U.S. Assets Getting Devalued

Larry Edelson takes a closer look at the slumping economy in the U.S., and the booming economies overseas. In this issue of Money and Markets, Mr. Edelson examines consumer behavior overseas.

Jupiter, Fla. (PRWEB) December 8, 2007 -- Larry Edelson takes a closer look at the slumping economy in the U.S., and the booming economies overseas. Mr. Edelson examines consumer behavior overseas.

The subprime mortgage crisis and real estate implosion in America have created a debt debacle. Consumers and corporations are in debt up to their eyeballs. And the national debt is increasing at a rate of more than $7.4 billion per day.

As a result, the Fed has been forced to crank up the printing presses to flood the economy with paper money in an attempt to inflate away the debt and keep it from crushing the economy. Meanwhile, on three billion new consumers in Asia continue gobbling up natural resources creating huge shortages in commodities across the board, and igniting the biggest natural resource boom of all time.

These two forces are adding to inflationary pressures around the world. And when you put them together with the falling value of the U.S. dollar, you have the biggest, strongest macroeconomic forces to ever hit the global economy at the same time.

Because of our debt-addicted society and the plunge in the value of the dollar, U.S. assets are effectively being marked down in the international marketplace, and put on the auction block at fire sale prices.

It affects every asset owned in the U.S. It could dramatically change the economy, politics, trade and more in the years ahead.

The Dow right now is down only about 7% from its record high. But if the Dow in terms of Euros is at as much as a 12% discount from where it was just a few months ago. It goes to show that asset prices in the U.S. are coming down for foreign buyers.

According to the latest data, 785 U.S. businesses were acquired by foreign investors for $129 billion this year through August.

"Longer term, what's beginning to happen will probably end up rescuing the U.S. economy, which is a good thing. But it will also forever change the makeup of the U.S. economy. In the end, it will be the mass foreign investment in the form of equity over the next few years that will help bail out the U.S. economy," Mr. Edelson states.

To read this issue online, please visit:

http://www.moneyandmarkets.com/Issues.aspx?NewsletterEntryId=1248

About Larry Edelson and Money and Markets

With nearly three decades of experience in precious metals and natural resources markets, Larry Edelson has played a pivotal role in training Weiss Research staff and in guiding Weiss Research's customers to prudent investments in the sector. His Real Wealth Report, Gold Trader Hotline and Energy Options Alert provide a continuing education on natural resource investments, with recommendations aiming for both profit and risk management. His team of technical analysts helps enhance the timing of investment recommendations with the aim of continually improving the performance results for investors.

Mr. Edelson is also a regular contributor to the daily e-letter, Money and Markets. Recognized as an expert in precious metals and natural resources, he is often called upon by the media for his investing views. Mr. Edelson has been featured on Bloomberg, Reuters, and CNBC as well as The New York Times, New York Sun, and Marketwatch.com

Mr. Edelson holds a B.A. degree from Columbia University.

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.

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