Take a good look at this home. It looks amazing, doesn’t it?
On the surface, America looks a lot like this home.
After all, we have a top-of-the-line infrastructure to help our economy prosper … beautiful schools to educate our children in and state-of-the-art hospitals to run to when we need it the most.
We have our oversized cars filled with TVs, navigation systems and the technology to park themselves. We have smartphones along with Alexa and Siri to play music, order food and even trade stocks.
Our economy and stock market are the envy of the world.
But things aren’t always as good as they first appear.
While things might look great up here, nobody is paying attention to the massive financial cracks that have been quietly forming underneath.
Cracks that my research has shown are rapidly leading us to a stock market meltdown … the likes of which none of us have seen before.
And throughout this presentation, I’m going to show you exactly what these cracks are, why they will have a ripple effect throughout the entire economy and why they will make recovery nearly impossible.
However, these financial cracks are not the core of our problem, they are merely symptoms of a much greater disease.
You see, these cracks are forming not in isolation nor out of random chance.
They are forming because the very base of our entire country rests on an unstable foundation.
You will be shocked at why our foundation is quite literally this frail.
Ironically, much of our so called “prosperity” is linked back to this very problem.
You see, this weak foundation is the exact reason we, in America, were able to build our top-of-the-line infrastructure, have our oversized cars and put restaurants on every corner.
But, this foundation has started to weaken, one grain of sand at a time.
And there is nothing — absolutely nothing — that can be done to prevent this frail foundation from continuing to weaken and ultimately collapsing.
There is no stimulus package from the government that is big enough…
No interest rate cut dramatic enough…
And no tax cut deep enough to prevent the inevitable.
As you’ll soon see, all it will take is one grain of sand — just one — to send everything crashing.
In the end, I believe the stock market will tumble by 70%.
There’s little time left to prepare — this collapse has already begun.
Things are starting to unravel at a rapid pace as America is being hurled into the worst economic hell our country has ever seen.
And while I may be using a simple analogy of a home to make a point — make no mistake — the financial cracks that are forming underneath our feet are real and they are expanding at this very moment. When the stock market crashes, it will be damning for those who are unprepared.
And I don’t want you to be one of them.
My name is Ted Bauman.
For over 25 years, I’ve used my training as a world-renowned economist to help investors of all stripes grow and protect their hard-earned wealth accrued over a lifetime.
I’ve authored several bestselling books on the topic…
And I’m proud to say the global organization I’ve been involved with for over two decades has helped 14 million people in 33 countries attain personal freedom and financial independence.
It’s safe to say I’ve spent my life helping ordinary people make and keep their money.
My insights have been cited in Forbes, Barron’s and Fortune as well as many other publications…
I even helped to found an independent financial research firm with my father, a former U.S. congressman who has worked alongside six presidential administrations.
I did so for one reason.
So that I could hire the cream of the crop of the financial world to help me uncover all the major trends developing in the economy and markets, so my readers can prepare accordingly for what’s ahead…
Members of my team have met with financiers like Steve Forbes, as well as politicians such as Bill Clinton, President Donald Trump and my father’s friend and former colleague in the House of Representatives, Ron Paul. Just to name a few.
And my team and I have been able to uncover some of the major moves in the economy, sometimes just days before they unfold.
For example, on February 13, 2020, I issued a public warning to my listeners that the stock market was headed for collapse.
“We’re entering risky territory. There is a risk of correction.”
And of course, everyone knows what happened next:
The stock market dropped faster than any other time on record.
But that isn’t the end of the story.
You see, I’m not a perma-bear, nor am I a perma-bull.
I’m an economist. A market realist. And I simply relay to my readers what my research tells me is coming.
Later in March, while investors were still scrambling to make sense of what happened, I identified which sectors would lead the rebound in my free e-letter, Bauman Daily…
An exchange-traded fund in one of the sectors I highlighted went on to soar as high as 69% in five months...
Another jumped as high as 55% in five months...
On April 10, I predicted that housing was about to see a huge turnaround. I heard from a ton of people who thought I was crazy…
But just look what happened to housing in the five months after that:
Those who bought in had the opportunity to make a small fortune.
Now, I’m not bringing this up to brag…
I just want you to understand that there are always opportunities out there.
And like stock market collapses of the past…
Many investors will profit from this one.
But please understand something…
When I say that the stock market is on the cusp of a collapse, I don’t do so lightly.
With every prediction I make, whether it’s bullish or bearish, my reputation is on the line. Not to mention the financial well-being of those who rely on my research.
But that’s exactly why I decided to get this message to your attention today.
Because should the collapse occur in the next few months...
The steps you take today could shield you from the inevitable fallout.
And when the market rebounds — and it always does — my team and I will be there to show you how to make your wealth grow.
Rob Moore emailed us to say:
Or Leslie S. who said:
And Jim S. who emailed:
However, today, the harsh reality is that millions of Americans will soon be going from the Starbucks line to the breadline, from the paycheck line to the unemployment line. I want to help make sure you’re in the right line.
Yes, I know that everywhere you look an effort has been made to make things look pretty good. The stock market is continuing its rebound … and stocks such as Apple, Netflix and Amazon have soared to record highs in recent months.
But it’s important to remember that it looked pretty good for America in 2007 too. Things always look their best in the years before major economic disruptions than can unfold in days.
Take 1929 as an example.
America enjoyed almost a full decade of growth and prosperity in the roaring ‘20s.
But in less than one month, a third of that wealth had completely vanished.
Or take the dot-com bust.
We had a full decade of economic expansion in the ‘90s…
And then a crash that saw stocks drop 75%.
There is no need for you to fall victim to the future. If you are on the right side of what’s ahead, you could seize opportunities that come along once, maybe twice, in a lifetime.
