Whereto? - USA versus Canada

Why I Turned My Back on America

 

Dear Reader,

In the few pictures that follow, I want to show you the disastrous road America is on right now.

It’s a road we’ve been put on by failed American economic policies conjured up by politicians who have no idea how massive debt and money printing eventually destroy a country.

There's a very strong chance the pictures you’re about to see will strike close to home.

If you’re an investor...

...or a small business owner, there’s no doubt in my mind you’ll relate to them.

The images I’m about to show you are pictures of the not-so-distant past...

...but even though they were taken not long ago, they still serve as a cold, hard look at what could be ahead for you...

...for your family

...and your friends and neighbors

In fact, there may only be a handful of Americans that will not be affected by what you’re about to see in my pictures.

Now tell me...

...Does this look familiar to you?

Up until 4 years ago, that’s what my warehouse USED to look like.

Today however, this is what's going on:

After 30 years in business, my small, hard-working enterprise collapsed.

And with its closing went 77 jobs.

That’s right - 77 people were put out of work.

Despite these loyal employees giving me everything they had every day they came into work...

Despite me pouring my blood, money, sweat and tears into making the warehouse work...

Despite re-investing back into the operation to keep things running...

We were faced with no other option than to close down this 30-year company.

Our warehouse served the business community...

...mainly small and medium-sized operations.

In other words, the very businesses that were hit hardest by the credit crisis...

...and neglected by the “recovery policies” that followed the crash.

Now I’m not saying that President Obama didn’t do what he felt was best for the nation.

Let’s be honest…

He faced an unfair challenge for any president coming into power, whether Republican or Democrat, a bust bigger than anything since the Great Depression.

But that doesn’t change the fact that he’s putting the money in the wrong place.

Tell me, how can you ignore small business when it’s responsible for...

·         Generating 65 percent of new jobs over the past 17 years.

·         Creating more than half of the nonfarm private-  sector contributions to our GDP

·         Hiring 43 percent of high tech workers (including scientists, engineers, computer programmers, and others)

America's small businesses are also responsible for producing 13 times more patents per employee than large patenting firms.

So how do you explain the cold shoulder?

I don’t get it.

By shrugging off the problems of the very engine powering over half of the U.S. economy...

...and ignoring the source of 65% percent of the nation's net new jobs...

...and insisting on giving the money to banks and large corporations who've repeatedly shown us they can't manage responsibly on their own...

...Washington is turning its back on the best shot the country has at recovery.

The end result?

Well, let me put it to you this way - there was a time when hearing the word AMERICA...

...Would bring proud images like these to mind:

But, something happens when you remove the very spark that makes what you saw in those pictures possible.

Here are the realities of the new America:

Many people living in our neighborhoods no longer have the means to keep their homes...

..and how could they?

At the present time, one in four American workers earns less than $22,000 a year -- the poverty line for a family of four.

20.5 million Americans have incomes of less than $9,500 per year.

And for six million Americans, their only income is food stamps.

...Some farmers have thrown in the towel and abandoned farms that have belonged to their family for generations.

And, if small- to medium- sized businesses are closing down, the ripple effect carries down to the mom-and- pop stores, too:

I really do wish I could tell you it was going to change.

That’s just wishful thinking.

I don’t see a magic solution...and no matter what happens, America has a very long, hard road ahead of it.

2013 is not going to be an easy year.

Don't just take my word for it...

...Plenty of other market observers are saying the same thing I am.

Jim Rogers told Fox Business Network: "2013 will be very bad. God knows what will happen in 2014."

Sam Zell believes that it’s “very hard not to assume that we're on the cusp of going back into recession."

These contrarian billionaire investors believe this because the stage has been set for the worst to happen.

And it all ends with something that started on September 13th, 2012:

On that fateful day, the Federal Reserve went ahead with its third round of quantitative easing and launched a buying program of mortgage-backed securities.

This comes with a $40-billion a month price tag.

