May Reading

What is the Best Dividend Paying Exchange Traded Fund (ETF) for Income?

U.S. Borrows 53.7 Cents Of Every Dollar Spent In March

Dow-Gold Ratio Continues Climb As 'Civilized' Investors Buy Equities

ECRI Has Mixed WLI Readings As Economic Growth Worsens  

New 2.2% Tax-Deferred Rate For Low-Risk Series I Bonds

ECRI's WLI Moves Higher; Q1 GDP Positive Due To Deficit Spending 

 Long Term Results that Speak for Themselves
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vs. the S&P500 UP only 51% vs. NASDAQ UP only 57% (All through 12/31/11) 
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Q1 2012 Update:  Up 11.3% YTD  as of 3/31/12
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All Growth Due to Borrowing

Excerpt from my next newsletter that I am working on this morning:

On May 31, the Bureau of Economic Analysis said their second estimate of Q1-2012 GDP (Gross Domestic Product adjusted for inflation) growth increased at an annual rate of 1.9%. This was a downward revision of 0.3% from April's estimate of 2.2%.  The estimates for prior quarters were unchanged.  

The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, residential fixed investment, private inventory investment, and nonresidential fixed investment that were partly offset by negative contributions from federal government spending and state and local government spending.  Imports, which are a subtraction in the calculation of GDP, increased.

-------- Original Message --------

Subject:	A Good Comment
Date:	Thu, 31 May 2012 07:30:57 -0700
From:	Jas Jain

A Good Comment

"An illusion of growth has been created by spending borrowed money. Even that's not enough any more."

http://www.guardian.co.uk/commentisfree/2012/may/30/eurozone-crisis-spain-debt

Borrow-and-spend is road to ruin and not a recipe for the future growth as dishonest economists in America would have you believe. All growth in the US since late 1997 has been due to borrow-and-spend, first by the households and now by the federal govt.

The US can only postpone the deflationary depression for so long because the cost keeps going up exponentially. India, first, and then America would plunge the world into a Greater Depression that would be acknowledged by all, including the dishonest economists in America led by Bernanke and Krugman. The blame, of course, would be placed on Europe, Germany in particular. America and India are in a worse shape than the Euro-zone as a whole.

Jas

See my articles:

Despite First Budget Surplus Since 2008, U.S. Still Borrows 34 Cents Of Every Dollar Spent
and
ECRI's Weekly Leading Index Makes A 19 Week Low

Miracle of the Long-Term US Treasury STRIPS

-------- Original Message --------

Subject:	Miracle of the Long-Term US Treasury STRIPS
Date:	Tue, 29 May 2012 18:33:22 -0700
From:	Jas Jain <jas_jain

Miracle of the Long-Term US Treasury STRIPS

Here are the ones that my son and I have had in our IRA accounts with the prices on 02/11/11 and on 05/29/12 with gains:

Maturity Date	Closing Price
	02/10/11	05/29/12	Gain
2024 Nov 15	53.21	75.50	41.9%
2025 Feb 15	52.34	74.77	42.9%
2028 Feb 15	43.26	67.04	55.0%
2029 Feb 15	40.91	64.73	58.2%
2036 Nov 15	27.03	48.53	79.6%

For the past eighteen months I have recommended the one maturing on 11/2036 and it is up almost 80% since the medium-term low on 02/11/11! Before that I had recommended those maturing between 11/2024 and 02/2029 depending upon the relative value. I have been very lucky in picking the best ones at any given time. The biggest beneficiaries are my son and few people who worked at the same firm as he did. The Long-Term US Treasury STRIPS have been the biggest secret kept from the investing American public. One wonders why?

