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DOW SURGES TO 14,164! True Landmark or Smoke and Mirrors?
The Dow has reached an all time high, surpassing 14,164! That’s both TRUE and GOOD for investors, right?
“No and NO!” says financial expert/author Craig R. Smith, who is conducting Talk Show interviews to put this new ‘high’ in perspective.
During your interview, Swiss America CEO Craig Smith discusses the deceptive Dow (how it is not truly an indicator of the overall stock market), the weak dollar--how it is actually now weaker than the Canadian dollar for the first time in recent memory how it’s getting hammered by the Euro, etc.—and the perlexingly flat real estate market, record high oil prices ($75 a barrel and likely rising soon) and an increasingly unstable geopolitical landscape.
Craig says American investors are facing a problematic economic cocktail consisting of slowing growth, rising inflation, record high debt, a credit crunch, a declining dollar, military credibility being eroded by the Blackwater hearings, and a looming Mid-East war with Iran.
“Wall Street money masters may be able to whistle past the graveyard, focusing instead on mergers and buyouts, but millions on Main Street sense their financial future is laden with bombshells that will shred portfolios,” said Smith.
At the end of your interview, Craig offers makes available to your listeners a free 24-page Special Economic Report with valuable information from several respected economic analysts.
ABOUT CRAIG SMITH…
Craig R. Smith is the president and CEO of Swiss America Trading Corporation, one of the largest and most respected investment-grade U.S. gold and silver coin firms in the nation since 1982. He’s been featured frequently on Fox News Channel, CNBC, MSNBC and CNN.
INTERVIEW TALKING POINTS:
1) In the news we seem to hear more about the Dow than the actual stock market. What exactly is the Dow and how trustworthy is it for a bench mark of how the actual stock market is doing? (The Dow jettisons stocks that don’t perform well, artificially boosting its performance record. In a sense, it’s like moving the goalposts during a football game.)
2) The U.S. DOLLAR is "languishing" near ALL-TIME LOWS against the euro and the pound. If the dollar index falls below 80, what might happen?
3) How can the dollar be so weak and the stock market so strong?
4) If the dollar is as weak as it is, then why is the Real Estate market also so soft?
5) You claim that the Dow only hit a new NOMINAL HIGH when it reached 14,000 but that after adjusting for inflation and the falling dollar, that it actually is still 200 points below its March 2000 peak. How do you figure that? (Answer: The recent Dow high is 17% above its March 2000 peak of 11,722. After adjusting for inflation and the falling dollar, the Dow must rise another 4% to 14,200 to reach the same level it was SEVEN years ago.)
6) The United States faces A SEVERE CREDIT CRUNCH as mounting losses on risky forms of debt catch up with the banks and force them to curb lending and call in existing loans. In your special financial report I understand you gave an eerie quote from Albert Edwards of Dresdner Kleinwort. Dare I ask what that quote was? ("This is the big one: all investment portfolios will be shredded to ribbons.” --Albert Edwards of Dresdner Kleinwort.
7) One in 200 mortgage loans are now in default. And the worst of the US property crisis may be yet to hit. Your special report claims there are $2,000,000,000,000 (trillion) in mortgages with adjustable rates which have yet to be reset. What on earth will happen if even a small percentage of these default?
8) How serious of a threat does Iran pose to global economic security? (Unless the free world unites to stop Iran from achieving its nuclear goals, Israel will likely take matters into its own hands. A new Mid-East war with Iran could unleash an economic shock wave sending both oil and gold prices sky high.) And if this were to occur, just how high might oil and gold peak?
9) Besides the weak dollar, what other conditions could make the U.S. ripe for the adoption of the new proposed North American currency?
10) Your report says that the key to keeping investments safe is to be able to discern the changing seasons in life and in the economy before it's too late. It goes on to say that history teaches us that ASSET DEFLATION usually follows asset inflation in the historical boom-bust credit cycle, especially when governments turn over their money supply to private banks. Your conclusion was, in so many words, said that the bigger the boom, the bigger the bust. Could you please explain this in layman’s terms?
11) How can our listeners get a copy of your 24-page Special Financial Report and is there any cost for it? (No charge and they may get it by calling: 800-289-2646.)
12) Is there anything I left out that you feel our listeners need to hear?
HISTORICAL NUGGET: "If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered." -THOMAS JEFFERSON
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