There is money to be made … my team and I will show you how to make it.
One more note before we start the presentation.
While many know me for my financial insights, and as one of the founders a well-respected financial research group, I am also a devoted husband and father.
And today, I am speaking to you on a more personal level, because I am concerned for my family and friends, and you should be concerned for yours as well.
That’s why I want to send you a digital copy of the new book my father — former U.S. congressman Robert Bauman — and I wrote called Where to Stash Your Cash Legally.
This controversial book normally sells for over $70. But, we want you to have it for free when you purchase a trial subscription to my monthly newsletter — which I’ll tell you about in just a few minutes … you’re going to love it.
In this book, you will discover the secret behind little-known money havens, tax shelters, privacy shields and powerful financial strategies that many thought were reserved only for the ultra rich.
Armed with our book, you will be able to not only preserve the quality of life you and your family deserve, you’ll have the opportunity to prosper at a much higher level.
Let’s get started.
Now, as I mentioned, there are financial cracks in the U.S. stock market.
Today, we’re going to discuss five of those cracks that concern me most.
1. The ultimate crash indicator.
2. The number that never lies.
3. A frightening financial engineering scheme.
4. The corporate debt fiasco.
5. The credit card that’s maxed out.
Then, we will discuss how this has occurred because the core of our foundation is so weak, and why this weak foundation is destined to cause the collapse of the stock market … and possibly the entire American economy.
In fact, this collapse has already started. I’m afraid the crash in early 2020 was just a preview of things to come.
During the next six months, our research shows you could see the stock market plummet by at least 70%. It’s already starting to unfold.
Let’s take a look.
Financial Crack No. 1: The Ultimate Crash Indicator
Yes, the stock market is once again nearing its all-time highs:
In fact, it’s up close to 50% since its low in March, and nearly 300% since 2009.
But this is all coming to an end.
The writing is on the wall.
The first indicator that tells me exactly why this will happen is called the Buffett Indicator. It was created by the legendary investor himself.
But I’ve decided to call it the ultimate crash indicator.
Because this single indicator predicted both the dot-com bust and the 2008 financial crisis.
Warren Buffett himself calls it: “The best single measure of where valuations stand at any given moment.”
It compares the total market value of stocks to our entire gross domestic product (GDP).
When the line is over 100%, that means stocks are valued at more than the GDP, and they need to come back down.
We are currently at 173.5%.
It has never, ever been this high in the history of the stock market.
We are in unchartered territory.
And I believe this is the reason Buffett — the world’s greatest investor — has now allocated $137 billion of his portfolio into cash and cash equivalents.
And why he dumped stocks and hoarded cash throughout 2020.
Greggory Warren, an analyst who covers Berkshire Hathaway was quoted saying: “He pinned himself into a corner a few years ago, saying I can’t have $150 billion in cash in three to four years and say that’s alright.”
And yet, here we are.
Now, it’s important you take a close look at this next indicator, because it reveals that stocks have actually been overpriced for two decades.
Financial Crack No. 2: The Number That Never Lies
This indicator is the Shiller price-to-earnings ratio (P/E ratio).
And it measures the price of a stock versus how long it will take for the stock to be worth that price.
Take a look at this chart.
Notice the green bar?
In a healthy, normal stock market, the P/E ratio is about 16 where the green bar is. That means it will take 16 years for a stock's earnings to equal its price.
But look at what happens when it gets into the red zone…
It comes crashing back to normal levels. Sometimes in less than a year.
Right now, the average stock has roared up to a P/E ratio of 31. That's almost TWICE as high as the normal ratio.
The only other times we have seen levels above 30 were just before the Great Depression, and before the dot-com bust. And each time this happened, stocks dropped by 90% and 75% respectively.
To get back to where it should be, the P/E ratio proves that the stock market would have to drop at least 50%.
And that’s bad news for anyone with savings tied up in the market when the crash hits.
Which is about HALF of all Americans.
But you might be asking yourself…
How did things get this way?
Why are these numbers at the highest they’ve been in history?
That brings me to the next crack in the stock market…
Financial Crack No. 3: A Frightening Financial Engineering Scheme
This next crack reveals who exactly has been pushing the stock market to unseen levels over the last decade.
It’s a practice that one expert warns has: “Massively manipulated the market.”
Mind you, this expert is the former Citigroup executive who blew the whistle on the subprime mortgage crisis just months before everything crashed.
He blew the whistle again in 2017, telling everyone to run. And it’s only gotten worse since then. He knows what I know. He’s seen the truth.
Take a look at this next chart and you’ll see why.
That blue line represents U.S. investors. Folks like you and me. As you can see, the line is down. They’re actually selling stocks.
You can see that financial institutions and international investors are on a downward trend as well.
Yet, the stock market keeps going up.
How is this possible?
Well, there is another buyer of U.S. stocks.
According to my research, an exclusive group with deep pockets, who have been acquiring stocks at a ferocious pace, are pumping around $15 TRILLION into stocks.
But here’s the thing…
This exact group was once banned completely from investing in the stock market for decades.
Their actions were once considered “market manipulation.”
In fact, market manipulation was a contributing factor to the 1929 stock market crash that saw stocks fall by 90%.
And get this.
The regulation that once banned this group has quietly been erased, and they are back with a vengeance.
Sure, they have new faces, but they are using the same old tricks.
Let me say that again: This exclusive group of buyers who were once BANNED from the stock market…
Has quietly pumped $15 TRILLION into the market over the last decade.
It’s no wonder stocks keep ballooning upward.
They are doing this through a manipulative practice called a stock buyback.
Simply put, a stock buyback is when a company buys its own shares on the open market.
