The Next Crisis...
Coming Inflation Shock Threatens Your Portfolio

Despite the fact that we've written extensively for over a decade about the current economic crisis, we're still surprised at how quickly the Sub-Prime mortgage crisis became a bank meltdown. That crisis rolled into an AIG insurance sell-off, then created a worldwide stock market meltdown that's destroyed a massive amount of retirement wealth and undermined investor confidence.

So far, $8.4 Trillion Dollars in U.S. Stock wealth has disappeared. Baby boomer retirement funds are gone, college funds gone, and hard-earned savings gone. The strong bounce on Monday has all but disappeared two days later.

This is a panic sell-off we've warned about, a flight to safety from banks,
our of stocks, into tangible Gold Coins and Silver Dollars.

This is the Unthinkable Crash
A Wall Street that is so wildly volatile as to rise and fall over 15% in one day should be renamed–
"The New York Casino" because the odds of making money these days are about the same as winning the lottery.  Wall Street's stock sell-off destroyed 39% of value of the DOW Industrials index and 42% was lost on the S&P 500 index.

I'm sure you believed 40% Stock Market losses could never happen to you.
Here's the truth–  in a meltdown, even balanced, diversified stock portfolios can be wiped out!

In early 2007, we wrote of a "Looming Worldwide Financial Crisis" and warned of the massive risk to the economy imposed by U.S. debt. We dared to ask the question, "Is the United States Bankrupt?" In the same Austin Report, we detailed the coming mortgage meltdown crisis and urged everyone to build a fortress of wealth by diversifying into Gold Coins and Silver Dollars immediately.

A Coming Tsunami of Inflation
As the DOW peaked over 14,000, we knew the stock bubble was about to burst. Then, the DOW crashed through 8,500 and closed down 47% from the high of October 2007. What a washout for those who held on to their stocks! Right now, we're watching the deflation of the stock bubble just as we predicted. What we want our readers to focus on immediately is the next crisis– the massive wave of  inflation created by the Trillions of new U.S. Dollars the Federal Reserve has injected into the financial system to in a last ditch effort to save the world banking system.  

Inside this report, we will go out on a limb and predict that a tsunami of inflation is coming. We warn that inflation may destroy what's left of your portfolio unless you take action immediately to preserve your wealth and buying power now.

The Inflationary Cost of Easy Money
For over a decade, the American economy has survived on consumer spending and borrowed money. Once, our great economy was based on hard work, making and selling machines to the world, and saving money. That old model of the U.S. economy was booted-out to places like China, India, and Brazil. Americans were encouraged to let others work, we'll borrow and spend money instead,

American companies and our political leaders declared that the arrival of an "information age" had created a new U.S. economy built on borrowed money and consumer spending. The Austin Report warned repeatedly that an economy built on debt and indulgence cannot sustain itself for long.

For some time, we've thought the U.S. economy was doomed to failure because of our leaders' unwillingness to stop borrowing and spending money. They call me a conservative thinker, we know it's just common sense. Washington's foolish deficit spending and the ever-growing personal debt levels are at the heart of the banking crisis.

"When will Americans learn you can't borrow your way out of debt?"

For years, the U.S. borrowed half of the world's savings. We took in the savings of Europe, Asia, China, and Russia, and sent them Sub-Prime mortgage debt and other I.O.U.s in the form of U.S. Treasury Bonds. We've promised to pay them back, with interest. But now, we are convinced that America can never repay the National Debt which topped $10 Trillion Dollars just before the Stock Market meltdown.

Borrowing abuses, horrendous loan practices by banks, downright fraud, and advertising brainwashing has led American consumers down a false road to prosperity. Americans were living on borrowed money and borrowed time. As always happens when the Federal Reserve prints too many Dollars, they create bubbles in our economy. First, there was the Dot Com Bubble and crash, then the Housing Bubble and Crash, and now the Worldwide Stock Market bubble and crash is taking its toll.

