Two hours later the chauffeur returns totally plastered, hair ruffled with a big grin on his face. 
   
“My God, what happened to you?” asks Nancy . 
   
The chauffeur replies, “When I got there, the farmer opened his best bottle of malt whiskey, the wife gave me a slap-up meal and the daughter made love to me.”
   
 ”What on earth did you say?” asks Nancy .
   
 ”I just knocked on the door and when it opened I said to them, “I’m Nancy
 Pelosi’s chauffeur, and I’ve just killed the old cow.”

National healthcare is like a hospital gown: You think you’re covered but you’re not!!!!!

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[«] Money and Markets 2010 Archive View This Issue On Our Website [»] Transcript: Nine Shocking New Predictions for 2010-2012 by Martin D. Weiss, Ph.D. Dear Customer, We have just ended an online video conference to brief investors on major events that could forever change your future. We made nine new predictions to pinpoint, as accurately as possible, how and when that future is likely to unfold. We showed how to build — or rebuild — an entire portfolio with a disciplined approach that gives you the specific percentages to put into each major asset class right now — stocks, gold, commodities, bonds, and currencies. And unlike any of our prior events, we took questions from a live audience. Here’s the transcript … Nine Shocking New Predictions for 2010-2012 With Martin Weiss, Richard Mogey and Monty Agarwal (Edited Transcript) Martin Weiss: The forecasts we made last year are striking at an accelerating pace, as three new and dangerous crises have raised their heads: First, the White House has announced federal deficits that are far worse than any prior estimates — $1.6 trillion for 2010 … $1.3 trillion for 2011 … and continuing massive deficits for the entire decade. This is already sending shock waves of fear throughout the globe. It has prompted Moody’s to issue a stern warning about America’s credit rating. And it’s raising the specter of a global collapse in long-term sovereign debt. In a moment, we’ll take a look at the enormous implications this has for your finances and investments. Second, global investors are attacking. They’re scanning the globe for the weakest links — the countries with the biggest deficits — and they’re dumping that country’s assets. First, they attacked Greece. Then they attacked Portugal and Spain. Inevitably, they will also unleash their fury on the one country in the world with the biggest deficits of all: The United States of America. And in a moment, we’ll see how these attacks now threaten every dollar you have saved and invested. Third, we have an unprecedented crisis of confidence among U.S. taxpayers and investors. For the first time in our lives, millions of U.S. citizens are taking to the streets in protest — openly rebelling against Washington! Millions of Americans are fed up with bungling politicians, bureaucrats, and bankers. Investors are saying: “You tricked me once — into buying tech stocks with no earnings; those stocks crashed and cost me a bundle. You tricked me twice — into buying real estate and that cost me even more. “Now, I’m madder than hell and I will never trust Washington or Wall Street ever again! I must have an objective scientific, unbiased way to protect myself and make money.” So, the questions we must address now are twofold: How can you know, with confidence, which asset classes offer you the greatest profit potential moving forward? How can you create a bullet-proof portfolio that gives you world-class profit potential no matter what Washington and Wall Street do next? For the answers, I turn to the Foundation for the Study of Cycles, a nonprofit research think tank, founded 70 years ago in the wake of the Great Depression. This Foundation was sponsored by the head of the Smithsonian Institute, by the chairman of the Carnegie Institution, by the founder of the National Bureau of Economic Research, and by the founder of Fidelity Investments. Former President Hoover and former Vice President Charles Gates Dawes also supported the Foundation. Since 1940, the Foundation for the Study of Cycles has studied the recurring patterns of history — cycles. Since 1950, it has identified cycles that predicted — well ahead of time — nearly all major market turns in stocks, bonds, and commodities. And since 1971, when the gold standard and fixed exchange rates ended, it has done the same for foreign currencies and gold. Joining us today is Richard Mogey, Research Director of the Foundation. Richard, you are the Research Director of the Foundation and have been with them for many years. Richard Mogey: Twenty-two years! Our research is based on the simple fundamental principle that all of nature — and most of history — is driven by regular cyclical patterns. Martin: But identifying those cycles is not so simple. Richard: No. We have sorted through historic data going back 5,000 years, and we have put together data series on most major markets going back at least 300 years. Martin: And back in the 1960s, long before Microsoft and PCs, you used Fortran programs on mainframe computers to find the most critical cycles for each major market — all of which you’ve published, starting a half century ago. Richard: Yes. And you asked me recently how accurate the Foundation’s cycles have been in forecasting stocks, gold, etc. Martin: But to answer that question, you didn’t have to recreate hypothetical scenarios or engage in 20/20 hindsight. Richard: No. I just went back to the archives of our printed publications. They were all published in real time. I have them right here. Martin: Great. So what’s your answer? Richard: The Foundation’s cycles have accurately identified nearly every major shift in market direction … in every one of these asset classes … in advance … since 1971. Martin: We’ll look at those in a moment. But right now, let’s focus on the main questions readers are asking on our blogs: What are the major market turns ahead? And how can investors build a sturdy portfolio designed to convert those market turns into wealth? Richard: I will answer