to kick-start growth. With interest rates now at 0.5%, a 4% fall would drop them to MINUS 3.5%. The chief economist of the Bank of England (BoE), Andy Haldane, the Chief Economist at the Bank of England, said that banning cash “would allow negative interest rates to be levied on currency easily and speedily”. With a cash-free financial system, how do you think you’d get your money out the bank? That’s right – you won’t be able to...
- CAPITAL CONTROLS
Capital controls on your money could be enacted within hours of the election of a left-wing government.
What they’ll say: “We’re stopping the rich taking their money to tax havens!”
The real reason: Capital controls will force investors to keep their money in our financial markets and banks, leaving it at the mercy of our high taxes. Reckon your money will be safer in US or Asian stocks? Tough. Foreign investment in British businesses dried up in the 1970s as investors weren’t able to take their money out the country.
- STATE SEIZURES
On 31st January 2018, the government passed a bill that allows courts to issue an ‘Unexplained Wealth Order’. A UWO forces individuals to prove how they afforded assets they own which are worth more than £50,000 – like property, or jewellery.
What they say: “Unexplained Wealth Orders allow us to freeze criminals’ assets.”
The real reason: The state’s desire to exercise control over your wealth. You don’t even need to have committed a crime for your assets to be seized. This is from LexisNexis, the legal research provider (emphasis mine):
“The wide definitions of relevant terms mean that the above criteria will permit enforcement authorities to apply for UWOs (and ultimately seek to apply powers of confiscation) against a respondent who may have only a very tenuous connection to a crime, or indeed where it is not established that a crime has been committed by anyone.”
The principle of ‘innocent until proven guilty’ is over. This measure is ripe for abuse by a desperate government. As time wears on, and authoritarianism continues its march to power, you could well see the state seizing more and more private property.
This is about more than your money...
It’s about your freedom as a British citizen – that’s what people really lost in the 1970s.
They were denied the right to spend their money as they wished and to lead the lives they wanted to lead.
Today, the problems the British economy faces mean you could lead you to suffer the same fate.
And in my view, your chances of going it alone and coming out on top are perilously low.
Over the next few years, I believe Britain will be divided in two:
Those who are asleep. They believe the economy is fully “back to normal”... that the government has their best interests at heart... that their money is safe in the bank.
Those who are awake. They understand the wealth-destroying trends emerging in the economy... that the Bank of England is trapped by low interest rates... that their money IS vulnerable to a desperate government.
Which group will you fall into?
Only you can make that choice.
But you need to make it now.
If you think this warning is “extreme”... STOP reading
I appreciate you taking the time to hear me out. I just hope you know what you’re doing.
But if you’re as concerned as I am by how badly savings are getting chewed up by inflation...
By the scale of the government’s debt – which your money is going to have to service...
And you understand how damaging a programme of industrial nationalisation would be for your future...
Then I think you’ll understand the reasoning behind what I’m about to show you.
Not everyone will, I guarantee. In fact, I’d say most people won’t – but then that’s what a financial catastrophe is, essentially.
Whether it’s the depression of the 1930s after the post-war boom ended, or the increasingly risky mortgages issued into a market no one thought would ever dry up...
These generation-defining events always involve the vast majority of people not realising what’s about to happen... and so failing to prepare themselves in time.
But hidden away in every catastrophe, there are the handful of people who make out like bandits. They go unreported, for obvious reasons. But they’re always there.
In 1929 it was bondholders. The world and his dog had believed stocks were the only game in town. When the depression took hold, bond prices soared. In 2008, it was those who’d spent the previous years buying up gold who got rich.
(That’s another painful reminder of the economic illiteracy of our political leaders, by the way. The then Chancellor Gordon Brown sold half of Britain’s gold reserves in 2001 – just as the market was beginning a six-fold increase. If ever there was a reminder that you should take your financial future into your own hands, that was it.)
My purpose in writing to you today is simple: to help you make the right decisions today so that you come out of this situation better off than you went in... and perhaps even richer than you thought possible.
