No More Giveaways; No More Recovery

Hey...how 'bout this rally!

The Dow was up 120 points yesterday. Now, we're beating the bounce of 1930. The post-crash bounce in 1930 lasted fifth months. Ours began on March 9th...so it is now in its sixth month.

And like 1930, people are coming to believe that recession is almost over...and happy times are here again.

Heck, we're sure the trouble is behind us now; 53 economists said so!

According to Bloomberg:

"The economy will expand 2 percent or more in four straight quarters through June, the first such streak in more than four years, according to the median of 53 forecasts in the monthly Bloomberg News survey. Analysts lifted their estimate for the third quarter by 1.2 percentage points compared with July, the biggest such boost in surveys dating from May 2003.

"'We've averted the worst, and there are clear signs the stimulus is working,' said Kenneth Goldstein, an economist at the Conference Board in New York.

"'Cash-for-clunkers was the icing on the cake,' said David Greenlaw, chief fixed-income economist at Morgan Stanley in New York. 'It's well- timed stimulus syncing with cyclical forces leading to a ramping up of production.'"

Yes, now the economy is firing on all cylinders...or just about. Yep. No doubt about it. Still, there are some nagging doubts. The latest figures show foreclosures still increasing - up 7% in July from a year before. And house prices are still going down. And unemployment is still going up. And consumer prices are falling...indicating a Japan- like deflation. And business profits are falling. And consumers are cutting back. But except for that - housing, jobs, sales, profits and deflation - everything is working out beautifully.

Now that we mention it, all the indicators of real economic activity are down.

So, the feds aren't taking any chances. Yesterday came news that the Fed would continue buying bonds at least through October. And they are not likely to raise rates either. The banks can borrow at practically zero interest...and use the money to buy Treasury bonds. The 10-year yields about 3.7%. In effect, they're lending the money back to the people they got it from...and earning 3.7% for their trouble.

But, take away the stimulus spending...and the stimulating low interest rates...and what have you got? You've got is an economy entering a depression.

Oh, there's the rub, isn't it? If the feds hand out money so people can buy automobiles, people buy automobiles. If they don't give out the money, people don't buy automobiles. If they buy automobiles, of course, it looks like the economy is recovering. But take away the giveaways, and the recovery disappears.

Solution: keep giving away money!

Hold on...something wrong here. If you could generate economic prosperity by giving people money so they could buy things...why not give them money to buy everything? Why just autos? Why not give them money to buy financial advisory services? Ah...now we're talking!

But let's keep this serious...well, as serious as we can be when we talk about programs designed by knuckleheads.

So, the feds are encouraging people to buy autos. Set aside the fact that buying too many autos and other things is what got them into trouble...

..if giving people money so they could buy things actually made people prosperous, welfare recipients would be the richest people on the planet. Obviously, it doesn't work that way. What makes people rich is the ability to earn money...not their ability to get handouts. And remember, too, the feds don't really have any money to hand out. They can only get money by taking it from its rightful owners - either in taxation or loans. Or, they can print it up themselves. In any case, the money adds nothing real or extra to the economy. It merely distorts the economy...twists it...misleads it...and makes it a bigger mess than it was already.

[Don't let yourself get dragged down by these government shenanigans...set up your own 'personal bailout' by clicking here.]

More news from The 5 Min. Forecast:

"Even cash for clunkers couldn't save American retail sales in July," writes Ian Mathias in today's 5 Minute Forecast. "The Commerce Department's July retail sales number shocked the Street this morning, down 0.1% despite expectations of a 0.8% rise.

"The government's CARS program did help - without auto sales the retail gauge would have fallen 0.6%. But the lowly consumer has made his point: Even with free money deals from Uncle Sam, retail is not ready to 'get back on track,' as the Obama administration likes to say. In fact, even if the Street's wish came true, we'd still be a long way from the old status quo.


"In a similar vein, Wal-Mart's latest sales numbers missed expectations this morning. While still profitable, the world's biggest retailer saw same-store sales fall 1.2% in the second quarter - well below the Street's forecast of a 1% rise.

"Interestingly, Wal-Mart enjoyed 13 straight months of better same- store sales from April 2008-Apirl 2009. Then suddenly, they stopped reporting monthly sales and switched to quarterly. Now, in their first quarterly report, sales are down. Hmm...must be a coincidence."

Wanna make sure you get The 5 in its entirety delivered straight to your inbox every day? You can - The 5 is a free service, exclusive to subscribers of Agora Financial's paid services, such as Dan Amoss' Strategic Short Report. And on Monday, August 24th, at noon, Dan will expose the biggest banking lie of the past 64 years...and you could stand to triple your money. See his latest report for all the details.

And back to Bill, with more thoughts:

We are enjoying our month in the country. Not exactly a vacation...but close. We work in the office from 8AM until lunchtime at about 2PM. Then, we turn our attention to other things. In the summer, that means painting. We're repainting the billiard room, because Elizabeth decided that the curtains needed to be changed. And then, we're repainting a farmhouse, top to bottom, before renting it out.

Painting is a fairly relaxing occupation. You can do it while thinking about other things. Rolling the walls or cutting in the corners, some men might think of going hunting...or playing golf. We try to figure out what is going on in the world economy. For these are remarkable times we live in. We see what is happening...pretty much what we expected. But we're not sure where it leads.

Readers may have noticed a shift in our thinking recently. Well, you can blame latex. As we were painting in the billiard room we began to see that governments are more incompetent than even we had realized. They can't create inflation on demand. A few months ago, we were preparing for inflation...even hyperinflation. Now...we're not so sure. The depression and the Chinese vigilantes may hold off inflation...even for years.

Does this mean you should sell your gold? Well...we wouldn't go that far. Even in the Great Depression gold and gold mining stocks rose in price. And the one and only sure thing is that the world monetary system is dangerously unstable. We'd hold gold until it settles down. Just don't count on getting rich from it in the short-term.

[Precious metals have been the ultimate store of wealth for centuries. People hold them as a hedge in times of uncertainty...and if these aren't uncertain times, we don't know what is. Get your share of these metals now.]