Stock brokers promised never-ending wealth in stocks, a promise that's always been impossible to keep. When the Federal Reserve creates too much money, they create a false sense of prosperity and well-being. People borrow more than they can afford and spend every dime they can. Fear is replaced with unbridled optimism in the future growth of the economy.

Optimism has now turned to cynical pessimism, fear of loss, and a flight to safety.  

The waves of crises threaten another Great Depression and have sobered up the most obsessive-compulsive consumers addicted to living on borrowed money. It's taken a shocking series of economic events including a banking crisis, an insurance crisis, and a near stock market meltdown. We can only hope and pray that politicians get the message before it's too late.

Banking Crisis Worsens, Deflation in Progress, and Inflation Coming
A series of events are unfolding. You can be sure that we are in about to be in a recession, worldwide. Housing accounted for half of the U.S. GDP. The world depends on the U.S. for about half of the world's economic growth. As U.S. home building has come to a screeching halt, the rest of the world will follow us into a deep pit of recession. 

With the coming recession will come more massive job losses, perhaps a million Americans will be laid off. This will drive home prices even lower. Consumers have stopped buying. Car sales have fallen off a cliff. Businesses have gone bankrupt. Stocks prices will continue to suffer as most corporations will have their profits turned into loses during a long, harsh period of recession. Sadly, this is the result of Americans' aberrant spending and borrowing behavior. A crisis of this magnitude may force politicians to stop spending money we don't have.

Deflation Will Create Shocking Inflation
While the crisis evolves, wealth is being destroyed through deflation. Americans have had the majority of their life saving in their homes, but now home prices nationwide are falling. Trillions of dollars for retirement have been kept in the U.S. Stock Markets and banks. Today, the future of these institutions as storehouses of wealth has been called into question. 

Repeatedly, we've warned of the huge potential risks in stocks. Friday the DOW Industrials Index fell from a high of 14,165 to trade under 7,560 -- an almost unbelievable loss of 47% of the value from an index that tracks the best industrial companies on the planet. Altogether, the U.S. Stock Markets have seen $8.4 Trillion Dollars disappear. Don't get me wrong, we are sure that some of those losses will be recovered. But the point we want to make is this:

Once Americans finally realize they risk losing over 40% of their life savings in the stock market,
millions will flee and never buy stocks again.

What we're suggesting is that 401K plans, IRAs, college funds, and baby boomer retirements are seeing a flight to safety out of U.S. Stocks, out of Foreign Stock Markets in a way that has not been seen since the Great Depression. While we're on that subject, we often hear people say, "I'm not all that worried, the stock market will always come back." Those same people are shocked when I tell them that that are correct, after the Stock Market Crash of 1929, it took until 1954 years for the DOW Industrials to finally return to recover. If you don't mind waiting 24 years to get your money back, with no profits, then we guess you could say, "Stocks always come back."

Friends, investments are never, ever without risks– and the Stock Market is a very risky place to keep your money these days.

Stock Market Sickness Spreads Worldwide
Late last year, U.S. Stocks were down 18% in five trading sessions. With panic selling, the crash echoed around the world. The BRIC nations of Brazil, Russia, India, and China were once the darlings of the world stocks markets. Money poured in rapidly, prices soared. Just as quickly, the money disappeared into a black hole. We find it strange how some people take on higher and higher risks in speculative World Stock Markets when they shouldn't even trust our market to play fair.
 
Things got so bad that Russia's Stock Market halted trading completely for days. Worldwide, paper assets are suffering from a flight-to-safety out of stocks and into cash. The big winners will almost always be precious metals during uncertain times, crashing financial markets, wartime, flights to safety, recessions, depressions, and panic sell-offs.

Real, tangible, physical Gold Coins and Silver Dollars is what everyone, from wealthy investors, to the man on the street, always wants to own in the worst of times. In times like these, people no longer trust banks, politicians, or Wall Street insiders. Under extreme stress, precious metals become an alternative currency to holding cash.