Immediately after QE3 was announced, America’s credit rating was downgraded by Egan-Jones...

...downgrading of America’s credit leads to further devaluation of the dollar.

This robs the greenback of its purchasing power, and propels inflation, leading to less consumer spending.

But that’s not the only way Bernanke is punishing us.

The punishment started four years ago when the Fed lowered short-term interest rates to almost zero. Then the Fed unleashed the first two rounds of quantitative easing to make sure short-term and long-term interest rates stayed low.

Most retirees, investors and small business owners have worked hard all their lives to build their savings.

Now that they’ve accumulated some money, the lowest interest rates in our history prevent them from making any real money on their investments.

For every $100,000 a person has saved, all they will get from a 10-year U.S. Treasury is 1.5% interest -- just $1,500 a year in taxable income. With real inflation running in the 3% to 5% range per year, savings accounts are bleeding!

Simply put, the “savers” of our country are being punished for their responsibility.

And small businesses, the backbone of this country, are suffering again as inflation keeps consumers from spending.

Lower spending will likely force more small businesses to shut their doors, driving up our unemployment levels...

...and this unemployment will lead to even less consumer spending.

Since 70% of the U.S. economy depends on consumer spending, we’re facing one of the most financially destructive cycles in our history.

Thankfully, there is some good news about all this...

...You don't have to be confined to the economic conditions that are plaguing the country.

I discovered a way to protect my assets and increase my wealth even while America takes its journey along that long, hard road down.

It took me a while to realize the full potential of this discovery and to make the most of its benefits, but now that I have...

...there's no going back.

If you want to see what this discovery has to offer you, I can tell you more…

But there’s one condition. I need you to open your mind.

What I'm about to show you might come as a shock at first.

It likely goes against everything you’ve been conditioned to believe...

If you feel you’re ready to hear about the first step to protecting your money and watching it grow, then here it is...

My financial picture immediately improved the day I finally...

Turned my back on America.

Offended?

I could understand why you might be taken aback by that statement.

Not everyone I’ve said that to has taken kindly to it.

Now, I wouldn’t say I turned my back on America the country…

…but instead I’ve turned my back on its government and the politicians who have shown gross incompetence by getting us into this financial disaster.

The Fed and the government punished me for working hard my entire life…

…they’re punishing me for managing my money responsibly by eroding the value of my savings.

I’m turning my back on a government that has punished me for avoiding debt -- something it seems completely incapable of doing itself.

So then where is an investor supposed to go for a fair shake?

Finally, the answer which had been staring me in the face the whole time became the best option...

In case the thought crossed your mind – nope, the answer isn’t the Caribbean.

Actually...

...Depending on what part of the U.S. you’re in right now, you could be as little as a dozen miles away from this country.

This year, Moody’s, Fitch AND Standard & Poor all gave this country a rock-solid AAA credit rating...

...Which is great news at a time when Egan-Jones slashed America’s credit rating from ”AA” to “AA-“.

This “AA-“rating has a direct (and very toxic) impact on the value of your American assets.

Year in, year out, this impact attacks the value of your dollar even more.

I mean, you know you’re in a bad situation when the average net worth for middle class families in America has plummeted over 28 percent in less than ten years.

That’s right, in 2001 the inflation-adjusted median household net worth was $129,582.  In 2010 that number dwindled down to $93,150.

It doesn't end there, either.

In 2013, it's expected that middle class families with total incomes between $39,790 and $64,484 can expect to pay roughly $2,000 in more income tax on top of their devalued incomes.

The Wall Street Journal reported it could take an    entire generation for the middle class to “...regain the peak income levels reached at the close of the ‘90s.”

Meanwhile, the citizens of the country I’m telling you about have far surpassed the average American household in yearly income...

...to the tune of $40,000 more per year on average.

And that gap is on course to get a lot wider.

See, back in 1950, the American dollar had the buying power of $4.51 in today’s value.

By 1980, the greenback’s buying power shriveled to $1.21 in today’s value.