the first question. But I am a scientist — not an investment analyst. So I’m not the right person to answer the second question. Martin: Which is why I’ve also invited Monty Agarwal to join us. Monty has run three global hedge funds, and he has done so without a single losing year. He has just written a book on what the hedge funds have done wrong — and what they must do to get it right. Monty Agarwal: Martin, the key is to buy the right market research. And of all the Doubting Thomases in the world, I am probably one of the most skeptical. I always conduct my own personal due diligence before I buy anything. You’ve asked me to analyze the Foundation’s research, and I’ve done so with great interest. The Foundation’s accuracy rate is far superior to any other approach I’ve ever seen. Its work is not perfect, of course. There are a few misses. But the Foundation’s cycles pinpointed, well ahead of time, the onset of the giant bull market that began in 1980. Martin: You’re talking about the stock market. Monty: Yes. The Foundation predicted the timing of the Crash of ‘87. It predicted the timing of the bear market of 2000-2002. It predicted the market’s rise through 2007. And it nailed the top of the market prior to the big plunge in 2008 … Richard: which, by the way, was a market call we published in Barron’s online. Martin: Is this the Barron’s article where you called the big plunge in 2008? Richard: Yes. Monty: Not many people caught that decline, let alone to the month. Plus, in March of 2009, the Foundation’s cycle work anticipated an intermediate rally. Prediction #1 Starting this year, most U.S. stocks are likely to fall in a zigzag pattern for nearly three long years! Richard: And now, we have a new signal. Most U.S. stocks are likely to go down. And they are likely to fall — in a zigzag pattern — for nearly three long years. Monty: In the past, almost every recession and bear market in this country delivered solid values to investors. We saw price-earnings ratios (P/Es) in single digits. We saw great stocks selling for five or six times earnings. But this time, the government was so panicked, it never let that happen. And now P/Es are already back up again to grossly overvalued levels. Richard, you’re talking about giant swings. For a long-term buy-and-hold strategy, those swings are a disaster. But with a more flexible strategy, they can generate giant profit opportunities — in both directions. Martin: Can you be more specific? Monty: Go back 10 years and assume you had been following the Foundation’s cycle research before 2000. You could have sidestepped the Tech Wreck that destroyed so much wealth. Plus, you could have pulled out a 37 percent profit from that decline. Then, if you followed its research in 2003, you could have moved back into the S&P and come out with a 146 percent gain from 2003 to 2009. Martin: What about more recent years? Monty: Same pattern. If you had used its research published before 2008, instead of the wipe-out losses that most investors suffered, my data indicates you could have made a 37 percent profit. And in 2009, based on the Foundation’s call for an intermediate rally, you could have made another 42 percent profit. Martin: And going forward? Monty: Do not expect a similar pattern. Martin: Why not? Richard: Because if our cycle work is even halfway right, conditions will change, and investors could make as much — or more — money in other asset classes. Martin: Instead of stocks? Richard: Gold! Never before in the history of civilization have we seen a world power like the United States with its finances in such disarray as they are now. Martin: We’ve seen world powers rise and fall — from Rome to Spain to Britain. And we’ve seen them incur big debts after their decline. Richard: Yes, but now we have a country that is both the dominant world power and the world’s largest debtor at the same time. This is a massive force that could propel the price of gold. Martin: When and how far? Prediction #2 Gold will skyrocket far higher than $2,000 per ounce by the end of 2011. Richard: By the third or fourth quarter of 2011, the price of gold should be far higher than $2,000 per ounce. Martin: Why is this so shocking? Richard: Because it’s going to happen in the midst of a sinking stock market and economy. Monty: I don’t think that should come as such a surprise, either. In the last few years, despite two big stock market declines and despite the worst recession since the Great Depression, gold quadrupled in value. No one knows for sure what the future will bring. But I would take the Foundation’s gold forecast very seriously. Its cycle work predicted the great bull market in gold of the 1970s. It predicted gold’s downturn starting in the 1980s. And it would have got you back into gold in 2001 … urging you to hold on ever since. Richard: This has been — and should continue to be — one of the greatest profit opportunities of all time. Martin: We have a question on this that’s very relevant … Audience: My name is Elizabeth and I am from Fort Lauderdale. My question is: Much has been talked about gold, but what is your opinion on investing in silver? Richard: In terms of timing, it never ceases to amaze us how closely all precious metals track gold — not only silver, but also platinum and palladium. The differences are strictly an issue of how far each metal rises or falls. Between now and 2012, there will be periods when silver and other metals do better than gold. But when all is said and done, you will find that gold is, by far, the single best performer because of its value as a hedge against the dollar. Martin: What’s behind this cycle in gold? Richard: It parallels the cycles in the U.S. dollar. And for the dollar — or for proxies of the dollar — we have cyclical data going all the way back to 1680. Martin: Before the dollar even existed! Monty: I have scrutinized the Foundation’s dollar research just as closely as its stock market research. Its cycles predicted the dollar’s plunge from 1971 to 1980 … the dollar’s surge peaking in 1985 … the dollar’s decline bottoming in 1992 … the dollar’s rally