China ready to drop financial nuclear bomb!

From top left to right: Martin Weiss and Mike Larson, Tony Sagami, Sean Brodrick, and Larry Edelson. With Larry in the lead, they were among the first in the world to predict the trade war now breaking out globally.

My team and I have been warning you about a global trade war for a long time. Now it’s here.

But if you think trade wars are dramatic, wait till you see what's coming next.

China is going to fight back with its financial nuclear bomb, and it’s going to be the shock of the century.

The war heated up just yesterday when President Trump threatened to slap tariffs on $200 billion of imports from China. For China, this is like a Pearl Harbor for their economy.

China imports less than $131 billion from America. So Trump’s $200 billion in tariffs leaves ZERO room for China to retaliate. Even if China imposed tariffs on every single penny of goods it imports from the US, it would still lose the trade war.

China has no choice but to deploy its financial nuclear bomb: The $1.29 TRILLION it holds of U.S. Treasury bills, notes and bonds.

To fight back, President Xi Jinping of China will start dumping China’s massive stockpile of U.S. Treasuries, the biggest in the world. He will drive US bond prices into a tailspin.

And it has already begun. Just in March and April alone, China dumped $5.8 billion in U.S. Treasuries. And soon, those billions will seem like a drop in the ocean.

“Mr. Trump seems to be counting on the fact that China will soon run out of room to retaliate with its own tariffs on U.S. exports,” says Eswar Prasad, a trade expert at Cornell University quoted in The New York Times this morning. “This could prove to be a miscalculation since China has other effective levers it can use in a trade war.”

And China’s biggest lever of all is its $1.29 trillion of U.S. Treasuries. By dumping just 10% of their holdings, China can throw a giant stink bomb into the US bond market.

Bonds are already falling in wobbly, sinking countries in Europe and emerging markets. The U.S. bond market is next.

Global Investors Are Moving Their Money. FAST!

They see the handwriting on the wall.

They are fleeing Europe and emerging markets, looking for the safest havens in the world.

And this massive fund flow is the new tidal wave of fear money that we have been warning you about all along. It is going precisely where we said it would: Into the highest-quality stocks in the world.

You can see it yourself:

Just look at the euro, crashing right before your eyes as the U.S. dollar surges! Just look at currencies of troubled regions, which are crashing even more!

That’s because global investors have been dumping the euro and other weak currencies to buy the dollar. And they’ve been investing their dollars in the strongest, largest and most stable, profitable stocks in the world: The same investments that Weiss Ratings is famous for identifying with consistent accuracy.

This also helps explain why our Weiss Ultimate Portfolio, which buys strictly our highest-rated investments, is doing so well: Up 722% since 2007, enough to turn into a $100,000 investment into $822,000.

This week, I will show you how you can do the same!

Mark your calendar for Thursday at 2 PM Eastern. I will be online here with two other experts — one from Asia and one from Europe.

The first is Tony Sagami, who twice won the distinction of Thomson Financial Portfolio Manager of the Year.

The second is Claus Vogt, Germany’s only money manager who warned his clients about the European debt crisis months in advance.

This special briefing is so urgent because the trade war is escalating so quickly. It is information you need NOW.

On Thursday at 2 PM, we will:

• Name three storms threatening world markets right now

• Show you where they will strike first

• Reveal the surprising reason select U.S. stocks will soar

• Show you how our strategy could use safer stocks to grow your wealth by an average of 67% per year.

As a Weiss Ratings subscriber, this special briefing is free for you to attend.

All you need to do is:

1. Save this email and mark your calendar for Thursday, June 21, at 2 PM Eastern (11 AM Pacific, 6 PM GMT).

2. A few minutes before the hour, make sure your computer speakers are turned up, and click this link.

Mark my words: Those who fail to heed the warnings we will issue in this free briefing risk losing their shirts in the coming storms.

And those who take a few simple steps today could find themselves handsomely rewarded.

That’s why it’s so important for you to be on hand 2 PM Eastern Thursday.

See you then,

Martin Weiss