For 2013, it’s looking bleaker than ever.

It took just 35 years to cut the value of the consumer’s dollar in half.

One highly respected U.S. investor and commentator had the following to say about the situation:

“The dollar is losing value. Right now it's losing value more slowly than the euro. If two people jump off of a building, and one is falling at 40 miles an hour and the other is falling at 30, the one that's falling at 30 isn't flying. He's still going to hit the pavement.”

I’ll tell you who this man is very shortly, because he also has a very interesting viewpoint on my profit and asset protection discovery.

First, however, I want to use two countries to illustrate the road America is on right now.

The first is Argentina. Back in 1989, inflation levels in Argentina topped 5,000%!

And once again, it was the responsible “savers” that were punished for the incompetence and irresponsibility of their government.

By 1999, Argentina’s GDP dropped by four percent...the same drop America is facing today.

This drop led Argentina into a bitter three-year recession.

The devaluation of the Argentine peso takes me to my next country...Zimbabwe.

There was a time when the idea of the average American making trips to the grocery store with box loads, even wheelbarrows of cash...

...just to buy a loaf of bread and a carton of milk would be laughable.

Yet, with the U.S. currently sitting on over $16 trillion in debt, a debt which includes $3.8 trillion in accumulated interest...

...seeing the Federal Reserve someday running off trillion dollar bills doesn’t seem ridiculous at all.

Not convinced this could happen in the U.S.?

Well, one powerful nation which was one of the first architects of quantitative easing by printing currency...

...was the first to experience the harm and humiliation that resulted from printing money on a whim.

The architect of quantitative easing I’m talking about is Germany.

After WWI, Germany’s Weimar government found itself in what felt like a hopeless situation.

Policy makers in the Weimar Republic had to choose between chocking off inflation...

...this would lead to bankruptcies, unemployment, strikes, hunger, disorder and violence.

...OR, they could continue with inflation and default on their foreign debt as a result.

Sound familiar yet?

Now, remember that crazy trillion-dollar bill I showed you from Zimbabwe?

Well, here’s what a bill for one hundred million Deutsch Marks looks like:

Still convinced such a thing could “never happen” in “a country like America”?

This inflated currency also meant Germans had to go grocery shopping with wheelbarrows full of cash.

With the decline of the German economy, because their money printing grew so drastic, those bills proved more useful as “fire wood” than money.

And the most chilling part of it...

...is we all know what Germany ultimately resorted to in order to get out of its mess.

Fortunately, this isn’t a factor to worry about with the nation I refer to as an economic bomb shelter.

If you’re still not sure what country I’m referring to, it’s Canada.

My name is Michael Lombardi and I live full time in Canada now.

It’s where I run several successful businesses including one of the world’s largest investor research firms, Lombardi Publishing Corporation.

We’ve been widely recognized as predicting five major economic events over the past 10 years.

In 2002, we started advising our readers to buy gold-related investments when gold traded under $300 an ounce.

In 2006, we begged our readers to get out of the housing market...before it plunged.

We were among the first (back in late 2006) to predict the U.S. economy would be in a recession by late 2007.

We even correctly predicted the crash in the stock market of 2008 and early 2009.

My message today about where America is headed is very important.

I truly believe America has been put on the wrong path by failed economic policies conjured up by politicians who have no idea how massive debt and money printing eventually destroy a country.

The purpose of this presentation is show you how relatively easy it is for you to protect your assets and increase your wealth while America takes its journey down its difficult road.

While it’s not known to many, Canada and the United States are the world’s largest trading partners and they share the world’s longest border.

But Canada’s economic structure and policies are very different than the United States. In fact, Canada is often referred to as the “New Switzerland” of the West.

Sure, many Americans could consider Canada’s banks to be a little “bland,” or even a little “boring” as far as risk-taking goes...

...But that wouldn’t be a fair description of a banking system whose policies avoided the toxic debt that tanked the U.S. banking system.

The strength of Canada’s dollar comes from more than sound management.