Here's another reason housing prices are going down: housing priorities are changing. Baby Boomers are entering a phase in their lives when people typically escape from urban/suburban centers in favor of small towns and rural areas. If this pattern continues, it will mean a big shift of population, say the experts.

Remember, it's what you do, who you do it with, and where you do it that counts. By the time a person reaches middle age, the first question is usually settled...the second is often in doubt...and the third is actively being considered. That is, few people begin a new career after the age of 50...but it seems like more and more decide they might want to try life with a new partner.

"I can't imagine it," said Elizabeth. "It just seems like too big an adjustment. It took me a quarter century to get used to you. I don't know if I could get used to someone else...

"On the other hand, it might be fun to try..."

Well, for whatever reason, it seems like people are changing partners - even at a rather advanced stage in life. And as for the where to live - it's a question on practically every Baby Boomer's mind.

"I just got tired of living in the city," said a man who spent his entire career in Paris. "Just too much hassle. I'd rather visit occasionally than live there."

Our friend has moved to the country not far from here. He has set up a small woodworking shop in a garage and happily spends his time making chairs and tables. When his house is full of them, he'll probably have to give them to friends and relatives.

"It's much nicer living out here than in the city," says another friend. "And much cheaper. You can buy a whole house for half the cost of an apartment in town...and then you don't have to pay for parking...you can raise chickens and vegetables...and you can even heat with wood, if you want. You don't really have to spend much money at all.

"And the quality of life is higher. Small towns are more friendly. They're prettier...usually. They're easier. So they're perfect for people who are retired.

"And here in France, there's another phenomenon. When people retire, they want to go back to where they came from. Usually, they have a house they inherited from parents or grandparents. So, they leave the apartment in Paris to their children, who are just building their careers. And they retire to the country. It's not a bad way to live."

 

The Magic Formula
by Nate Lewis
Binghamton, New York

It seems that we are in a period of economic decline. This might get a little tiresome eventually (it takes people longer to get fed up than you might think), and then maybe a few will start looking for solutions.

If I could send a fortune cookie to those future leaders - five, ten, or twenty years from now - it would contain the Magic Formula of economic success. Here it is:

Low Taxes
Stable Money

If you look at any of the great economic successes over the past two hundred years, you will usually find this combination. Likewise, most of the great failures have the converse: high (or rising) taxes, and unstable money.

Today, a rather energetic discussion of economic policy is taking place, but you will notice that almost nobody suggests anything that is in line with the Magic Formula. On the contrary, the trend is toward the opposite. Economic weakness begets heavy spending; heavy spending begets large deficits; large deficits beget a political trend toward higher taxes. They will eventually find out that higher taxes beget economic weakness.

President Obama has already outlined his preferences for a reversal of the Bush tax cuts, plus still higher taxes on upper-income earners, plus a removal of the upper-income cap on payroll taxes, plus additional increases in capital gains taxes. But this is just the beginning; there is serious talk of introducing a national VAT in the US.

What about the stable money part of the equation? The most stable money, historically, has always been produced by a gold standard. That is the gold standard's purpose. However, beginning especially in the 1930s, a new ideology arose. We no longer wanted stable money. We wanted money we could manipulate, so we could fool people into doing things they would not otherwise do. Alas, this sort of thing has consequences, and they are usually not too pleasant. The US dollar has already fallen to 1/50th of its original value due to our belief in monetary manipulation. The next 50-fold decline might take place in a much shorter period.

Thus, we have higher taxes and, I expect, increasingly unstable money. On top of a dozen other things you could name. Do you see what I mean about an era of economic decline?

I know that many learned economists will say: "Yes, that is interesting, but we can't afford a major tax cut at this time. Plus, we need all the help we can get from monetary policy." This is what people always say in the early period of an era of economic decline.

The fact of the matter is that you can always reduce taxes. Some of the most brilliant tax cut strategies have come from governments in the direst situations imaginable.

Russia was a disaster zone when Vladmir Putin introduced a 13% flat income tax in 2000. Over the next seven years, the average worker's salary (in US dollars) increased by an astonishing 30% per annum.

Germany was in even worse shape in 1949. In the years after the war, hyperinflation raged and millions died of starvation. Much the same was happening in Japan. Both enacted huge tax cuts in the early 1950s. Japan even went so far as to require a balanced budget by law. Both introduced gold-linked currencies at the same time.

This is the kind of thing that happens in the early stages of an era of economic success. The results were very much in line with Russia or China over the past few years. You'll notice that Russia and China today have little interest in monetary manipulation, but are teaming up to establish an international currency regime that promises more stability than the mismanaged US dollar. Russian president Dmitry Medvedev even presented a 1/2 oz. gold bullion coin at the most recent G-8 meeting, as an example of the international currency of the future.

Why did Germany and Japan go this route? They did it because they finally got fed up. Once they got fed up enough, they started to look for answers. The answer was the Magic Formula, although they didn't call it that in those days.

Politicians today, especially in the US, are nowhere near that point. They still think they can spend and tax and devalue their way... not to prosperity exactly... but to a continuation of the status quo. The status quo in which they are somewhere near the top.

Maybe one of them is reading this essay right now. If they hadn't heard of the Magic Formula before, they know about it now. And what are they thinking?

"Hmmmm, some kind of libertarian crank by the looks of it."

It's just too early in the process. Louis XIV's finance minister Vauban wanted to replace the hideously corrupt and oppressive French tax system with a simple 10% income tax. Louis fired him.

Maybe Louis XIV himself was corrupt and oppressive. Plus, he was already the Sun King. Why fix what ain't broken? Taxes got higher and higher, until finally the French "voted" for lower taxes by exterminating the aristocrats altogether.

The French example is from a wonderful book by Charles Adams, called For Good and Evil: the Impact of Taxes on the Course of Civilization. Adams also offers an example from ancient Egypt:

"Scholars have tried to determine what went wrong in Egypt under the Ptolemies, when an empire that had survived for over three thousand years simply withered and died... Egypt had suffered no military disasters, famines or plagues..."