through 2001 … and then, the big plunge since. Richard: And now, the dominant cycle in the dollar is forecasting the next major move. Prediction #3 The U.S. Dollar Index will begin to sink in 2010 and will not hit bottom until early 2012. Richard: A major, new dollar decline, beginning in the third quarter of 2010 and ending in early 2012. Monty: Currencies are not a beauty contest. They’re an ugly contest. And among many ugly currencies, the dollar usually wins the prize — as the ugliest. Richard: The real decline in the dollar — and all currencies — will show up more clearly in the doubling of the value of gold we just talked about. Measured against gold, the dollar’s purchasing power will fall by half or more, depending, of course, on the intensity of the global selling that hits the greenback. Martin: What about oil and other commodities? Prediction #4 Most commodities will not make new, all-time highs! Richard: Oil will not return to its all-time highs. Unlike gold, it is driven less by currency disasters and more by consumer or industrial demand. And we simply do not see high demand being sustained through this period. Martin: So it would be a mistake to overinvest in commodities right now. Monty: I agree. Martin: Most commodities won’t surge because … Prediction #5 The U.S. economy will suffer a severe double-dip recession in 2011! Richard: Because the U.S. economy will sink into another recession. Martin: Similar to the recession of 2009? Richard: Probably worse! Martin: Again, the timing question: When? Richard: Not right away. Our cyclical data on GDP and on consumption points to a material improvement in the U.S. economy through the first two quarters of 2010. But starting in the second half of 2010, GDP growth will start to sink fast and we could see negative growth by the beginning of 2011. The worst period for the economy will hit in the fourth quarter of 2012. Monty: You don’t have to look very far to see the reasons: You have unemployment holding at extremely high levels. You have scarce capital, with lending to households and corporations drying up. You have consumers, businesses, and now even governments strapped for cash. Martin: That’s an understatement! Look at what’s happening in Greece, Spain, Portugal, and even the UK — and that was despite all the stimulus and bailouts … Monty: No! Because of all the money they’ve spent on bailouts! Martin: Right. Monty: Remember. These are no longer just private banks or automakers going under. They are entire countries! Martin: Plus, you don’t have to connect many dots to see the consequences of a recession. Right now, the Obama administration says the 2010 federal deficit will be $1.6 TRILLION. Care to guess what the government forecast was for this same deficit back in 2008? Monty: A lot less, I presume. Martin: Mike Larson looked back at the forecast made by the Congressional Budget Office (CBO) just two years ago, in 2008. The CBO predicted that the U.S. deficit for this year — for 2010 — would be $249 billion. Now, it’s coming in at $1.6 TRILLION, or over six times more than they forecast. Monty: They didn’t expect the deep recession that struck in 2009. Martin: Much like they’re not expecting a double-dip recession to strike next year! My point is that, just like their forecast was dead wrong for this year, it could be dead wrong again in coming years. Prediction #6 The U.S. budget deficit will surpass $2 trillion in 2012! Look at 2012! For that year, the Obama administration is making some aggressively optimistic assumptions for the U.S. economy and forecasting a deficit of $828 billion. Instead, with the economy sinking, it could be over $2 TRILLION! Monty: Some people may think these huge blunders merely reflect the government’s forecasting errors. But it’s much more than that. Politicians know they’re rigging the numbers. And they’re swearing on a stack of Bibles that it’s an honest estimate. Prediction #7 Bond prices will plunge because of out-of-control deficits and a sinking dollar! No matter what, the big risk is that global investors will sell U.S. dollars wholesale. And they can’t sell them in a vacuum. Along with the dollars, they also have to sell the assets where they’re holding the dollars — especially long-term Treasury bonds. So you could see a massive plunge in bond prices. Martin: Translate that into bond yields. Monty: You’ll see a major spike upward in yields. That could give investors a huge buying opportunity to lock in those higher yields for years to come — provided, of course, price inflation does not run rampant and the U.S. government is still a safe bet at that time. Richard: The U.S. government — and, indeed, America — faces a great historic test: A test of our power — and our willpower — as a nation. Martin: Please explain what you mean by that with respect to cycles. Prediction #8 2012 will be the year of maximum turmoil in markets and peak tension in society! Richard: The great test for our country — an Armageddon of sorts — will come in the year of maximum turmoil in the financial markets, the time of peak tension in society: 2012. Martin: I assume this has nothing to do with the movie by that name, based on ancient forecasts. Richard: Of course not! We’ve had 2012 pegged as the year of the “Perfect Storm” since 2002. Martin: What’s the basis of the perfect storm? Richard: A convergence of cycles! We have the dollar cycle, stock market cycles, consumption cycles, and GDP cycles all bottoming in this same approximate time frame — between late 2011 and late 2012. Plus, 2012 is also smack dab in the middle of a sweeping transition already under way in our longest term and probably most important cycle of all. Martin: Which is? Richard: The 500-year geopolitical cycle. We’ve mapped it all the way back to 670 BC. It is a broad, far-reaching shift in power, wealth, and money — from East to West, or, as is the case now, from West to East. Martin: We’ve talked about that before. Prediction #9 2012 will bring a massive wealth shift from old fortunes that are destroyed to new ones that are created! Richard: Yes, but I want to add that we’re not