It’s also powered by resources the rest of the industrialized world is in desperate need of:

·         Gold

·         Silver

·         Timber

·         Oil

·         Graphite, copper and many other minerals

The country is so rich with these resources that the larger players in the 11-year-old precious metals bull market are taking notice.

Remember that quote I gave you earlier by the famous U.S. investor and commentator?

Well, that man is Peter Schiff, CEO of Euro Pacific Capital and host of the nationally syndicated broadcast, The Peter Schiff Show...

...and Peter had the following to say about Canada:

 “I'm already investing in Canada. I personally have more money invested in Canada than I do in the U.S...

...There are a lot of resource names up here. Pretty much all the stocks I own in Canada are resource stocks”

But resources are only one part of the equation.

Another key aspect of Canada’s growth is its housing market – Toronto, its financial capital, is enjoying its 16th consecutive year of rising home prices.

You see, banks don’t lend so easily here.

Canadian home buyers are obligated to pay a substantially high down payment when they buy any property.

Money isn’t being thrown to people who can’t pay it back.

In June 2012, Canada’s finance minister Jim Flaherty even introduced a new set of rules to make sure all lending is kept in check.

At the time I’m writing this, there are presently 148 high-rises and skyscrapers being built just in Toronto alone...

...ranking this world-class city as one of the top property development centers in the world.

This is a country that actually rewards people who manage their money responsibly.

Getting Out of America
While There’s Still Time...

When I look at how America’s finances are run today, I see it as one great big Ponzi scheme.

Foreign countries are losing faith in the value of the U.S. dollar because the Fed creates them out of thin air.

So the U.S. government has to find other buyers for the Treasuries it so desperately needs to sell to pay its bills everyday.

Who buys U.S. Treasuries if the foreign buyers like China and Japan are pulling back from buying them?

According to The Wall Street Journal, last year the Federal Reserve purchased 61% of all debt issued by the Treasury Department.

And where does the Fed get the money to buy the government’s debt?

It creates the money out of thin air via old fashioned money printing.

All Ponzi schemes eventually come to an end.

The U.S. will be no different. Mark my words: The Ponzi scheme of issuing government debt and then printing money to pay for that debt will end very badly for America.

As an investor, I say your primary goal should be to protect your assets from the ravages of coming rapid inflation created by over-the-top money printing.

If you are holding all your money in U.S. dollars, you’re doing yourself a huge injustice.

Your second goal should be to get a steady stream of secure, even guaranteed, income coming in to you and your family on a monthly basis-- income not affected by the gradual economic deterioration of America.

The good news is that I have attained both of these goals. The better news is that you can achieve them too.

How Smart American Investors Protect Their Wealth; Making 25% on Their Money Guaranteed Up to $100,000

To get you personally on the right road while America goes down the wrong road, my research firm has just put the finishing touches on a special report.

It’s called, “How Smart American Investors Protect Their Wealth; Making 25% on Their Money Guaranteed Up to $100,000.”

In this research report, you’ll get the basics on how easily Americans are quietly stashing money in Canada and making big money doing so!

Over the past four years, the Canadian dollar has increased in value against the U.S. dollar by 25%. So if you did nothing but put $10,000 in a Canadian bank four years ago, today you could close that account and walk away with $12,500 U.S.!

What a perfect example of the greenback’s eroding value.

How The Canadian Dollar Has
Appreciated Against The U.S. Dollar

Source: Yahoo! Finance

Here’s the best part: That money invested in a Canadian bank account is guaranteed by the Canadian     Government for up to $100,000.

We’ll also show you how easy it is for Americans to invest in Canada from the comfort of their own home or office. 

For Americans: Three Easy Steps to
Opening a Bank Account in Canada

A second research report I’ve prepared, “For Americans: Three Easy Steps to Opening a Bank Account in Canada,” gives you the step-by-step essential details for getting some of your money into a Canadian bank.

Opening a Canadian bank account is a simple process. We’ll show you three different ways to do it.

