Now, in Second Place Is …

Warning: Controversial Opportunity For the last several months we've been researching a unique event. A happening so big it's been called the "biggest financial opportunity of the last 20 years." And while you won't hear about this from the mainstream press, we've created a short presentation giving you all the details. Let me warn you now … this opportunity is controversial. But those people take the time to understand this massive event could set themselves up to make a fortune in the coming months … Click here for full details. Now, in Second Place Is … By Jeff D. Opdyke, Editor of Profit Seeker Dear Sovereign Investor, My wife's grandfather used to tell stories that were often a challenge to believe – fish tales, you might call them – but he would swear up and down that they were true. And you always knew he was serious about his takeaway when he would announce: "Facts is facts, and them's the facts." I often think about that phrase when it comes to China and its currency. There are lots of people in this world I talk to who dismiss the Chinese yuan as irrelevant because: A. The currency doesn't trade freely on global markets. B. China manipulates the yuan's value. Both are true. But so what? The fact is that, despite its shortcomings, the Chinese yuan is quietly gaining credibility where it matters most: world trade. And in that is a lesson for investors who do not want to find themselves one day on the wrong side of the currency market … While the talking heads on TV are focused on another Middle Eastern military conflict… There's a far more important – and potentially dangerous – issue confronting the nation. It's a ticking time bomb that will almost certainly affect the next Presidential election. Click here to learn more. Here's a fact for you: The yuan in October emerged as the world's second-most used currency in global trade finance. To some degree that reflects China's massive presence in international trade, given that it's still a factory floor for much of the world. But it also reflects an emerging reality: The dollar is increasingly less relevant, even to major Western countries … but more on that in a moment. Countries generally trade through the dollar. They convert euros (or whatever the local currency happens to be) into greenbacks to buy some load of widgets from the Chinese. Then, China takes those dollars and converts them into yuans. But now countries are increasingly bypassing the buck and just dealing directly in the yuan. Yes, the dollar still plays a role in 81% of world trade, and the yuan is only at 8.7%. But all big trends start off small – the yuan was less than 2% of trade as recently as January 2012 – and this, mark my words, is part of a much bigger trend. And it will impact your life. This Won't End Pretty in America If this were just a story about countries like Iran or Pakistan or even Brazil trading with China in yuans, it would still be important, but of lesser significance. However, this is not that story. Because among the top five countries now settling trade in yuans are Germany and Austria, two major Western industrial countries. The United Nations Commodity Trade Statistics Database shows that Germany's yearly exports to China almost tripled to some $71 billion between 2005 and 2010. Meanwhile, Germany imported Chinese goods worth $101 billion, making China the leading producer of most of the imports that Germans buy. Now, when a Western nation like Germany is aboard this train, that tells me that all the media mouths here in the U.S. that yap about the irrelevance of the yuan are either wrong, lying … or stupid. They're downplaying China's ascendency to overplay the importance of America (in decline). But as I routinely say, the status quo is never static. Do not for one moment believe that today's dollar dominance is forever and always. The world is changing rapidly, in part because Washington, D.C., is doing all it can to destroy American fiscal and monetary credibility. The rest of the world isn't stupid. It sees this fact, too. And resulting actions – i.e. the yuan emerging as the No. 2 currency in world trade – tell you that the rest of the world is increasingly tired of dealing with American B.S. Countries and companies elsewhere in the world do not want to get caught with all their eggs wrapped in dollars. They know the end will not be pretty. So, they are diversifying their exposure. And you should, too. How to Protect Your Lifestyle  I'm not saying you should rush out and own the yuan. I know most investors are not ready to take that leap just yet (though, if you want to, you can do so at the Bank of China here in the U.S.). But you should have non-dollar exposure to a currency that will likely serve an increasingly important role in the world … and that's the euro. The dollar will lose reserve currency status … or, at the very least, the amount of global reserves held in the dollar will decline precipitously as the euro and the yuan gain ground. As that happens, your cost of living in America will rise because the value of the dollar will decline, and the cost of all the imported goods we buy will rise. The only way to safely protect your lifestyle as that occurs is to own the currencies that are rising in value against the greenback. The euro will be one of those currencies. Yes, the euro zone has its problems. But its problems are a pimple compared to the cancer eating away at America. Moreover, Europe is working to right the fiscal and monetary wrongs that upended the continent in the last few years. Here in America, there's no political will to address our problems as they must be addressed – through austerity, spending cuts and radical reform of taxes, regulations and welfare/entitlement spending. Europe will grow stronger, and with it the euro … and increasing amounts of global reserves will gravitate toward the stronger currency. You don't have to believe me today. I know all the animosity that exists toward China's currency and the EU's debt problems. But both will usurp dollar dominance in coming years. Because facts is facts, and them's the facts. Until next time, stay Sovereign … Jeff D. Opdyke Editor, Profit Seeker P.S. With the U.S. dollar in decline, there's never been a more important time to protect yourself from America's coming unwind. To learn more, click here. TODAY'S EDITOR Jeff D. Opdyke For his Profit Seeker subscribers, Jeff is always looking for companies in position to benefit from the rise of a growing global middle class. Click here to learn more. BECOME A SUBSCRIBER When the next economic crisis hits – will you be prepared? As a subscriber to The Sovereign Individual, we will arm you with the tools and strategies needed to prepare and prosper in the months ahead. SUBSCRIBE NOW RECENT ARTICLES 12/04/2013 Is the World Currency Market Rigged? Is it possible to manipulate such a massive market? 12/03/2013 In 10 Days You May be Feeling This Winter Wallop … With the holiday season underway, retailers, insurance companies and energy providers (among others) are intently focused on weather forecasts ... 11/02/2013 Get in Now on This 30-Year Boom These two facts point to an investment strategy I routinely talk about ... 11/29/2013 The European Economy You Must Own Profits will flow to those who invest now ... 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