Perhaps you have heard this is good and it can no doubt boost the price of a stock.
But think about it.
Rather than grow earnings by creating better products, adding more services or conducting research and development — essentially, investing in the future — a stock buyback is simply a way for a company to manipulate its share prices by creating artificial demand for its own stock.
It’s called “financial engineering.”
Hence why the Securities and Exchange Commission (SEC) was formed in 1934. Its first chairman, Joseph Kennedy, deemed “stock buybacks” illegal — for being a form of market manipulation.
Unfortunately, for you, me and every other hardworking American, stock buybacks are now legal again.
Since 2008, America’s largest companies have purchased a mind-boggling $15 trillion of their own shares. They are the only ones really purchasing stocks.
In just the last few months alone:
Conoco Philips bought $10 billion worth of its own shares.
Sirius Radio spent $2 billion buying its shares.
Oracle bought over $15 billion worth.
Hilton bought $2 billion worth.
eBay bought $5 billion worth.
Verizon bought 100 million shares.
General Dynamics bought 10 million shares.
Even CBOE, a company that owns some of the largest stock exchanges in the world, bought $250 million worth of its own shares in June.
It’s no wonder the stock market rebounded so quickly.
Now to put this $15 trillion into perspective for you, that’s roughly 10 times more than the U.S. spends on its military, 70 times more than it spends on the entire education system and 150 times more than it spends on transportation.
To make matters worse, many of these companies are borrowing money to buy back their shares.
Which brings me to the next financial crack.
Financial Crack No. 4: The Corporate Debt Fiasco
To understand just how much debt some of America’s biggest corporations are piling on, it’s critical for you to see this chart.
What this reveals is that corporate debt is at the highest level it has ever been.
Now standing at a record $10.5 TRILLION.
The last two times this ratio has been this high was 2001 and 2009, when the market collapsed by roughly 50%.
These American corporations can’t keep borrowing.
It is simply not sustainable.
The moment they stop buying their own shares, the stock market will drop.
And all this debt, well, they won’t be able to repay it. They will be forced to default.
But they’re not the only ones taking on debt to buy stocks.
Not even close.
Take a look at this next indicator.
Financial Crack No. 5: The Credit Card That’s Maxed Out
This next crack is the result of people borrowing money to invest in the stock market.
Which is absolute insanity.
That’s like taking out a loan to pay off a credit card. It’s a vicious debt cycle that never ends well.
It’s called margin debt.
The red line is the margin debt growth. The blue line is the stock market growth.
As you can see, the first two times margin debt breached 150% — meaning the margin is growing faster than the stock market — there was a correction. This happened in 2000 and 2007, each time leading to a 50% collapse.
But when it breached 150% in 2014, the stock market kept going up. We are now at the highest levels of margin debt in history!
And there is another reason margin debt matters.
Because it’s clear that more investors than ever before are gambling with debt.
And when it starts to pull back, the collapse will be fast.
Once stocks go down, these investors will get margin calls and they will be forced to sell their positions immediately, which will accelerate the market sell-off.
After that, things will fall fast.
At first, the market will drop a mere 10%.
Expect to see the Dow drop 500, 1,000 and even 2,500 points day after day.
Until it settles at about 70% lower than it is now.
And frankly, a 70% drop is a conservative estimate.
By 1932, the stock market dropped by 90%.
That would leave the Dow at a mere 2,500 when the dust settles.
Here’s the bottom line: Stock buybacks were once illegal due to their manipulation of the market. They’re now legal again.
Stocks are now higher than they’ve ever been in history.
And when you add in P/E ratios at 32…
The Buffett Indicator over 150% and corporate debt margin debt are at all-time highs to the equation — it’s a recipe for disaster.
That’s why I’m reaching out to you today.
These indicators are signaling that a stock market crash, which will blindside most investors, is coming very soon.
The fact is, this market is more unstable than any point in history.
We have a long list of problems that have been covered up for decades.
Problems that have quietly been building beneath the surface of America…
That almost no one is talking about…
But are hiding in plain sight.
I’ll touch on a just a few of them here.
The First Is the Greatest Transfer of Wealth in American History
As you likely know, a little over 70 years ago — after World War II ended — there was a massive increase in babies being born.
U.S. births increased at an unprecedented rate for the next 18 years, as you can see in this chart.
This group of 75 million Americans became known as the baby boomers.
These baby boomers are the most powerful demographic force in U.S. history.
They control over $30 trillion. Perhaps a better way to phrase this is to say baby boomers control 42% of America’s economic activity.
But, in 2007, baby boomers started retiring. Up to 50 million baby boomers will continue to exit the workforce over the next decade. That’s 10,000 people retiring every day or one person retiring every eight seconds.
This MASSIVE group of people who control over $30 trillion are going into retirement, so they will no longer be working, spending and investing.
Let’s break that down.
Instead of working — and paying taxes into the government — they rightfully start collecting money from the government through Social Security and Medicare. So less tax revenue and more expenses for the government. That is not a good equation.
And instead of spending money, which stimulates the economy, they start saving money. After all, they already have their home, their kids are out of the house, or at least should be, and other major purchases are done. Their major assets are paid for. Now is the time for baby boomers to reap the rewards. And rightfully so!
This reduction in spending is another bad equation for the economy.
And instead of investing in stocks, which helps corporations grow, baby boomers start looking for guaranteed income and safety through CDs, bonds, money markets and regular savings accounts.
So instead of investing in America’s future, their money is in safe places. Not a bad thing for them, it’s what they should do, but again, this is a bad equation for our economy.
Even if they transfer this money to the next generation, millennials have been shown to hoard their savings as opposed to investing.