only talking about a power shift from West to East. We’re also talking about a major wealth shift from old fortunes that are destroyed to new ones that are created … from countries, companies, and families that were dominant for many decades to new ones that replace them on the other side of this massive upheaval! Martin: Provided they are well prepared ahead of time. Monty: And provided they use reliable signals with prudent risk control. No matter what you invest in or how you invest, the real possibility of losses is something you always have to be aware of. Martin: Yes! On our blog, though, many readers tell us they make decisions largely based on gut, which implies not only analysis, but also intuition — and emotion. They admit that, more often than not, that’s their basis for deciding how much to invest in each asset class and when. What would be your standard allocation to those five asset classes, based on your analysis of the Foundation’s work? Step 1 Diversify Across All FIVE Asset Classes Step number one is to diversify across all FIVE asset classes — stocks, precious metals, other natural resources, bonds, and currencies. Martin: Years ago, it would have been virtually impossible for the average investor to do that. You’d need a lot of money or you’d have to take a lot of risk — with futures, in the currency markets. Monty: Today, all five of these asset classes are readily available to average investors through hundreds of exchange traded funds — ETFs. Martin: And, of course, you can also choose from thousands of mutual funds, tens of thousands of individual stocks, hundreds of thousands of bonds. Monty: Yes. But this step alone — diversification — puts you heads and shoulders above investors stuck in stocks or bonds alone. Audience: The subject is diversification. The more I hear that, the more it bothers me. Because that tells me that if I am investing in, say, five different major areas, I will probably have four losses and only one win. Monty: Let me address that by telling you how Wall Street works. Wall Street touts diversification as if it were a panacea. But their notion of diversification is spreading your money among several different U.S. stock sectors. That’s not going to work because nearly all stocks are linked in some way. In a truly diversified portfolio, stocks are just ONE of five asset classes. Martin: Plus, Wall Street still seems to assume we’re back in the 20th Century when bull markets were long in duration and bear markets were short. That’s not the case today. Step 2 Take Advantage of DOWN Markets! Monty: That’s the key to step number two. In today’s era, especially as we head toward 2012, if you want to make money, you must not rely exclusively on up markets. You must also take advantage of down markets. Martin: That also used to be very hard for the average investor to do. You had to sell short. Monty: Not anymore! In every one of the five asset classes, ETFs are readily available whether you want to profit from rising prices or falling prices. You never sell stocks or commodities short. Your goal is strictly to buy them low and sell them high, like any ordinary stock. Step 3 Diversify Dynamically! Step number three is to diversify dynamically. Don’t just keep a fixed amount of money in every asset class all the time. Sometimes, you’ll want a lot more; sometimes, a lot less. For example, if the Foundation’s signals say gold is going to greatly outperform stocks and bonds, you may need to double the percentage of the portfolio in gold. Or let’s say we see a major decline coming in long-term bonds. You’ll probably want to clear out of long-term bonds entirely. Step 4 Periodically Rebalance Your Portfolio! The next step is to periodically rebalance the portfolio. Hypothetically, let’s say you go ahead and double the gold allocation from 10 to 20 percent. Then, let’s say gold itself doubles in value. You could find yourself with 40 percent of your portfolio value in gold. Martin: That’s a good problem to have. Monty: Yes, but you still have to DO something about it! You can’t sit back passively while a major market move — up or down — upsets the balance in your portfolio. That’s where periodic rebalancing comes into play. You sell on strength and you buy on weakness. But you do so intelligently. Not based on a whim. Step 5 Risk Protection Step five is risk protection. Martin: Don’t you get a good measure of risk protection with the broad diversification across the five asset classes and with the portfolio rebalancing? Monty: You do. But for an additional layer of risk protection, you also need stop-loss mechanisms. If you’re wrong about a particular stock, bond, or ETF, you have to set a clear limit on how far you’re willing to be wrong. If it surpasses that limit, you need to get out right away. Plus, let me say one more very important thing: I respond promptly to major market turn signals. And I don’t shift just small amounts of funds. Gradual, incremental shifting is the right thing to do in a conservative, slow-moving model portfolio. But that’s not what I do, especially when I have clear, strong signals like these we’re getting from the Foundation. When I get a major signal, I move, and I do so very quickly. Martin: Assume you used the Foundation’s signals and your five steps for building a portfolio. Please share with us now what the results could have been. Monty: Let’s say you started at the beginning of 2000 with $100,000. The black line on this chart shows the results you would have achieved simply by buying and holding the S&P. Result: You would have lost $14,000. Martin: And that’s despite tying up your money for 10 years, despite all of Washington’s efforts to save the economy. Monty: Correct. Now, assume you took this one step further. You blindly invested 20 percent in each of the five asset classes we’ve been talking about. No intelligence. No change. That step alone could have transformed a 14 percent loss into a 61 percent gain. Martin: The red line in the chart. Monty: Right. But it’s the green line that I want you to focus on. It shows what happens when we add the intelligence