The two reports I just mentioned will help you get some of your money outside of the U.S. into safe Canadian banks.

If the past four years are the same as the next four years, and the Fed just keeps printing money to pay for America’s past mistakes, you’ll make 25% on your money just by having it outside the U.S.!

Now, to get a steady, secure source of money coming into you each month…

Four Canadian Stocks all American 
Investors Should Own for Income

A third special report we’ve put together, “Four Canadian Stocks all American Investors Should Own for Income,” recommends the crème-de-la crème of secure, high dividend paying Canadian income stocks.

My favorite in the group is a Canadian bank stock with a market cap in excess of $30 billion...a bank that makes a profit of about $3 billion a year and pays out about half that amount to its shareholders.

The best parts:

This bank has not missed a dividend payment in 182 years of making them! Last year it paid $1.4 billion out to its shareholders.

It pays out its dividend quarterly.

Buy this one stock right now and get a secure 5.1% per annum dividend yield right off the bat—-paid in Canadian dollars that are appreciating every day in value against the greenback!

The other three stocks in “Four Best Canadian Stocks All American Investors Should Own for Income” are blockbuster companies too, each with over 100 years of history, each with a proven track record of increasing their dividend payouts to investors.

Buy all four of these stocks and you’ll be getting a dividend check 12 times a year!

Top Three Canadian Gold 
Stocks That Pay Investors

Finally, my research company is a huge bull on gold bullion.

We’ve gone on record predicting gold bullion prices will reach $3,000 an ounce by the time the bull market in gold bullion is over.

In fact, I was one of the first to turn bullish on gold way back when it was under $300 an ounce. Here’s the exact text from an e-mail I blasted to my followers back on December 13, 2002:

“I’ve been pushing gold bullion and gold shares for over a year now. Back in January 2002, I personally started buying gold shares.”

As the Fed prints more money to the pay for the past sins of America, gold prices will rise and rise. And at some point the U.S. government may actually try to seize all the gold it can.

Sound far fetched? Not really. It’s happened before in the U.S. and it can happen again.

Back in March of 1933, under Executive Order 6102, President Roosevelt declared it illegal for private citizens to own gold (in an amount exceeding US$100 belonging to any one person) and U.S. citizens were given less than two months to turn in all of their gold to the Federal Reserve Bank in return for $20.67 U.S. per ounce.

But this time it might not just be gold bullion that the government goes after—-it could be the gold mining companies themselves that are at risk.

If, like me, you believe the unprecedented rise in U.S. government debt and money printing will push gold prices even higher as time passes, you’ve likely invested in some gold stocks.

But to really protect yourself, you should own some shares of quality non-American gold mining companies located and trading outside of the United States.

“Top Three Canadian Gold Stocks That Pay Investors,” is the final of my four special reports I’d like to send you.

The gold companies we recommend in this special report are among the largest gold companies in the world. They are low cost producers who will benefit immensely as gold prices continue to rise.

All three of these stocks pay out hefty dividends to their shareholders in Canadian dollars—-again a currency that has been appreciating rapidly against the greenback.

In total, there are four special research reports that I want to send you:

How Smart American Investors Protect Their Wealth; Making 25% on Their Money Guaranteed Up to $100,000

For Americans: Three Easy Steps to Opening a Bank Account in Canada

Four Best Canadian Stocks All American Investors Should Own for Income

Top Three Canadian Gold Stocks That Pay Investors

These research reports have been personally written by me. Each is eight pages long, well researched and very specific on what you need to do.

For reports like these (we’ve sold thousands of them through the years), we usually charge $95 each.

As part of this special offer, I’d like to send you all four reports, a $380 value.

I’d like to send these four reports to you within 48 hours.

All I ask of you in return is that you try the monthly financial newsletter my research firm publishes for American investors at risk of a U.S. dollar devaluation and worse.

It’s called Income for Life and the idea behind it is simple…

Income for Life shows you how to get a steady stream of safe income that you can rely on as America and its institutions topple under economic policies of extreme debt and flat out money printing.

