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<div class=Section1>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Treasury 10-year note yields rose above 4 percent for the
first time since June as evidence the economic recovery is gaining traction
added to concern debt sales will overwhelm demand as the <st1:country-region
w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region> funds
record deficits. Ten-year yields touched the highest level in 18 months as a
gauge of service industries and pending sales of <st1:country-region w:st="on"><st1:place
w:st="on">U.S.</st1:place></st1:country-region> homes rose more than forecast.
A report on April 2 showed the <st1:country-region w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region>
added the most jobs in three years last month. Further gains in 10- year
yields, the benchmark for everything from mortgages to corporate bonds, may
dampen the recovery if higher borrowing costs for the government are passed on
to consumers. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>What this means is for the <st1:country-region w:st="on">US</st1:country-region>
to continue to fund itself, it has to issue more and more IOU’s and as it
does, the world is getting more and more nervous about the <st1:country-region
w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region> ability to
pay off on all this debt. Remember, the Federal Reserve might set interest
rates here in the <st1:country-region w:st="on">US</st1:country-region> but the
world sets interest rates on <st1:country-region w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region>
debt and right now the world is raising the stakes and demanding more interest.
As the interest rate for <st1:country-region w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region>
debt rises, it costs the government more and more money to pay the servicing of
this debt. This is the issue I have been warning about all along. With these
massive bailout programs and social costs that Obama and Congress are
authorizing, the risk is <span class=GramE>rising</span> interest rates, and
they are rising as we speak. Should they continue to rise, it means the US
dollar is falling in value, which spells INFLATION. This is the end result of
massive money creation and deficit spending. We will keep an eye on this
materializing event as this current rise in rates, should it continue, will put
a halt to further spending plans, and could be the start of a US dollar crash.
Rising interest rates will HALT any economic recovery as we simply have too
much debt. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Meanwhile the Dow seems to want to go over 11,000 but is
being repelled at every attempt. This is about the 5th time it has tried to
climb into the next level. Will it finally make it? We will wait and see.
Here’s what to look for.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>A rising Dow will also give false hopes that this recovery
is real. It is not. It is a government driven rally but investors <span
class=GramE>are believing</span> it is real. Should the Dow continue to rise,
investors will also drive oil, gold and interest rates higher as well. This
will halt the recovery as it was $<span class=GramE>150.00<span
style='mso-spacerun:yes'> </span>a</span> barrel oil that stopped the
economy in its tracks the last time around. Should oil continue higher, and it
will with recovery hopes, it will drive everything else to go up in price,
which will cause inflation, higher prices and therefore put more pressure on
consumer spending.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>As you can see, there is no way out. Recovery means higher
oil, which means higher prices, which stops the recovery. Higher interest rates
will also occur, also halting the recovery. Higher gold prices are the canary
of investors sensing inflation. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Inflation IS the poisonous gas in the mine, and it will
permeate and terminate any recovery hopes. The FEDS are boxed in. This is the
rock and the hard place we have been warning about. The FEDS have spent
themselves into a box. Stop the stimulus and the recovery falters. Keep up the
stimulus spending and inflation takes holds and interest rates rise. Not a
pretty place to be in. In saving a few hundred thousand home owners and a dozen
big banks and companies, they have doomed the rest of us to inflation or worse.
They have saved a few and put the entire country now at risk.<o:p></o:p></span></font></p>
<p class=MsoNormal><st1:country-region w:st="on"><st1:place w:st="on"><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>Greece</span></font></st1:place></st1:country-region><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>’s
deficit problems are a microcosm of what is coming. First homeowners were
bailed out, then large companies were bailed out, then our banking system was
bailed out, now entire countries are in need of bail outs. Who will bail out
those countries? <span class=GramE>The IMF probably.</span> Then the question
becomes who bails out the IMF?<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>No one, they are the last one in line. That spells an entire
paper money system at risk. After all, everyone is printing money to bail out
everyone. So the end result is that the paper money system is rotten and at
risk of a final and catastrophic collapse. Not a pretty thought, but that is
what the symptoms are telling us. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>These paper money cartels of the world are now on a one way
road to ruin and with them goes the rest of us. You don’t have to be
wiped out however. We can prepare the best we know how and we do have a plan to
protect investors by diversifying into things that should profit from the
decline. Make sure you follow this newsletter and tell your friends and family
to do the same. What will probably follow is two fold. The recovery (which it
isn’t) may run a bit longer but will either end in one of two ways. If
the Dow continues up, you will see inflation in oil causing inflation in
everything. Interest rates will <span class=GramE>rise</span> putting pressure
on the FEDS to do something to stop rising rates and a falling dollar. In a
bizarre twist, they will raise domestic rates just a tad to try and defend the
US DOLLAR. This will put pressure on all this debt we have and the markets will
stall and probably start down again. They may “monetize” the <st1:country-region
w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region> debt; buy
debt with more printed dollars. This will cause foreigners to become even more
nervous and interest rates will first stall, and then eventually begin their
ascent again, forcing more monetization by the FEDS and a vicious circle
begins. Inflation then grips the economy and all hell will probably break
loose. Or it may go the other way. The stimulus will take on our original
forecast and “Not be enough”. The “recovery” stalls on
its own as investors begin to see through the hype. Employment never does
improve much, company profits never materialize and housing continues down.
