Finally a Presidential Candidate Points the Finger at Money-Printing

It took nearly 2 years of constant campaigning, but finally one of the men set to be President in 2013 said the words we’ve been waiting to hear.


EVG Research Team here, and we’ve been watching Mitt Romney and Barack Obama closely to see if either has a clue about the coming crisis. Or if they do, the courage to speak about it.


But so far, not one has mentioned the $1.5 trillion dollars waiting on hold at the Federal Banks, just waiting for the right moment to flood the economy with inflation.


Not one has suggested lowering the debt; not even with an empty campaign promise. They only promise to lower the deficit, in other words, the speed at which we grow more debt.


Not one has mentioned how we’ll manage to pay the interest on $16.2 trillion in debt when interest rates rise.

Inflation, runaway debt and sky-high interest rates will threaten hopes of retirement for a generation. 

The Elevation Group has a plan: Click here to discover our solution.


It seems the only option America will soon have is to honestly default on our debts and restructure them... or continue to manipulate our currency by printing more money to pay our debt.


We’d like to know which option the candidates would prefer, but for so long they were silent on money-printing and currency manipulation.



And Then it Finally Happened...


Someone mentioned currency manipulation. It was Mitt Romney, and he said...


China has been a currency manipulator for years and years and years. And the president has a regular opportunity to label them as a currency manipulator, but refuses to do so.


On day one, I will label China a currency manipulator, which will allow me as president to be able to put in place, if necessary, tariffs where I believe that they are taking unfair advantage of our manufacturers.


Wait. Someone finally mentions currency manipulation and we point the finger at China?


Wow. Let’s take a look...


Mitt Romney is suggesting China is a currency manipulator. Their crime is printing money to intentionally devalue the Yuan. In theory, this will make their exports cheaper and attractive to nations like the United States.

And that’s true. They did this for decades. BUT, this mostly stopped in 2005 when China depegged their currency from the dollar. Since then, the Yuan has been steadily growing in value.

In fact, in the last 7 years the Yuan has gone up in value 23% in dollars.


And on the EXACT DAY that Mitt Romney said these words, the Yuan set an opening record high versus the dollar.


So we have Mitt trying to protect us from China weakening the Yuan (when it’s actually getting stronger). And yet...


Who’s Going To Defend Us
Against the Weakening Dollar?


And why isn’t either candidate standing up against the currency manipulation of the Federal Reserve?


Since China has depegged their currency from the dollar, our Federal Reserve has had the printing-machines cranking at full gear... TRIPLING the base money-supply in just a few years.


And it was AFTER this happened that Mitt Romney said, “I think (Ben Bernanke) is doing as good a job as he thinks he can do.” And, “But look, I’m not going to spend my time going after Ben Bernanke. I’m not going to take my time and focus on the Federal Reserve.”


Yes, we can tell, Governor Romney.

How About The Other Guy?

And neither is President Obama, who reappointed Ben Bernanke even after all the money-printing skyrocketed.


To us at The Elevation Group, this is a clear sign that we should...



Find a Lifeboat, and Get In


That $1.5 trillion dollars is anxiously waiting to flood the markets, and the dam could break at any time. When it does, through “Fractional Reserve Banking” that $1.5 trillion could turn into $10-$15 trillion in no time.


That’ll send inflation through the roof and interest rates to the moon.


The only way to survive rising rates and prices is to find a lifeboat and jump in.


At The Elevation Group, we like to see ourselves as that lifeboat.


Our founder, Mike Dillard, watched his friends and family lose dearly in the 2008 financial crisis. And since then, he’s been circling the globe in search of contrarian financial experts to teach him and his family how to invest in these strange times.


And it’s worked. In the last 4 years of implementing these “black box” investment strategies of the ultra-rich... Mike has earned an average 77% annual return.


If you’d like to find out more about these “black box” strategies... AND how to climb into The Elevation Group’s lifeboat before the crisis really hits, then go here now: 

Click Here To Watch The Free EVG Presentation

The Legal Lie Banks Tell You

Is Your Money Really Safe?

Did you know each time you deposit money into a bank, they’re legally allowed to...

* look you in the eye and lie, with a wink and a smile
* sell you a line of bull about how your money is kept safe in the vault
* and give you a kick in the rear on the way out?

EVG Research Team here, and we might be kidding about the last one.

At The Elevation Group, we fancy ourselves as adventure-seeking truth-tellers. That means we’ll go places others won’t dare to uncover lies, distortions and old-ways of investing that just don’t work anymore.

And this lie could be the biggest one of all.

It’s not a new lie. It’s been legal since 1913 in the United States. And it’s legal in most other countries, too.

Yet people don’t know about it because politicians only talk about it using big words in wonkish, boring speeches.

But when it’s brought down to the human-level - and you realize it’s your money they’re lying about - you just can’t look away from...

The Legal Lie Banks Tell You

The money you deposit in a bank, isn’t in their vault. It’s not in a vault across town. It’s not in a vault at your bank’s headquarters either.

It’s not in a vault at all. In fact, outside of a computer, your money doesn’t even exist.

It sounds weird, but that’s how most banking systems in the world are set up today.

It’s called Fractional Reserve Banking and it works like this...

When a person deposits say, $1,000, into a bank, that person believes their money is still there. After all, their account balance still says $1,000.

But the truth is, the banks are lying to you.

They are legally allowed to loan out 90% or more of your deposits to other customers and STILL tell you that your $1,000 is in the bank.

And the Federal Reserve, who regulates the banks, not only says it’s “OK” for the banks to tell you this lie... they’re the ones who made it possible.

They set a number called the “Reserve Ratio.” And if it’s set at 10%, then banks can reloan 90% of your money without telling you.

And This is the Real Scary Part...

Of that $1,000 you deposited, we know the bank can lend 90% of that to other customers. That’s $900.

So say a person borrows that $900 from your bank to buy a motorcycle. The borrower leaves the bank with $900 cash and gives it to the bike owner.

The former bike owner, happy to be rid of his bike, then goes and redeposits that $900 cash in the very same bank.

Now two people have deposits - one for $1,000 and one for $900 totaling $1,900 - that came from the same exact $1,000 cash deposit. The extra $900 was “BORROWED into EXISTENCE.”

This process...

 

Created the Housing Bubble and Global Financial Crisis

When money is created so easily out of thin-air, it leads to bubbles in asset classes.

Since the United States completely left the gold standard in 1971, we’ve had one bubble after another. There was the early ‘80’s gold bubble, the stock bubble of the 90’s, and just recently the housing bubble.

The current global financial crisis is in large part due to all the money that was “borrowed into existence” to buy homes at inflated prices.

But when the housing bubble popped, it set off a massive deflationary event.

People who were no longer able to make their house payments walked away from their mortgages.

And because we have a monetary system where money is “borrowed” into existence, when a borrower refuses or can’t repay the debt, the money simply VANISHES from the system.

It’s called a currency contraction, and that is deflation.

At this point, there are only...

2 Possible End Games-— and Both End Badly...

In response to the deflation from the housing crisis, the Federal Reserve quickly started “printing” more money to try and replace all the money that was vanishing.


They literally doubled the money supply in just a few weeks following the 2008 panic. And since then, the money has tripled pre-meltdown levels.


But unfortunately for the Fed and all its victims, the problem seems to be too big this time.


The money-printing isn’t working. And If they keep up the pace, we’ll see massive inflation... or even hyperinflation.


Or the Fed may recognize the problem is too great and try something more honest than money-printing. They may decide to default on our debts the honest way, by telling our creditors we can’t pay and restructuring the debt.


This would cause massive deflation as all the money borrowed into existence vanishes.


So those are the two endgames, massive inflation or massive deflation. Both of which will make the current global recession look like a walk in the park.