The most impressive analysis of Egypt's demise came from the great Russian scholar Rostovtzeff... Rostovtzeff felt that the continual and unabated tyranny of Egyptian tax collectors produced a nationwide decline in incentive. Egyptian workers and farmers lost their desire to work - agricultural lands fell into disuse, businessmen moved away, and workers fled. Sound money disappeared as a raging inflation destroyed what capital there was. The land became filled with robbers who wrecked commerce and brought fear and despair to the populace.

Remember the Magic Formula. It will come in handy someday.

These 6 Stocks Are Up an Average of 1,578%

If you haven't noticed, there is a group of six stocks that's been on fire this year.

The best performer is up 3,233% since its December 2008 lows. Yes, you read that correctly. . . +3,233%.

Another one is up 990% in that same time. Three other stocks ― all microcaps ― are up 1,100%, 2,125%, and 1,999%.

The worse performer of the bunch, a large cap, is up just 21% since December.

The six stocks have just one thing in common: all produce or mine lithium.

Lithium is being touted as the next primary fuel of the 21st century. Hybrid technology and electric cars are thought to be a viable alternative. I have no idea how long it will take to fully transform the U.S. economy from a fossil-based energy complex to a renewable one, but I do know this. . . sentiment is clearly in favor of green energy.

Solar energy, wind, clean fuels, ethanol, run of river projects, and geothermal energy continue to be the hot topic in the energy sector. So if the world moves forward to battery-driven vehicles, lithium will be a high-in-demand commodity, as it is used in electric and hybrid electric car batteries.

The following chart shows the estimated future lithium consumption:

Advertisement

"The # 1 Oil Play in the Country"

With the rest of the nation in recession, one state is enjoying a real live oil boom.

It's all happening in North Dakota, where the Bakken -- a massive oil formation -- has already become a major force in our domestic energy picture.

And now, geologists tell us, we may be looking at a "second Bakken"... one that could easily double the Bakken's 4.3 billion barrels of recoverable oil.

Read on to learn more about what's being called "the #1 oil play in the country"... and the profit-making stocks behind it.

---

According to a report recently published by Research and Markets entitled "Lithium-Ion and Nickel-Metal Hydride Batteries, Lithium, Rare Earth Lanthanum and the Future of Hybrid Electric Vehicles 2009-2020":

The auto industry is about to enter a new era: the electrification of cars. The move to electrified cars will have dramatic, disruptive consequences to consumers, auto makers, input suppliers, battery producers, regulators, mining companies, oil producers, electric utilities, R&D activities and investors, among others. However, from this change will come enormous opportunities, including the reduction in CO2 and global warming, less dependence on oil, more geopolitical independence, technological advancements, very large, new industries and markets, and huge profits.

The economic, regulatory and technological advantages of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs) means that dramatic growth in their adoption and usage will be seen over the next 11 years to 2020, both in the US and worldwide.

Batteries are the key technology enablers for the future of HEVs, PHEVs and EVs. Nickel-metal hydride (NiMH) batteries currently dominate the HEV market, but they soon will be replaced by lithium-ion ones.*

*Editor's emphasis

During the uranium bull market between 2001 and 2007, more than 600 uranium companies either went public or switched their resource business to become a uranium play.

Six hundred companies!

And less than 10 actually mined proven uranium.

Yes, it was mania.

Even though the lithium stocks are up big in the past year, the supply of stock available to investors is severely small.

We could be witnessing the phenomenon of "too many dollars chasing too few stocks."

The lithium bull market is in its infancy. If it's similar to the uranium bull market, we could witness several years of a lithium rally.

In the coming weeks, I will be recommending lithium stocks to you.

Make Sure You Get Your Cut of U.S. Government-Guaranteed Cash

I call it the "Bailout Loophole."

And, even though millions of Americans know nothing about it...

It could easily be one of the best ways for you to cash in thousands of dollars in extra "bailout" income checks... each and every year that it takes America's economy to recover.

Including as much as $17,500 or more for this year alone. This is perfectly legal.

In fact the "loophole" I'm about to show you was actually ordered by Congress, in special mandate HR-3221. And the assets behind this play have the FULL backing of the United States Treasury.

Just about the only other income-producing assets backed by a more solid government-guarantee are U.S. Treasury notes, still considered one of the safest investments in the world.

In other words, even though this is an income play paying well into the double digits, the U.S. government itself would pretty much have to fail for the government backing behind this "loophole's" assets to go away. Which, even now, is highly unlikely.

In short...

If you've ever STEAMED over the hundreds of billions of "bailout" dollars our bureaucrats now fork over blindly to blundering bank CEOs and Wall Street dirtbags...

If you've ever said there should be a law that lets individual Americans claim back some of that tidal wave of taxpayer-funded bailout cash...

If you've wished lately that at least ONE of your portfolio holdings could pay out as large as you'd hoped, while still remaining relatively safe at the same time… this is it.

Your next "loophole" check could hit the mail on August 19.

And land in your mailbox soon afterward, yours to cash or deposit or spend as you like.

Maybe it will be just a few hundred extra dollars. Maybe a few thousand extra. Either way, it could be the first of many checks to "loophole" checks to come, all written out to you, over the months and even years ahead.

As I said, you won't have to feel sneaky about it. And you won't have to wonder if you or your accountant or a lawyer somewhere is breaking any laws.

This "bailout loophole" isn't an accident. It's intentional. Even if millions of Americans across the country know next to nothing about it.

What's more, once the checks start coming, they're guaranteed to continue coming... until the money runs out. No exceptions, no red flags, no questions asked.

Is there a catch?

Yes, just one that I need to tell you about while there's still time...

See, you're going to want to act on this quickly.

Not just because you don't want to miss that next "bailout loophole" check mail date ― August 19.

But because, as I'll show you, the longer you wait to start this stream of "loophole" income flowing... the smaller the checks you could end up locking into place.

In fact, I believe the timing on this is so important, I've even prepared an entire research report that shows you how to get started. This report is called, The Bailout Loophole: How to Pocket an Extra $17,500 or More in Government-Backed Income Every Year.

I'll send you this report free.

You can even download it immediately, at the end of this letter.

And inside, you'll quickly see how real this is and how easy it can be to get started. In fact, just take a look right now at how well this is already working for several clued-in Americans...