Retail stores continue to fail and the markets start hard down again. In this
scenario oil and gold fall with the markets. Interest rates will start DOWN
again and the dollar rises, reflecting a “flight to safety” as,
incredibly as it may seem, the world will still see the US dollar as the
“safest” investment in a world caught in a deflationary spiral. <span
class=GramE>(Crashing prices).</span> The <st1:country-region w:st="on"><st1:place
w:st="on">US</st1:place></st1:country-region> will then attempt more <span
class=GramE>stimulus</span>, and may even try repeated stimulus programs, until
such a time where scenario #1 materializes. <span class=GramE>The result in
either case?</span> <span class=GramE>Scenario #1.</span> The FEDS print and
monetize everything in an attempt to “stimulate” a recovery and pay
off mounting debt. They will end up stimulating nothing except more debt, and
more inflation. Again, not a pretty picture, but don’t shoot me, I am
just the messenger.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><span class=GramE><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>Now on to our holdings.</span></font></span><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><span class=GramE><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>Gold and Silver- No change since
previous recommendations.</span></font></span><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'> ADD physical metals in your <span
class=SpellE>possesion</span> at any time, and continue to hold your gold
stocks and funds- Do not add stocks or funds at this time until we get a signal
on gold movement one way or another. You should already be holding UNWPX
anywhere from 11 to 14 and we are looking for a double long term. Same with
USERX or TGLDX or any of the others mentioned over the past 5 years.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Oil- You should already have a lot of oil type plays round
about on the Super Dividend Payers List (See moneymanagementradio.com). Because
I fear a market crash, I do NOT recommend adding any oil stocks other then your
dividend payers.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Interest Rate Funds- RRPIX is rising with interest rates.
Some of you may hold TBT, a more leveraged play. Hold RRPIX and you may even
add some here. Do NOT add TBT yet as this fund moves twice as fast as it is a
leveraged instrument. Because I fear a market crash as mentioned above, I want
to wait for the final US dollar rally until we add this fund. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Dividend Payers- Those that met with me for a consult should
be adding in thirds as detailed in our meeting. All others should be holding
these with a 20 % or so stop- sell order <st1:Street w:st="on"><st1:address
w:st="on">IN PLACE</st1:address></st1:Street> in case of a market turndown.
(Place a STOP order, NOT a STOP LIMIT order, with your broker at a price 20 %
or so below today’s prices.) I would not add any new positions at this
time except the <span class=SpellE>consultees</span> I met with. (To schedule a
consult, go to the website).<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Contrary Funds- These funds go UP if the market goes down
and are going down as the market goes up. These are insurance for your dividend
payers and other stocks you may own and do not want to sell. Add amounts within
your budget. BEARX holders should continue to hold. New buyers should NOT add
BEARX as it is now a loaded fund. DOG or SKK are funds you can consider.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Foreign Currencies- Still no word from EVERBANK on a new
risk free CD so we wait. Those following our recommendations should be holding
FXC, FXF, and FXA. FXC, the Canadian Fund is up HUGE in the last month. FXF and
FXA are also performing nicely. ADD these at any time as insurance to your US
DOLLAR HOLDINGS. You should NOT be holding any FXE (Euro) or FXY (Yen) per our
past newsletters.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Safe Money Funds- As always, most of your money should be
here. Bank Savings <span class=GramE>Accounts,</span> or our “Safe Money
Funds” on our Dream Portfolio. Anything that is short term (under one or
two years) and insured by the US GOVERNMENT.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>(See Website for a list of funds you can choose from in the
Dream Portfolio). Hedge these with the interest rate funds and foreign
currencies listed above.<span style='mso-spacerun:yes'> </span>NOTE:
Money Market funds for the most part are NOT insured and I do not recommend
MONEY MARKET FUNDS. They also added a new stipulation that they can HOLD YOUR
MONEY in market disruptions. In other words, if things get dicey again, and you
need your money, they DO NOT HAVE TO GIVE IT TO YOU. Need I say more?<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Swiss Annuities- Don’t <span class=GramE>confuse</span>
these with American Annuities offered here. THEY ARE NOT. I do NOT recommend
American Annuities, whole life or anything resembling them. Swiss Annuities ARE
what I DO recommend you consider and you can get a booklet on the website by
clicking on the Swiss Advantage Banner on the right side banner area.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Considerations- Make as much money in your job as you can
NOW. If the markets turn down again, employment and customers will be harder to
find. WORK HARD NOW as the going is good and squirrel it away.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Real Estate- Don’t <span class=GramE>be</span> fooled
by the numbers coming out in recent days about real estate recovering. A
“hard down” is coming. What you are seeing is the markets’
“Hope Wave”. Those buying now are being suckered. It’s the
markets way of getting the very last available housing dollars before it starts
its slow, miserable grind down for the next 2 to 3 years or more. Just GOOGLE
up a chart of Japanese Markets or Japanese Real Estate Prices to see what is in
our future.<span style='mso-spacerun:yes'> </span>Here is a link to a
chart.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><span class=GramE><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>That’s all for now.</span></font></span><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'> <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Good trading and Good Luck, and remember, Good Luck is a
result of good planning, so plan!<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Marc<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>OUCH!<span style='mso-spacerun:yes'>
</span>20 years of SLOW GRIND. The Chart looks not better all the way to 2010!<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><img width=751 height=423 id="_x0000_i1025"
src="cid:image001.jpg@01CAD4E2.2D41B9E0"><o:p></o:p></span></font></p>
</div>
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