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Recession Will Kill These Four Currencies
in 2009
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Monday, December 1, 2008 - Vol. 10, No. 286

"There's 'NO' Way Around It...  It's Ugly Out There ...But That Doesn't Mean You Have To Volunteer To Be On The Chopping Block -Big Profit Awaits!"

With teeming crowds of pushing, shoving - even lethal - Black Friday shoppers pouring into retailers from coast to coast, you wouldn't think we're in the middle of a worldwide recession.

In fact, the National Retail Federation said more than 172 million people went shopping this weekend - up from 25 million shoppers from last year. That's a whopping 56% of the nation's population.

But if you look closer, the crowds of shoppers only tell part of the story...

Black Fridays Aside, the Recession Stands

For instance, you can't tell by looking around the stores on Black Friday that a huge chunk of would-be shoppers stayed home and spent US$534 million online this year, to save on their holiday expenses, according to MarketWatch.

You also can't tell that overall, analysts expect consumers to spend 29% less on holiday gifts this year.

Meanwhile, as Americans were knocking each other over in the stores, the U.N. released an interesting bit of news over the

4:00 A.M. Friday morning. Over 3,000 anxious shoppers crowd outside a Kohl's in Hartford Connecticut.

5:03 A.M. Over 2,000 shoppers literally trample a Wal-Mart greeter to death as they pushed through the Long Island store's doors.

7:00 A.M. Serial Black Friday shoppers are already on their third or fourth store of the day in Ohio.

8:00 A.M. The big ticket items are already gone from shelves from many discount stores. The massive "Thursday only" sales have wiped out IPods, video games and laptops. Best Buy hands out vouchers to shoppers who lined up before 3:00 AM, and still didn't get what they came for.

weekend. The U.N. is predicting the first worldwide recession since the 1930s ... for 2009. If that wasn't bad enough, developed nations are supposed to shrink up to 1.5%.

"It seems inevitable that the major countries will see significant contraction in the immediate period...even if the bail-out and stimulus package succeed," according to the report.

In other words, the recession may have spared Black Friday 2008, but next year, the worldwide recession will cut into worldwide spending even further. In the currency markets, you can already see that four currencies will suffer next year as the U.N.'s prophecy comes true...

The Four Currencies On the
Chopping Block for 2009

1. Euro: Yes, the euro WAS King of the Hill for the most of this decade. But those days are long gone. Right now, the Eurozone is only as strong as its weakest members - and some of its weakest members happen to be suffering emerging markets in Eastern Europe.

Not to mention, the European Central Bank has already started following the Federal Reserve in slashing their own interest rates. And, just last week the European Commission urged all EU member states to unite in an EU-wide fiscal stimulus package worth 200 billion euros (US$260 billion) to stave off recession. That spells disaster for the single unit currency.

2. Pound - The London markets have been the most overexposed to the subprime-credit crunch for quite some time. In fact, the pound started to turn as early as November of last year.

Today, a year later, the pound is still suffering for the same reasons - deteriorating housing wealth, frozen credit market and heavily indebted consumers, among other sore spots.

The U.K. labor market (especially in London) is also still at risk from financial-specific job losses (even after massive layoffs this year). And, the Bank of England too is racing to catch the Fed in lowering interest rates to stem the economy's collapse.

3. Australian dollar - Australia has been a satellite country to China for years. Australia is used to providing so much of what hungry Chinese manufacturers need to produce their "stuff." But if China further cuts back their demand for such input products and commodity prices continue to drop, then Australia will lose the financial boost of its best customer.

In other words, Australia's exports will suffer mightily and crush the Aussie dollar even further. If that's not bad enough, the Reserve Bank of Australia is on a similar path with monetary policy. As it is now they can't seem to cut interest rates fast enough.

4. South African rand - The ramifications from a sick global economy will reach beyond just the major currencies.

Whether South Africa's economy lives or dies is based largely on their commodity exports. And as commodity prices continue to drop next year, which we think they will, the South African rand will suffer even more. Plus, economic troubles will likely rekindle political and social unrest.

Right now jobs are at risk in South Africa, so many South Africans could face the constant threat of unemployment. Of course, a rising jobless rate doesn't sit well with a nation's citizens. And civil unrest doesn't exactly reflect well for the body politic. (A situation like this doesn't bode well for any currency.)

But as you'll see, you can use economic slowdowns the coming 2009 recession to grab never-before-seen profits in the Forex market. In fact, in just the last 12 weeks, investors have grabbed 1,229% shorting the Hungarian Forint, 1,509% betting against the Czech koruna, and earned an astounding a 2,997% as the Polish zloty dropped.

 

Listen.

This market reminds me of being stuck in New York during its last, long garbage strike: everywhere you looked, shiny stores and popular restaurants obscured by six-foot high piles of rotting garbage; giant alley rats multiplied and spilled into main streets; the stench blocked the sun.

And no matter what you remembered about the beauty, the culture, and unharnessed energy of the city - you couldn't help but realize it was gone.

While this may sound horrible, and it was, as a tourist it really wasn't that big of deal.

Because I packed up and quickly re-routed my vacation to another destination - where the streets were not piled high with garbage...where there were no ally rats...and the stench did not block the sun.

Sure, I could have stayed, but why torture myself when other cities, attractions, and countries had more offer (than the Big Apple) at that given time?

Why continue to wake up every morning wishing I had left the day before?

Why continue to torture myself when a solution could so easily be obtained?

It just didn't make any sense.

So I packed up and quickly moved from New York to a number of different places that although were unfamiliar to me...were much better (and more enjoyable) given the circumstances.

Now, I tell you this story, because in today's economic "wasteland" you have the choice of whether you want to be a "tourist" or "resident."

Will you continue to 'hope' and 'pray' the current market you're investing in gets better - OR - will you do like I did, pack up, and visit another market where gains are still plenty and bigger than ever.

Trust me, just like New York, your favorite market will still be there when THINGS get better.

I don't know about you, but I've never been much of a fan of the 'hope' investment strategy - just seems a little too uncertain (like a game of chance) where the odds are against me.

This is why I've written you today - to tell you about a market where predictability and profits are one in the same. In fact, the Wall Street Journal recently reported that millionaires are growing five times faster (in this market) than they were just last year.

Thanks to a number of academic breakthroughs by Harvard, MIT, and this years Nobel Prize winner Dr. Paul Krugman - this market is more predictable that ever before - and has become the breeding ground for "Big Game Hunters" and mammoth-sized gains.

Since launching into this market July 30th, 2008 - me, my friends, and all our subscribers have had the ability to enjoy a winning percentage of 89.7% - with the average winner being over 1,000%

Not bad, huh?

If you're interested in learning more about this opportunity - to determine if one of the remaining 146 spots if right for you - then I encourage you to read our latest write-up before its too late.

You may see an update (and complete) track record by scrolling down to the BIG YELLOW box on this webpage.

Look: If you're going to make an informed decision about this opportunity then you need to know the truth, and every detail of what you're getting yourself involved in.

Well, that's it. I hope you had a terrific Thanksgiving and will have an even better holiday season!

The choice is yours!

Best,
John Ross Crooks, III
Co-Editor / Exotic FX Alert

P.S. You may be tempted to "sit on your hands" and try just riding out the current and coming storms... many will. Personally, I choose not to wait. I choose not to be victimized by a "situation" that was not my doing, not my fault, nor my family's - and if you feel the SAME - then I sincerely believe this opportunity is worth your investigation


 

 
 
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