So what I’m about to show you is not standard financial advice.
A ‘diversified portfolio’ isn’t going to cut it this time round.
Given the precarious nature of the country’s situation – and the global financial system as a whole – my team and I think you’re going to have to make moves you’ve never previously considered...
demand RADICAL ACTION
There’s a huge problem facing every investor and saver today…
The post 2008 financial world is far more fragile… hostile… and vulnerable than anyone is prepared to let on.
The number of threats to your wealth today far surpasses what almost any previous generation had to contend with.
Just think about it…
There’s been no other time in history in which so many entire nations have been pushed to the brink of bankruptcy…
In which whole political and economic systems have imploded (just look at what’s happening in Europe today)…
In which TRILLIONS of dollars of capital have been invented out of thin air and flooded the financial system…
In which powerful countries like Britain have seen their national debts DOUBLE in peacetime, with no end to the borrowing in sight.
At times like this, just understanding what’s happening isn’t enough.
Put simply, extraordinary times demand radical actions.
Actions to not just to protect your money… but to make sure you come out of this mess richer than you went in. A lot richer.
Once upon a time you could simply tuck your savings away in the bank and know it was safe… or simply buy and hold big blue chip stocks for the long run… or trust that your pension wouldn’t be meddled with…
But those days are over.
The financial system has gone “through the looking glass”. Now, keeping your money safe means thinking differently… being creative… and considering ideas that most people don’t even know about.
If you want to protect and grow your wealth, you need to be active and pursue “aggressive defence” – by taking steps to turn the fragile financial system to your advantage.
Which is precisely what I want to help you do.
Three secrets to making money and keeping your wealth safe during a crisis
As I said, I’m lucky enough to be a part of one of the most incredible networks of investment experts, analysts and big picture thinkers in the world. Our four million followers worldwide are testament to that.
I’m in regular contact with multi-millionaire investors… former billion dollar fund managers… industry insiders… banking and property experts… the list is endless.
I've harnessed my network to do something I don't think you can find anywhere else...
We've put together what I believe is THE most valuable set of ideas, insights and recommendations in the world, if you want to understand and profit from the biggest bankruptcy in history…
The way I look at it is like this...
The global financial system... and the UK financial system in particular... are way more fragile than anyone lets on.
Yes, there are 'countermeasures' against crisis in place, like the Financial Deposits Protection Scheme, which in theory protects some of your savings from problems in the banking sector.
The problem is... it's never been tested by a real crisis. It's just another promise.
No one can guarantee you anything in this financial system. Not me... not your bank... not the government.
And frankly, most of us have 100% of our wealth tied to this system. Your banking, mortgage, pension, ISAs... it's all tied to the traditional financial system.
Fine. There's not much any of us can do about that.
Except – as a prudent, common sense insurance policy – to take 1-2% of that capital... and get it out of the existing financial system for good.
Ideas like that are seen as radical... even immoral in today's world.
But to me... it's just good common sense.
Which is why I'd like to help you do exactly that.
Crisis insurance… on steroids
My team have compiled a step-by-step guide to surviving in times of financial chaos… and turning the coming crisis into an enormous opportunity.
Think of these moves like taking out insurance against the collapse of the traditional financial system…
Except rather than just “insuring” you… these moves are likely to pay off BIG TIME if the worst really does happen.
It’s called Stealth Wealth: Four Ways to Get Off the Financial Grid
In it, you’ll find a series of simple measures you can take today to get your money OUT of the financial system…
**THE SINGLE MOST IMPORTANT ASSET IN A CRISIS
It’s not a stock… bond… or commodity like gold or silver. But this one asset is vital to surviving a really nasty downturn.
Most people don’t even think of this as an investment at all. They’re making a big mistake. Having a cache of this one secure, virtually risk free asset safely tucked away at home is a must.
We’ll show you what it is… why it’s the single best way of insuring yourself against financial crisis… and why it is legally guaranteed not to lose you money.