• Irving Kassen just used this secret "bailout loophole" to collect a total cash payout of $6,685. And he expects to collect a lot more before the end of this year.
  
  
• Frank Bosworth used this "bailout loophole" to pocket $6,013.35 in a single day ― and that's on top of the $53,710 he's collected already ― just since last April!
  
  
• Former bank manager Bob Gladwell used this secret "bailout loophole" recently to pocket a handsome $4,200 payout. And he's just getting started.
  
  
• Brian Hughes' last "bailout loophole" check totaled $11,741.
  
  
• 48-year-old Mark Howard just took in another check for $12,028, thanks to this simple "bailout loophole."
  
  
• Kevin Stanley's "bailout loophole" checks total $45,807 ― that's how much he made in just 18 months ― and he also expects to collect a lot more this year.
  
  

Look, I live to find income opportunities.

I get paid to do it. And it's the core of my research.

Because I firmly believe that income investing isn't a trend.

It's a key strategy that works in any kind of market, for anybody that cares about money and building a lifetime-worthy stockpile of riches.

And I can tell you that this is ― far and away ― the best and safest income-paying secret I've stumbled across in a very long time. Possibly ever.

I know. I sound excited.

But let me just show you why...

Over Nine Times What You'd Get
From Other "Safe" Income Plays

If you're just as passionate about income-paying strategies as I am, you know the challenge. When you play for safety, you don't get much of a return. And when you aim for gains, you get high risk.

Usually.

But thanks to this "loophole" and one-of-a-kind Congressional Mandate, HR-3221... for the first time in a long time... you get a chance to have both the lower risk and fat income paychecks.

With the first one arriving days after August 19.

How much income?

As I write this, this "loophole" income move can give you more than THREE times what a typical government bond pays...

Or nearly five times what you could get from the best paying CD...

And better than NINE TIMES what you'd get from America's best Money Market fund.

Or try comparing that even the world's most popular Blue Chips ― like Pfizer, General Electric, Motorola, Dow Chemical, The New York Times, Ford Motors, Citigroup, Blackstone... some of which just slashed their dividend payouts to shareholders for the first time in 71 years!

How does this work?

As I said, I can show you the full story and all the how-to details in your free report, The Bailout Loophole: How to Pocket an Extra $17,500 or More in Government-Backed Income Every Year. You'll find the details on how to send for it at the end of this letter.

Once you read my research on this for yourself, you'll quickly see how easy to get started on collecting your own series of perfectly legal "bailout loophole" checks can be.

So easy that...

Your "Bailout Loophole" Checks Could Start Arriving Within Days

As I said, the next scheduled mail date for "bailout loophole" checks is August 19.

Wait too long and you'll miss what could be a very sizable payout.

But more importantly, waiting too long could also mean that all your future "loophole" payouts will come in much smaller than if you were to act on this right now.

Why? Because of the very unique circumstances that have created this little-known "bailout loophole" in the first place.

Let me explain...

How Today's Terrible Crisis Creates a Once-in-a-Lifetime Income Opportunity

When economies go south, what's the first thing they usually do in Washington?

Aside from pointing fingers, they immediately scramble to lower interest rates.

And of course, that's exactly what they've tried to do during this current bust too.

Over the last 18 months, the Fed has slashed interest rates from 5.25% all the way down to an almost invisible quarter of a percentage point. In other words, banks can borrow money from each other today ― at almost 0%!

That's practically free.

But here's the thing...

With overloaded credit cards, foreclosures, still crashing real estate, vanishing jobs, and shuttered businesses driving this bust... nobody wants to take on new debt right now.

So the usual low interest rate trick just isn't working.

That's where the U.S. government's next best weapon ― hundreds of billions of dollars in bailout bucks ― comes in to play.

Call it an outrage. Call it a safety net. No matter how you feel about it, the bottom line is that those billions were earmarked for only one thing.

Which is to throw emergency support under key assets to the U.S. economy right now. Including some already government-sponsored assets that pay investors lots of interest.

It's this once-in-a-lifetime combination of extremely low-cost borrowing... a tidal wave of government-guaranteed bailout cash... and U.S. Treasury-backed interest payouts... that creates the one-of-a-kind legal "bailout loophole" we're talking about today...

Turns the Government's "Free Money" Program Into Your Own Private Bailout

Here's an even simpler way to visualize this.

Imagine someone gives you a wad of cash ― almost interest free ― and tells you to park it an income-paying savings account. You get to keep all the money above the tiny cost of carrying the loan.

Would you take that offer?

Of course you would.

Especially if the accounts paying you income were fully government-backed.

Well, this "loophole" opportunity isn't an account. But what it does do is almost that simple.

See, the moment Congressional Mandate HR-3221 earmarked billions of dollars for buying up income-paying assets... plenty of Americans saw red... but a handful of smart investors saw a once-in-a-lifetime opportunity, instead.

In fact, a chance to claim back piles of that bailout cash ― legally ― using extremely cheap loans to invest in those newly government-backed, income-bearing assets.

Like the example with the account above, this means they get to keep all the interest above the almost invisible cost of the loans as income.

In turn, the alliance doles out that income to its own shareholders.

But that's not all.

See, because these special assets the alliance buys are all guaranteed by the government, the alliance gets to carry the highest possible credit rating.

It also means they can borrow more at the same near-zero rates, and use that money to leverage up on the interest they collect as many as six times over.

I explain exactly how this works in your free copy of my report, The Bailout Loophole: How to Pocket an Extra $17,500 or More in Government-Backed Income Every Year.

But the bottom line is that the alliance manages to pay out high double-digit interest... while still keeping the best quality credit rating available.

That's something you'll have a hard time finding anywhere.

And you can do this yourself... without doing any of the work, the borrowing, the buying, or the calculating. Because the alliance is now inviting new shareholders in, to collect on this same stream of "bailout loophole" income that they've already set up.

They manage the whole process for you. All you would do as one of those shareholders is accept the easy income. And here's one more thing. The alliance is also obligated by law to pay out MOST of the income they collect to you and other shareholders.

This too is explained for you in your free copy of The Bailout Loophole: How to Pocket Up to $17,500 in Government-Backed Income Every Year report.

