IN THIS WEEK'S ISSUE:
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• How long till Germany pulls out of the EU?

• Are you positioned for the new gold rush?

• This system will help you earn the bonus you deserve

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Dear FSP Invest Reader,



The end of the European Union could be near

 

Let’s take a look at what’s happening with their sovereign debt issues.


Since the financial crises we’ve constantly heard about the Euro Zone sovereign debt issues. These are the debt problems of the PIIGS nations of the EU. The PIIGS are Portugal, Italy, Ireland, Greece and Spain and three of these nations have received bailouts. With the other two not far from being broke.



The first country to be bailed-out was Greece in 2010, followed by Ireland and this year Portugal received a €87bn bail-out. Now it’s Greece that’ll need an extra €115 billion, on top of the €110 billion ($159 billion) from European governments and the IMF, granted a year ago. Although some of that financing will come from the sale of public assets and the private-sector's contribution.


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*** A new gold rush: are you positioned?

Did you see this from Francois Joubert, small cap profit hunter? He’s tapping into what he calls the “New gold rush”. We sent you details earlier today… and it’s already creating a buzz of interest from gold speculators.

According to Francois’ latest report, he’s located what he believes is “the perfect way you could gain exposure to the gold market.”

It’s unlikely that most investors will ever even hear about this junior gold miner, says Francois. But he’s very excited about it.
“It has nothing to do with options, bullion, gold coins or ETFs,” he explains in his report.

“But it has everything to do with you potentially making a serious return on your money."

“In fact, I believe you could stand to make as much as 100% on this one… even if the price of gold never moves a cent higher…”

You should see Francois’ idea here.

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This has caused some previously "investment grade" bonds to become classified as "junk"



Greece’s government bonds were downgraded to Junk status shortly after their first bailout. Now the most recent news is that Portugal's been downgraded to Junk status, with Ireland’s bond status balancing on a knife edge.

But bailouts are against the rules of the EU


Bailing out member countries goes against the Maastricht Treaty that stipulates all the rules of membership to the EU. The Treaty forbids Member States from accepting liability for the debts of another EU country.  It states “The Union shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of any Member State (…) A Member State shall not be liable for or assume the commitments of central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of another Member State, (..)”


The biggest question from the German public is “Are the Euro Zone bailouts legal?” Five Germans have taken this matter to their high court...


Germany fears that by introducing a bailout mechanism the EU will promote financial indiscipline. And after Greece’s second bailout being approved who can blame them. The rules were introduced to avoid situations like the present one where Euro Zone Member States have been disregarding the rules about running large debts and deficits, threatened to default, weakened the Euro, and passed liability to the other Member States for their debt.


The best thing for the EU and Germany is….


In order to save the Euro through depreciation instead of austerity, Germany must leave the EU. Its options are to return to the Deutsche Mark or create another currency union with the Netherlands, Austria, Finland, and other European countries that have a positive current account balance, such as Denmark, Norway, and Sweden. A monetary union of these seven current account surplus countries would create the world's largest creditor bloc. Without this German bloc, the remaining countries will have the flexibility to keep interest rates low and engage in quantitative easing or fiscal stimulus. They won't need to live up to the high standards of Germany and the financially stronger countries. Until a solution to this imbalance is found, traders are presented with frequent opportunities from the volatility created. This volatility is a result of the Euro Zone trying to satisfy the needs of the financially stronger countries and those that are financially weaker such as Greece.


All this volatilty gives Forex traders excellent opportunities to make quick short-term gains


The seesawing created in the currency market gives intra-day Forex traders excellent opportunities to make quick gains. The benefit with intra-day trading is you can be in and out in a matter of minutes and still make a decent R1000 – R 5000 per trade. But that’s if you’re an experienced Forex trader.


If you have no experience, how can you take advantage of this?


I’ve just finished reviewing an outstanding product that uses cycles to predict the future movement of the currency market with extreme precision.  It takes all the guess work out of trading Forex. This was created by Dr Bacher. He condensed 14 years of professional trading experience into one simple Cycle Trends FX system that anyone can follow. Take a look below.


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Why ten minutes is all it ever takes to put this into action...



This is how it’s going to happen: You switch on your computer and download the day's currency data from a site I'll tell you about.



It’ll take about ten minutes for you to check if the indicators line up. And if they do, you place one quick trade – it’ll take you a matter of minutes. That’s it.



Ten minutes or so, and you’re done.



All you do now is relax and wait. Sometimes, it’ll happen in minutes... Sometimes, you might have to wait a couple of hours... Rarely, it might even be a day or more.



And when that trade comes good – when those profits land in your account – you’ll know that the ten minutes you spent putting this into action was time well spent.



The only thing you need to worry about then is how to spend your profits. Find out how to put this brilliance into action right now…

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That’s it for this week


Here's to cashing in with currencies
Gavin Fourie,

Chief Investment Strategist for Forex Trader



About the author:

I’m Gavin Fourie, Chief Investment Strategist for Forex Trader. I hold a B.com degree in Economics and Econometrics and have studied international finance and the currency markets for years now.

Forex Trader is a service alerting you to the best, most explosive currency trades out there today. Designed for individual investors and finance aficionados alike who want to learn how to make money in the currency markets.