And it All Could Have Been Avoided

...had we just stuck with the gold standard. Instead we drifted away starting in 1913 with the creation of the Federal Reserve Bank. And we completely severed the dollar’s ties to gold in 1971.


A dollar backed by gold means money can’t be borrowed into existence to cause a global financial crisis. And it’s actually written into the US constitution that states are not allowed to use anything but gold and silver as legal tender.


We’re happy to see a major US political party announce that their party platform will call for a gold commission to study the gold standard.


To find out more about fractional reserve banking and what it’s done to our economy, jump back into the first strategy session with Michael Maloney:


How to Profit From the Greatest Wealth Transfer in History

The Economic Tidal Wave Neither Romney Nor Obama Can See

For a Presidential debate on the economy, we’re left in shock and awe that no one mentioned the economic crisis hanging over our heads.

Not even once.


It’s shocking, because a crash is coming, and neither candidate seems to understand the urgency.


For more than 2 years we’ve been showing people like you how we plan to prepare, or else get ready for a huge potential drop in standard of living - and forget retirement.


(Click here to watch a free presentation revealing how to prosper during the downturn.)


And we had hope that Romney or Obama would catch on. Especially when Bill Clinton and Donald Trump echoed our warnings of life-changing inflation this past month.


But at this debate, there was more talk about Big Bird than the economic problems staring us in the face.


Instead of debating the real issues, we got the standard-bearers of two political parties who’ve been...

Partying Like It’s 1999...

...for way, way too long. Or maybe I should say 2004, when the debates about budget deficits and “tax cuts for the rich” really heated up.


Yet that’s all we heard at this 2012 debate: class warfare and promises to “reduce the budget deficit.” This is not enough.


A “budget deficit” means you spend more than you take in - in other words, more debt.


So reducing the budget deficit just means reducing the speed of new debt. And adding new debt is crazy when the US already owes an absurd $16 trillion... especially when we face the very real threat of rising interest rates.


If we’re forced to pay higher interest rates on $16 trillion, the gig is up for America.


Therefore - If either candidate knew what we were up against, they’d talk about reducing the total debt... and NOT about reducing the speed at which we pile on more IOUs.


But neither candidate could even give us an empty campaign promise about lowering the debt. Even in a political campaign, when talk is famously cheap.


This is dangerous because...

The Water Levels Are Rising and the Dams Are About to Break

The biggest economic crisis facing America right now is the $1.5 trillion dollars banks are holding on the sidelines... like a tidal wave ready to slam down on the economy.


At DOUBLE the total money-supply (M0) in 2008, $1.5 trillion is the sum of all the money-printing the Federal Reserve has done since the crisis began.


Once the dam breaks and that money hits the economy, the prices of all you buy will skyrocket. Millions of Americans will face a drastic reduction in their standard of living. Interest rates will rise, and the real economic crisis we’ve been warning about will be here.


At this point, the Federal Reserve gets to decide what happens next.


They can print more money to pay the interest on the debt, turning high inflation into hyperinflation.


Or they can do nothing, kicking off a long string of debt defaults, starting with the Federal government. This will cause massive deflation.


Yet there was no mention of this at the debate.


There wasn’t even a mention of the Federal Reserve - the bank that decides our fate.


Not once did they mention the threat of interest rates rising.


And yet...

They Say Romney Won the Debate

Even Romney’s critics admit he won by style, if not by substance.


But the truth is, there were no winners at the debate. Especially not the American people.


There’s a tidal wave of money sitting on the sidelines, making inflation or deflation imminent. Obama hasn’t addressed it. And the challenger, Mitt Romney, cannot make it disappear.


If Obama and Romney will not address the problem, the only thing left you can do is prepare.


That’s what we’re doing at The Elevation Group. Our founder, Mike Dillard, has been circling the globe interviewing contrarian financial experts and economic seers.


For 2 years he’s taken action on their best “black box” investment strategies... and earned a 310% return since 2008.


If you’d like to find out more about these “black box” strategies... AND discover how to survive and thrive after the economic tidal wave hits, then go here now:


Click Here to Watch the Free EVG Presentation

How to Invest in a World of Peak Energy

 While everyone’s eyes stay glued to the boob-tube, watching entertainment “news” obsess over the global financial mess...


...there’s another silent economic threat inching closer by the minute. But we may be the only one warning you about what scientists already know.



The threat breathes a stench of industry, sulfur and dirt. It speaks the sounds of clanking metal, overwhelming electric hums, and men who curse like sailors as they work.


But the scariest part comes when the awful stench and rackety noise are replaced by fresh air and silence. When the ruckus stops, the economy dives into a tailspin.


What is the threat?

The Silent Economic Growth Killer Is...

Peak energy; or more specifically, peak oil.


Peak oil is when the rate of oil being extracted from the earth maxes out.

At that point, the number of barrels produced each day will start a steady decline. Eventually we’ll run out completely or abandon oil for another energy source - which will take precious time to develop.


It’s a disaster waiting to happen for economies that assume the energy needed for growth is simply unlimited.


This faulty assumption is made by economists all the time.


But as economist and scientist Chris Martenson puts it, “Classical economics tried to convince me that growth depended on such things as capital, production, labor...but never really accounted for resources. They just show up on time in the desired quantities. Actually, as a scientist I know that all growth and complexity depend on energy.”


And he’s right.


Just look at this chart showing how oil consumption flatlines or drops dramatically during recessions, but then reaches a new record level during periods of growth:



Source: United States Energy Information Administration


This chart illustrates for an economy to grow, their must be enough oil to fuel the expansion.


And once the oil stops flowing, the industries that depend on it - and that’s virtually all of them - will have to change drastically or close up shop.


Now, I know what some of you are thinking...

“Is Peak Oil Real? Or Just Another ‘Whacko’ Claim?”

Some people equate “peak oil” with “global warming,” and dismiss both as politically motivated agendas of environmental “whackos.”


But as Chris M. says, anyone who’s ever had a drink with a straw understands the basic concept behind peak oil. At some point, the source always runs dry.


And far from a conspiracy theory, it is now accepted fact that we are on the verge of peak oil... if we haven’t reached it already.


Even the International Energy Agency - who’s known for painting rosy pictures about oil - is admitting oil production might drop 25% before 2035.


And to make up the difference, we’d need to find new oil fields that produce twice as much as all the middle eastern countries combined produce now.

How Will This Affect EVG’s “Black Box”

Investment Secrets of the Ultra-Rich?

That’s a good question.


And a savvy EVG member recently wrote in with a similar question. He specifically asked how peak oil will affect the “Bank of You,” an EVG strategy that PAYS you to borrow money.


Here’s the question from Mike H, edited for brevity:

Is a "Bank of You" account still a good choice in a world of peak energy? Exponential economic growth depends on surplus energy. But, if we are in fact past peak energy, will it still be able to provide these strong rates of return? 

 -Mike H.
Pensacola, Florida

Good question, Mike.


We asked Paul Haarman, the EVG expert and certified financial advisor who brought us the “Bank of You” strategy. Here’s what he had to say...

Can the “Bank of You” Survive Peak Oil?

Paul Haarman: That's completely irrelevant. It's completely irrelevant. Because you need to look at the Bank of You’s intended use.


I'm using it as a foundational operational account.


When your parents first tell you about one of the basic, most foundational things you need just to function in society - it’s a checking account. The “Bank of You” is like a checking account.


But I call it an operating account. This is operating capital. And you're also going to be able to leverage the account.


So rather than settling for the 1% or 2% that a bank is willing to give you, you're able to take control of it.


The money is guaranteed against any loss of principal. It is liquid and you're getting a reasonable amount of return.

Woah, woah, woah. That’s a lot to cover, so let’s break it down.