One word of warning...

You'll want to move fast. Because right now, the payouts run about 17.5% on every dollar involved in this play. If you wait too long, the size of that payout could start going down.

Because this low interest-rate environment can't last forever... because this opportunity works best while the economy is still in recovery... but also because it's only a matter of time before other Americans find out!

In fact, even the mainstream press has started to take notice...

"Hidden Gems Destined to Shine"

The New York Times recently called these special shareholder alliances "hidden gems" that can "rise above the rubble and even thrive as the economy falters."

And went on to say, "this is their time to shine."

Says The Washington Post, "[these special shareholder alliances] have delivered good long-term returns and can help tone down a portfolio's overall volatility..."

And says Forbes, "[these shareholder alliances] are reaping the benefit of lower borrowing rates and investments in high-quality assets."

"These assets are effectively guaranteed by the government," wrote InvestmentNews.com, "and we think the dividends are sustainable..."

Analyst James Arnold of RBC Capital Markets Corp. wrote, "[These shareholder alliances] are one of the few [things]... I would feel comfortable investing in, largely because of the low-credit-risk exposure..."

And The New York Times also wrote "[These special shareholder alliances have] held up relatively well in the face of recession and a banking system in crisis... their portfolios are essentially government-guaranteed..."

With all that coverage, it's only a matter of time before others figure this out.

At that time, this "bailout loophole" won't close.

But it will become even harder to lock in for a maximum payout, over time.

That's why I URGE you to let me rush you a copy of my new report, The Bailout Loophole: How to Pocket Up to $17,500 in Government-Backed Income Every Year.

Like I said, I'll send it to you free of charge.

Inside you'll find out...

• How to partake in this special shareholder's alliance with almost no effort except collecting and cashing the income checks they'll send.
  
  
• How to lock in now for the maximum "bailout loophole" payout ― currently running at around 17.5% on the dollar.
  
  
• How the assets invested in by this super high income-paying opportunity are uniquely backed by the U.S. Treasury.
  
  
• How a special IRS ruling guarantees you can draw even more income, on a percentage basis, than the alliance itself ― along with guaranteed payouts as long as the money lasts.
  
  
• How today's unprecedented "bailout" market crisis helps ensure you'll keep on getting these "loophole" cash payouts for as long as it takes the U.S. economy to recover.
  
  
• Why the one opportunity I've just told you about is the single best way to play this once-in-a-lifetime opportunity.
  
  
• Plus, four more "bailout loophole" plays you can make, almost as good as the one I'm showing you right now.

And then, when you're ready, there's something more...

On Top of the Huge, Steady Income, Pick Up Another 56% Gain on the Shares

Right now shares of this special trust trade at around 1.23 times book value. That's good news for us, because it means you can get in more easily.

But once everyone else gets hold of this, I see this particular "loophole" opportunity I'm telling you about trading closer to 1.5 times book value. Maybe even two times book.

That means that if I ever recommend to you that it's time to move on, you could still look forward to seeing another 56% gain on the shares of the alliance alone.

Combine that with the high-income payouts, and that's a solid 73.5% return.

On a play that's safely backed by the U.S. Treasury.

• Tim Wright's last "bailout loophole" payout just yielded him $4,478. That's only a small slice of the "loophole" payouts he'll also collect this year.
  
  
• Dan Beall's also going to pocket much more than nearly $4,500 in "loophole" payouts he's already deposited in his accounts this year.
  
  
• Jason Monklen has collected at least $8,649 in "bailout loophole" payouts so far. And he's also likely to collect about double that ― and possibly more ― by the end of this year.

Frankly, the biggest risk I see right now is simply that you might wait too long and miss out.

Let me send you a free copy of The Bailout Loophole: How to Pocket an Extra $17,500 or More in Government-Backed Income Every Year and you can see for yourself.

And then, I've got many more income-paying moves you can make right now... not just for piling up payouts while the rest of this crisis plays out... but that could help you lock in a lifetime stream of steady cash income.

For instance, here's another fine example...

Lifetime Money Move #2:How to Collect Up To $120,000 in Work-Free Income Every Year

Who still gets a worry-free retirement pension?

High-powered CEOs, ex-presidents, congressmen... and so can you.

I call this next income opportunity the "partnership pension."

Because that's a lot what it can feel like, as you collect as much as $120,000 every year ― work-free for the rest of your life ― as a silent "partner" in some of the best businesses in America.

With results that can crush the retirement planning of conventional 401k plans or even classic "fixed-benefit" company pension plans.

What's more, unlike those better-known approaches, with a "partnership pension" you never have to worry about age limits, withdrawal penalties or participation restrictions.

Anybody is entitled to participate. And once you set up one of these "partnership pensions" it starts accumulating wealth and producing cash payouts on its own.

What's more, depending on how you use what I'll show you, you can also collect "matched" gains... where the "plan" owner kicks in additional cash value to reward you for participating in the "plan." That way, you can quickly pile income on income, compounding it greatly…

In some of these "partnership pensions," you'll even get the chance to own shares in stocks you've chosen at a fat discount to what others pay on the open market.

That's like getting an instant gain, the day you buy shares. It's also a special "perk" reserved only for members of these "partnership pensions" I'll tell you about.

How's this work?

Even though this is little publicized, many Americans already use this strategy to create a stress-free stream of income paychecks so reliable... they can pass it along to their children.

Even better, getting this ball rolling can be as easy as opening a savings account.

In fact, I can show you the six top "partnership pension" programs you can tap right now. These six moves are easily the best income-payout opportunities you'll find on the market today.

Once you get started, you can collect as many as 24 "partnership pension" payouts each year... with checks arriving on average about every 15 days.

Like a classic fixed-benefit pension plan, these checks keep coming for as long as you need them... and long after you retire.

Just to give you an example of how easy these "partnership pensions" can be to use, let me show you what some Americans who've discovered these have already accomplished...

• Kim Kundra recently used her "partnership pension" to collect $11,611 in one month. She did the same again, just 30 days later. And then Kim collected another two checks ― each for nearly $12,000 ― over the next eight weeks after that.
  
