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Zero Hour


  • pg 1
									        Zero Hour

Wednesday, October 15th, 2008
                 The Zero Hour
The point at which additional debt produces no
tangible additional contribution to the world.

      First proposed by Barry Banister from Legg Mason.
Zero Hour for the United States has arrived.
The zero hour has been reached, that’s why
      these bailouts aren’t working.
Where to put money in a zero hour situation?

     What are the risks to saved value?

     How to hedge against those risks?
The Knock On Effect
     Real Estate Risk,
   just look to the past.

Real Estate Value in Tokyo
   Equities Risk,
just look to the past.

    Nikkei 225
         Currency Risk,
       just look to the past

Argentine Peso Devaluation in 2001
              September 21, 1931

September 20, 1931: GBP v. USD = 4.85

September 21, 1931: GBP v. USD = 3.60

The United States was the largest creditor of
             Why is it a big deal?
If you had lent 100 GBP or 485 USD on Sept
20th, 1931.

The next day you’d have lost 125 USD.

That’s enough to break any bank! Even the
Bank of China.
So now that I’ve scared the begeebers out of
you, why are we here if the sky is falling

Because it’s becoming easier to make money
every day!
Here’s what I’m doing with my money:

3-12 months: Closing my short positions.
1-3 months: Move strongly into currencies.
         Using a Basket of Currencies
         Euro 3 month CD @ 1.4%
         N. Krone 3 month CD @ 3.3%
         Yen @ 0%.
              And coming soon:

Come in with cash rich positions and buy:
         Rental buildings
         Distressed companies
         Other assets normally bought on
Next moves for Coriolis?

Japanese Yen

Norwegian Krone?

Corporate Bond Issues?
               For the not so faint hearted:
            Creating a “Self Directed IRA”
Can use existing traditional IRA without tax penalties
Can contribute up to $5,000/yr, the same as to any other IRA
Can have direct involvement in investment decisions
Grows tax free until you withdraw gains during retirement

Initial cost of formation is between $3,300-4,000/IRA investor
Cost of $130/yr maintenance cost
Can not access the cash for personal use until age 59.5
        Zero Hour

Wednesday, October 15th, 2008

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