Most EVG members first experience with a bank is a checking and savings account. The “Bank of You” is very much like a checking and savings account.


The money is easy to access - meaning it’s liquid - just like a checking account. But it also provides a much higher return than the 1%-2% of most savings accounts... as high as 10%, sometimes even more.


And one of the cool things about the “Bank of You” is that it’s also an asset. That means you can “leverage” your account by borrowing against it. And because of its special structure, you actually GET PAID interest TO BORROW.


The best part is, you can use that borrowed money to invest in other EVG investment strategies. So then, not only are you earning interest on the borrowed money, but you’re also getting an additional return from an additional EVG investment strategy.


That’s leverage, and that’s the secret to real wealth.


So what happens if peak oil causes the economy to stop growing and the previously hot investments do not work anymore? We asked Paul, and he said...

Paul Haarman: You go to the next big thing. There's always something. And if not, you throw your money back in the “Bank of You” and now you're earning whatever rate of return that's going to get.


When peak oil hits the economy like a wrecking ball, it’ll be because our transportation infrastructure is designed for oil. And businesses that depend on it will go under.


But at the same time, there will be opportunity. Because a new infrastructure will have to be built based on a new energy source. So even when disaster hits, the economy will need MONEY to reinvent itself.


And if you have money in the “Bank of You,” then you’ll be able to lend that money to growing industries and earn a return.

And besides...

Even Our “Peak Oil” Expert Agrees...

...that you should have a decent chunk of your wealth as cash in a bank.


Chris Martenson - economist, scientist and peak oil expert - is 20% in cash. And the “Bank of You” allows you to be almost as liquid as cash under a mattress - it’s that accessible.


So thanks for the question, Mike H. It was a good one.


All in all - the “Bank of You” strategy is another EVG investment that successfully navigates the the economic crises coming our way... including Peak Oil.


If you want to learn more ways to prosper in a time of Peak Oil, check out this EVG strategy session with Chris Martenson now:

How to Invest in a World of Peak Energy

How To Beat Unemployment

The reports are out for unemployment rates in the U.S. ... and the news is grim.


Even those in the workforce are looking over their shoulder. No job seems to be safe anymore.


We don’t have the solutions to solve all the unemployment problems our country faces...


...but The Elevation Group does have solutions that can help you ... whether you’re unemployed, underemployed or fully employed.


As you know, EVG is not just about investing. We also encourage you to increase your “worth” by investing in yourself.

Not only does that give you a fighting chance to find employment in this increasingly competitive job market, but it virtually eliminates the unemployment line from your future...


Because we also help you discover ways to increase your monthly cash flow.


Before we explore all that, though, you need to understand how serious this problem is ... and it doesn’t matter if you’re young or old ... even retired.


Generating extra cash flow at ANY stage of life allows you to live life on your terms, to prepare for unforeseen crisis, and to invest for your future.


But many people aren’t generating a cash flow for themselves because...

The Unemployment Rate is Much Higher than Reported

The U.S. Bureau of Labor Statistics (BLS) reported that the July, 2012 unemployment rate jumped to 8.3%


That’s bad. It means 12.9 million people are without work.


And since it is easy to read such statistics without much thought, let’s emphasize it a bit.


In the United States alone, 12,922,618 people are “newly” unemployed. These are moms and dads who worry about feeding their children, keeping their homes, and clothing themselves.


It’s the equivalent of the entire population of Switzerland and New Zealand – COMBINED.


But it’s far worse than that, really.


A more accurate unemployment figure for the United States is 15.1%.


And we’re not pulling that data from some anti-government site either. No, it’s a figure that comes directly from the U.S. government itself.


You see, most Americans don’t realize it, but the government actually tracks 6 different unemployment figures (labeled as U1 thru U6).


Since incumbent administrations (of either party) don’t want bad unemployment numbers pinned to them, they only publish a lower figure as the “official” unemployment rate. Currently, the U3 is the published, “headline” rate. That’s what’s at 8.3%.


The higher fifteen percent number we mentioned above is the U6 rate, which includes those who have given up looking for jobs in the “short-term.”


That means there are far more jobless people in the United States than you might think. 23.5 million, to be precise. That’s more than the entire population of Australia!

But Wait, There’s More!

Up until 1994, the government also tracked another figure. It included long-term “discouraged workers” (as they are officially called).


These were people who had given up looking for a job longer-term, or who were forced to work part-time in a low-paying job because they couldn’t find anything else.


The government didn’t like these people mucking up its numbers. They didn’t paint a rosy picture. So these folks were conveniently dropped from any official statistic of the U.S. government.


The U.S. Bureau of Labor Statistics doesn’t even track these people at all anymore. The government says they don’t count.


But John Williams, an economist who runs ShadowStats.com, thinks they do count. So he continues to compile this information. He calls it the SGS Alternate. The latest chart with data since 1994 is to the right.


Using the same analysis model the government used to use, he calculates the true number of people currently out of work at 23.6%.


That’s a whopping 36.7 million Americans. That’s more than the entire population of Canada!


Still not convinced?


CNN wasn’t so sure either, so they did their own investigation earlier this year. Their report in May 2012 found that ShadowStats.com -- and the government -- may have it ALL wrong.


In fact, after doing their research they reported there are...

86 Million “Invisible” Unemployed

Here’s how CNN came up with that number:


A person is counted as part of the labor force if they have a job or have looked for one in the last four weeks. This year, only 63.6% of Americans over the age of 16 fell into that category, according to the Labor Department.


That means the remainder are not working or not looking. That number now stands at 86 Million people.


That includes people who are retired, in school or staying home to raise kids. These are people who truly aren’t looking for work.


But when CNN filtered those people out, they still came up with between 36-58 million people in the U.S. who are involuntarily jobless ... or who are working part time because they can’t find anything better.


This is a staggering number. It means these people are either draining their savings and retirement funds to survive, or relying on government assistance to get by.


It’s a huge reason the economy isn’t recovering.


The only way our economy will improve is to get these people back to work.


We’re not politicians, so we’ll stay out of that debate. But ...

EVG Can Help You Kick-Start Your Own “Personal” Economy

Like we said earlier, generating extra cash flow is the key... even if you are already employed or self-employed.


Part of the trick to generating extra cash flow is making yourself more valuable. That way you can make more money for the same amount of work.


You do that by learning new, in-demand skills ... by networking with the right people... and by continually educating yourself beyond the mediocrity of your competition.


Another part of the key is to start generating passive income. That means income flowing in even while you are not actively trading hours for dollars.


A rental property would be a perfect example. The rent comes in month after month. It’s not dependent on how much time you put into it.


Dividends would be another example. The income flows in each month or each quarter like clockwork.


Now those are just two examples.


If you already have money to invest, these are easily attainable. Your membership site has plenty of ways to help you out, including a unique method of real estate investing that can really ramp up your passive income in a hurry. It’s right here:


Lesson 12 - Three-Part Real Estate Strategy That Can Turn $10K Into $3.9MM…


It does require a significant initial investment – so if you don’t have the money to invest right now, it’s a great goal to set for yourself.


In the meantime, your EVG Membership site also includes strategies for you to increase your value in the workforce AND how to lay down a foundation for building passive income...even if you’re starting from zero.


Go back and check out:


Lesson 11 - How To Increase Your Monthly Cash Flow With A Home Business…


It’s not magic. It’ll require a little work on your part.


But the payoff can be huge. It’s not just about having more money, either. It’s about having FREEDOM.


Freedom to lavish your loved ones with the good things of life... freedom to spend your time the way you want ... freedom to help out your family in times of need ... and freedom to donate to the causes that match your values.


It’s a great feeling to be financially free.


If you aren’t making enough money to invest the way you’d like or to live with the financial freedom you desire ...why not give it a shot?