A Doubly Dangerous Financial Tsunami
As you read this article it may be too late to save yourself from deflation. Stocks have already fallen. Home prices are in a steep decline. The Federal Reserve is single mindedly worried about deflation. There's no time to worry about where all the Trillions of Dollars are coming from, who will loan us that much money, or how hyper-inflation will become the worst enemy of wealthy Americans. 

Thankfully, there is time to save yourself from the coming hyper-inflation. Despite all the recent (and coming) money creation, it takes a few months to a year before monetary inflation becomes price inflation. By then, it may be too late to take defensive measures. That's why this is the perfect time to hedge inflation. In a Tsunami, a massive surge of water comes onshore and attempts to destroy everything-- that's the deflation we are seeing right now. But, the worst part of a Tsunami is after the water nearly drowns everyone and everything. It then sucks people, cars, houses, businesses, beaches, debris, and anything left back into the ocean forever.

The equivalent in a financial storm comes after the Federal Reserve's Tsunami of newly created paper money to halt deflation. After the Federal Reserve has done everything it can to pump up the deflating stock asset bubble, after the Treasury Secretary spends the borrowed $700 Billion Dollar bank bailout, and after the stock markets finally bottom out, what will be left? We fear all efforts to save our flawed financial system will double the danger and leave us with two overwhelming problems– a deflation of the value of paper assets and our homes–

And the Banking Crisis Promises to Finally End Years From Now After Inflation
Has Become High Inflation and Ended in Hyperinflation of 25% a Year or More. 

Soaring Monetary Supply Today Guarantees Price Inflation
Inflation is no accident. Inflation is caused by a direct, intentional, and often dramatic increase in the money supply by the Federal Reserve. When facing deflation or a monetary crisis, the Fed chooses to risk price inflation and the permanent debasement of money by printing endless supplies of money.

We're not talking about moderate price increases, but runaway inflation. We saw just a hint of the problem as gasoline prices recently soared from a dollar to over five dollars. But the coming HYPER-inflation will be worse, much worse.

It will suddenly appear in the cost of energy, food, goods, services, homes, cars, TVs, appliances, etc. Next time, nothing will be left untouched once inflation imbeds itself in the economy. This kind of inflation, Hyper-inflation will destroy the buying power of the U.S Dollar. Right now it appears to be the inevitable and unstoppable result of the Sub-Prime mortgage crisis and the financial catastrophe before us.

Helicopter Ben Bernanke Dumps Dollars
We feel strongly that hyper-inflation is inevitable. Federal Reserve Chairman Ben Bernanke gained his nickname of "Helicopter Ben" by referring to a statement by economist Milton Friedman who said that a government could always avoid deflation by issuing vast amounts of paper money and doing a "helicopter drop" of paper dollars on the economy to fight deflation.

True to his beliefs, during the current banking crisis, Bernanke has flooded the world with newly created U.S. Dollars. This inflation of the money supply is all money borrowed from foreigners. Some day, our children and grandchildren must repay our debts, with interest. And so the living on borrowed money and borrowed time continues.

But, the End Result of the Fed's Massive Bank Bailouts in the Inevitable Hyper-Inflation
Americans Must Endure Over the Next Decade.

The money drops from Helicopter Ben are well underway as the worst financial crisis since the Great Depression continues to unfold. Billions of Dollars injected into the system fixed very little. Meanwhile, Bear Stearns went bye bye. The American taxpayers are now responsible for collecting $5 Trillion Dollars of Fannie Mae and Freddie Mac loans. We've pumped in $200 Billion so far. If only 10% of those loans go bad, taxpayers will be on the hook for another $500 Billion. The government nationalized insurance giant AIG and air-dropped in another $400 Billion in guarantees. That was a bad week when $1 Trillion of borrowed money could not even slow down the financial crisis.

Next, Washington Mutual became the largest U.S. bank failure in history. Wall Street panicked and $1.3 Trillion Dollars of wealth disappeared in one day after the House of Representative rejected the first bailout package. Congress was suckered into passing the $700 Billion Dollar banking bailout to save the stock markets and banks. The $700 Billion Dollar bailout was too little, too late for stocks.