from the Foundation and the simple steps I just talked about. In this scenario, instead of a 14 percent loss, you could have seen a 111 percent gain. While investors in the S&P 500 were losing $14,000, you could have made $111,000. Martin: That’s past. What about the future? Monty: What happens in the next 10 years will inevitably be different from what happened in the last 10 years. That’s all the more reason you must not lock yourself into a blind, fixed allocation that cannot adjust to changing conditions. Martin: Please also show us your analysis going back further in time, including all kinds of market conditions. Monty: Sure. Overall, since 1971, our approach could have multiplied your money more than 25 times over — enough to turn $100,000 into more than $2.5 million. That’s four times better than the S&P 500. Moreover, since 1992, we’re talking about 18 consecutive winning years, in a wide range of conditions — in inflation and deflation, in bear markets and bull markets, during economic booms and busts. All with no debt! No options. No leveraging. Martin: Don’t you like leverage? Monty: I do in other circumstances. But in this program, I assume none whatsoever. If you can achieve relatively rapid and consistent growth without leverage, why be greedy? Martin: I agree. Let’s talk about what we’re doing for viewers. First, to underscore my confidence in this program, I have put my money where my mouth is. We have just deposited $1 million into a brand new brokerage account. This new account will serve as a model portfolio to be dedicated exclusively to following the Foundation’s long-term signals. Second, we have invited Monty and Richard to also invest their own money in their own dedicated accounts — so that both individuals making investment decisions have skin in the game. Third, Weiss Research has entered into an exclusive joint venture with the Foundation for the Study of Cycles for full access to its vast databases and use of its signals. The Foundation’s research helps strips out the emotions involved in investing and, instead, helps you grow your money dynamically and objectively, through thick and thin, using history — not Wall Street or Washington — as your guide. It gives us the confidence to invest fully, broadly, and without hesitation. Fourth, we have hired Monty Agarwal to receive the signals from the Foundation and translate them into specific investment recommendations. He will follow the Foundation’s long-term signals. Plus, he will draw from his experience to diversify across the five asset classes, adjust the allocations, maintain balance, control risk, and choose the specific investments. Most important, we are launching a new service called the Million-Dollar Rapid Growth Portfolio. This exclusive publication and website not only lets you track everything happening in my account … but it also gives you the opportunity buy and sell before we do. Of course, you don’t have to invest a million dollars. You could invest any amount you’re comfortable with. Also please understand that this not a money management program. Unlike our affiliate, Weiss Capital Management, we do not customize actual portfolios and advice to meet your individual needs. Rather, we’re investing our own money and will let you see exactly what we do — with total transparency — in our Million-Dollar Rapid Growth Portfolio. Every purchase, every sale, and every statement will be promptly posted on our members-only website. Every profit, every loss, every dividend earned, and every commission charged will be an open book to you. Monty: I will buy no penny stocks, illiquid investments, or exotic instruments — just widely traded, mainstream stocks, bonds and ETFs that any investor can put into any account. Therefore, I do not anticipate any issues as to who can get their order in first. Martin: Still, I want to make absolutely sure that if anyone has an advantage, it’s going to be the investor — not us. So, two full business days before we buy or sell, Monty will send you an email telling you precisely what we intend to buy or sell and how. Monty, let’s assume, hypothetically, that you are sending that email out today. What would be the standard amounts you would allocate to each asset class? Monty: I would allocate 30 percent of the money to the asset class “stocks,” with a very substantial allocation to inverse ETFs to profit from a decline in stocks. Martin: What about bonds? Monty: 10 percent, mostly short term. Martin: Gold? Monty: 15 percent. Martin: Energy and other commodities? Monty: Also 15 percent — but carefully selecting the commodities most likely to benefit from growth in major emerging markets. Martin: What else? Monty: The last asset class is currencies. That’s very important and has a very clear long-term trend. I’d bet against the dollar with 30 percent of my money — but not in the euro or any country with oversized deficits. Bear in mind that some major new forces are now ready to hit markets. So these allocations may change pretty significantly when I release them. Audience: With the declining value in the dollar, what are the best currencies to invest in? Monty: The currencies I would pick are the currencies that benefit from the growth in the emerging markets. For example, I like the Aussie dollar and the Canadian dollar. Audience: I understand that the Foundation has a great track record and an impressive history. My question is: Why haven’t we heard of you before? Richard: For 60-plus years, we have been studying cycles without any marketing. We are terrible at marketing. But I think we are great scientists. Martin: Overall, I think benefits of the service are many. But let me summarize the main ones: Cycle signals that could have beaten the S&P 500 four to one, with 18 consecutive winning years through 2009. Plus a hedge fund manager with 12 years of experience and without a single losing year to his name. Thank you very much for joining, and have a great day! Editor’s note: The Charter Enrollment Period for the Million-Dollar Rapid Growth Portfolio ends March 8, after which the membership cost will be significantly higher. Click here for details. About Money and Markets For more information and archived issues, visit http://www.moneyandmarkets.com Money and Markets (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Nilus Mattive, Claus Vogt, Ron Rowland, Michael Larson and Bryan Rich. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM, nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical in as much as we do not track the actual prices investors pay or receive. Regular contributors and staff include Kristen Adams, Andrea Baumwald, John Burke, Marci Campbell, Amy Carlino, Selene Ceballo, Amber Dakar, Dinesh Kalera, Red Morgan, Maryellen Murphy, Jennifer Newman-Amos, Adam Shafer, Julie Trudeau, Jill Umiker, Leslie Underwood and Michelle Zausnig. Attention editors and publishers! Money and Markets issues can be republished. Republished issues MUST include attribution of the author(s) and the following short paragraph: This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. 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. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com. From time to time, Money and Markets may have information from select third-party advertisers known as “external sponsorships.” We cannot guarantee the accuracy of these ads. In addition, these ads do not necessarily express the viewpoints of Money and Markets or its editors. For more information, see our terms and conditions. View our Privacy Policy. Would you like to unsubscribe from our mailing list? 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[«] Money and Markets 2010 Archive View This Issue On Our Website [»] Armageddon by Martin D. Weiss, Ph.D. Brace yourself, Customer! If you thought Wall Street’s debt crisis was traumatic, wait till you the see the consequences of Washington’s debt crisis! Never before in history has a world power like the U.S. been so utterly buried in debt! And never before has that debt been financed so massively by foreign investors! Nineteenth century Mexico, Spain, and Argentina accumulated so much debt, they were forced to default. In the 20th century, a similar fate befell Germany (1932) … China (1939) … Turkey (1978) … Mexico again in 1982 … Brazil and the Philippines (1983) … South Africa in 1985 … plus Russia and Pakistan in 1998. Argentina kicked off the 21st century with a default in 2001. And barring a euro zone rescue, Greece, Spain, and Portugal are prime candidates for debt defaults this year. But in NONE of these examples did we — or do we — see the debt crisis striking a dominant world power! In ALL cases, the debts represent little more than a small fraction of the total debts outstanding worldwide. Not so in our case today! In the entire world, the United States government and its agencies have, by far, the largest pile-up of interest-bearing debts ($15.6 trillion), the largest accumulation of unsecured obligations (over $60 trillion), the largest yearly deficit ($1.6 trillion), and the greatest indebtedness to the rest of the world ($4.8 trillion). In proportion to the size of its economy, one important country, Japan, does have more debt than the U.S. But unlike Washington’s debts, nearly all of Japan’s are financed by its own citizens — loyal, long-term savers who are far less likely to pull out in a storm. External Sponsorship RED ALERT: Financial Crisis NOT Over Yet! Don’t kid yourself …The Great Recession is still in full force … Now is the time to prepare your portfolio! If you want Weiss Capital Management’s independent view on the economy and markets so you’re ready for the next move — be sure to watch this important investment briefing: TWENTY-TEN: A YEAR OF TRANSITION Presented by: Weiss Capital Management This Webinar goes offline this week … DON’T miss it! Go Here To Watch Now   Washington’s debt crisis represents a unique, unparalleled, and unimaginable convergence of circumstances. Because no one can answer this simple question being asked by former GAO chief David Walker: Who will bail out America? Not you, not me, and not 300 million Americans! Not China, not Japan, nor all the powers on Earth put together! They’re simply not big enough. They don’t have the money. Yet, despite the utter gravity of our plight, nothing is being done to change our course. In recent weeks, Congress could not even agree to study the issue. They could not vote on a deficit commission. The president has just appointed a separate commission. But even after moons of deliberation, it will have no authority to bring its recommendations to a vote in Congress — let alone get them passed. The president says that the effort must be bipartisan, that all options must be on the table, and that no cows can be sacred. And indeed, this song sounds good. But it’s more out of synch with political reality than rap rock at the Bolshoi Ballet: Democrats vow never to cut to Social Security or Medicare … Republicans vow never to accept tax hikes, and all the while … Economists swear that only a full-court, frontal attack on the deficit has any chance of making a dent. My family and I — plus many others more illustrious than us — have been warning about this danger since 1960. That was the year my father, J. Irving Weiss, founded our Sound Dollar Committee, organized a nationwide grassroots movement, and helped prompt 11 million telegrams, phone calls, and letters of protest to Capitol Hill. That was the effort which persuaded Congress to vote for a balanced budget and helped give President Eisenhower a victory the likes of which has never been seen again. In subsequent years, Dad and I nagged, cajoled, and testified before Congress so often I lost count. I think we gathered more evidence and made more phone calls than a telethon phone bank. But our warnings have typically been given little more than the time of day. And always — ALWAYS — the so-called “solution” has been the same: more borrowing from Peter to pay Paul, more can-kicking down the road, more smoke and mirrors, more lies. The Consequences of This Complacency Are Catastrophe To whit … Consequence #1. Due to the avalanche of government borrowing to finance