Welcome New Subscribers! Newsletter Summary Introduction. Must Read. July 24, 2010

Marc's Notes:

Welcome all new subscribers to our Money Matters Newsletter Update!
This issue will summarize all our current holdings for you newbies and be a welcome refresher for our current subscribers.

First off, all you new subscribers should know how to navigate our website. www.moneymanagementradio.com.

When going to the site, you will hear me on audio. Each page with portfolios and other investments all have audio by me describing each item. You can turn off the audio by clicking on the orange button at the top if I get on your nerves!

The left menu has all the items summarized for you so you can click around and see what is available.

Past newscasts are free and can be found on the left side menu under newscasts. These are short audios you can listen to.

Past news letters can be read by going to newsletter archives on the left menu as well.

You can read about all our investments like the Dream Portfolio and Super Dividend Payers list on the same menu. Items we charge for are these two portfolios, ($29.00 for a one time download) the past shows ($2.00 each with a minimum order of 5 shows) and scheduling a consult with me in person.($575.00 for a one time sit down that takes about 3 hours).  You can buy each one separately OR subscribe to a full year access for $99.00 which allows you to download all the shows, all the portfolios and the special features interviews as often as you like for one year. This entitles you to all the portfolio updates as well. Everything for one year. (Best value and 90 % of all visitors elect this option).

Special features have some cool interviews and videos, some are free and some cost  $2.00 like the shows.

Show titles describe each show in detail and there are about 90 of them you can download. That’s over 90 hours of material!

TV appearances videos are under the menu bar and are free.

Money Matters T Shirts cost about $12.00 each and pictures of what they look like are there for you to look at.

Other menu items include links to my favorites reading sites, contact information, my bio, radio show schedules, radio station links for ease of listening and all the other information you would expect from a full service site.

Feel free to email me with any questions, comments, suggestions or issues you may have anytime! I love to hear from my listeners and welcome all emails. Try and keep them short however so I can answer all of them, which is my promise to you as long as I can!

Now on with the show!

Markets:
After the spectacular deleveraging we saw in 2008 and 2009 and that we predicted as early as in 2006 (listen to the shows!) the Feds (your government) pumped in trillions in an unprecedented banana republic like effort to transfer private bad debt to the public purse. In other words, those “guys” kept the profits for decades, but when the debt went bad, you and I paid the bill. Shameful! This was the most blatant theft of public money in the history of the world to bail out Wall Street and others, all in the name of “for the good of the system”. A common theme you will hear on my shows. Profit was privatized yet losses were shuttled to the public. Obama was elected to stop the bailouts and watch our backs, yet we found out he hired the same people or kept the same people in charge that were there when this whole thing was going down. Shameful!

The FEDS tried to convince us they can “create jobs” and “stimulate” the economy with OUR , repeat, your money. OUR MONEY! This is a grand illusion and a down right lie. Since the government gets its money from us, they just take it from one and give it to another. It is called planned income redistribution in plain terms.
There is no wealth “created” by printing dollars (another familiar theme on our show).
Paper dollars is not wealth. If it was, governments everywhere could eliminate poverty by just printing more dollars. Yet, is there poverty in the world? Of course. Think of it this way, if governments could create jobs and fix economies, how come so many are broken?

The truth is they can’t fix economies any more then they can create jobs. Sure, they can print money and pay people to build a bridge, but they can only do it by borrowing. That ladies and gentlemen is debt. And since too much debt WAS the problem, how can you SOLVE a debt problem with more DEBT? You can’t. But they think they can.

FACT: It has been tried by countless governments. (think Brazil, Mexico, Peru, Argentina.. you name it, centuries of times it has been tried).

FACT: It has never worked.

FACT: NEVER.

FACT: The mere existence of poverty, economic misery and unemployment stand testament that is doesn’t work, because if it did, they wouldn’t exist!

FACT: Reread the first 3.

The Problem:

The best way to visualize the “attempt” to fix a debt problem with more debt is to think of a drug addict. When he goes into withdrawal from lack of drugs, you either let him suffer and kick the habit, OR administer more drugs to make him feel better. Letting him withdrawal is the right thing to do. Administering more drugs just prolongs the problem, and eventually will kill him if you keep doing it.
The same thing holds true to economies. The drug is DEBT. Too much of it will bring it down. You must allow it to “kick” the habit by letting it withdrawal. (deleverage- otherwise known as recession or depression) . These recessions and depressions are the sickness that follows the drug use. (Too much credit- DEBT).

By injecting more debt however (the drug) you allow for another “feel good” period (think recovery) but in reality, you have just prolonged the eventual sickness and actually made the withdrawal much worse with a far worse addiction.

This is what we have folks. TOO MUCH DEBT, remedied with MORE DEBT, spurring a “false” recovery, which, when the “drug” injection (stimulus plans and credits like cash for clunkers) wears off, the sickness will return with a vengeance. (the beginning of what your seeing now, commonly refereed to in the news as a double dip recession).
This is not a double dip recession any more then the drug addict having a double dip withdrawal because you gave him another shot. What we are seeing is a temporary boost in economic figures brought to you by your “UNCLE” pulling out another credit card to try and pay off his other credit cards. Now that the money is spent, the withdrawal returns, but now we have even more debt. So grab hold to your hats, the addict is stumbling again and the Dr. is searching for new veins to get the drug into him. But we all know the eventual result.

So what do we do as investors, as Americans, as residents of this big round ball we call Earth?