This simple fact that 10,000 baby boomers are retiring every day — who will transfer $30 trillion — and therefore will be paying less in taxes, spending less and investing less is so basic that most economists don’t grasp it.
They would prefer to blame economic recessions on things like the price of oil, interest rates or insufficient government spending.
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Make no mistake, you won’t find this level of expertise anywhere else.
I’ll show you exactly how to gain access to this in just a moment.
But first, let’s move on to last two next economic time bombs, and then we will discuss why our foundation is so weak.
The Dwindling Velocity of Money
Next is the slowdown in what economists call the “velocity of money.” Most people have never heard this term — it’s simply the ratio of nominal GDP to the nominal money supply.
Or, it’s just a measurement of how fast money moves through the economy.
Here’s how it works: Take this $5 bill. Let’s say I use this $5 to buy a hot dog.
The hot dog vendor takes this $5 bill to the bakery to buy more buns.
And the baker then takes this $5 to buy coffee beans.
In this example, this $5 bill I spent, within a few hours, had a velocity of three.
This $5 went to $15 worth of goods. The hot dog, the buns and coffee beans.
Now, let’s say I was on a budget and let’s say I never spent this.
My $5 now has zero velocity.
Or, let’s say I never get the $5 in the first place because I am out of work. Again, the money is not going anywhere.
And today, the velocity of money has plummeted. Let me show you. This chart clearly reveals that money velocity has fallen off a cliff since the late 90s.
The velocity of money has never been this low — EVER!
Money just isn’t moving. This is a reflection that our economy is stagnant.
Every time this $5 of mine is spent, Uncle Sam takes his share in taxes, roughly 6%. Those taxes don’t get paid if money is sitting in bank vaults. The hot dog vendor can’t buy more buns, and the baker can’t buy a cup of coffee.
It’s an economic traffic jam.
In fact, at this very moment, the government is scrambling to deal with a nationwide shortage of coins.
More Americans than ever before are now hoarding physical cash … and the velocity of money has nowhere to go but down.
It’s gotten so bad that banks will even pay you a premium for your change.
There’s just no end in sight.
When you combine this serious crack in our foundation with the other cracks, things could spiral out of control quickly.
And though I believe the coming collapse will devastate millions of Americans, there’s no reason for you, or the ones you love, to get crushed by it.
And that brings us to the final danger that will affect everyone.
It’s Called the Silent Wealth Confiscation
I am talking about the demise of the dollar, and how it could wipe out your savings.
You see, since the financial crisis, the U.S. dollar has gained 32% in value.
And that’s good news. It means everything from clothes to electronics are cheaper for Americans to buy. A strong dollar means a higher standard of living for everyone.
This happened because international conflict and economic instability caused many foreigners to exchange their local currency for U.S. dollars.
In short, over $10 trillion in foreign investment has caused the dollar to soar.
But these “investors” won’t keep their money in U.S. dollars forever.
In fact, their exodus has already begun.
Take a look at this chart.
Just a few months after the coronavirus outbreak began, the dollar saw its biggest loss in a decade.
And if that’s not bad enough…
It marks the continuation of a much larger move. One that’s been playing out for decades.
If you look at this chart, which is an expanded version of the one I just showed you, you can see how the U.S. dollar has actually gone way down in value since 1985, and that trend will resume as the U.S. economy continues to weaken.
You see, the dollar might’ve looked good at one time, but it was really only the nicest looking currency of a bunch of ugly looking currencies.
But, that will not last. I’m certain of it.
And I’m not the only one predicting this.
Goldman Sachs is predicting a 20% drop in the coming months ... and has already begun to short the dollar.
A prominent Yale economist has stated: “The dollar is going to fall very, very sharply,” and they expect a dramatic decline in the near term...
There’s no way to sugarcoat this: Now is the time to sell the U.S. dollar.
As the international landscape settles down, expect the value of the money in your bank account to dwindle by at least 35% within the next year.
As a result, everything you pay for will go up in price, from gas, to utility bills, to food.
But there is a way for you to preserve your wealth, and your well-being for that matter, even as the U.S. dollar goes down. And I’m not just talking about gold. There are a host of opportunities that soar when the dollar sinks.
So, to recap, we’ve gone over the five reasons a stock market collapse is imminent.
And the three time bombs in our economy that will prevent the market from recovering…
But, unfortunately, I’ve only scratched the surface of the economic time bombs that will play out in the coming months ahead.
Here’s just a few more.
Take a look at this unemployment chart.
While government officials are scrambling to lower a 10% unemployment rate, that number isn’t even close to accurate. One look at this chart, and you will see that the labor force participation rate is at the lowest in modern history.
So how can unemployment be near 10% if over 20% of the workforce is not working?
It can’t be. Here’s what’s really going on:
In 1994, long-term discouraged workers — meaning those who have been unemployed for more than two years and are no longer collecting their unemployment benefits — were defined out of existence. The government literally pretends they don’t exist.
And here’s the part that the government refuses to acknowledge: The coronavirus has changed the economy forever.
Lifestyle changes that normally take a generation or more to unfold took place in under one month. That has simply never happened before.
Virtually overnight, whole industries began to reap massive profits from the change at the same time others were on the brink of bankruptcy.
Many companies will not survive this, even after we return to normal life.
The more comprehensive number, far higher than what the government releases, is over 26%.
So nearly 1 out of every 4 people who should be employed are not employed. How can we have a healthy economy if this many people are unemployed? This also explains why over 43 million people depend on our government for food stamps, that’s a 152% increase since 2000.
Another financial crack is the stunning surge in American credit card debt. Which is near a record $1 trillion. To make matters worse, according to a Federal Reserve bank report, total household indebtedness is now over $14 trillion. And although I am an economist, it doesn’t take one to see how this is going to end.