the deficit, there is no power on Earth that can avert sharply higher interest rates. Already, despite the weakest post-recession recovery in memory, bond prices are plunging and their rates are surging. Just a few weeks ago, the yield on 30-year Treasury bonds busted through a declining trend that had not been penetrated in more than 20 years. And just last week, it came within a hair of its highest level in over two years. With just one more, ever-so-slight nudge to the upside, all heck could break loose in the Treasury-bond market. You could see a surge in long-term interest rates that will make your hair curl. If the U.S. economy could boast a booming housing market or low unemployment, this would not be such a shock. Or if consumer price inflation were surging, it would also not be so unusual. What’s so damning about this action in the bond market right now is the fact that it’s coming at the worst possible time. That’s why Washington and Wall Street fear it so much. That’s why they’re so anxious NOT to tell you about it. Consequence #2. All long-term bonds — whether issued by other government agencies, corporations, states, or municipalities — will also collapse, driving their yields through the roof. Reason: When Uncle Sam has to pay more to borrow, they inevitably have to pay more as well. Consequence #3. Rates on mortgages and car loans will surge. Why? For the simple reason that they’re also tied at the hip of long-term Treasury rates. If you want to take out a 30-year fixed mortgage (now close to 5 percent) on a median-priced home ($178,300), and you can afford a 10 percent down payment … Just a 1 percent rise in rates will drive your monthly payment from $861 to $962 … A 2 percent increase will drive it to $1,068 … And the kinds of rate increases possible in a bond-market collapse could drive it to levels only Midas could afford. Worse, if you go for variable-rate mortgages, balloon mortgages, or other now hard-to-get alternatives, the impact of surging interest rates will be even more traumatic. Consequence #4. The fledgling recovery in housing and auto sales — the pride and joy of Washington’s bailout brigades — will be toast. Consequence #5. Institutions and individual investors holding piles of lower yielding long-term bonds will get killed. That includes: U.S. households stuck with $801 billion in Treasuries, $979.5 billion in municipal bonds, plus a whopping $2.4 trillion in corporate bonds. Banks and credit unions holding $199 billion in Treasuries, $228 billion in munis, $1.066 trillion in corporate bonds and, worst of all, $1.408 trillion in government agency (and GSE) bonds. Insurance companies buried in Treasuries ($196 billion), munis ($444 billion), agency bonds ($469 billion) and a TON of corporate bonds — $2.180 trillion. Private pension funds, state and local governments, and even their employees’ retirement funds — all loaded with similarly vulnerable bonds. Not all of these holdings are of the long-term variety. But most are. Investors and institutions who own them on behalf of millions of retirees will suffer shocking declines in the market value of their portfolios. They could suffer a chain reaction of defaults, gutting their income stream. And worst of all, they now have some reason to fear the de facto default of the biggest debtor of all — the government of the United States of America. I doubt very much we will see THAT happen. But two events are very possible, even likely: America will lose its triple-A rating. And if the Wall Street rating agencies don’t have the moral fiber to announce downgrades, the marketplace will do it for them. Our leaders will face an Armageddon unlike any since the Civil War: Either muster the courage — and the support of the people — to accept the pain and make the sacrifices of a lifetime … or face the downfall of America. They will no doubt seek every other alternative and try every other trick. But alas, no printing press can run faster than our foreign creditors can sell their U.S. bonds. No one will bail out America. Ultimately, there is NO choice. We must bite the bullet. We must make the sacrifices. Like California and Greece … like every household and any company … our government MUST cut back and accept the rest of the consequences: #6. Declining home values. #7. Falling stocks. #8. The end of the recovery! And many, many more. My recommendation: Watch our video. Good luck and God bless! Martin    About Money and MarketsFor more information and archived issues, visit http://www.moneyandmarkets.com Money and Markets (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Nilus Mattive, Claus Vogt, Ron Rowland, Michael Larson and Bryan Rich. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM, nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical in as much as we do not track the actual prices investors pay or receive. Regular contributors and staff include Kristen Adams, Andrea Baumwald, John Burke, Marci Campbell, Amy Carlino, Selene Ceballo, Amber Dakar, Dinesh Kalera, Red Morgan, Maryellen Murphy, Jennifer Newman-Amos, Adam Shafer, Julie Trudeau, Jill Umiker, Leslie Underwood and Michelle Zausnig. Attention editors and publishers! Money and Markets issues can be republished. Republished issues MUST include attribution of the author(s) and the following short paragraph: This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. 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. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com. From time to time, Money and Markets may have information from select third-party advertisers known as “external sponsorships.” We cannot guarantee the accuracy of these ads. In addition, these ads do not necessarily express the viewpoints of Money and Markets or its editors. For more information, see our terms and conditions. View our Privacy Policy. Would you like to unsubscribe from our mailing list? To make sure you don’t miss our urgent updates, add Weiss Research to your address book. Just follow these simple steps. © 2010 by Weiss Research, Inc. All rights reserved. 15430 Endeavour Drive, Jupiter, FL 33478