On Friday October 10th, the crisis culminated in a 22% loss in the value of the DOW in just one week.
Trillions of Dollars vanished from 401K plans, IRA, Education Accounts, and Retirement Plans...

Just after Congress gave the OK to spend $700 Billion Dollars and the DOW losses totaled 47% from the October 2007 high, the U.S. National Debt clock crossed the $10 Trillion Dollar mark. On top of the wasted spending, decades of living on borrowed money, fighting wars financed by foreigners, and living beyond our nation's income, we added another Trillion or two to the national debt. Many people are sure that the final bailout tally could be $2 to $5 Trillion Dollars or more. Thanks to the new digital world we live in, Bernanke needed to only touch a few computer keys to create Trillions in freshly created money that is guaranteed to set off a spark of inflation that will move like a wildfire through the world's economy.

When inflation runs wild, the value of almost every investment you own will be at risk.

Monetary Inflation Marks the End of the American Empire
Common sense alone will tell you that inflating the U.S. money supply so much, in so short a time will always destroy the long-term value of a nation's currency. Lately, we've been shocked to hear financial experts compare the coming U.S. inflation to the German Weimar Republic's runaway inflation of 1922 to 1923.

To understand the extent of the coming U.S. Dollar Crisis, we need a little history lesson. After World War I, the economy of Germany was in shambles. The Allies who won the war demanded German reparations for starting the war. Reparations left the German people with a massive National Debt that stifled economic growth.

The debt load and stalled German economy led to unemployment rising to five million people and social unrest that spread across Europe. To pay off their oppressive National Debt, the German Weimar Republic decided to print marks at an ever-increasing rate from 1922 to 1923. The belief was that with enough monetary inflation Germany could pull the country out of a severe recession, stem the economic crisis, and let Germany pay off the war reparations with "Inflated" dollars. You can see why economists are comparing the current U.S. situation to Weimar Germany. The monetary inflation by the German government inevitably led to the unintended consequence of roaring inflation. It was only possible to inflate the German paper money, known as the mark, after removing themselves from the Gold Standard.

At the outbreak of World War I, the value of the Papiermark was 4.2 per US dollar. By August of 1923, it took 1 million Papiermarks to buy one U.S. Dollar.

German Weimar Inflation Coming to America
Our worst fear today is that America is on a path of economic destruction. By inflating the money supply and adding at least $2 Trillion Dollars of new debt, we are about to destroy the U.S. Dollar by inflating away its value completely. Common sense will tell you that the more paper money a government creates out of thin air, the less each one in circulation can buy.

Inflation is like heaven to a politician– without raising taxes, you transfer a large portion of the
people's savings plus foreigners you owe money to back to the U.S. Treasury to spend.

Inflation is the ultimate threat to American freedom and our way of life. We believe that regardless the new President, Washington will refuse to cut Government spending. In fact, they will use the coming recession as an excuse to spend more, more, more borrowed money. Politicians will have no reason to increase Federal taxes or pay down the debt. Inflation will do the job for them.

The Only Options Left on the Table
Never before have Americans been faced with a government that has socialized the banking system, taken over the mortgage loan industry, and become the major player in the insurance business. Never before has our government dared to increase our nation's debt by 20% in a 30 day time period.

This is all happening before the U.S. is even officially in a recession. This crisis is upon us before a Democratic President takes control over a Democratic House and Senate which promises to be a Robin Hood government that gives to the poor by taking away from the rich. 

Right now, investors are worried sick. Many paths lead us to financial destruction and few offer us a safe, reliable, private way to hoard wealth. There are few safe havens that can protect our life savings from deflation and inflation.

Monetary inflation has always been a sly, acceptable way to tax away the buying power of our money and transfer personal wealth to the government. When U.S. Dollars are increased at a 3% to 5% annual rate, people don't seem to notice inflation much. But, over 10 years even an "acceptable" low inflation rate eats away 30% to 50% of the buying power you need later in retirement.

