Currency Crisis, The Fall of the US Dollar

6 WAYS TO PROFIT, WHILE OTHERS LOSE EVERYTHING...

There is a major currency crisis around the corner here, and lately I've been answering a lot of questions about what people can do to keep their money safe.
Well here are my thoughts all laid out.

What is a Currency Crisis?

currency crisis is a fancy way of saying that there will be serious volatility within the currency markets. Different currencies will drop drastically and others will rise. A long time ago different currencies were based off of gold, mostly because gold is a physical asset that cannot be misrepresented. How much does 1 ounce of gold cost in each countries currency? that was how the values of each different currency were defined.
Over the past 30-35 years things have shifted and the currency standard switched from being based on gold to being based off the US Dollar. Most likely because we were the most profitable and powerful nation. Well throughout that time the United States has dug itself into a serious hole. We've totally strayed from our origins, we no longer are a production country, we no longer are a profitable country, and we no longer are a saving country. In fact we've amassed the largest amount of debt that the world has ever known. and within the same time period we've also managed to start consuming more than we produce (spending more than we make). So as I'm sure your well aware of, this activity is not acceptable and can only last for so long before there is no one that will lend you more money.
So now our country has worked itself into a position where we've borrowed every cent that we can, and we are unable to produce enough exports to even come close to paying off our debts.

What happens when someone borrows money and then has no means to pay it back?

Thats right. they file for bankruptcy!

No one will lend us money, and we can't make enough to pay off the trillions that we've already borrowed. And we've made commitments for healthcare and tarp bailout plans that amount to trillions more. We are in a serious pickle....

WHAT WILL HAPPEN?

during this currency crisis, the US Dollar, maybe along with other currencies, will fall to almost complete worthlessness(for each dollar we have, we owe more than a dollar), and a new currency standard will be created. Most likely something that is not a paper money. Something tangible and physical. While the Dollar collapses, the people of the US will suffer from a hyperinflation period, and essentially we will see a Great Depression 2.0. Commercial realestate will most likely fall apart as businesses can no longer afford to own their properties, etc.

6 WAYS TO PROFIT FROM THE FALL OF THE USA!

1. Take your cash out of the bank

In the 1930's when the great depression hit, banks began to go under. There were lines of people outside trying to get their cash, but it was to late for many of them. When the government goes bankrupt FDIC and DIF no longer protect your money.

2. Exchange your US Dollars for Another currency

If you have $10,000 I'm really happy for you, but when the dollar collapses its still not going to be worth much. So my advice is to conver at least a good portion of your cash into a different currency, like Canadian, that way it will not lose as much value, or it may even grow in value.

3. Gold and Silver
BUY- physical gold and silver in coins or bar forms

Gold and Silver move inversely from the Dollar, so when the major currency crisis starts to unfold, gold and silver will begin to move north very quickly. And seeing that this will most likely be the largest Currency collapse the world has ever seen, Gold and Silver will produce gains that likewise the world has never seen.

PS. Silver prices are far below those of gold because silver is a secondary currency standard and there is only about 1/10th the amount of silver as there is gold. However when the world is in turmoil and investors and seeking a safe haven, silver has the tendency to move north much quicker than gold as the demand increases quickly and the supply is still very short.

4. Gold and Silver
BUY- stocks in gold and silver mining companies, outside the US

If you hand your US stock broker US Dollars, no matter how much of a return you make, you will get back US Dollars, which may be completely worthless. my advice to to go outside the USA and buy stocks in gold and silver mining companies so that when you go to get your payout, it is not in US Dollars.

5. Commodities
BUY- stocks in commodities, outside the US

They are fairly low right now and will most likely see a nice jump in price or the next months.

6. Natural Gas & Oil
BUY- stocks in natural gas & oil companies, outside the US

Natural gas & Oil are undervalued right now, and when things go south they should see some gains. especially when people realize that there isn't as much oil as they are led to believe.

U.S. GeoThermal Inc (HTM)

$1.85

US GeoThermal Inc. is engaged in the acquisition, development and utilization of geothermal resources in the Western Region of the United States of America. As of March 31, 2008, the Company operated two power plants, Raft River Unit I in Idaho, through its joint venture with Raft River I Holdings, LLC, a subsidiary of Goldman Sachs, and a plant located in the San Emidio Desert in Nevada. GTH also has several other properties under development or exploration. Raft River Unit I commenced commercial operations in January 2008. As of March 3, 2008, Raft River Unit I sold between 9.6 and 11.7 megawatts of power to Idaho Power Company under a net 13 megawatt power purchase agreement (PPA) which expires in 2032. On May 1, 2008, the Company acquired the geothermal assets, including a 3.6 net megawatt nameplate generating capacity power plant, from Empire Geothermal Power LLC and Michael B. Stewart, located in Washoe County, Nevada.

These GeoThermal Stocks have seen some really nice climbs in the past week or so, but they should continue to climb over the next months. Although its not a true penny stock, all Alternative energy companies should have a very promising future as the globe begins to turn increasingly environmentally friendly. Which can mean gains of up 100% in the coming year or so.

US GeoThermal Inc. dropped from over a $4 high in late 2007 all the way to about $0.80 in the beginning of this year, and now it has begun moving upward again. I bought in about 50% of my position at the current price, and then I'm going to wait and see if there are any dips for me to get some cheap shares with my other 50%.