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They get you to call by telling you that it is information about a family member who has been ill or to tell you someone has been arrested, died, or to let you know you have won a wonderful prize, etc..
In each case, you are told to call the 809 number right away.  Since there are so many new area codes these days, people unknowingly return these calls.
 
 If you call from the   U.S. , you will apparently be charged $2425 per-minute.

Or, you’ll get a long recorded message. The point is, they will try to keep you on the phone as long as possible to increase the charges.  WHY IT WORKS:

The 809area code is located in the   Dominican Republic ..
The charges afterward can become a real nightmare. That’s because you did actually make the call..  If you complain, both your local phone company and your long distance carrier will not want to get involved and will most likely tell you that they are simply providing the billing for the foreign company. You’ll end up dealing with a foreign company that argues they have done nothing wrong.
 
 Please forward this entire message to your friends, family and colleagues to help them become aware of this scam.

AT&T VERIFIES IT’S TRUE :http://www.att.com/gen/press-room?pid=6045 <http://www.att.com/gen/press-room?pid=6045>
 
SNOPES VERIFIES IT’S TRUE:  http://www.snopes.com/fraud/telephone/809..asp <http://www.snopes.com/fraud/telephone/809..asp>  
  

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To all my family & friends I want to  THANK  YOU  FOR  YOUR TIME. ONCE YOU  READ THIS  YOU  WILL  UNDERSTAND! A young man learns what’s most important in life from the guy next door. It had been some time since Jack had seen the old man.. College, girls, career, and life itself got in the way. In fact, Jack moved clear across the country in pursuit of his dreams. There, in the rush of his busy life, Jack had little time to think about the past and often no time to spend with his wife and son. He was working on his future, and nothing could stop him. Over the phone, his mother told him, “Mr. Belser died last night. The funeral is Wednesday.” Memories flashed through his mind like an old newsreel as he sat quietly remembering his childhood days. “Jack, did you hear me?” “Oh, sorry, Mom. Yes, I heard you. It’s been so long since I thought of him. I’m sorry, but I honestly thought he died years ago,” Jack said. “Well, he didn’t forget you. Every time I saw him he’d ask how you were doing. He’d reminisce about the many days you spent over ‘his side of the fence’ as he put it,” Mom told him. “I loved that old house he lived in,” Jack said. “You know, Jack, after your father died, Mr. Belser stepped in to make sure you had a man’s influence in your life,” she said “He’s the one who taught me carpentry,” he said. “I wouldn’t be in this business if it weren’t for him. He spent a lot of time teaching me things he thought were important…Mom, I’ll be there for the funeral,” Jack said. As busy as he was, he kept his word. Jack caught the next flight to his hometown. Mr. Belser’s funeral was small and uneventful. He had no children of his own, and most of his relatives had passed away. The night before he had to return home, Jack and his Mom stopped by to see the old house next door one more time. Standing in the doorway, Jack paused for a moment. It was like crossing over into another dimension, a leap through space and time The house was exactly as he remembered. Every step held memories. Every picture, every piece of furniture….Jack stopped suddenly.. “What’s wrong, Jack?” his Mom asked. “The box is gone,” he said “What box?” Mom asked. “There was a small gold box that he kept locked on top of his desk. I must have asked him a thousand times what was inside. All he’d ever tell me was ‘the thing I value most,’” Jack said. It was gone. Everything about the house was exactly how Jack remembered it, except for the box. He figured someone from the Belser family had taken it. “Now I’ll never know what was so valuable to him,” Jack said. “I better get some sleep. I have an early flight home, Mom.” It had been about two weeks since Mr. Belser died Returning home from work one day Jack discovered a note in his mailbox. “Signature required on a package. No one at home. Please stop by the main post office within the next three days,” the note read. Early the next day Jack retrieved the package. The small box was old and looked like it had been mailed a hundred years ago. The handwriting was difficult to read, but the return address caught his attention. “Mr. Harold Belser” it read. Jack took the box out to his car and ripped open the package. There inside was the gold box and an envelope. Jack’s hands shook as he read the note inside. “Upon my death, please forward this box and its contents to Jack Bennett. It’s the thing I valued most in my life.” A small key was taped to the letter. His heart racing, as tears filling his eyes, Jack carefully unlocked the box. There inside he found a beautiful gold pocket watch. Running his fingers slowly over the finely etched casing, he unlatched the cover.. Inside he found these words engraved: “Jack, Thanks for your time! -Harold Belser.” “The thing he valued most was…my time” Jack held the watch for a few minutes, then called his office and cleared his appointments for the next two days. “Why?” Janet, his assistant asked. “I need some time to spend with my son,” he said. “Oh, by the way, Janet, thanks for your time!” “Life is not measured by the number of breaths we take but by the moments that take our breath away,” Think about this. You may not realize it, but it’s 100% true. 1. At least 15 people in this world love you in some way. 2 A smile from you can bring happiness to anyone, even if they don’t like you. 3 Every night, SOMEONE thinks about you before they go to sleep. 4.. You mean the world to someone. 5. If not for you, someone may not be living. 6. You are special and unique. 7. When you think you have no chance of getting what you want, you probably won’t get it, but if you trust God to do what’s best, and wait on His time, sooner or later, you will get it or something better. 8. When you make the biggest mistake ever, something good can still come from it. 9. When you think the world has turned its back on you, take a look: you most likely turned your back on the world. 10. Someone that you don’t even know exists loves you. 11.. Always remember the compliments you received.. Forget about the rude remarks. 12 . Always tell someone how you feel about them; you will feel much better when they know and you’ll both be happy . 13. If you have a great friend, take the time to let them know that they are great. Send this letter to all the people you care about, if you do so, you will certainly brighten someone’s day and might change their perspective on life…for the better. To everyone I sent this to  Thanks for your time We can only give away to others, what we have inside ourselves.

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