**TAP THE “OLD MONEY” SECRET TO GETTING YOUR MONEY OUT OF THE SYSTEM
For instance, did you know that there’s a simple secret to getting your money out of the traditional financial system that can deliver huge returns during times of crisis… without touching stocks, bonds, gold, property or commodities?
Anyone can take advantage of this secret… and capture major returns when the system freezes up.
In 2007, when the banks were on the brink, it turned £8,000 into £18,000 in a matter of weeks. Over the longer term (say, ten years) I’ve seen this secret deliver 10x returns.
We go into detail on how to get this working for you in your research report.
**SEED YOUR WEALTH IN THE NEW, DEBT FREE FINANCIAL SYSTEM
Did you know there’s a way you can tap into an entire alternative financial system – often anonymously – that is completely cut off from the toxic debt and credit markets?
My view is every single person on the planet should have some capital stashed in this alternative financial system, just in case.
And here’s the best part: tapping these alternative financial assets can also deliver extraordinary returns. I’ve seen people turn £1,000 into £30,000 or more in less than a year, without ever touching stocks or bonds.
Are there risks? Of course. But there’s one risk you don’t need to worry about – and that’s having your capital in the bankrupt financial system. This alternative money system is completely cut off from the normal debt, credit and banking system.
If and when the traditional markets blow up, no one knows exactly how far the contagion will spread… but you’ll be glad you have at least a portion of your capital outside the traditional banking system (and beyond the reach of the government).
**THE ONLY KIND OF GOLD WORTH OWNING IN A CRISIS
Here’s another great example… there’s a special kind of gold that is FAR more durable than regular gold, but with all the same wealth preserving qualities?
It’s still outside the financial system… it can still soar in times of currency depreciation and inflation… but it’s much more discreet and easily portable.
Why? Because it’s more durable. The strange part is, most gold brokers don’t actively advertise this type of gold. We explain why, and show you how to buy it (without your purchases being traced).
It’s all detailed in the special research report I just mentioned, called Stealth Wealth: Four Ways to Get Off the Financial Grid.
Again, this report is yours, free of charge – just say the word.
All I ask in return is you become a charter member of our newly launched, first of its kind financial survival advisory…
The bottom line is this: There ARE ways to both protect your money from disaster and a toxic financial system whilst making potentially enormous returns at the same time.
You have to be bold… think differently… and willing to consider ideas that you simply will not read about in the FT or Bloomberg, because they’re dismissed as too “out there” for regular investors.
The fact is, there has NEVER been a better time to start thinking like this… to start looking outside the traditional financial system… to start preparing a Plan B that will help you prosper if (or more likely when) the s*** hits the fan.
Which is why I’ve used my connections within the world’s largest underground research network to launch a very special project with exactly this mission: to show you the secret, profitable actions you can take to turn the looming disaster in the financial system to your immediate advantage.
Or in other words…
To share the ideas that turn market collapses into jackpot events for you and your family…
To get a portion of your money OUT of the broken financial system by any means necessary…
To show you the secrets to making money no matter how bad things get in the financial system.
To do this, I’ve created a first of its kind research advisory designed to share these ideas with you on a regular basis.
It’s called the Zero Hour Alert.
And if you’re worried about the fragility of Britain’s economy and the global financial system… it’s absolutely vital reading.
It’s headed up by two of the best analysts from my global network, including a former Goldman Sachs banker and a man who personally helped manage hundreds of wealthy clients’ capital.
Put simply, its aim is to show you what you won’t find elsewhere: the unvarnished truth about Britain and the financial system… and the steps you need to take to survive and profit from it.
Each month as a Zero Hour Alert reader you'll get a REAL insight into what's happening in the global financial system...
Paired with actionable ways of turning those problems on their head and getting your money OUT of the broken system for good.
Chances are these "alternative" financial moves will help you sleep a lot better at night (particularly as the credit bubble unwinds)… and could end up making you a hell of a lot better off.