Then there’s the student loan bubble. College education costs have risen 1,360% since 1978. That price has gone up 15 times faster than the cost of a new car. Right now, there is a total of $1.56 trillion in student loans. And 38% of all student loan borrowers are now in deferment on at least one of their loan payments. Here’s why: Nearly half of America's recent college graduates are working in a job that doesn't require a college degree.
Again, this is another hint that the cracks under the façade of prosperity are widening dangerously. This is unsustainable.
There are many more cracks, but we don’t have time to go into all of them right now.
Most alarming is that they are all linked back to the core of our foundation being so weak.
The unnerving thing about this weak foundation is that nobody talks about it anymore. Not for years. And the situation has only gotten worse and worse. I’ll explain what it is in a moment.
But first, I want you to know that there are solutions to keep you safe, and I want to quite literally put those solutions in the palm of your hand. Again, these are the same solutions I am using for my family, and I am confident they are appropriate for you as well.
I’m convinced that these secrets are key to protecting yourself and your family from what’s to come.
It all starts with you claiming a digital free copy of my book Where to Stash Your Cash Legally when you purchase a risk-free subscription to The Bauman Letter.
The Bauman Letter is a simple eight-page letter that we mail to over 115,000 folks just like you.
You’ll also have access to an entire library of back issues with ideas to crash-proof your portfolio.
And every month, you’ll get a new issue revealing a new opportunity to grow your wealth and get on the path toward true financial independence.
Each and every issue is filled with my own unique market insights and secrets that you simply won’t hear about anywhere else.
Previous issues have covered:
✔ “Cash in on Market Chaos: This Fast-Growing Income Play Is 1 of a Kind.”
✔ “Your Bear Market Survival Guide: Everything You Need to Not Only Survive — But Thrive — in This Down Market.”
✔ “Follow Buffett’s Bold Strategy to Huge Gains and Massive Dividends.”
✔ “Beyond Tesla: Make a Fortune on the EV Revolution No One Is Talking About.”
✔ “2 Ways to Tap the Hottest Trends … and Beat the Overheated Market.”
And in the coming months, even more important topics will be covered as the markets change.
My monthly newsletter is the core of my research service. I can guarantee you will never find this caliber of research anywhere else.
One of my subscribers, Sam F. wrote:
Another one of my subscribers, Chris G., said:
And Pierre V. said:
At the end of the presentation, I will show you how you can get a risk-free subscription to The Bauman Letter, so you can have the chance to profit alongside our current members.
You need it now more than ever.
The economic cracks forming under your feet at this very moment are a direct result of this unstable foundation.
Of course, the big question is, why does our foundation look like this?
If all these other economic calamities are merely cracks, then what could this problem possibly be?
Sadly, the core of our foundation looks like this because instead of achieving prosperity through productivity like our forefathers did, our nation — for the last several decades — tried to achieve prosperity through borrowing money.
Let me show you.
Our government got in debt. Massive debt.
An addictive debt that fuels its own addiction.
And as you can see, we are past the point of no return, adding more than $1 trillion in debt every year.
The coronavirus response alone nearly tripled that number.
Now, odds are you have heard this argument before, this idea that debt will destroy America.
But today I am going to shed some new light on how bad our government’s debt addiction really is, using both new data and very old data. I will also explain why everything will unwind faster than you could imagine.
But first, please understand this. Every great nation that has ever existed was also destroyed by this one weakness — this addiction to debt.
Our Founding Fathers knew this, and they issued stark warnings about debt...
James Madison, the fourth president of the United States and “Father of the Constitution” declared:
Think about that. Madison — who was instrumental in the drafting of the U.S. Constitution and the key champion in the Bill of Rights — called our national debt “a greater curse than any other.”
And he was far from the only one.
Thomas Jefferson, the author of the Declaration of Independence and third president of United States, warned:
Secretary of the Treasury Alexander Hamilton stated:
George Washington said:
Benjamin Franklin stated:
Unfortunately, Washington, D.C. has ignored the warnings from our forefathers. Instead of fueling America’s growth through productivity, they went the easy route.
Debt, debt and more debt.
The last time anyone really talked about our debt was in 2011 when our national debt ceiling was hit. Republicans and Democrats went at each other trying to come up with solutions while our debt rating was downgraded by Standard & Poor’s.
Just take a look at what our debt per person was in the United States back then compared to other nations that were in a HORRIBLE financial situation.
Our debt per person was far higher than countries such as Spain, Portugal and even Greece.
As fear grew, the stock market dropped by 25% and there was a brief panic.
And images of how bad the debt was, such as this one, circulated around the internet.
This image reflects how big our national debt would be if you stacked it up using $100 bills.
As you can see, it truly is a curse. It is unfathomable how we will ever dig ourselves out of this mess.
To stop the panic in 2011, Congress came up with a patchwork solution to “cut future spending.” Since then, we have all moved on. For most Americans, our nation’s debt is no longer a concern. It’s no longer a topic of conversation, but it should be.
The patchwork was merely that — patchwork.
Consider this. Since the patchwork solution to “cut future spending,” the federal debt has continued to increase at an accelerated level, going from $14 trillion to over $26 trillion.
Let’s pull up this chart again. Before this year, you can see that we were adding about $1 trillion in debt each year.
But by the end of September, we nearly tripled that number.
Now, I want to pause a moment to express to you how massive this debt is.
I want to address words like million, billion and trillion, as they are thrown out there all the time. The problem is that it is hard to grasp how incredibly big 1 trillion really is.
So, think about it this way.
One million seconds was 12 days ago.
One billion seconds was 31 years ago.
One trillion seconds — that was 31,000 years ago.