We’re here to help you find your own personal financial freedom... but YOU need to take the first step toward accomplishing it.

Why Silver Could Be Better than Gold.

 We’ve been writing a lot about precious metals lately. For good reason, too.


Metals have been in a slump over the last year and we wanted to clue you in to what’s going on.


As you know, our goal is to empower each of our members to make his or her own investment decisions. That doesn’t mean you do everything yourself. In fact, we strongly suggest you hire the best experts you can find to take care of the details.


But ultimately, you have to make the call. It’s your money!


And to make an informed decision, you need to be, well ... informed.


So lately we’ve been talking a lot about the price of gold and how to buy it and all that. But ...


Some of you have been wondering about silver. Like Rosalie, who recently wrote in:

"Hi EVG team,
Thank you for your letters. I 'get' the Gold price, but what of silver, please?
Be well, Kind regards, Rosalie"

That’s a great question, Rosalie.


And usually when we recommend investing in gold, we’re talking about precious metals in general. But gold and silver ARE different. And everyone has a different take.


So instead of pretending like we’re the only ones who “get it,” here’s the take of someone who’s NOT an EVG expert...

The Case For Silver from a Canadian Legend

Legendary resource investor Eric Sprott has 35-years of experience in the natural resource industry.


He’s built his company, Sprott Resources, into one of the largest independently owned resource investment firms in Canada.


When Eric Sprott speaks, wise investors listen... and Sprott has recently gone on record as saying, "Silver will be the investment of this decade."


In fact, Sprott went so far as to predict that silver will easily double or triple in price over the next few years.


Here are a few reasons to listen to Sprott:


He doesn’t just make bold predictions in order to sell books or get media attention (like most Wall-Street celebrities). He’s got his own money at risk in this – so he definitely works hard to get it right.


Sprott looks at the long-term fundamentals of an industry and invests accordingly.


For example, he was funding small Canadian gold companies already 10 years ago when gold was trading at $250 an ounce.


That means he was buying gold seven years earlier than high-profile hedge-fund managers like John Paulson and George Soros.


Now, with gold at roughly $1,600 per ounce, his investments have soared 500%-1,000% in value.


So does Sprott think the window of opportunity has passed? Nope. He thinks silver is going to continue to climb. He recently mentioned $100 an ounce at an investors meeting. That would be more than a 230% gain from the current price of about $30 an ounce.


He bases his prediction on fundamentals, not speculation. One of the main reasons he cites is that we're running out of silver. Here’s how he put it:

Annual [silver] production is about 900 million ounces per year, including recycling. Industrial usage alone will rise to 660 million ounces by 2015. That leaves only 240 million ounces for coinage, central bank purchases, and investment.

In case you didn’t know, industrial usage for silver is increasing. It is a major component in electronic devices and semiconductors ... plus it is now being used in electric cars batteries to boost performance.


All of these industrial uses are surging right now as the whole world (even developing nations) are demanding the convenience of smart phones and other personal electronic devices.


Demand for silver coins is also rising. U.S. retail investors have been buying up freshly minted silver coins at a record pace over the last few years.


And if the Fed announces more money printing in the future ... it will drive these purchases even higher.


Internationally, silver is more readily accepted as a store of value than in the mainstream U.S. and European financial communities.


In fact, China and India are the two largest silver-consuming countries in the world.

Some Caveats about Silver

But that is also one of silver’s “gotchas.” The economies of India and China have slowed significantly in the past year. That's a big factor in why silver prices have been trading sideways since October of 2011.


When those two nations were buying (lots of) silver back in early 2011, the price surged up. Unfortunately, it moved too fast and has suffered a major correction since then.


Also, because silver is so widely used as an industrial metal, its price often ebbs and flows with economic growth and stagnation, much the same way copper does. Economic recession (or depression) could adversely affect future silver prices.


And then, of course, there’s the threat of price manipulation. Silver is a perfect target for price manipulation for several reasons.


First, since it is considered “poor man’s gold,” first-time silver buyers who get caught up in a new price surge are often less sophisticated ... and more emotional. Professional investors use this to their advantage to profit from that lack of knowledge.


For example, many new silver investors flooded the market in 2011 when silver was soaring. Thousands of silver “newbies” bought silver for the first time when it was selling north of $45 per ounce.


Since then, the market has been shaking off these fly-by-night investors. Last week we told you about a “squeeze” going on in the gold market. The same thing has happened in the silver market.


Here’s how it works: Many large investors sold all their silver last Fall and have stayed away since. Even some of the largest banks in the world have been purposely “shorting” huge amounts of silver to keep the price low.


The purpose is to squeeze the emotional investors (newbies) out. Many people who bought their silver in 2011 and tried to hang on through the Spring and Summer of 2012 have finally thrown in the towel and sold their silver stashes ... at a loss.


Now the smart investors will start piling back in and the price will go up. For the big-time investors, it’s a rinse-and-repeat process that they use time and time again to wring profits out of the unsophisticated “newbie” market.


Little guys get caught in these kinds of squeezes all the time. Which is why if you want to buy it, you should only...

Buy Silver the EVG Way

At EVG, we don’t get caught up in the short-sighted hype or the short-term price traps.


We buy silver for the fundamental reasons that Eric Sprott mentions above (and for many other solid reasons we outline in your member‘s area).


Despite all the caveats to buying silver, we still believe it can be an important asset to own during the coming financial crash. Like gold, silver will be a very good chaos hedge.


In fact, many experts suggest having an easily accessible stash of “junk silver” as part of your emergency disaster-protection plan. (“Junk silver” is used silver coins that have no “collector” value – but still have the intrinsic value of silver).


The idea is that these small-denomination silver coins will be easy to “barter” for essential necessities in times of crisis.


Since they are easily identifiable (e.g. U.S. dimes and quarters that are pre-1965 are 90% silver), you don’t need a middle man like a coin shop to verify their worth.


But as good of a reason all this is...


...we’re banking on one other factor as a reason why silver could easily be the best investment of the decade.

Why Silver is Dramatically Undervalued

Historically, the free market has valued silver at a ratio of 12 ounces of silver to 1 ounce of gold. This rate has been fairly consistent (between 10:1 and 16:1) for thousands of years.


The reason is simple. There is roughly 12 times more silver in the ground than gold.


But that’s changing…


There is less silver available today than ever before, and the current estimates put the available ratio at 8 to 1. Why?


As Eric Sprott mentioned above, nearly 3 out of every 4 ounces of silver that is mined or recycled is used for electronics or industrial use ... and a lot of that ends up in landfills.


So silver should be priced anywhere from 8:1 – 16:1 compared to gold.


Instead, the current silver to gold price ratio is 55:1.


That means silver would have to go up to well over a $100 per ounce right now just to come back into historical norms.


We don’t expect that to happen overnight, but it has a great chance of happening, especially when the chaos of the looming financial crash hits.

How to Get in on the Silver Rush

Just like with gold, we don’t try to “time” our silver purchases perfectly.


But we do feel this is still a good time to get in before the price takes off again.


And dollar-cost averaging by buying a set amount of silver each month is still a great way to establish your silver stash without getting emotional about the price.


There are many other things you need to research before you jump into the silver market.


It is EXTREMELY volatile (silver has traded from $3 per ounce to $48 per ounce in the last 10 years ... and it has had some major pullbacks along the way).


If you can’t handle that kind of volatility on the way to the top, then you’re better off sticking with gold.


But if you want to get in on the potentially monstrous gains that await the patient investor...


The Elevation Group gives you some incredible guidance on how to cash-in on the coming wealth transfer with silver.


There are several lessons covering this topic in your members area, but the most up-to-date is Lesson 21 - 2012 Precious Metals Update With Michael Maloney…


In it, Michael talks a lot about silver...and in fact he offers a startling recommendation on how much silver he recommends for your precious metal allocation.