That all starts with your special research report:
RESEARCH REPORT #1: Stealth Wealth: Four Ways to Get Off the Financial Grid
But that's not all you get.
We've also prepared a special report on how you can turn the 'great unwinding' in the financial system to your advantage by investing in traditional assets that'll likely soar in a collapse...
RESEARCH REPORT #2: Aggressive Defence: Profiting from Financial Collapse
It’s a vital primer on how you can use the financial system to insure yourself against crisis. In fact, some of these methods have been in use for centuries. We’ll introduce you to the simplest ways of using the financial system to profit from collapse.
And it's all yours when you take a trial to the Zero Hour Alert.
I should point out: All of the moves outlined in these reports come with their own risks attached.
That’s why you should always think carefully when you invest your capital. Any investment involves risks that could result in you losing money.
The question you have to ask yourself is: what’s the REAL risk to your capital?
My answer is – having 100% of it tied up in a broken, corrupt and fragile financial system.
Taking 1-2% of it OUT of that system is just good common sense to me.
I’m sure you agree.
But the fact remains, doing this isn’t risk free.
Alternative investments can be hard to sell. In financial jargon this is known as being 'illiquid'. It means if you need to sell something in a hurry, it can be hard to find a buyer quickly. That's part and parcel of having some of your capital outside the system. It's not the same as a share portfolio you can cash in with a few clicks of a mouse.
To state the obvious: that's the whole point. The financial system itself is built on instant liquidity and vast numbers of buyers and sellers. That's the benefit... though it comes with its own risks, as we've been discussing.
Getting out involves different risks. Another is many 'alternative' investments aren't regulated or covered by the Financial Services Compensation Scheme or Financial Ombudsman. That means you don’t have the same level of ‘protection’ as you would with traditional investments.
I think the risks are worth it. Given what I've shown you today... don't you?
Let’s get our work into your hands right away. Because the fact is…
This Is Information You Won’t
Find ANYWHERE ELSE
That’s a shameful indictment of our leaders, our media and our economists.
But it’s the sad truth.
Look at the Wall Street Journal. Look at the Financial Times. Are they providing real, practical steps to help people survive if the system blows up?
Most media outlets don’t even cover stories like this. That’s because the “establishment” has a vested interest in the status quo.
Most analysts would rather toe the line and pretend the academics, politicians and economists in charge of the system have everything under control… that they haven’t completely ruined the financial world through money printing, excess debt and intervention…
People don’t want to hear what’s really going on.
Government doesn’t want to hear it. They’re the biggest debtor on the planet. They don’t want to hear the end of the credit bubble is coming because they won’t be able to borrow anymore!
There are almost no serious financial actors who want to see the truth and want to talk about the truth.
It’s only we…the independent financial publishers…that can honestly report on what’s going on. And show people how to prepare.
We don’t take advertising. We’re not part of the financial industry. We’re not economists who are paid to look the other way. And we’re not big government.
We’re the only ones who are willing to tell the truth.
That’s why more than 4 million people worldwide pay to read our work.
And it’s why our UK branch, Southbank Investment Research, has such a loyal following of investors and savers.
In fact, since we started publishing our alternative ideas and insights, we’ve opened a lot of people’s eyes to what’s really happening in the financial world.
As one reader put it, our work is “A must read to REALLY understand what a calamitous situation we are living in – growing worse by the day and intensifying exponentially. IT’S A WAKE UP CALL – and NOT TO BE IGNORED! Failing to prepare is PREPARING TO FAIL!”
Another summed up my attitude to crisis preparation exactly, saying “Don’t trust or rely on the government but take action yourself to prepare for financial Armageddon.”
For some readers, our work is nothing short of life changing. This note alone made every word we publish worthwhile:
“Throughout some of my darkest moments of despair I have turned to reading your emails, not only as a search for 'a way out of the rat race , new forms of income, and a way of working from home' but also a source of positivity on which to focus.