Yet, as mentioned, our debt grew by over 1 trillion in one year.
America’s debt will increase more this year than it did during our first 200 years as a nation.
If you go back to 1980 — when my father’s colleague and friend Ronald Reagan was elected — our nation had less than $1 trillion in debt.
But by the end of the 2020 fiscal year, we have nearly tripled that number.
In fact, in just 39 years, our debt has soared over 25-fold.
To make it real personal, $26 trillion equates to you owing over $214,000 as an American taxpayer.
President Trump himself said:
This debt truly is, as James Madison phrased it, “a curse.”
Never before has any nation ever accumulated so much debt at such an alarming rate. Let me say that again: “Never before has any nation ever accumulated so much debt at such an alarming rate.”
It’s frightening and it’s unsustainable.
Perhaps the big question is, how did we get here?
The answer is simple. Politicians spend more money than U.S. citizens pay.
Take a quick look at this chart:
The green line is our government expenditures, and the black line is the government’s receipts, as in, our tax dollars.
Notice how from 1950 to 1970, that expenses and receipts were nearly equal. Nothing to worry about.
But starting after 1970, things changed. The government started to spend more than it received. Sure, in the late 1990s, we had two years where we had a surplus. But, as you can see, that faded quickly and since then debt addiction has only gotten worse.
Right now, we spend about $1 trillion more per year than we receive, hence why our debt only gets bigger every year. Our government just keeps issuing Treasury bills, notes and bonds to make up the difference.
Again, we are losing $2 million per minute, and you personally owe $214,000.
But guess what. The $26 trillion debt is NOT the figure that scares the hell out of me.
You see, that figure only includes our current expenses, it does not include unfunded liabilities such as Social Security, Medicaid, Medicare, unemployment compensation, food stamps and more.
And that’s what scares the hell out of me.
When you include those figures, America’s total indebtedness, known as the “fiscal gap,” isn’t $26 trillion, it is an estimated $239 trillion.
That is nearly 10 times greater than what our government states.
That’s a staggering $700,000 owed by each every one of over 330 million Americans. That’s how much you owe and how much each one of your family members owes.
They will be cursed with dragging this debt around with them for the rest of their lives. And it is only getting worse every day.
Again, that is an estimated $239 trillion in debt and unfunded liabilities.
Think of it this way.
If America was a person, that person would have $52,000 in income and $64,000 in expenses. That person is going into debt $12,000 every year. He also has a current debt of $312,000. That’s bad. But according to this “fiscal gap,” he has a massive balloon payment coming up for an amount of $3 million.
Where is this guy going to get that money from?
Odds are, you wouldn’t loan that person money. I sure wouldn’t.
But, without having a choice, you already have. Because you are an American.
You see, the American government made promises. Promises to pay lots and lots of entitlements. Many of these are great promises. The problem is, no one has figured out how to deliver on those promises.
I can only imagine the disappointment in our Founding Father’s eyes if they were to see the mess we are in today. They worked endlessly, and risked their lives, to create an America that would provide “life, liberty, and the pursuit of happiness” for eternity.
I saw my father do the same when he was in Congress, fighting for ideals shared by Dwight D. Eisenhower, Richard Nixon, Gerald Ford, Ronald Reagan and George H. W. Bush.
But over the last several decades, our elected officials have ruined it.
And this debt game is over.
You see, while most Americans have moved on after the entire 2011 debt ceiling debacle, much of the sophisticated money managers from around the world still remember it.
And they know what most American’s aren’t willing to admit.
A healthy nation grows from productivity, not debt, and now the chickens are coming home to roost.
We are past the point of no return. We cannot dig ourselves out of this hole, because we are literally in the situation where we are funding debt to pay more debt.
That’s like a person taking out a credit card to pay off an existing card. It’s a dangerous maneuver that will end very, very badly.
How far away are we from the end? Unfortunately, closer than you’d think.
I'm not saying it will happen tomorrow ... although after reviewing all of the evidence in this presentation, you might be convinced that's the case.
There’s no way to know for sure what will be the final straw that breaks the camel’s back. It could happen the next time the Federal Reserve meets... It could happen once any one of these cracks in our foundation deepens into a chasm that can't be repaired. Days … weeks … months perhaps.
But even if the crash plays out over a longer time period than this, the cracks will only grow deeper … the crisis even worse.
Which is why you need to prepare for the worst starting TODAY.
The nation’s chief auditor himself crunched the numbers and told President Trump that: “It is nearly certain that the current fiscal policies cannot be sustained.”
The Congressional Budget Office quietly reported that U.S. national debt is projected to “exceed 100 percent [of GDP] in 2021.”
ForeignPolicy.com urges everyone to: “Start Preparing for The Coming Debt Crisis.”
And just think, as you can see on this chart, these warnings come at a time when the IRS is pulling record amounts from taxing hardworking citizens.
Unfortunately for America, our backs are up against a wall. The Federal Reserve has printed us into a corner, and we are out of ammo.
Of course, if Washington, D.C., had listened to our Founding Fathers, they would have known better. They would have known that this would be a curse.
And this can’t go on much longer.
The cracks I discussed are getting bigger.
And the base of our foundation is getting weaker, and weaker, every single day. This collapse could unleash…
A 70% stock market drop.
I already showed you how the margin debt ratio is at historic levels…
I also showed you how the P/E ratio of the stock market is hitting greedy highs…
And I also showed you how stock buybacks — the same “financial engineering” scheme that ignited the Great Depression — is back with vengeance. Mark my words … this stock market will collapse.
Additionally, the economy will come to a standstill. The velocity of money will continue to drop despite the federal government’s efforts.