If you haven’t checked it out yet, now’s a great time!

Why Gold Could Be WAY More Profitable Than Just An Inflation Hedge

We’ve repeatedly made the case that precious metals, especially gold, are not so much an investment, but a hedge against inflation.


And having an inflation hedge is very important.


It preserves your hard-earned wealth from being nibbled away by yearly price increases ... or from being completely devoured by future runaway inflation.


But there’s a nasty little reality many people don’t talk about: At it’s best, an inflation hedge only keeps you “level.”


In other words, a hedge is more of a wealth preservation tool than an investment vehicle.


A good inflation hedge means that your purchasing power isn’t diminished.


Since most people own an automobile, let’s use gasoline (petrol) as an example.

Gold as a Hedge Against Gasoline Inflation

Let’s wind the clock back to April of 2009.


The world was just recovering from the bottom of the great stock market crash of 2008 (the bottom actually came in March of 2009).


All kinds of bailout money and stimulus funds were flooding the market. All those cash injections made people feel that the worst was over and that life might actually get back to normal.


Here are three key numbers from April of 2009 we are going to use to make our comparison:


1. The average price of gas was $1.95 per gallon in the U.S.


2. Gold was at $890 per ounce.


3. The average hourly salary for U.S. workers was $18.53.


Using these numbers, it would have cost $975 for a year’s worth of gas (using the US government’s estimate of 500 gallons per year for the average American).


That means the average worker had to work 52.6 hours per year just to pay for his yearly gasoline requirements.


However, the price of gas has steadily risen over the last three years.


In fact, the price of gas went from $1.95 per gallon to $3.85 in April 2012. That’s a 97.4% increase! Talk about inflation!


During that same time, the average hourly wage earner has only seen a 6.3% increase in wages.


That means you have to work a lot more to buy the same amount of gas. Here’s the table that shows it:





So, you now have to work 45.1 hours MORE each year to pay for the same amount of gas.


During that same time, the price of gold has risen 85.3%. So gold has actually been a very good hedge for gasoline prices.


Here’s another way to look at it. If you had taken the yearly amount needed for gas in 2009 ($975) and put it in a savings account, you’d now have $1,005 (at 1% interest).


If instead you had used that $975 to buy gold, your gold would now be worth $1,808.


So now your gold would still purchase about a year’s worth of gas. But the cash you kept in your bank account would only buy a half-year supply of gas.


So once again, using gold as an inflation hedge for gasoline has been great over the last 3 years.


But that’s a pretty small sample of time ... and it’s only measuring one commodity.


When we start to look at the bigger picture, we find that....

Gold Is NOT a Great Inflation Hedge

I know that probably sounds crazy coming from us here at EVG. After all, isn’t that exactly what we’ve been saying for the last two years?


Well, yes and no.


As we’ve already shown, gold HAS been a fantastic inflation hedge over the last decade or so.


But if gold were a TRUE inflation hedge, it would always protect against price inflation.


But it hasn’t.


Here’s a case in point.


Back in April of 1987, you could buy an ounce of gold for $440. During the next 17 years, the U.S. experienced a 3.5% annual inflation rate. By 2004, the price of almost everything went up by a lot...


Except gold.


If gold were a true inflation hedge, that ounce you bought in 1987 for should have gone up in price. Instead, it was only worth $405 in April of 2004.


In fact, during those intervening years, your 1987 gold purchase never once kept pace with inflation.


So why do we encourage adding gold to your investment portfolio now?


Because even though gold is a hit-and-miss inflation hedge ...

Gold Is an Awesome “Chaos Hedge”

You see, during times of economic uncertainty, gold acts like a collecting spot for all the wealth being lost elsewhere.


And if economic conditions get more chaotic in the future (we’re sure they will – see below) gold is going to blow the socks off any mere inflation hedge.


Here’s an illustration that might help:


Think of wealth like cups of water lined up on a counter top.


One cup is labeled “Stocks.”


Another is labeled “Treasury bonds.”


There’s also a “Municipal bond” cup, a “Corporate bond” cup, and a “Real Estate” cup.


They all are filled with varying amounts of water.


During times of economic stability, each cup would be about equally filled up to the halfway point.


But as economic cycles shift, the water changes cups.


Certain conditions cause investors to transfer wealth from the “Bond” cups to the “Real Estate” cup.


Other economic factors might cause people to sell their “Real Estate” and pour the proceeds into the “Stock Market” cup.


And so on.


When an economy is healthy and stable, the amount of wealth in the cups remains fairly well balanced.


But as economic conditions change, one cup gets filled too high, spills over, and causes a big mess.


That’s what happened in 2007 when the housing cup got too full. Then in 2008, the stock market cup overflowed.


A lot of that wealth overflow spilled into a cup labeled “Gold” ... which is why the price of gold has gone up so much since 2007.


Gold has simply been “collecting” much of the wealth lost in those two bubbles that burst.


But believe it or not, the gold cup is still only partially filled. And other, big bubbles are getting ready to burst.

How Full is the Gold Asset “Cup?”

Some experts say the gold cup is a quarter full. Others say even less than that.


Any way you look at it, gold is NOT the bubble that’s ready to burst now. (It will, in the future. More on that below.)


But, many people are still “afraid” of gold...or ignorant of its wealth-collecting properties. They think the cup has already reached its limit.


But during times of economic uncertainty, when no one is confident that ANY of the cups are a safe place to store their wealth, people start selling off assets and pouring that wealth into the cup labeled “Gold.”


This happened once in recent history, back in the late 1970s and into the early 1980s. Gold became so popular that everyone wanted it. Lines at coin shops snaked around corners for blocks and blocks.


Every janitor, school teacher and garbage collector wanted gold. People who knew nothing about gold were trying to buy as much as they could afford.


We aren’t anywhere near that level of gold “awareness.” In fact, despite all the publicity gold has received, the majority of people still do not own gold, and have no plans to.


But they will.


Just like in 1981. It will happen sometime in the near future ... when every other asset is considered “untouchable.”


That day is still off in the future. But it’s coming.


There are still sound reasons why the price of gold has shot up over the past four years ... and why it should continue to rise for the foreseeable future.


It’s not any ONE thing. It’s a collection of economic conditions and government reactions like:


• Soaring sovereign debt in Europe, the U.S. and throughout the world.
• Rampant deficit spending that continues to push the national debt higher rather than lower
• Unsustainable growth projections Wall Street has imagined
• Mounting student debt and consumer debt,
• Stagnant home prices,
• High unemployment,
• High (but sneaky) inflation,
• Negative yields on treasuries,
• Excessive money printing


This is NOT stability. Frankly, our economy is on the brink of chaos (and remember, gold is an AWESOME chaos hedge).


Eventually one of the above problems will hit critical mass and start a domino effect of financial crisis.


Like 2008. Only worse.


Then true chaos will hit. People will panic, and they’ll start to empty all their cups – stocks, bonds, whatever.


And not finding any other safe place, they’ll likely dump it much of it into the one remaining safe haven – the “Gold” cup.


That’s when gold will be king.


Eventually, the “Gold” cup, too, will reach the top and start spilling over.


When that happens, it will be time to sell your gold. The great wealth transfer will have commenced. At EVG, we’ll let you know exactly when we’re there and when we’re selling.


In the meantime, understand that we aren’t even close to that point yet. Gold has a long way to go.

Creating Your Own Chaos Hedge Now

As we’ve mentioned before, we don’t try to “time” our gold purchases perfectly.


If you are able, buying a set amount of gold each month is a great way to create your chaos hedge without getting emotional about the price.


And if you haven’t started yet, now is likely a great time to get in before gold rockets higher.