That's the reason why so many people find it so hard to get ahead of inflation.

For some reason, we all play along with the inflation game. Now that the inflation genie is out of the bottle and the decision has been made to increase the U.S. money supply by 16% this year (and who knows what next year) our fate has been sealed. Inflation is the next crisis that people with money will have to face. Inflation is tough to beat. It rips through an economy like a bull dozer. It takes years to bring inflation back under control. Too often, inflation ends with the total destruction of the nation's currency as we saw in the Weimar German Republic.  

What decisions would you make today if you knew for a fact that U.S. money will eventually be worth little more than toilet paper?

What You Should Expect Next
Our concern extends far beyond the short-term problems which we've hedged with Gold and Silver. However, the biggest challenges will come in selling the world on buying our debt when they know we are about to inflate away. The rapidly deteriorating banking crisis and the spread of the contagion worldwide may be beyond repair as we've seen U.S. Stock prices continue to fall after the huge gains on Monday. This is more proof that there is no quick fix for the American people. As we're said repeatedly,

"You can't borrow your way out of debt!"

Common sense would demand that our Federal Government, State Governments, and local Governments stop deficit spending. We've predicted for many years now that the U.S. economy is unsustainable with the current model.

• No nation on Earth can continue to spend more money than it saves forever.

• Middle class Americans have used their houses as ATM machines, borrowing equity out of their homes to live today beyond their means.

• After the Sub-Prime mortgage crisis destroys everything in its path, we expect credit card debt failures to be the next crisis point.

• An economy that is based on credit creation and never-ending debt increases is bound to fail.

Right now, the credit contraction and lack of lending by banks is bringing the U.S. consumer-driven economy to its knees. Fewer homes will be built and sold. Fewer cars can be financed as credit standards have tightened and car leasing halted. As credit card banks reduce their limits, the consumer will be forced into spending less which will become obvious this Christmas season.

Build a Fortress Around Your Life Savings
You, as an individual investor, may just now be realizing the reality-- stock prices do not go up forever. Investments are risky. Paper assets are always more fragile and volatile than most people believe.

Bear markets can destroy decades of stock profits in a few short days. As we saw with the NASDAQ, 80% of the value was destroyed in the 2002 crash. Today, seven years later, the NASDAQ is still down 67% from high of 5,046. Most investors will never live long enough to see the NASDAQ hit 5,046 again.

During a crisis, stock market myths unravel. Stock brokers who claim to diversify and balance your portfolio found themselves without an excuse as stocks fell in value across almost every sector of the market. Few stocks were able to hold up to the sell-off. The DOW Industrials are the world 30 greatest companies and they lost 47% of their value. Take the Oct. of 2007 high of 14,165 to the intraday low under 7,560. 

The unthinkable, a 21st Century Stock Market Crash we believed was was impossible, is well under way. What most people don't realize is that they have safe, reliable, trustworthy investments available to move their money into. When many of our readers see the next chart, they will probably want to kill their stock broker for not recommending Gold and Silver.

What Your Stockbroker Doesn't Want You to Know

Precious Metals are in a roaring bull market! While your stocks are getting killed, Gold Coins and Silver Dollars have proved to be extremely rewarding.

Since January 2nd, 2000 a $100,000 investment in Gold has increased in value to $304,853. The same amount parked in Silver would now be worth $210,826.

Money invested in the DOW Industrials would have taken a $100,000 investment down to $78,888.

A wider index of America's greatest 500 companies, shows the S&P 500 Index losing 36% over the past nine years.

Stock prices were languishing while America was reportedly going through a great period of prosperity.

Falling Stock Prices Forecast A Harsh, Long Recession
If you can't make money owning stocks in a strong economy, an extended period of recession and falling profits will make it impossible to preserve and growth your wealth. The past week exposes the weakness of balancing your portfolio using only stocks. It takes more than stocks and bonds to preserve wealth.