  
• Gary Malina's "partnership pension" just put another $22,919 into his retirement account ― not once but twice this year. And he's in line to get at least two more checks worth another $43,000.
  
  
• Paul Meure's recent monthly "partnership pension" income check? $16,074.
  
  
• Just one of the "partnership pension" programs Mike Pressman participates in has already paid him $65,269. But he'll collect much more than that over the remainder of this year.
  
  
• Larry Piero's "partnership pension" program just paid him $26,993. And that's just one of the many income "pension paychecks" he'll collect this year.
  
  
• John Harrington just collected $16,336 from his "partnership pension"... Tom Skane took in $33,920 with more to come... and Gerald Amoss just socked away another $42,052.

In each of these cases ― and for many more Americans who have already discovered the wealth and income producing power of "partnership pensions" ― this is just the beginning.

They'll collect much more over the coming years.

Even after what's already happened on Wall Street.

There are over 1,020 of these "partnership pension" plans you can tap into. And you're welcome to enroll in as many of them as you like, collecting self-compounding income from several of them at once.

However, as I said, I've made it much easier for you by selecting the six best possible "partnership pensions" I know of... and I've included everything in a third special report I'd love to send you.

It's called The 10-Minute Recovery Plan: Six Easy Ways to Lock In Steady Income Checks For the Rest of Your Life. And I'm also happy to send this to you right now, free of charge.

In fact, you're welcome to download it immediately after reading this letter.

But before you do, I should introduce myself...

How I Woke Up To "Work-Free" Income

My name is James Nelson.

And I have to tell you, I didn't always follow these kinds of "work-free" lifelong income opportunities. Like a lot of market watchers, I was just as interested as you might be in small-cap plays, growth stocks, and piling up gains on rising shares alone.

I'm still just as passionate about stock gains. I've even spent years working closely with well-respected publications that track exactly those kinds of market moves.

But in all that time ― and especially now ― you can't help but notice, as I did, how the most successful companies weren't the ones that focused on gains alone.

Likewise, the shareholders that did best were not the ones who counted on quick turnovers or unreliable market spikes to make their fortunes.

Instead, those that always seem to do best over the long haul ― and even in the short term, during rough markets like the ones we've seen today ― stick closer to the principles of sound finance.

Low debts, rock-solid cash flow, unshakeable businesses, excellent management... and what I like most... a system for rewarding loyal shareholders who respect those same values.

That's exactly how my research led me to the opportunities I'd love to share with you today.

Here's another example of what I mean...

Lifetime Money Move #3: "Elite Shares" That Pay You Guaranteed Dividends

Everyone knows that luxury hotels come with a penthouse suite.

Airlines have platinum clubs and first class lounges.

If you're rich enough, there's the famous American Express black "Centurion" card.

But what you might not know is that lots of companies offer a special kind of "elite shares" that give benefits not offered to common shareholders.

And they can make you rich on income payouts alone up to three times faster than regular shares.

Wealthy families have loved them for generations, because they pay you a fixed dividend ― just like a bond ― but still give you a stake in owning the company, just like regular shares.

And historically, they pay on average 3.7 times the cash income of S&P 500 common stock.

That can be the difference between getting $50,000 a year in dividend retirement income... and getting more than $180,000 per year.

What's more, when you own these shares, the income is truly fixed. Meaning you'll know exactly how much you'll be getting paid. Without worry that the board of directors will cut the dividend rate.

In fact, when there's money in a company earmarked for dividend payouts, you get paid first by holding these kinds of shares... while common shareholders have to wait for their cut.

Even if a company goes out of business, these elite kinds of shares give you first cut of the assets... with common shareholders waiting until you're taken care of first.

Yet, anybody can own these, just as easily as calling a broker.

I'm talking about, of course, what are called "preferred shares." And I've written a third special new report for you ― Profiting From Preferred Stocks: The Benefits of Buying Preferred ― that I can also send you.

It explains everything.

In fact I've just shown my readers how to use this move to lock in a recession-proof fixed cash payout dividend of 8.6%. That's more than four times the income average on S&P 500 stocks.

As I said, that's a set dividend. It doesn't change.

And the company that pays it to its preferred shareholders is about as low-risk in a recession... and in the wake of a housing bust... as you'll ever come across.

You can read more about how this works in your copy of Profiting From Preferred Stocks: The Benefits of Buying Preferred, which I'll be happy to send you at no charge.

Here's something else I can reveal to you immediately, too...

Lifetime Money Move #4: How to Get Paid Like a Partner and Still Protect 90% of Your Income From the IRS

Most income investors ― even many of the smart ones ― take a double tax hit you can take when holding income-paying shares. First, when the IRS carves up a company's income. And next, when they come after what you get paid in dividends.

But what if you could hang on to as much as 90% of the money a lot longer... so you could put that money to work for you, instead of the government, for years at a time?

In fact, that's what lots of rich business owners do, by hiring teams of accountants to help them legally defer or eliminate the taxes they otherwise would have paid.

Remarkably, there's a way you can do the same ― even if you don't have your brute squad of pencil pushers to show you how!

What's the secret?

I've discovered a special kind of cash-income producing opportunity that's required by law to give you cash payouts not just as a shareholder but also as a real partner in the business.

In other words, only about 10% of the money you get paid using this move gets taxed like regular income. But as much as the other 90% gets paid to you out of a pool of untaxed cash.

Using this, you're literally ― and legally ― getting around half the tax blow. That means more cash to split up between shareholders, right out of the gate.

Even better, you get to hold off on paying taxes on that cash for as long as you hang on to the shares. It's like having your own personal tax-advantaged retirement plan.

This little-talked-about move is hugely popular with rich families, who use it to slash tax liabilities for their heirs. But you don't need a massive estate to take advantage of it.

In fact, I've discovered 97 different opportunities that can offer you both the big tax break and large income payouts. One of these moves in particular, I'm watching very closely right now.

And it's so simple, just about anyone can use it.

Regular readers of my monthly research letter, Lifetime Income Report, already know all about it. And I'd love the chance to reveal it to you, too.