First we must see the problem, for with out knowing the disease, we cannot develop a cure for it. The disease is a simple one and one we have seen in man before.
Governments cowtowing to the masses by giving them free money to stay elected and feeding the corporate beasts so they throw you a few million to run your campaign and stay in power. Since the taxes don’t cover it, they print it, thereby robbing you of your moneys purchasing power over time, stealthily and covertly, so that one person in a million realizes it. Printing money is the greatest scheme ever devised to steal the public’s wealth without them realizing it. Addict them to the drug (debt), and then when it goes bad, create more of it to give to the bankers so they further enslave the debtors.
(Just look at what we owe now in Federal Deficits). THAT money went to the bankers who, in the midst of this downturn, post the BIGGEST PROFITS IN HISTORY and pay even more bonuses then before. Meanwhile your elected officials pretend to oversee these behemoths while watering down these “financial regulation” bills to the point where all they do is allow them to get bigger, with more power, while appearing to oversee same. Governments now get even bigger, with more tentacles grabbing more power, while they look for your applause because they “did something”.

It’s a sham.

So, knowing what they did, and do, and will do, we look back in history and see an experiment that has happened so many times before with the same result. We look toward the people that kept their money and away from those that lost it. We emulate those that survived and don’t do what those that lost their money did. Easy enough.

Our Holdings:

We know that the money they spent “won’t be enough”. (Another common theme on Money Matters).

We know that we are seeing a “temporary stumble forward” by a jacked up addict on too much debt.

We know unless he gets more, he will stumble. We don’t know for sure whether Doc Holiday will administer more. They say they will, but like we are seeing world wide just recently with austerity measures now taking hold, there is a limit on how much they can spend. WHERE that limit is we do not know but we know the limit is getting closer with each passing day. So we must prepare for both more drug AND a possible keel over.

This presents to us logistical problems as each outcome requires the opposite medicine on our end.

Realizing that we will again see deleveraging (deflation) as the stimulus drug wears off, probably followed by more drugs by crazy Doc Holiday, which will cause (inflation) down the road, and that the cycle will probably repeat until they either give up and let him fall or they just administer drug in such greater amounts (as if 10 trillion wasn’t enough), that we will see monster inflation in the end. We then come to realize in this opposite remedy environment, that the return OF our money is more important then the return ON it. So this is what I am doing and this is what I suggest you consider.

Most of your money should be in FEDERALLY INSURED banks accounts or FEDERALLY INSURED CREDIT UNIONS. Not Money Markets funds as most of them are not insured (you thought they were) and most Money Market funds don’t have to give you your money if economic troubles arise (read the fine print- this was added last year). Banks accounts have no such stipulation. Buy no long term bonds regardless who they are from. Bonds are DEBT, and there’s way too much of that already.

About 15 to 30 % of your money might be placed off shore in what I use call a Swiss Annuity. (Order up the booklet free on the right side of the webpage under Swiss Advantage). Place these in another currency OTHER then US DOLLARS. I prefer the Swiss Franc. Details of how they work are in the booklet. Do not confuse these with annuities sold here. They are not and I do NOT recommend annuities from U.S. COMPANIES what so ever.

I recommend to friends and others to hold at least 10 % of their net worth in physical gold and some silver. Keep in a safe deposit box, not at home. (Robbery). This does not mean gold stocks, but physical metal in your possessions. There are my contacts at the end of this newsletter.

About 10 or 15 % of your net worth should be considered in foreign currency funds you can buy like stocks. I prefer the Swiss Franc, the Canadian dollar and the Aussie dollar in equal amounts. (See the Super Dividend Payers list for symbols and how to buy).

Occasionally I find a good currency product that becomes available sporadically and I will put that out in this newsletter as they occur.

I don’t hold many regular stocks. I hold dividend payers and high payers at that. About 10 -20% of your assets should reside in these if you like stocks. I don’t recommend holding any stocks or funds for the most part that don’t pay at least 6 % annually or higher if I can get it, which I can. One fund in my Super Dividend Payers list pays close to 24 %.  That rate will double your money in under 3 years if they keep paying.

I hold some contrary BEAR funds that go UP if the market tanks as insurance against my dividend paying stocks in case of a market crash.

I hold some gold stocks, silver stocks and energy stocks to protect against inflation but most of those pay a dividend and are also on the Super Dividend Payers List.

I agree with being armed, having a garden, buying local, keeping a fixed rate mortgage for inflation hedge (yes, a mortgage can help you in an inflationary environment), reducing debt, and living within your means. I believe you should concentrate on making and saving as much money as you can during this temporary “stimulus “ bump. Things are about ready to head down again and income will be harder to come by soon. I also recommend not holding or buying any real estate other then your personal residence as real estate is about to enter another hard down phase which will grind values lower for years. I expect a market correction in the months to come and expect the FEDS to announce more “programs” and stimulus to try and keep the addict upright.

All my recommendations and analysis is meant to be understandable, straight forward, economically based with sound fundamentals to back up my material.

In conclusion, I hope this has helped you and again welcome our new subscribers.

Now check out the site, read some past newsletters, listen to some of the shows and get informed. I am available for questions by consulting or you can email me short market based questions. These newsletters go out when I have the time and see fit to do them. They usually come out a few times a week but summer is less often due to summer market complacency and my kids. These will increase in frequency if markets turn volatile as I want to keep you all informed and educated.

All for now,

Marc