Instead of being a crumbled wreck drowning in tears, torment & worry I read your emails and I am filled with a sense of encouragement, hope and determination that I can do this, albeit alone... I can & will turn things around for my little man & myself!
With hindsight one of the best things I did this year (2017) was to subscribe to the amazing information and opportunities you guys provide!
A HUGE thank you & hug for all the information & 'inspiration' you have given me in my search for a new beginning.”
One reader even wrote to tell us that thanks to our “joining the dots” he’d made his first million from our recommendations.
Believe me, nothing makes me feel better than receiving notes like these.
But I have to tell you, right now, I am really worried that a lot of our subscribers and many, many ordinary investors are going to get caught totally by surprise when the next crisis hits and the state of the British economy – and vulnerability of the country’s citizens – is laid bare.
That's why I created the Zero Hour Alert.
And that's why I'd like to send you the full details on exactly how I believe this is all going to unfold... and exactly how to protect yourself and even prosper during this crisis.
That all starts with my invitation to you today.
All this is yours today – just say the word
RESEARCH REPORT #1: “Stealth Wealth: Four Ways to Get Off the Financial Grid”
RESEARCH REPORT #2: “Aggressive Defence: Profiting from Financial Collapse”
MONTHLY RESEARCH: On the first Friday of each month we'll send you your monthly newsletter, the Zero Hour Alert. We'll keep you up to date on exactly what's going on regarding this financial crisis, and show you some unusual and incredible ways to make money now and as it begins to unfold.
We have found some great ways to make a fortune as the government continues to try to bail out one failing industry after another.
I'll also keep you up to date on what I am doing to protect myself. I'll make sure you stay abreast of changes to the laws and government interventions.
And... every day the markets are open, I'll send you as my "paid-subscribers-only" e-mail called Southbank Investment Daily.
In short, I report on all the work my firm is doing... the most interesting investment ideas... what we're researching now... and what we expect to happen in the months to come.
I sit down and write this email every morning myself. It's free for paying subscribers of our work... but it gives you an insight into the network and thinking behind our research.
So how much does the Zero Hour Alert cost... and how can you get started?
Well, a one-year subscription, including everything I mentioned here, normally costs £99 per year.
But right now, you can try my research, for HALF-OFF the normal rate.
You'll pay just £49 for an entire year.
Why so cheap?
Well, to be honest, our business really only works if our subscribers stick with us for the long-term. But we realise you've got to try our work first, to see if it's right for you.
And that's why, through this letter, we're making it so cheap, and essentially risk-free to try.
What I mean is, you'll have the next three months to take a look at the Research Reports I've just described, plus the next three issues of the Zero Hour Alert... and the next four months of my daily reports.
If you decide for any reason my work is not right for you, just let us know and you can receive a FULL REFUND... and keep everything you've received so far.
In other words, by taking me up on this offer, you are agreeing only to TRY my work to see if you like it.
I know it will be one of the best financial moves you ever make:
I hope you'll consider this offer seriously. The fact you're still reading this letter tells me how seriously you're taking the demise of the economy – and that you understand why the next crisis is going to be a different beast entirely.
That’s a good start. Now there's only one thing left to do.
Your order will be processed immediately, and you'll have access to all of my work in a matter of minutes.
There has never been a
better time to join us
In the 1970s, the British people were presented with a false choice.
It didn’t matter whether you voted Labour or Conservative. Both were fully signed up to the damaging consensus that the state should run everything.
Nationalisation of industry... income tax up as high as 83%... a £50 limit on what you were allowed to take out of the country... to hell with your freedom.
The result? Inflation soared. The pound plummeted.
It couldn’t last. The country finally gave up the ghost in 1976, begging the IMF for a 3.9 billion dollar bailout. We were officially a laughing stock.
Today we’re in the hands of an equally damaging consensus...
As I said earlier, money printing (aka Quantitative Easing) is like a drug.