See, I've become so fascinated by the power of lifetime income-producing opportunities just like these, I write and report on them every month. And even send weekly updates to my readers, every time I discover something new.

Sure, not all the income-building moves we come across are created equal.

In fact, some of the most popular income-paying plays you'll find out there... I wouldn't touch with a 20-foot cattle prod. I like to steer my Lifetime Income Report readers away from those over-hyped kinds of money moves, too.

What promising moves we do discover, though, I put through an extremely rigorous series of tests before I recommend it to my readers. Because it's the only way I know of to find only the most enduring income-paying opportunities.

The Secret Seven-Filter Strategy That Lets You Lock in a Lifetime of Reliable Income

Here's how my seven-filter, income-finding strategy works...

Lifetime Income Filter #1: Look for Businesses Your Mother Could Love ― Short-sighted market players may have forgotten what makes for a trustworthy stock, but it's just as basic as ever ― lots of cash, very little or no debt, a steady flow of business, and low expense ratios. I don't touch anything that can't pass those benchmarks. And you shouldn't either.

Lifetime Income Filter #2: Target the Largest Income Yield That Still Makes Sense ― Really high yields can signal far too much risk. Still, you can find some fat yields right now... paid out by some of the most fundamentally solid stocks on or off Wall Street. I don't stop looking once I find higher yields, but I certainly start there.

Lifetime Income Filter #3: Pile Up Bigger and Bigger Income Streams Over Time ― What's even better than regular income payouts? Payouts that get bigger and bigger over time. Not only because they speed up your wealth accumulation, but also because they're an excellent sign of a well-managed cash-paying opportunity.

Lifetime Income Filter #4: Hold Out For "Clockwork" Cash Payouts ― Checks that don't come aren't worth the paper they're not printed on. I stick with the income opportunities that have a long history of paying out and paying on time. And I steer clear of those who don't.

Lifetime Income Filter #5 Payouts as Big as They're Supposed to Be ― Some kinds of income-paying companies will have a lot of cash to fork over to you. Others, on a percentage basis, should fork over less. It depends on the businesses they're in. If they're paying more or less than they should, that's a red flag you have to know to watch for.

Lifetime Income Filter #6: Grab Growth Where You Can Get it, Too ― Let's face it. Some stocks work for the long term, and work hard. Others work best in some kinds of markets, and a little less than others. I don't try to time markets. But if something looks extra ripe for solid growth and can pay us cash payouts, I see no reason to hold back.

Lifetime Income Filter #7: The Absolute Best Share Price ― Even companies that can put steady cash in your pocket have a fair price. I don't recommend paying a nickel more when you don't have to.

I've yet to find the income opportunity that's still worth owning once it fails one of those tests. Likewise, even just sticking to those cash-paying producers that pass all seven filters could make you very rich.

Billions in taxpayer dollars given away to the banks, stocks still way down, thousands of old-school pensions in trouble ― do nothing now and you can FORGET a "golden retirement." Yet, do what I want to show you and you could have nothing to worry about.

You don't have to take my word for it, of course.

I'd love the chance to simply give you my research and let you decide for yourself, risk free. That's why, along with all the free reports I've just told you about, I'd love to send you my new Lifetime Income Report, risk-free for up to a full year.

You'll see how I can immediately help you line up many more of the world's best income-paying market opportunities and strategies. Including both the kind that can pay out over the long term... and the kind that can start paying you income right now, very soon after you accept my invitation.

In fact, we've even narrowed the opportunities down for you ― in every single issue of my Lifetime Income Report ― so you can pick and choose from three specific kinds of income-payers worth keeping your eye on at any given time.

The Three Best Kinds of Cash-Paying Shares to Own Right Now

Just take a look at the kinds of cash-paying moves you could be collecting from, both right now and for the long term, once you start letting me share my research with you each month in my new Lifetime Income Report research letter...

Ideal Cash-Paying Move #1:

"Current Cash" Plays That Give You Right-Now Income ― The first thing I show all my Lifetime Income Report readers is that it's always possible to build future wealth... and still have right-now cash... at the same time. With what I can show you, you can forget about punishing early-withdrawal fees or nasty memos from 401k administrators. And you no longer need to wait until you're 65 to get paid. In this special subset of moves, you'll find money you can spend today with checks that arrive within days of getting started.

Ideal Cash-Paying Move #2:

Self-Renewing Wealth, Even in Flat Markets ― I call this second kind of self-growing wealth accumulation "Legacy Income" ― after the American families who make this a cornerstone of their own enormous, self-renewing fortunes. I'm sure you know what I mean. This is the money you can count on making while you sleep. And in every issue of my new Lifetime Income Report I can show you exactly how to set yourself up with this same kind of painless, self-renewing income growth. And no, I'm not just talking about the miracle of compound interest. That's extremely powerful. But this is better. And faster, if you do it right.

Ideal Cash-Paying Move #3:

"Special Income" Others Leave on the Table ― These are the little-talked-about income payout opportunities that don't come on a schedule, don't sneak into the headlines, and that often you won't know about until it's already too late to collect ― unless you let me show you how. The companies that offer you this special kind of payout might get the money themselves by cinching a secret deal, winning a fat corporate lawsuit, or just surprising shareholders with a great fiscal quarter. Either way, you can miss them when you don't know where to stand. But I love to share these bonus windfall opportunities with my Lifetime Income Report readers.

I'd love to start sharing all these solid income-paying moves right away, starting with all of the special free reports we've already talked about ― which, of course, will be yours to keep no matter what. As my way of saying thank you for accepting the invitation I'm about to give you.

Let me just start, though, by running through all FIVE free reports I'd like to send...

Yours FREE, All FIVE Reports in My Private Lifetime Income Library

Accept my invitation, and the very first thing I'll do is rush you the FIVE special reports in my brand new Lifetime Income Library ― all yours at absolutely no charge.

Here's what you'll receive...

Lifetime Income Library Bonus Report #1 The Bailout Loophole: How to Pocket an Extra $17,500 or More in Government-Backed Income Every Year

First I'll rush you a FREE copy of this urgent new report on a little known government-backed "bailout loophole" that could put as much as $17,500 in extra income into your pocket this year... and in fact, every year until this beaten-down economy officially recovers. This alone could give you income up to nine times better than you'd get from so-called "safer" income plays ― even though its assets boast "zero default risk" thanks to full backing by the U.S. government.

