The Inevitable Crash Landing of the U.S. Economy

January 12, 2001

The Man Who Accurately Called the Asian Crisis... The Collapse of Brazil's Currency... and the Internet Tech Wreck... Has Just Issued An Important Warning for ALL Investors ... You Can Safely Protect Yourself and Profit from...

Dr. Kurt Richebächer has been described as 'the man who predicted the Asian crisis' by the French national newspaper, Le Figaro, Paul Volker, Chairman of the Federal Reserve Board under Ronald Reagan, proclaimed, 'Sometimes I think that the job of central bankers is to prove Kurt Richebächer wrong.' Unfortunately, that's a very difficult position to be in. Dr. Richebächer has developed one of the most amazing track records in the world for predicting economic trends.

'We view the U.S. Technology, Internet, and communications bubble as one of the greatest manias of all time, and manias simply do not end with a whimper.'   --The Richebächer Letter , November 1999.

  • Microsoft down 55%
  • Dell down 54%
  • Intel down 47%
  • Lucent down 72%.

'While Internet companies...scramble for market share and [try] to live up to the lofty expectations of their investors. Next Christmas, very many of them will not be around.' -- The Richebächer Letter, January 2000.

  • Autoweb.com down 96%
  • Egghead.com down 95%
  • FinancialWeb.com down 97%
  • TheGlobe.com down 97%
  • TheStreet.com down90%
  • DrKoop.com down 96%
  • E-loan down 95%.

Now Dr. Richebächer is predicting 'doomsday for the dollar...'

'Just about everything is astronomically worse today than it was in 1987... Reaping the whirlwind of a crashing dollar, in particular against the euro, is meanwhile the mutual nightmare of policy makers in both America and Europe. For investors, it is an unbeatable opportunity in the making.'            --Dr. Kurt Richebächer, 2000.

Dear Reader,

The landing approach has begun. The flaps are down. A moderate slowdown has hit the U.S. economy. Investors are still optimistic. But consumer spending is way off. Still... it seems that everyone believes that Alan Greenspan will engineer a soft landing for the formerly high-flying tech bubble.

But according to one of the world's leading economists, it's worse than blind faith. It's 'high-octane 'new paradigm' propaganda, in which no one indulges more than Mr. Greenspan.'  Take a quick look at the facts.

Almost everyone believes that the U.S. economy is better than it's ever been. If that's so... then why is real disposable income falling? Why is the buying power of U.S. consumers falling?

 You may be surprised to know that the U.S. inflation rate is the highest in the industrialized world. That's a big part of the problem. The other critical part is phony statistics called the 'hedonic deflator.' It's a statistic trick that Greenspan and his cronies have cooked up to create the high-tech miracle economy.

Using 'hedonic deflators,' government economists can increase the value of the high tech industry by 4 or 5 times without anyone spending or making a dollar. It's voodoo statistics.

Ask yourself this. If productivity is up. And efficiency is up. And setting new records... then why are corporate profits falling and personal disposable income down?

The answer is VOODOO STATISTICS - the hedonic deflator.   Menacing trends show exactly what is coming in the months ahead.

The monstrous growing trade deficit is increasing at astronomical rates. It severely limits the ability for the U.S. economy to grow.

The combination of these three fa ctors: the current account deficit, the collapse of personal savings and the fall in personal disposable income... all point to the same thing.

 According to Dr. Kurt Richebächer, 'It will come as a great surprise how fast the U.S. economy will weaken in the near future.'  But wait, there's more...  

 Three Powerful Reasons To Read This Carefully

When Dr. Kurt Richebächer talks... intelligent investors pay attention... 

In September 1996, Dr. Richebächer began warning that the Asian Tigers were 'teetering on the edge of a cliff.'  In March 1997, he alerted his readers: 'given the 'hot money' inflows from abroad, this could trigger tremendous currency turmoil.' He repeated his warnings until July 1997, when the currencies fell like dominoes across Asia.  

In July 1998, Dr. Richebächer predicted developing problems in Brazil. His research indicated that Brazil was suffering from rising inflation, experiencing serious difficulty servicing its external debt and that its currency, the real, was seriously overvalued. The real crashed in early 1999 and holders of Brazilian stocks and bonds were badly burned.

In November and December 1999 and into 2000, he warned repeatedly about the coming crash in Internet and high tech stocks. Smart investors were out of those sectors BEFORE they crashed. Some investors willing to take more risks shorted that overvalued sector for quick, easy profits.

His insights in the past have saved savvy investors millions of dollars by steering them clear of disaster... 

The Crisis Almost No One Sees Coming

It seems that no one is watching. Not here in America at least. Most investors don't have a clue about the dangers that lie ahead. Even more dangerous... they don't care. But worst of all, they are being set up for what could be the greatest economic disaster in 70 years.

The last time the dollar fell... it wasn't long before the stock market came down too. And a recession that was the worst in the last 25 years. Unfortunately, many investors today hardly remember it. Most stock brokers and fund managers today have never seen a bear market, let alone have managed investments when a bear is devouring portfolios. The coming crisis will be much more devastating than 1987. The imbalances are far worse... and there are fewer options for dealing with it... because financial markets have changed dramatically. 

Europeans are beginning to understand and worry about the dangerous extremes building up in the U.S. financial system. 'Soaring share prices and the massive U.S. trade deficit are the most worrying threats to the stability of the British financial system,' said the Bank of England in its semiannual Financial Stability Review.

The Bank for International Settlement made the following remark in its 2000 Annual Report: 'Looking further ahead, the biggest policy challenge could be coping with a sudden reversal in the fortunes of the dollar.'

The most recent warning has come from the International Monetary Fund. In a just published report, it says that 'the widening of the U.S. current account deficit could shake investors faith in the economy triggering a withdrawal of investment that could endanger global markets... Financial shocks can propagate across institutions and markets in new and surprising ways.'

The warnings are there. But they get little publicity and few investors pay attention.  It's unfortunate, because it will prove to be a very costly mistake. I'll explain this in moment, but first let me introduce myself and then tell you about one of the most brilliant and insightful economists in the world today.

Gold is still being mined and refined at the rate of almost 2,600 tonnes per year.