Income for Life is written by Mitchell Clark, B. Comm., one of our top financial analysts here at Lombardi Financial Research.

Mitchell lives in Canada. And prior to joining me, Mitchell worked at one of the largest investment brokerages houses in Canada... so he knows more than a thing or two about successfully investing in Canada.

Now, you should be warned, Mitchell doesn’t make many recommendations in Income for Life. In fact, over the past four years, Mitchell has made 17 conservative income stock recommendations in Income for Life, only one pick a quarter.

Remember, this is about getting some of your money outside of the U.S. and into a currency that is rising in value against the U.S. dollar.

It’s about creating a steady source of secure income.

We see no point in overwhelming our customers with stocks to buy when they’re likely just getting their feet wet with the concept of investing outside the U.S.

Here’s the most important thing I can say about Income for Life:

All 17 of Mitchell’s picks in Income for Life over the past four years have been winners—-that’s a 100% success rate at picking safe, income paying stocks.

With that being said here’s another very important detail I can tell you about Mitchell’s 100% success rate:

His 17 picks have generated an average profit of 56.1% each!

This track record has been 100% verified and fact checked by me.

We believe in as much transparency as possible with our customers.

That’s why we list our complete track record of open and closed position in each issue of Income for Life.

A subscription to Income for Life comes with:

12 monthly issues of Income for Life with our buy, sell or hold advice. Each issue lists all our open and closed positions in chart format for your easy reference. All new recommendations come with complete analysis including stock price charts.

E-mail bulletins and alerts. Whenever there is important news that comes across our desks on one of our positions, we’ll send it off to you instantly. Any changes in our recommended portfolio that can’t wait for the monthly newsletter, we’ll e-mail them to you.

Private toll-free hotline. We understand buying Canadian stocks might be new for many of our customers. So we set-up a toll-free hotline you can call weekly for more handholding, more up-to-date information, and more tips on getting some of your money outside of the U.S. into Canadian stocks paying out big dividends in Canadian dollars.

Membership in Income for Life is regularly $195 per year. Through this special offer, because we’re so convinced you need to get some of your money outside the U.S. before inflation further deteriorates the value of the greenback, we’re prepared to slash $100 off the regular price and offer you one year of Income for Life for only $95.

If you don’t like what you see, if at anytime you’re not happy with the money you are making with Income for Life, you can cancel for a pro-rated refund.

To recap, you get these four new investor research reports:

How Smart American Investors Protect Their Wealth; Making 25% on Their Money Guaranteed Up to $100,000

For Americans: Three Easy Steps to Opening a Bank Account in Canada

Four Best Canadian Stocks All American Investors Should Own for Income

Top Three Canadian Gold Stocks That Pay Investors

You get…

12 monthly issues of Income for Life with our buy, sell or hold advice – our top-rated financial newsletter where all, that’s 100%, of the stock picks we’ve made over the past four years have been winning trades!

E-mail bulletins and alerts sent to your e-mail in-box as warranted

A private toll-free Income for Life hotline to call as often as you please

$100 off the regular price of $195, you pay only $95 for one-year of service.

An iron-clad money back guarantee: You can cancel at anytime if you’re not satisfied. Just call us and let us know you want to cancel, and we’ll give you an immediate pro-rated refund and the four research reports are yours to keep forever just for giving Income for Life a try.

Please, heed my advice.

Protect your assets from the ravages of coming rapid inflation created by over-the-top money printing. Get some of your money outside of the U.S. before it’s too late. 

And get a steady stream of secure, even guaranteed, income coming in to you and your family on a monthly basis – income not affected by the gradual economic deterioration of America.

All you need to do to get started today is hit the click-here-to-order button next to my signature.

Thank you for listening.

Yours truly, Michael Lombardi Michael Lombardi, MBA Founder, Lombardi Publishing Corporation Celebrating 26 years of providing timely guidance to investors