Your invitation to the most
important summit of the year...
important summit of the year...
If this crisis continues to play out how I expect it to, Australia's debt situation will imitate - maybe even surpass - what's happened in the U.S. The savings, property investments and superannuation funds of every man and woman in the country will be profoundly affected.
Forget banks, insurers, or other financial institutions going to the wall. I'm
talking about real Australians
talking about real Australians
Australians who own their own homes... Australians with superannuation funds...Australians with savings... Australian families... and anyone within a few years of realising retirement dreams...
YOU, essentially.
This threat has been ignored, dismissed and misreported by many in the mainstream media - either deliberately, or because they simply do not know how rising debt levels will affect the economy, currency, stock prices, or the property market.
These are critical questions.
If you're not asking them, then you may never know how damaging the nation's love affair with debt could be to your own personal financial future.
Let me be clear: I believe the continuing reliance on debt-government, household, and corporate-is the biggest threat to your wealth, prosperity - probably even your health - you'll face in your lifetime... and yet no one is helping you prepare for it.
The government... the RBA... the media; no one is telling you what Australia's debt problem means for your wealth and investments.
It's time you got some straight answers.
Your invitation to take part in the most important financial discussion of 2009
|
If you care about your future prosperity, your home, your super and your country; clear your diary.
I'm inviting 195 concerned Australian investors, savers and homeowners to join me at the State Library of Victoria in downtown Melbourne for what I believe is the most important financial discussion of the year: "Australia in the Red" - an evening of frank debate with some of the smartest financial minds in the country about how the global debt pandemic affects YOU and your interests.
Look, I've long felt that the mainstream news media doesn't really know how to (or won't) explain why permissive attitudes toward debt and deficits are so wealth-destructive. .
So it's time for them to step aside... and for you to finally hear the truth.
Much of what I want to cover will be hard to swallow... and it certainly won't be for the faint of heart.
But if you're worried about your financial future...you're trying to make sense of what's happening in the economy right now... and concerned about how to pick a path through the coming turmoil... If you care at all about the wealth, assets and savings you've spent your lifetime building up...
This is an event you'll want to be part of
Tickets to "Australia In The Red" will not be made available to the general public.
This summit meeting is purely for 195 like-minded individuals. I know it's a small number and I'll explain why in a moment. But even with such a small group, I believe it's vitally important to start this conversation NOW. The sooner the debate begins, the better.
The Daily Reckoning and Money Morning are read by 74,185 Australians every day, and each reader is receiving this invitation. So if you want a ticket, you'll need to get a move on. There are no special favours - you've got the same chance as everyone else to book your place - as long as you act quickly!
Tickets will be released on a strictly first come, first served basis, limited to one per reader. If you're interested in securing a place you'll need to place your order through the official "Australia In The Red" booking office. Details of how to do this are coming up.
**Please do not telephone our office or contact us via The Daily Reckoning email address. You will not be able to book your ticket to "Australia In The Red" through either of these channels**
I'll explain exactly how you can take part in our debt summit in a moment. Before I do, here's a little more about what will happen on the night...
Here's your itinerary for the evening
| 7:00pm | You'll register in the auditorium foyer at the State Library of Victoria in central Melbourne (entry via the La Trobe Street entrance). Over complimentary champagne and canapés you'll get the chance to introduce yourself to fellow delegates and members of our panel of experts |
| 7:40pm prompt | Time to move into the auditorium and take your seat for the evening programme |
| 7:45pm | I'll formally welcome you to our summit - and you'll hear a special video welcome to Australian delegates from Daily Reckoning founder Bill Bonner |
| 8:00pm | Panel discussion begins - this is your chance to put your question about Australia's debt crisis personally to our team of experts |
| 9:30pm | Sit back and enjoy the exclusive first ever Australian public screening of I.O.U.S.A. We anticipate the event to finish by 11:00pm. |
But it's vital we have this discussion now. The 195 lucky attendees will be so glad they made the trip.
Why the urgency?
Australians are foolishly
starting To lower their guard
starting To lower their guard
|
The truth is, household debt is just as big in Australia as it is in America. And it's growing every day.
Thanks to credit cards, mortgages and car loans, Australians have racked up nearly $1 trillion in debt-equal to the entire GDP of the country. And the $44 billion in credit card debt alone (according to the RBA) amounts to $2,000 per Australian.