We believe that diversification must extend beyond paper assets alone. Stocks, bonds, and cash will all lose buying power if our inflation scenario plays out. If we move into a hyper-inflation phase of 10% to 25% annual inflation, you will need the safety and security of owning the Anti-Dollar– Gold coins. You'll also prosper holding Silver Dollars, genuine 99.9% bullion coins.

Historically, precious metals have proved their wealth preservation power. In an extreme crisis, and most particularly with a massive wave of monetary inflation coming at us, you can't afford to overlook Gold and Silver. That's why we are currently recommending a core holding of 20% of your assets in a mix of Gold bullion, Silver bullion, and Pre-1933 Gold Coins. Just as you would not want to own just one stock, the concept of holding a balance of precious metals just makes good sense.

You'll also want to focus on the most private way to acquire Gold Coins and Silver Dollars. Some precious metals firms require new clients to fill out forms and give them your Social Security number. That's more information that you should ever share with anyone in order to buy Gold or Silver. In fact, you can call Austin Rare Coins & Bullion, buy directly from a Gold or Silver Specialist and we keep all your transactions completely private. If you buy the right kind of Gold Coins, we don't have to report your purchase or sales to the IRS or any U.S. Government agency. 

Years from now, when you do get ready to sell, you are still responsible for any taxes that will be due. The key point is that we maintain the highest level of privacy possible, under existing laws, to keep your transactions just between us. 

Extremely Short Supply of Precious Metals
During the recent financial crisis, the government has intervened in the private sector in an unprecedented fashion. There's been a slowdown of the minting of Gold and Silver coins either caused by overwhelming demand or by the World governments' attempts to slow the transfer of money out of banks, out of the stock markets, and into precious metals.

What has been particularly noticeable is the unavailability of real, tangible, physical Gold Coins and Silver Dollars. In September, the U.S. Mint halted the sale of American Buffalo Gold coins for the year. We were told that the extremely tight supply of physical Gold and Silver bullion made it impossible for world mints to convert bars into Official Legal Tender Gold coins and Silver Dollars.

Every Gold and Silver Dealer in the country has faced significant shortages of physical precious metals. In some cases, delays of 4 to 6 weeks have been common. Very few of our clients are willing to sell today, despite the fact that they have doubled or tripled their money in Gold coins and Silver Dollars. If the banking crisis continues and World Stock Markets continue to be highly volatile, you may not be able to order precious metals at all. Regardless of how the prices of "SPOT" Gold and Silver have been artificially held down, the prices for physical Gold Coins and Silver Dollars are at a premium. Availability is extremely tight and spotty at best. 

Call to Order – You'll Get the Lowest Prices and Expert Advice
If you are thinking about buying Gold coins or Silver Dollars, please call us to discuss the lowest prices. Over the phone we can quote cash and quantity discounts while prices online are typically higher and orders limited to $2,500 on a credit card.

While we've attempted give you our best, seasoned advice on why you should buying precious metals now, we know you'll have plenty of questions. Austin Rare Coins & Bullion has a team of highly professional Certified Gold Coin and Silver Dollar experts as close as your telephone to recommend the best private, non-reportable coins for your. During the current crisis, experts are on call 9am till 9pm central time, seven days a week. Please feel free to call 1-800-928-6468 and let us help.

Austin Rare Coins & Bullion is one of America's leading precious metals firms. We've served collectors, investors, and fellow coin dealers since 1989. In all those years, we've never had one outstanding complaint with the Better Business Bureau. Our firm is dedicated to serving our customers today and being around years from now anytime you get ready to sell back to us.

Our firm has been honored with Yahoo's Top Service Award consistently from 1998 to 2009. We are proud to be members in good standing with leading industry organizations including  PCGS, NGC, the American Numismatic Association, the Texas Numismatic Association, and we support the Industry Council for Tangible Investments. 

While you can still order precious metals with complete freedom and privacy, we urge you to call and lock-in prices for future delivery.