But before you make the plunge into gold, get educated. There are good types of gold to buy and bad types. (And you don’t want to get caught with the “fools” gold when chaos hits. It won’t help).


No worries...


Your EVG membership site has two complete (and very thorough) modules on buying and selling gold you won’t find anywhere else.


The most recent update from Mike Maloney (2012 Precious Metals Update With Michael Maloney…) also talks about the looming Wealth Transfer.


Another great review is How To Profit From Hyperinflation – An Exclusive Webinar With Gonzalo Lira


In short, you’ll learn all the ins-and-outs of how to buy at the best price, in the proper form, where to store it, and how to maximize your tax advantage when selling your gold.

Is the Bank of You Crash Proof?

If you invest your hard earned money in any outside agency, it’s in your best interest to check that company out. Make sure it’s financially strong. Perform your own due diligence.


This process of checking out a company is called vetting. It’s not always a straightforward process. Sometimes even with the best due diligence, you can get it wrong.



For example, did you know that some outside rating agencies gave Lehman Brothers a “Buy” rating the day before they announced their bankruptcy in September 2008?

The fact is, in an industry as complicated as the financial one, you can’t always get it right. We’ve made a few mistakes along the way, too. But in the process, we’ve learn some new things and valuable lessons.

The good news is that you can greatly increase your chance of “getting it right” with a thorough and complete vetting of every company you invest in.

And that’s why we are pleased to announce that the Bank of You is currently being thoroughly vetted by EVG expert Paul Haarman.

Technically speaking, Paul is actually vetting the company that maintains the Bank of You on your behalf.

That probably requires a quick explanation for those of you who haven’t yet gone through Lesson 2. Or a quick refresher if you are still confused about what a Bank of You is (we know you’re out there based on reader feedback we get).

How a Bank of You Is Different Than a Simple Savings Account

First of all, a Bank of You is not just saving up your own money and borrowing from yourself.

Some of our members still have the idea that a Bank of You is just store a pile of cash that you hold in a safe in your home. Their idea is that you just borrow that money from yourself rather than from a traditional bank whenever you need a loan.

A setup like that could work, but it’s not going to protect you during inflation and it’s certainly not going to supercharge your returns like the EVG Bank of You can.

The Bank of You that Paul unveils in Lesson 2 leverages some unique properties of permanent life insurance.

It acts a lot like a special savings account at a financial institution. You deposit money into it and they pay you interest on your deposits. But it’s so much more than just a savings account.

Some of the additional features include the fact that it shields your money from view of your creditors. For example, if you get sued, they typically can’t touch your Bank of You.

And a really unique feature is that you keep getting paid interest on your full deposit amount even when you are borrowing money against it.

Plus, as we’ve written about in the past, you can even earn money on the “spread” when you borrow from it ... if you set it up correctly.

EVG Helps You Set Up a Bank of You for Maximum Profit

That’s where EVG expert Paul Haarman comes in. He helps you set it up correctly.

In fact, Paul is easily the premier expert in the world on this technique.

Other financial advisors teach something similar to our Bank of You. They call it Infinite Banking, and there are hundreds of Insurance companies you could choose from to set up an Infinite Banking account.

But there are only three financial companies that can set you up with a Bank of You ... and allow you to pull off the arbitrage we’ve previously described as “cloning” your wealth.

Paul has been working extensively with one of those three companies and has successfully set up hundreds of positive-yield Bank of You accounts for EVG members.

By the feedback we’re getting, these members are ecstatic about the ultra-safe, high-yield returns they are getting.

Still, many of our readers wonder: will a Bank of You be a safe location for their money ... especially if there’s another financial collapse like 2008 or any other kind of economic meltdown?

So Paul has been busy vetting this company to make sure your retirement money will be safe and secure in an EVG Bank of You.

Steps to Vetting the Bank of You

So, how do you go about vetting a large financial institution?

First of all, you look at their public financial statements.

In the highly regulated insurance and financial industries, such financial statements are available to investors and potential investors.

It’s an important step, and it’s a great start. But everyone also knows that some rogue corporations have been able to “cook the books” in the past.

Using a variety of accounting tricks, these corporate thieves have fooled regulators, the general public and even their own investors.

Enron is an example that immediately pops up in many people’s mind, but Lehman Brothers did the exact same thing before their 2008 collapse.

So, just looking at public financials is not enough. You also want to see what industry watchdog groups and rating agencies have to say. These companies are like the Better Business Bureau for the financial industry.

They discover and point out problems that the company itself tries to gloss over.

Paul Haarman has already taken both these steps and completed this general aspect of his vetting process with the Bank of You insurance carrier he uses.

Now a lot of average wealth strategists might stop at this point and say “good enough.” But...

EVG Isn’t Satisfied With “Good Enough”

You see, if you want to vet a company thoroughly, you need a more boots-to the-ground research approach.

How do you do that? Well, for manufacturing companies, you would go out and visit the plants, talk to the workers, the supervisors, the middle management. Check out the quality of the raw materials. See how the product is stored. Transported. Things like that.

For a mining company you might don a hard hat and work boots. Trek out to their remotest mining sites. Check out the quality of their ore. Verify the size of their claim with an on-site presence. Whatever it takes.

So how would you similarly vet a financial company? There are no factories, no physical product.

First, you have to establish that their “product” is their ability to manage money.

Then you need to figure out how you’d physically investigate that “product.”

The best way would be to talk to the people who manage the company itself -- and its money -- at the highest level.

We’re talking about the top brass. People like the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and the Chief Investment Officer (CIO).

Now, if you could talk to just one of those top “Chiefs” in a company, you’d have a real leg up on the vetting process. If you were able to get access to two of those top-dogs, you’d really be in good shape.

Trying to arrange a meeting with all three? Well, that would be a nearly unattainable feat.

You see, when you’re dealing with multi-billion dollar corporations, access to the big bosses is next to impossible.

With millions of clients, they just don’t have time to talk to every investor. Their calendars are booked solid for months, even years.

And their executive secretaries have built up multiple layers of protection. You don’t just phone these guys up. You have to plow through multiple gatekeepers and jump through a lot of hoops.

Unless you’re EVG expert Paul Haarman

Through his industry connections, Paul was able to meet the CEO of the main insurance company he uses for the Bank of You. And it wasn’t just a quick handshake meet and greet.

Paul grilled him extensively and came away thoroughly impressed ... and assured that his money and yours is safe in any Bank of You sourced out to this company.

But that’s not all Paul came away with. The CEO was impressed with the overall vision of The Elevation Group and what we are accomplishing for our members.

So he agreed to give Paul direct access to the CFO and the CIO of the company.
In fact, they have agreed to fly to Austin and meet with the EVG executive team and possibly even film a lesson for EVG members.

We can’t tell you exactly when this will happen, or what form it will take. But it is in the works, and you, as an EVG member, will get exclusive access as soon as it happens.

This is really groundbreaking news in our industry. And it will be of huge benefit to you as a member.


Get Started With Your Own Bank of You Now if you haven’t yet looked into Lesson 2, or haven’t yet attempted to set up a Bank of You, now is a good time to jump back into your member’s area and check it out.

Setting up a Bank of You isn’t difficult, but it does require some time. It’s not as easy as just plunking your money down and saying “sign me up.”

There are forms to fill out and waiting periods involved.

The sooner you can get your Bank of You set up and funded, the sooner you can start using its incredibly powerful features...

And start ratcheting up your own net worth.

Did Mitt Romney Use An EVG Strategy To Earn 100 Million Dollars Tax-Deferred?

It’s no secret that US Republican Presidential candidate, Mitt Romney, is said to be worth $250 million dollars. But we were surprised to hear $100 million of that fortune may be inside his IRA.