As worrying as this private debt trend is, the most alarming trend is Australia's growing public debt.
Here is a simple warning: if Australia's public debt continues to grow, the country will, like America, soon become a debtor nation-dependent on high-saving foreign creditors to fund government programs.
Am I exaggerating? Or being unnecessarily alarmist? Consider the facts:
The first wave of the Global Financial Crisis has seen a $20 billion government budget surplus transformed into $57.6 budget deficit. Whether you agree with the policies that produced this deficit is not the point. The point is, the deficit is growing.
The government deficit is already 5% of GDP. That's not bad compared to the U.S. and U.K. (12% and 13% respectively). But the Bank of International Settlements-the central bank to central banks-reckons that Australia's net public debt could grow to $203 billion by 2013-nearly 14% of GDP.
That means no matter which party controls the government in Canberra, Australia will have to sell nearly $315 billion in bonds each year to bridge the funding gap.
I'm sure I don't have to tell you that in a Credit Depression-where money is hard to borrow-finding $315 billion a year to fund Australia's growing deficit won't be easy.
It won't be cheap either. Interest rates will likely rise in order to attract investors to this debt. That means the cost of servicing Australia's debt is going up too-just as the debt itself is growing massively.
Public debt is set to skyrocket at exactly the time that governments all over the world are competing for capital.
You can see why I'm so concerned right now
Listen, I'd love to be able to tell you that global debt crisis will pass Australia harmlessly by - but I simply don't believe that's true.
Everywhere, Aussies are slowly dropping their guard... they think the worst has past. But between household debt, the growing public debt, and Aussie banks reliant on foreign funding, Australia's economy-its housing market especially-faces serious threats to come.
I've seen this scenario play out before and I can tell you that here at The Old Hat Factory, we're on red alert.
We've taken stock of everything that's happened since news of the credit crisis first broke in August 2007. Now, after 22 further months of study, analysis, and careful thought, we can see that Australia faces something far more profound and far reaching than just a few greedy bankers going bust.
We see hundreds of thousands of hard working Aussies... honest savers, investors and homeowners... sleepwalking into a financial black hole it could take generations to escape from.
If you're like most people, you probably want to believe that the debt loads are manageable and that deficits don't matter. Maybe you weren't even aware we had a problem...
Well let me tell you, debt levels AREN'T manageable... Government deficits DO matter... and they're hardly ever temporary. They get larger and more destructive.
Are you prepared for
what's coming?
what's coming?
Look, even if I'm only HALF right about the coming debt crisis, the likelihood is that we'll witness the development, in the next few years, of a more fragmented Australia that presents many new dangers to your wealth, health and safety.
It amazes me that so few people in government, academia or the media are talking about, or even understand, what the debt crisis means to Australia's long-term future.
In fact, there's only a handful of economists and analysts willing to discuss the problem honestly and in public. It's not surprising. But it is disappointing. Someone needs to spell out what's coming... and make you understand that the next 12 months are critical.
Let me come to the point. On 31st July, I want to talk about Australian debt in the kind of depth and detail you haven't experienced before.
The analysis and insight I - and a handful of learned friends - have to share at Australia In The Red could help you figure out how to preserve the wealth you've spent your lifetime accumulating.
To put it bluntly: this event might be your last chance to learn the financial survival skills and knowledge you may well come to count on in the next few years.
Make no mistake: Australia's dependency on debt is a much bigger problem than you've been made aware of in the press. I'd like to set things straight, so that you know how your savings, investments, super and property will be attacked, and so you can prepare your defences accordingly.
Specifically, I'll show you how your wealth is currently wide-open to a four-pronged assault...
How debt weakens the 4 pillars
HOLDING UP Australia's economy
HOLDING UP Australia's economy
The "Australia In The Red" feature discussion will focus on the effects of growing national debt on the four key pillars of the Australian economy. This is where I'll invite delegates to put their questions to our panel. Here's what's going to be discussed...
Pillar 1: The Financial Markets
What are the prospects for equities in the months to come? Will deleveraging cause the stock market to test its November 2008 lows? Which asset classes might provide the safest haven for beleaguered Aussie investors... and the biggest gains? Are you powerless to stop your super taking another big hit in 2009/10? Hear the panel's views on where your money should be in 2009 - and beyond...