Once you start doing it, the taboo is broken.
When the financial crisis struck in 2008, we were told that the Bank of England would print £50 billion. The final figure? £375 million.
So when the UK voted to the leave the European Union in 2016, the BoE thought nothing of printing £60 billion and slashing interest rates to just 0.25%.
The thing is, money printing is an experiment. It’s never been tried before...
And it isn’t working.
Savers are seeing their sensible behaviour rewarded by pitiful interest rates – while the cost of living soars.
But then your future isn’t the issue here...
The purpose of Quantitative Easing and low interest rates is to protect the highly indebted financial system.
After all, if interest rates were higher, the government would have to pay more to borrow money. And given the sclerotic state of our economy, they simply can’t afford to do that.
I suspect you’ve realised this yourself...
But ask yourself this: when do you ever hear anyone in Parliament rail against this knee-jerk money printing and the currency devaluation it brings?
Who do you hear fighting for the savers getting battered by 0.5% interest rates?
They don’t seem unduly bothered to me. It’s a minor issue. Something going on in the background...
So while the country careers towards higher inflation and the prospect of NEGATIVE interest rates...
They’d rather discuss subsidies for wind farms and what colour your passport should be.
Let’s be honest, it’s in their interest to ignore these problems.
If the man on the street was fully aware of what’s going on... if he knew he could soon be PAYING to keep their money in the bank... he’d get his money out ASAP!
Now, you do know what’s going on.
You just need to stop accepting it.
The Zero Hour Alert has been created to help you keep some of your money outside the traditional financial system – and to help you become one of those who sees what’s happening before it’s too late... and who prospers in spite of the system’s collapse.
I know the “it’ll be alright in the end” attitude is a comforting one... but it’s also very, very stupid – not to mention highly irresponsible – to my mind.
The fact you're still reading this letter tells me you know this.
The reality is, all this money printing has actually made the financial system MUCH more fragile – and not just here in the UK.
When the next financial crisis hits, central banks across the world won't be able to print enough money to stave off crisis without trashing the global economy even more.
Just look at how deep a mess we're already in – this chart shows how much debt central banks have taken on since the financial crisis. Central banks’ balance sheets have swollen to $14.4 trillion.
CAPTION: We're in over our heads!
Is it any wonder the government is so desperate to eradicate cash from the financial system?
Or that they are increasing their powers over you with Orwellian tools like Unexplained Wealth Orders?
Or that they are hiding the real inflation figures?
The country is straight-up skint – and they know it.
And, just like in the 1970s, the money they’re eyeing up to get them out of the mess they’ve created is YOURS.
Any money the government borrows ultimately has to be paid for by your taxes.
"We used to think you could spend your way out of recession and increase employment by boosting government spending... I tell you that option no longer exists."
These are the words of the then Labour Chancellor Jim Callaghan. They are the most important ever uttered in modern British politics.
Unfortunately, almost everyone has forgotten them.
For a left wing prime minister to admit that too much state spending is dangerous SHOULD have marked a big turning point in our history. But of course, it didn't.
Governments have continued to live beyond their means ever since. Gordon Brown even had the audacity to declare he had “put an end to boom and bust” – and he was perceived to be economically literate!
If that doesn’t show you how clueless the people at the helm of the country are – and prompt you to put some of your money OUTSIDE the traditional financial system today – nothing will.
Most Britons are sleepwalking towards financial servitude, to my mind.
They aren’t aware of what’s going on around them. They have no idea of the scale of the debt or, more importantly, the measures the government will enact when things get critical.
So if the worst happens... if a default in the system sends shockwaves around the financial world again... how much would you stand to lose?
How much of your wealth is tied to the country’s fragile... vulnerable system?
To me, it's common sense to get at least a PORTION of your capital out. Now. While you still can.
But I've made that point. I've shown you conclusive proof.
It’s over to you now.
Will you take action?
I know what I'd do if our roles were reversed:
Publisher, Southbank Investment Research
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