EVG Research Team here, and this news has us checking our customer records to see if Mitt Romney might be an EVG member.


One of our most popular “Black Box” strategies at EVG is freeing your IRA from stocks and bonds to build real wealth tax-free.


Now we’re certainly not endorsing anyone for US President - we’ll stay out of those weeds. We’re not even trying to say anything positive about the candidates other than this:


At $100 million, Mitt Romney isn’t just familiar with this EVG strategy... he’s extremely good at it.


But is it for everyone? Or just another one of the many...

Loopholes of the Rich and Famous?

Not at all.


It’s a strategy anyone with an eligible IRA can take advantage of to build wealth... even though IRAs were only meant to provide a comfortable retirement, not riches.


The maximum annual contribution to an IRA is $6,000 – or $5,000 if you're under 50. And typically, the person managing your IRA (the “custodian”) invests the funds in stocks and bonds.


If your IRA just happens to buy shares in a young company that skyrockets to 100 times the purchase price, then you just turned that $6k into six-hundred thousand dollars.


So the value of your IRA can explode if you get lucky OR you know what you’re doing.


And Mitt Romney, just like EVG members, knew what he was doing.


Because another way to skyrocket your IRA besides hitting a lucky stock is to “free” it from your custodian’s stock picks and invest in a company you know has potential – your own!


Romney may have done the same thing by investing in Bain Capital or a related firm.


This takes some paperwork and legal maneuvering. But as we’ve covered before, a Federal tax court has settled the matter and this “Black Box” strategy is completely legal.


It does invite the question, though?

Why Build Wealth Inside Your IRA?

Moreover, why would Romney stockpile $100 million in an IRA?


It’s for the tax advantages.


When you start an IRA, you can choose to pay taxes when you withdraw the money in retirement... OR you can choose to pay taxes now and withdraw tax-free once you reach age 59 and a half (as long as your IRA is more than 5 years old).


That means if you contribute $6,000 to your IRA, and you choose to pay taxes on that $6,000 now rather than later... if it balloons to $600,000.00, you owe no taxes!


That means it’s possible that much of Romney’s $100 million IRA is tax-free income.


This may smell bad to people who plan to vote against Romney or think millionaires shouldn’t avoid taxes.


But it is the law of the land that made it possible. And according to Justice Learned Hand, there’s no obligation to pay more than the law demands:


Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes.
Justice Learned Hand,
in Helvering v. Gregory

Who Else Wants to Grow Wealth Tax-Free With the Money Inside Your IRA?

It’s not too late to take control of your IRA and start growing tax-free wealth.


If you haven’t already dived into Module #10, “How to Legally Free Your IRA and Invest the Money Wherever You Choose,” now is the time. And EVEN IF you didn’t pay taxes on your contributions upfront.


As you’ll discover in the lesson, it’s possible to roll your traditional IRA over to a Roth-IRA where your wealth can grow tax-free. You’ll have to pay some taxes now, but then you’re off to the races.


Many EVG members use their self-controlled IRAs to invest in silver, gold, commercial real estate... one member even wrote in to say they purchased livestock! Real, living cows!


Again, this is one of our most popular “Black Box” strategies.


And if a Presidential candidate worth $250 million is doing it, you can bet it’s worth trying out.


To take advantage of this “Black box” Strategy of the ultra-rich, go here now:


How to Legally Free Your IRA and Invest the Money Wherever You Choose

Paul Haarman's View on the Shift Economy

There is so much to gain from this group. I highly recommend that you click on the link below and soak as much information in as you can. We have a small window of time to maximize our profits as the currency continues it's decline. Some of us will be wiped out economically. But some of us will come out on top. It's a matter of educating yourself and making certain choices today.



Click HERE for more information.

Facebook Founder’s “Vanishing Act” Has Many Riled Up

Facebook’s recent initial public offering (IPO) generated a lot of media buzz. But the actions of one of its founders created a public outcry.


Facebook’s recent IPO made instant billionaires out of all four of the original Facebook founders.


You’ve likely heard of Mark Zuckerberg. He’s the main founder and current CEO of Facebook.


At the tender age of 28, his net worth soared to $19 billion after Facebook’s IPO in May.


Eduardo Saverin is one of the lesser-known founders or Facebook with less than a 5% stake ... but he’s still worth an estimated $3 billion dollars after Facebook’s IPO.


In case you missed the news ... last September Eduardo did what many feel is the unforgivable sin.


He renounced his United States citizenship.


The IRS revealed Eduardo’s decision in April 2012. The public outcry was immediate.


Angry citizens flooded blogs and message boards calling Eduardo a traitor. They accused him of being unpatriotic.


Maybe you’re angry at him too.


After all, a young kid makes billions of dollars, benefits from the American way of life, and then renounces his citizenship?


Sounds pretty selfish. Greedy. Un-American.


“Running away to avoid paying taxes?” they complain. “Shame on him!”


But once you hear Eduardo’s backstory and understand his family history, you may change your mind about his actions.


And even if you don’t change your mind about Eduardo, you’ll definitely learn an important lesson about your own “sovereignty”...


...and how it could mean the difference between the Poorhouse and Easy Street for you and your own family in the coming financial crisis.

The First Flight Was to Protect the Family’s Life

To understand Eduardo Saverin’s decision, you have to go back two generations.


His grandfather, Eugênio Saverin, was a hard working and industrious entrepreneur. But being a Jew living in Germany during the 1940’s didn’t mix well.


Rather than face concentration camps, Eugênio snuck his family out of Hitler’s reach and resettled in São Paulo, Brazil.


Eugênio brought nothing with him except his entrepreneurial spirit.


But that was enough.


By 1952, he founded the kidswear brand “Tip Top,” which went on to become the most popular brand of children’s clothing in Brazil.

The Second Flight Was to Protect the Family’s Fortune

Eugênio had a son, Roberto, who grew into the family business.


Using the entrepreneurial spirit he inherited from his father, Roberto grew Tip Top into a successful franchise of retail chain stores in Brazil.


He increased the family’s wealth by investing in real estate and in some of Brazil’s vast natural resources.


But in 1993, Roberto packed up his bags, took his wife and child (Eduardo) and fled the country.


He did it because of the economic chaos brewing in Brazil at that time. Then President Fernando Collor had just frozen all savings accounts.


Roberto knew more capital controls were coming.


Rather than hand his family’s fortune over to people who hadn’t worked for it, Roberto migrated to the United States. He and his family started a new life in Miami, Florida.


Eduardo Saverin was 11 years old at the time. A few years later he and his family went through the legal process of becoming U.S. citizens.


Up until September, 2011, Eduardo maintained a dual U.S. citizenship along with his native Brazilian citizenship.


(Here’s an interesting side note. Many internet sites claim that Eduardo’s family fled to the U.S. because young Eduardo’s name was found on a list of possible kidnapping targets due to his family’s wealth.


The story spread like wildfire after the book "Billionaires by Chance" presented it as fact.


While it’s a compelling story, we did a little more digging to find out if it was true. What we found was a recent interview (June 2012), given in Portuguese for the Brazilian news magazine, Veja.


In that interview, Eduardo explains that the names of his father and grandfather had been found on a kidnapping list, but the family only found out about it years after moving to the U.S.


(Just thought you’d like to know the real story.)

How America Made Eduardo Rich

Eduardo spent his teenage years growing up in the Miami area. He was a top student and a chess prodigy (The International Chess Magazine featured him after he beat a chess grandmaster at the age of 13).


He enrolled at Harvard University in 2003 to study economics. That’s where he met Zuckerberg and became the first investor in Facebook.


The rest is history. Facebook has gone on to become the most popular website on the planet. During its rise in popularity, Eduardo watched his own net worth skyrocket into the multi-billion dollar stratosphere.