Pillar 2: Household Finances
Interest rates are at historical lows... what happens to mortgage repayments if they rise by 2-3%... are first home buyers being sucked into a lifetime of unserviceable debt thanks to the FHBG... why is Australia no longer a nation of savers? How do we realistically bring the debt-to-GDP ratio down? Are we headed for our own sub-prime crisis Down Under? How worried should we be about inflation? Our panel will look at how the debt crisis affects REAL Aussies, with REAL everyday money worries...
Pillar 3: The Australian Dollar So far the Aussie dollar has benefited from the fall of its U.S. counterpart... but is our currency headed the way of the Greenback... we're currently running a $556 million trade deficit... how will that affect the Aussie Dollar, our credit markets, and interest rates? Our panel will explore the key issues...
Pillar 4: The Housing Market Will the property market drop by 30-40% over the next 2 years? Or rise by 20% as some commentators are predicting. Are Aussie house prices really sustainable at more than 6 times earnings? Will the Australian housing market be the only one in the Western, English speaking world not to have its bubble burst? Finally - you'll learn the truth about Aussie property... from two people who know it better than anyone else...
And while I'm on that subject, let me show you who we've got lined up to talk to you...
Introducing our panel of experts
My name is Dan Denning and I'll be your host and compère on the night. Aside from my work on The Daily Reckoning - read by more than 350,000 people in over 70 countries - I'm also the current editor of the Diggers and Drillers Australian resource investment newsletter and a regular columnist for MoneyWeek, a London-based financial journal.
Kris Sayce is editor of the MoneyMorning eLetter. He also puts together the monthly Australian Small Cap Investigator newsletter and a brand new service: Australian Wealth Gameplan. Kris is a fully accredited adviser in shares, options, warrants, and foreign exchange investments. He began his financial career 15 years ago in the City of London as an equities broker specialising in small stocks listed on the London Stock Exchange. After that, he moved to Australia to work for one of the country's leading private wealth management groups, before joining us in 2008
Phillip J Anderson is Managing Director of Economic Indicator Services (EIS), an economic forecasting service operating out of London and Melbourne (www.businesscycles.biz/). EIS is the world’s foremost authority in the area of business, real estate and commodity cycles. Phillip has recently published the critically acclaimed book: The secret Life of Real Estate.
Steve Keen is Associate Professor of Economics & Finance at the University of Western Sydney, and author of the popular book Debunking Economics. He has over 40 academic publications on topics as diverse as financial instability, the money creation process, flaws in Marxian economics, the application of physics to economics, Islamic finance, and the role of chaos and complexity theory in economics. Steve's "Debtwatch" (www.debtdeflation.com/blogs/) has global appeal and his work has been translated into Chinese, German and Russian.
Gabriel André began his career as an equity analyst in 2000. He worked on valuation issues and fundamental analysis of technological stocks during the dot.com plunge. In 2003, he joined the BNP Paribas group where, for 3 years he managed a portfolio of some US$7billion for large institutional investors on the FX markets. He moved to Australia in 2006 where he worked for a private hedge fund for a year before joining us in late 2007. Gabriel runs the successful Swarm Trader service, which identifies beaten-down stocks that are about to be flooded with professional money.
And after our panel discussion - we have a very special treat for you...
First time in Australia: A private
screening of the most important
Movie of the last ten years
screening of the most important
Movie of the last ten years
Reuters says I.O.U.S.A "... may be to the U.S. economy what "An Inconvenient Truth" was to the environment."
The New York Times says the film "...highlights our unwise preference for short-term reward over long-term planning..."
On Friday, 31st July - finally - you'll get to see it!
I'm delighted to announce that the "Australia In The Red" summit has been given clearance to host the first public screening of I.O.U.S.A in Australia... and YOU'RE invited!
Arguably the most important financial documentary film of the last ten years, I.O.U.S.A. documents the efforts of two concerned Americans, former US Comptroller General Dave Walker and Concord Coalition Director Robert Bixby, to explain how America racked up over $9.5 trillion in debt and what can be done to stem the tide...
Based on the best-selling book Empire of Debt by our own Bill Bonner and U.S. colleague Addison Wiggin, I.O.U.S.A. combines Walker and Bixby's "Fiscal Wake-Up Tour" with observations from former Federal Reserve Chairman Alan Greenspan, former Treasury Secretaries Robert Rubin and Paul O'Neill, superstar CEO Warren Buffett, and student activists.
