U.S. Treasury Sales Will Collapse, Ending the
Dollar's Reign as the World's Reserve Currency

Who owns America?      It might not be who you think. You have to go all the way back to the American Revolution (when foreign supporters like France bought our war bonds), to find so much U.S. debt held by foreigners.      In 1970, foreigners held just 3.8% of U.S. federal debt. They now own 27% (and 48% of U.S. Treasuries).

     China is the largest holder of U.S. debt. It holds more than $800 billion in U.S. treasuries -- 11% of the total. They see what is happening in Washington and they're nervous. China is calling loudly for the creation of a new reserve currency. So is Russia.

     Meanwhile, we're spending money we don't have. Our budget deficit is 13% of GDP. That's twice as big as our next-largest deficit since World War II.

     Plus we're on the hook for $100 trillion in future payments for Social Security, Medicare and Medicaid, and government pensions.

     Guess what? Federal tax receipts come to $2.4 trillion a year. How are we going to pay $100 trillion without massive tax increases... defaulting on the government's promises... or both? None of which is exactly bullish for the future of the dollar as the world's safe-haven reserve currency.

     As exporters like China and India focus on domestic consumption to replace sliding sales to the U.S., demand for our debt will dry up... and the days of the U.S. dollar as the world's reserve currency will be numbered.

     To see how to profit from this mega-shift read on...
 

Best Currency Play of 2010

     Let's be clear: The U.S. dollar will continue to plummet in 2010.

     Currencies thrive on a positive balance of trade. But the U.S. is by far the world's largest debtor nation. Foreign central banks are ditching the dollar at a historic rate. Only 37% of their new foreign exchange holdings now go into greenbacks. (Historically, it's been the exact inverse, with 63% of new reserves going into dollars.)

     What are they using to replace the dollar? The euro and yen. The two currencies account for almost all of the new non-dollar reserves.

     Think about how poorly that speaks of the dollar. Even the euro -- the currency of a bitterly divided union of nations -- and the yen -- the currency of a country that's been in recession for a decade –are now both more attractive than the dollar.

     We think the dollar will remain under selling pressure for the next several years. Nothing out of Washington inspires confidence otherwise. Especially our all time-record budget deficit -- the highest of any nation in recorded history.

     Rather than bemoaning the fate of the dollar, we plan on making money from it. Sure, the euro and yen will continue to rally as the world pulls reserves away from the dollar. But our favorite currency play right now might surprise you: it's the Norwegian krone.

     This under-the-radar currency is a perfect safe haven. It just might be the best currency in the world.

     I have been bullish on Norway for several years now. The reason is simple: what is good for oil is good for Norway.

     Norway is a fiscal beacon: it actually has a budget surplus -- in contrast to the deepening deficits in the U.S., Europe and Japan. And its positive trade balance of 5% per cent of GDP is the biggest in the industrialized world. (Which explains why the cost for insurance against a default by the Norwegian government is the lowest of the world's ten most-traded currencies.)

     If you're worried about inflation, you need a commodity-based currency like the krone that rises in tandem with raw material prices. With our bullish outlook for oil we expect the krone to steadily appreciate for at least the coming year.

     In Hottest Investment Opportunities for 2010 we'll show you how to double, triple or even quadruple your money in only two months if the Norwegain krone rises five cents against our greenback. This is highly likely in the coming year, as skittish investors continue to flock to the safety of commodity-backed currencies. With the investment we recommend you know your risk in advance and you cannot lose more than you put up initially.

     Get your copy of Hottest Investment Opportunities for 2010 now. To learn more about our other startling investment opportunities for 2010 click here.
 

Sincerely, Nathan Slaughter Chief Investment Strategist StreetAuthority Market Advisor