He’s now one of the top 100 richest people in the world.


So it’s easy to see why people are mad. It seems obvious that Eduardo gave up his U.S. citizenship to avoid paying taxes on his newly acquired Facebook fortune.


That’s not entirely true, though.


He’s been living in Singapore since 2009 and loves it there. It’s the place he’d like to make into his new home.

The Third Flight Was to Protect the Family’s Legacy

And that’s why many tax experts think Eduardo’s strategy has nothing to do with avoiding taxes ... at least not right now.


You see, he’s NOT getting off scot-free. The U.S. requires everyone who renounces his or her citizenship to pay a 15% exit tax.


That means Eduardo will be paying hundreds of millions of dollars in taxes to the U.S. – even if he doesn’t cash in his Facebook stock.


Here’s how Eduardo describes it in his Brazilian interview (translated from the Portuguese):

“The decision [to denounce his U.S. citizenship] was strictly based on my interest in living and working in Singapore. I am obligated and I will pay hundreds of millions of dollars in taxes to the American government. I already paid and I will keep paying whatever taxes I owe based on my time as a U.S. citizen.”

Paying the exit tax now will likely trigger a bigger financial hit on Saverin than if he had kept his U.S. citizenship.


You see, according to United States law, you don’t pay taxes on capital gains until you cash out. Many wealthy people simply borrow against their unrealized capital gains and live tax-free until after their death.


But, once you die, your estate can get hit with a 35% inheritance tax.


Tax experts are guessing that Eduardo would like to pay his exit tax now rather than give away a third of his fortune after his death.


They feel Saverin is using his family history of global mobility to put himself in the best situation to carry on the family legacy.


It’s hard to say, but that seems to be Eduardo’s sentiment. In the Veja interview he said: “I was born in Brazil, I was an American citizen for about 10 years. Now I live in Singapore. I’ve always thought of myself as a global citizen.”


Like him or hate him, you have to admit he’s got a fascinating family history.


And as a mobile, sovereign, global citizen, Eduardo Saverin is simply carrying on a family tradition: he’s taking care of himself, his fortune and his family legacy. All at once.

How This Relates to You

Listen, you don’t have to renounce your citizenship to protect your wealth. And you don’t need to be a billionaire either. Almost anyone can diversify his or her assets overseas.


This is NOT about evading taxes.


Lesson 5 - How and Why I'm Diversifying My Assets Overseas in The Elevation Group member site lists four reasons for investing overseas:


1. Diversification
2. Privacy
3. Asset protection
4. Tax efficiency


You can start small now by protecting just a portion of your assets overseas.


And if you want to protect more, Rob Wolmer can help. He’s the lawyer from Lesson 5 who specializes in protecting your wealth by diversifying you internationally.


He can tailor-fit a plan based on your specific needs. You’ll find his contact info in Lesson 5 ... or in the EVG Rolodex under the Resources tab. Mr. Wolmer's contact info at the bottom of the page under “International Investing.”


Setting up foreign accounts and tax entities can make a huge difference to your bottom line ... if you structure it right. But if you do it wrong, it can cost you a fortune.


Whether you’ve already built your fortune or are just getting started ... this is information you don’t want to miss.


Some of you may have dismissed this strategy thinking you don’t have enough money to make it useful.


Don’t make that mistake.


Even if you can’t use the information now, it’s part of your education that will help you start thinking like the wealthy. It may also become very useful for you down the road.


Click Here to review this strategy as outlined in your member’s area.


This article is reprinted courtesy of The Elevation Group. To find out more, please visit their website at:http://theelevationgroup.com

What Happens to the “Bank of You” if the Dollar Fails?

The “Bank of You” is one of the most popular...and successful strategies that Elevation Group members have been using to secure their financial future.

But there are also some concerns about how the “Bank of You” will hold up if we have another 2008-like economic crisis...or worse.

Here’s a great question from an EVG member about what will happen if the US Dollar tanks:

Regarding the Bank of You, Paul Haarman said it takes around 5-7 years to break even, and after that is when things start to take off. But the Lesson #2 video was made back in 2010. So at this point in time, with our fiat currency heading ever more towards to the brink, is it advisable for anyone to start investing in the Bank of You? Will the US Dollar even be around in another 5-7 years? Thanks in advance for your help on this question.

Mary D.Paul is the EVG expert on the “Bank of You,” and he says he gets this question a lot.

But his answer is a little more complex than a simple “yes” or “no.”

Here’s why:

Everyone’s Concept of Financial Collapse is Different

When some people think of financial collapse, they envision total mayhem...

A kind of post-nuclear holocaust where everyone wanders around aimlessly...

Abandoned ghost-town cities. Smoking piles of debris littering the landscape...

People clad in dirty rags ... picking their way through heaps of junk for a morsel of food.

Is that how you see it?

If so, then realize that no investment will thrive in that reality.

Not even gold.

In that scenario, mere survival will be the only thing that matters.

But that is NOT how Paul envisions the coming financial collapse.

Why?

Well, none of the biggest financial collapses in our world’s recent (or past) history have ever looked like that.

Yes, there is always a temporary chaos as wealth transfers hands.

And yes, there are tough times for the masses ... sometimes for extended periods of time.

But in the end, a new order is always established ... and in the event of a currency collapse, a NEW currency is always formed.

Like it or not, we will most likely have to live with some form of fiat currency during our lifetime.

So even if the present form of your country’s currency collapses, there will be a new currency that takes its place.

At that point you’ll get something in exchange for your old money.

But that’s assuming a total financial collapse.

Paul feels it’s more likely that we’ll get high inflation rather than total collapse. In that case...

Interest Rates Will Move Up With Inflation

The second thing to remember is that interest rates and inflation generally go up in lock-step.

So if we start seeing 10% annual inflation, the interest rate you earn in your Bank of You will also go up.

Some readers may remember the high inflation of the late 1970’s into the early 1980’s.

Back then you could earn 17% on a one–year Certificate of Deposit (CD).

Right now, inflation is at 2.5% and you can earn around 10% in a Bank of You.

That’s a 7% spread.

Once inflation hits 10%, you should easily be able to earn up to 17% in your “Bank of You.”

Which brings us to the final point...

The “Bank of You” Protects You During Inflation or Deflation

A properly set up “Bank of You” will protect you from future high inflation...

...but it can also save you if we get deflation.

We’ve already seen how deflation could be part of our future in a recent newsletter.

Most investments work well only in one scenario or the other. Either in deflation or inflation.

In fact, many investments will completely crash if used in the wrong situation.

Not the “Bank of You.”

Properly set up, a “Bank of You” steadily increases your wealth during either scenario.

It works that way because it has the income-producing abilities of an inflation hedge, and the cash-like qualities of a deflation hedge.

Final Thoughts

No one can say with 100% certainty what the future holds.

Will there be high inflation? All signs point to that.

Will there be deflation? At least one realistic scenario exists where that could be our fate.

With most investments, you have to make an educated guess which scenario is coming.

At EVG, we’re betting more heavily on the inflation side.

But with a “Bank of You,” you’ll be protected either way.

It won’t matter if the US Dollar tanks ... or even disappears.

Frankly, you’ll never get the timing of any investment absolutely perfect.

What’s more important is understanding the Wealth Cycle we are in and how that will affect your long-term investment goals.

Once you are convinced in your own mind that a particular investment makes sense, the final step is actually committing to it...pulling the trigger and making the investment.

Now is a good time to review Lesson 1 on wealth cycles and Lesson 2 on the Bank of You.

If you have specific questions about setting up your own “Bank of You,” give Paul a call.

As a member, you have access to his contact information on the Resource Page in the members area.

This article is reprinted courtesy of The Elevation Group. To find out more, please visit their website at:http://theelevationgroup.com