If you're wondering how this cautionary tale affects our economy and our prospects, I'll give a brief foreword to I.O.U.S.A. before the screening. Yes, it's a movie about American debt. But as I'll explain on the night, the consequences of debt apply to Australia too. This is a genuine first - the premier public screening of I.O.U.S.A. in Australia - and I'm delighted to bring it to you.
For sure, it's going to be quite an evening. I'd love you to join us.
If you want to take part you must get your name down fast (details of how to do this on the way).
'Australia in the Red' is STRICTLY
LIMITED to 195 delegates only!
LIMITED to 195 delegates only!
 Auditorium at the Victoria State Library |
I'd love to be able to open the doors to this exclusive event to more like-minded readers and affiliates... but there are only 195 seats in the auditorium at the Victoria State Library, so that's where I must cap the numbers.
To make things as fair as possible, I'm releasing tickets on a first-come-first-served basis, completely without prejudice.
The first 195 respondents to this invitation will get a ticket to "Australia In The Red". I can't be any fairer than that.
You're probably wondering...
What will it cost to Get your hands
on the Hottest ticket in town?
on the Hottest ticket in town?
Tickets for a guaranteed seat at the "Australia In The Red" summit are $199 per person, strictly limited to one ticket per applicant.
That covers everything: the drinks and canapés reception, your entry into the auditorium for the panel discussion and your ticket to the first public screening of I.O.U.S.A in Australia.
If you feel $199 is a price worth paying to be a part of the most important and meaningful financial discussion of the year for Australian investors, savers and homeowners, you need to pay very close attention to what I'm about to tell you...
Here's how you get a ticket
There's only one way you'll be in with a chance of joining us at the Australia In The Red summit on Friday July 31st in Melbourne.
Here's what you need to do:
- Send an email now to this address: australiainthered@gmail.com with the subject line: "I want a ticket". Please type your full name and phone number in the email. You can either click on this address to automatically open an email window, or simply copy and paste the email address into a new message window.
- If you're one of the first 195 readers to do this, we'll send you an email back with a unique link you need to click on to complete your order. This link will take you to a secure website where we'll take your payment details. If you don't hear from us within 24 hours of sending your email, please assume that all the spaces have been filled and you've been unsuccessful. However, you will be placed on a reserve list, and will be contacted in turn if delegates cancel or fail to place their order in time
- If you're lucky enough to hear from us, that means you've reserved one of the 195 available spaces. You'll have 24 HOURS to place your order from the time you get your unique link. Once this deadline has passed, your reservation will expire and your ticket will be offered to the next in line. Please don't try to place your order after this 24 hour deadline - you'll find the link will no longer work!
- Please do NOT try to reserve your ticket over the phone or via The Daily Reckoning email address. The only way you'll be in with a chance of successfully booking a ticket will be by sending an email to australiainthered@gmail.com with the subject line: "I want a ticket".
You probably don't have a lot of time, since 74,185 of our readers are reading this invitation right now.
So if you are umming and aahing about the ticket price, here's a question for you...
Can you afford not to be part of this?
|
The country's problem with debt is bigger, more complicated, and more costly than you've been led to believe by officials.
Australia cannot possibly sustain its current debt to GDP ratio. This situation threatens a host of nasty and long-lasting consequences which WILL affect you. The decisions you make in the coming 12 months could affect your quality of life for the rest of your life.
That's why it's important to have this discussion now; to deal with the problem candidly and prepare. On 31st July, you'll learn how Australia's debt problem affects you, your wealth, your savings, your super and your retirement.
That's why I want to see you in Melbourne on Friday July 31st. I want to hear your ideas about Australian debt. And I want you to hear what this outstanding panel has to say too.
Please don't put this off - there really are only 195 seats available. Once they've been reserved, the doors will close! To avoid disappointment, send an email now to australiainthered@gmail.com with the subject line "I want a ticket". Leave your phone number and full name, and if yours is one of the first 195 emails we receive, we'll send you one back telling you what to do next.
On behalf of everyone at The Old Hat Factory, I look forward to seeing you in downtown Melbourne on the 31st July.
Best regards,
Dan Denning
Publisher
The Daily Reckoning / Money Morning
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Attn: Money Morning
PO Box 899
Braeside
VIC 3195
Tel: 1300 667 481
Fax: (03) 9558 2219