Lifetime Income Library Bonus Report #2 The 10-Minute Retirement Recovery Plan: Six Easy Ways To Lock In Steady Income Checks For The Rest of Your Life

Imagine collecting up to $120,000 every year, long after you've stopped working. And for as long as you'd like. Without worrying about withdrawal penalties, age limits, or other typical retirement-plan participation restrictions. The six "partnership pension" opportunities you'll find inside this next special report will show you how. Get as many as 24 "partnership pension" payouts each year... with your first checks starting to arrive just days from right now.

Lifetime Income Library Bonus Report #3 Profiting From Preferred Stocks: The Benefits of Buying Preferred

At the same time, I'll also rush you a FREE copy of a brand new report on special "elite shares" that not only entitle you and the rest of a select group to collect dividend income before regular shareholders... but also gives you a bond-like fixed cash payout every time... but without the typical risks out there right now for bond investments... and with income that can run much higher, too. For instance, you'll discover a recession proof fixed income move in this report that could pay you a guaranteed 8.6% fixed rate. That's four times the income average on regular S&P 500 shares.

Lifetime Income Library Bonus Report #4 Income You Can Count On: Your Guide to a Stress-Free Retirement

This is your full start-up guide to everything we'll do together ― a primer I send to each new reader of my Lifetime Income Report special research service ― so you can be absolutely sure how we can piece together your fortress of income-driven financial security. Much of what I'll show you, you can follow in under 10 minutes. All while opening up streams of both future income as well as new income you can start enjoying right now.

Lifetime Income Library Bonus Report #5 Let Your Money Work For You: The Smart Investor's Secret Trick to Retiring With Millions

Have you ever wondered how "PWM" (People With Money) seem to get even richer while they sleep? If so, you'll love discovering this last technique. Anyone can do it, even if you've got less than a fortune to start. It's automatic wealth-building. And yet, it's deceptively simple. You'll know some of this already, some of it will come to you as a complete surprise.

And remember, this entire library can be yours free. To keep for as long as you like. Even if you ultimately decide everything else I'd like to give you ― right now ― isn't for you.

Here's a look at everything else you'll get...

Can You Spare Just 27 Cents Per Day For a Lifetime Stream of Stress-Free Income?

I know I'm asking you to try something unlike anything you've tried before.

And I know it's something new, so maybe right now you're not sure what to believe.

That's why there's more I'd love your permission to send you...

	FREE, Your Own Private Lifetime Income Password ― Just as soon as you accept the special invitation I spell out below, I'll also immediately rush you a private password to our brand new, members-only Lifetime Income Report website, where you'll find complete archives of all present and past issues, all our latest portfolio research updates, details on every recommendation, and full downloadable copies of all five special reports in the Lifetime Income Library, so you can start enjoying them tonight. You'll have password-only access to this private website around the clock, to access whenever and wherever you'd like.
	FREE, Members-Only "Flash Alerts" to Make Sure You Don't Miss a Thing ― Included at no charge with your Lifetime Income Report subscription, you'll also immediately qualify to get regular "flash e-alerts" that keep you up to date on anything vital that happens between issues. Whether it's updates on the picks we'll cover, breaking news in the markets, or anything else that's important, these "flash alerts" will help guarantee that you don't miss a single beat.
	And Finally, Up to 12 Months FREE of My Brand New Research Service, Lifetime Income Report ― Here's the crown jewel of my special invitation to you, the monthly research service where you'll find your pick of powerful "work-free" income streams.

In each issue, you'll discover all my latest picks, along with full research and step-by-step how-to ideas on exactly how to get started. Plus, you'll get my full update on everything in our three Lifetime Income Report portfolios from how to pick up piles of "current cash" payouts right now... to how to build a steady and comforting stream of "legacy income" for the future.

You'll find everything you need, month after month, in each issue.

And right now, you couldn't imagine a better time to give the opportunities I'll send you a try.

After researching these opportunities full-time myself, I firmly believe this is the best possible thing you can do with your money ― not just right now, but in any market.

And the good news is that starting right now couldn't be easier.

See, normally my publisher would remind me of how just one of these opportunities we talked about could add up to an extra $17,500 in your pocket this year.

Or how another of these opportunities could lead you to as much as $120,000 or more in annual retirement income... with checks worth as much as $2,000... $5,000... even $10,000 or more...

That start arriving in your account days from right now.

And then he'd demand that I tell you that to even try my new Lifetime Income Report, it should cost you at least $199 for a full 12-issue, one-year subscription.

But because this is so new, I've managed to knock some sense into him.

The whole trial invitation is going to cost you less than half that amount ― or about 27 cents per day ― for the full year. That adds up to just $99 for 12 full issues.

Or looking at it another way, you pay for only the first six months... and get the entire second six months absolutely free. Along with, of course, a full year of all the other benefits.

And the entire Lifetime Income Library of five reports, which is yours to keep.

All this for insights, opportunities, and a secret seven-step strategy that could easily put thousands of dollars extra in your pocket over the coming year... and hundreds of thousands of dollars into your accounts over a lifetime.

Doesn't that sound like a pretty good deal?

Even better, if you want to go ahead and try my new Lifetime Income Report for a full two years, you'll pay less than half the regular 24-issue rate ― just $159 instead of $398.

That's as good as getting one year of issues and then getting another 12 issues full of opportunities and research, absolutely free. And at an even better breakdown, of just 22 cents per day.

That's an extremely good deal.

And here's one more layer of protection, to help make your decision even easier...

As I said, this is a one year guarantee.

That is, you have the entire first year of your subscription to look everything over.

If the Lifetime Income Report isn't everything I've said it was, tell me and I'll send you a check to cover your no-risk trial subscription.

You'll pay nothing and still keep everything.

I believe that much in what I'm about to send.

And I'm certain you will too, once you've had the chance to look everything over and decide for yourself. Just let me hear from you soon, before the next payout date ― August 19, 2009 ― comes and goes.