Unemployment will triple. As I showed you, the real unemployment number is 26%, far higher than the government’s stated 10%.
The value of the money in your accounts could drop by 35% within the next year.
The question is not: Will this collapse come?
No, the question is: When will it come?
When will that one grain of sand send everything toppling? When will we borrow $1 too much? Every minute, as we go $2 million more in debt, we become more and more fragile.
In fact, during this presentation, our country will have gone into another $100 million in debt.
Never before has a nation gone this far in debt.
Never before has a country promised so much free stuff with no way to pay for it.
Never before has a foundation been this weak.
This collapse will devastate millions of hardworking Americans who have no clue what’s coming. Your hardworking neighbors, doctors and coworkers — everyone will feel the pain — unless they are warned.
And I don’t want it to catch you by surprise.
As a father, I am gravely concerned. I’ve taken steps to protect my family.
They are the same steps you can take once you accept a free digital copy of our new book Where to Stash Your Cash Legally when you subscribe to The Bauman Letter.
In it, you will discover:
✔ How to set up a secure "legal device" that will help safeguard your wealth from lawsuits, creditors and even a dangerous out-of-control government. You’ll even get my top contacts’ phone numbers and email addresses. (Page 107)
✔ The golden loophole that allows you to store gold, silver or other precious metals overseas in just one simple step. Even better, you can do it so that it’s not reportable to the U.S. government. (Page 135)
✔ The $100,000 reserve: How you could make $100,000 investments without the government's knowledge . . . completely legally. (Page 139)
In short, you will learn exactly how to safeguard your wealth from the horrific crash ahead.
But this book is just the beginning of what I’d like to send you today.
With an historic crash fast approaching, you’re going to need a new financial plan to soar through the new era ahead.
It won’t be easy.
The first is called 55 Legal Loopholes for Boosting Your Retirement.
In this report, you’ll discover 55 secrets, tips and strategies that can help you have the fun, independent, carefree retirement you deserve no matter what happens.
For example, you’ll find out how to save thousands each year by following the “under 1% strategy.” With this little-known strategy, you’ll never pay your broker a commission ever again, which instantly boosts the amount dividend income you get the keep in your pocket at the same time. Using this simple strategy with a $10,000 investment, you could save nearly $4,000 in 10 years, $31,000 in 25 years and nearly $400,000 in 50 years.
But that’s not all. I want to arm you with one more free report.
It’s called 7 Ironclad Tools for Protecting Your Money and Privacy in Today's Digital Age.
The tips and tools you’ll find inside are perfect for keeping your hard-earned savings and personal information safe in today’s technology-driven world. With the tools revealed in this report, you’ll see how to:
Make your computer virtually hacker-proof with just a few clicks of your mouse. Some of the best protection on the planet is already built into your computer … and yet many folks have no idea it’s even there. I’ll show you a quick way to turn it on.
Safeguard yourself from digital thieves. Hardly a week goes by without data hackers and online thieves making front-page news. These are the best ways for ensuring you're not one of their next victims.
Turn your wallet into a virtual concrete vault. As the old saying goes: “It pays to be safe.” Discover the digital equivalent of a Swiss vault for keeping your cash and credit cards safe.
Plus, more ideas to safeguard your money and data in today’s digital age.
These are secrets most Americans have no clue are available to them.
Everything I just mentioned, my new book and these two special reports can be yours.
But I’m not done yet.
With this market crash sitting at our doorstep, you’re going to need a new financial game plan if you want to soar in the new era ahead.
Buy and hold is out the door.
Technical trading just won’t work.
And sitting on the sidelines won’t get you anywhere.
After all, it’s not just about surviving. It’s about thriving.
Again, as grim as this all looks, I see a silver lining in it.
Yes, the collapse will be ugly and horrific, but for you and readers of The Bauman Letter, this collapse could be a reset, a chance to reboot the economy on a firm foundation of productivity instead of on debt.
This next era will be the genesis of new ideas and new ways of doing business.
And just like the past, this next era will bring about new opportunities for those positioned to take advantage of them.
It’s possible. You just need a game plan.
That’s why we want to arm you with a risk-free membership to our monthly financial newsletter, The Bauman Letter.
And it’s how I will bring you everything you need to come out ahead of the all the major trends that develop in the economy and markets.
Every issue I send is filled with the types of market insights you’re not going to find anywhere else.
Because my focus is on alerting you to any trends and secrets I uncover, as well as unique ideas and opportunities to prosper.
And based on the feedback of my subscribers, I think I’m doing just that.
Sam F. wrote in to say:
This monthly newsletter is the center of my research service.
And it’s an incredible asset on its own — even if you’ve never put a red cent into the stock market before…
With it, you’ll be able to use the knowledge and insight I give, as well as the stock recommendations I provide, for the chance to protect and grow your money.
Now, even though The Bauman Letter is an investment research service, it’s unlike anything else out there.
Because I designed The Bauman Letter for people who want to see a range of investment options.
Everything from investments that can provide short-term gains … to stocks with safe and steady growth potential that you can plan a future around … to dividend-paying income investments.
In my library right now, you’ll find:
✔ The “gateway” tech stock poised to double your money in 12 to 18 months.
✔ The dividend payer that provides crisis from the storm … for its customers and investors.
✔ How to ride the trillion-dollar manufacturing revolution to 215% potential gains in a year.
✔ A little-known way to score triple-digit gains over the next two years as the race to driverless cars shifts into high gear.
No matter what your future goals are, The Bauman Letter has something for you.
Because my background as an economist helps me get my finger on the pulse of the biggest trends today.
And thanks to my years as a financial researcher, I’m able to zero in on the best ways to play those trends. In just last few months, we closed out three of our top winning trades:
101% in 15 months on a third of our recommended position in a software manufacturer…
72% in six months on our recommendation in a video game producer…
65% in 13 months on half of our recommended position in a semiconductor company…
Overall, we have seen an average gain of 4% in 88 days on closed positions. But bear in mind we haven’t closed many positions since refocusing the newsletter in March 2019 to stock market opportunities. Our open portfolio is quite the sight to behold. We’re hanging onto some huge winners and plan to ride them all the way to the top.
And of course, there’s always risk with investing…
But in the coming weeks and months, I can almost guarantee that the market will present even more opportunities that will set you on your way to complete financial independence.
The moment you become a member of The Bauman Letter, you’ll get access to all this investment research and the details of any investment opportunities I uncover each and every month.
And on top of my monthly newsletter, you’ll also receive:
✔ Access to my model portfolio
This is where I will detail everything you’ll need for the chance to survive any market condition.
It includes every type of investment you’ll need to make to fit your financial goals.
✔ Weekly email updates
Each week, I’m going to send you a short video, where I give you updates on all our current investment positions, and the overall market.
These webinars will keep you up to date on all the new opportunities to profit that I see, and any financial threats that might be on the horizon.
And I’ll go over any feedback and frequently asked questions I receive about The Bauman Letter during the week.
✔ Exclusive 24/7 website access
You will also receive 24/7 access to my private website where all the latest information is on an encrypted website that members can access at any time, from anywhere.
✔ Customer care hotline
And you’ll have access to a dedicated customer care team.
If you ever have questions about your membership, simply give one of our team members a call and they will walk you through whatever you need.
✔ Plus, daily financial insights from my team of experts
These short insights will show you truly unique ways to grow your wealth and peace of mind.
An overlooked stock opportunity, the most profitable ways to play gold, emerging markets news — you name it, they’ll show you how to take advantage of it.
And of course, you’ll get all the crucial information you’ll need to protect yourself from what’s coming…
You’ll get all of this delivered straight to your email inbox at the conclusion of this message.
With events quickly unfolding before our eyes, there’s never been a better time to join The Bauman Letter than now.
You need it today more than ever.
Don't try to navigate the months ahead on your own.
If you try to invest on your own, well, frankly you might start listening to the wrong people. People who have their best interest at heart, not yours.
Think about it.
It's in the best interest of most parties — the media, the brokerage community, Wall Street, corporations and even the government — to have you believe everything's chugging along fine.
They don't want you to know the truth — that any money you have in the market will be wiped out in the months ahead.
However, it’s important to know that investors who are well-prepared could see their portfolios soar, even as everything else is crashing around them.
If you want to protect your livelihood and your family from the breaking point that lies ahead … if you'd like me to help you sidestep the calamity and guide you to the moneymaking opportunities as they unfold — the best thing to do now is to join The Bauman Letter.
Just ask some of my subscribers…
These are just a few folks who’ve profited from The Bauman Letter. I want you to be next.
And I don’t want anything holding you back.
Helping you protect and grow your wealth is my mission. It brings me great joy to help others reach their financial dreams.
Which is why the cost to join The Bauman Letter is kept at the lowest level possible.
Of course, we do have to offset our expenses. Which is why The Bauman Letter is offered to you today for what it costs to produce it.
Just $199 for a one-year subscription.
Frankly, it’s a steal at that price.
My book retails for $70 and the two special reports I’ve promised you today each are valued at $99 — that’s a combined value of $467.
However, I know that the dollar doesn’t go as far as it used to.
So, to eliminate any barriers that could prevent you from joining, here’s what we’ve decided to do.
The first 1,000 people who respond today get a risk-free membership to The Bauman Letter for only $47.
That’s less than a modest dinner for two.
However, I know we just met, so you might be hesitant to join The Bauman Letter research service right now.
And with a market crash on the near horizon, I really mean what I said. I don’t want anything holding you back.
That’s why I am going to remove any last bit of doubt you might have about joining. I want you to know that you have our 100% satisfaction guarantee.
To be crystal clear, take the next 12 months to review everything we’re giving you access to. Take advantage of the model portfolio. Set yourself up to profit from as many of my recommendations as you decide to invest in. Read our book from cover to cover.
And if my research doesn’t live up to your highest expectations, simply call the member services team and you’ll receive every penny of your $47 membership fee back.
But I want you to KEEP your copy of our book and all the reports you receive to grow your wealth…
As my way of saying “thank you” for giving my research service a try.
If you’d like to join us through what promises to be tough times ahead — and have access to all the best profit opportunities as they emerge — the best thing to do now is sign up for The Bauman Letter today.
There is nothing to lose, and so much to gain.
Just one thing…
I would appreciate it if you would share this presentation with at least one person. A family member, a friend, a coworker.
The more people that see it, the better we will all be. It’s why I put this video together — I want you to prosper in the days ahead.
I just ask that you pay it forward.
Thank you for listening to this important presentation.
I sincerely hope you’ll take me up on this one-in-a-lifetime opportunity.
I’m confident you’ll find that joining The Bauman Letter is the best financial move you’ll ever make.
Throughout this presentation, I’ve shown you compelling evidence that a collapse is near.
A collapse that will send stocks down by 70% or more, the dollar down by 35% and unemployment tripling.
Mark my word. This collapse will strike.
Let’s survive this together. Better yet, let’s prosper through this together.
To claim your free book, your free reports and a risk-free membership to The Bauman Letter, simply click the button below.
Thank you so much for watching this presentation.
I’m confident that in 6 to 12 months from now you’ll look back on this day and be glad you took the time for this presentation.
You will still be able to live out that amazing American dream, but do it the right way.
Your American dream will have a secure foundation.
Editor, The Bauman Letter