Jas

Kirk Here:  Strips are like leveraged bets on interest rates so if rates go up, the gains can vanish just as quickly as they came.  If you hold them to maturity, you know exactly what you will get so volatility along the way is adjustments to the time value of money.   See US Treasuries (US Treasury Rates at a Glance)

FIVE Markets Pointing to the Deflationary Outcome As a Result of the Current Problems

• Gold (Charts and Quotes for: Gold & GLD)
• Scam Market (Major World Market Graphs At A Glance)
• US Treasuries (US Treasury Rates at a Glance)

-------- Original Message --------

Subject:	FIVE Markets Pointing to the Deflationary Outcome As a Result of the Current Problems
Date:	Wed, 23 May 2012 15:24:36 -0700
From:	Jas Jain

FIVE Markets Pointing to the Deflationary Outcome As a Result of the Current Problems

1. Commodities
2. Gold (Charts and Quotes for: Gold & GLD)
3. Scam Market (Major World Market Graphs At A Glance)
4. US Dollar
5. US Treasuries (US Treasury Rates at a Glance)

High volatility in all the above markets suggests that we should get further confirmation, or the opposite, of which way things are going to get resolved. Greece is done, one way or another. Things to watch over the next 3-4 months:

• Chinese slowdown
• European recession
• Spain and Italy after Greece is out of the way
• US slowdown – Q2 GDP and Q3 data releases
• US Supreme Court decision on Obama-care

…

In less than 6 months the US election, together with the above, should seal the deal as to which way things are likely to head.

Jas

-x-x-x-x-x-x-

May 14, 2012

Three Markets Pointing to the Deflationary Outcome As a Result of the Current Problems

The commodities mkt, the Scam Market, and the US Treasury mkt. Needless to point out that the smartest of these markets is the Treasury bond mkt. Lots of dopes and dope dealers crowd the Scam Market and the commodities mkt.

Jas

• Gold (Charts and Quotes for: Gold & GLD)
• Scam Market (Major World Market Graphs At A Glance)
• US Treasuries (US Treasury Rates at a Glance)

 

Jas Jain Promise to Apologize in Print if Wrong

-------- Original Message --------

Subject:	FWC: Liquidation Syndrome by John P. Hussman, Ph.D.
Date:	Tue, 22 May 2012 07:59:00 -0700
From:	Jas Jain

FWC: Liquidation Syndrome by John P. Hussman, Ph.D.

(my Emphasis)

"Will the Federal Reserve come in with QE3 in an attempt to prop up the market? Maybe. It doesn't matter to Bernanke that the Fed's interventions are reckless, promote speculation, distort resources, punish savers, produce only temporary economic effects, and will be nearly impossible to unwind. But the Fed will undoubtedly feel compelled to "do something." Apart from dollar swap lines (which the Fed is likely to reopen to Europe in efforts to reduce banking strains there), more QE is all the Fed can hope to offer. Let's face it - when your only tool is a hammer, all the world looks like a nail."

May 21, 2012 http://www.hussmanfunds.com/wmc/wmc120521.htm

Whose interests is Bernanke serving? And why was Bernanke put on Federal Reserve in the first place?? These are questions that an American is not trained to ask. Bernanke has been bad news for honest hardworking Americans from day one. Crooks were busy creating conditions that always lead to depressions and they needed Bernanke to mop up the mess so that they are bailed out and the bill is forced on the taxpayers. In reality, Crooks never pay taxes because they write their own "paychecks" and they can bump up their loot so that all the taxes are paid from ill-gotten incomes.

Bernanke is there to baby-sit the System of the Crooks, by the Crooks, and for the Crooks. Expert on Great Depression, my ass. We already have an economy whose performance for the past 12 years has been worse than any 12-year period during the Great Depression. Bernanke is only an expert on Crooks' version of the Great Depression and helping Crooks profit from the Greater Depression we are already in.

What can Americans do about Bernanke? They vote for GW Bush and they get Bernanke. They vote for Obama and they get Bernanke. Heck, even if Romney wins Americans would have to suffer more of Ben Bernanke. What a system!

Jas
PS: I have a perfect record on Bernanke. If Bernanke can successfully avoid a technical depression I would take a full page ad in a major newspaper and apologize.

Kirk here.  Hey Jas, what is the deadline for this promise?  I have no doubt your premise the system is rigged for insiders... I use this fact to my advantage to make money here.   No fair delaying ANOTHER 10 years... like your Bear Market Model prediction 10 years ago for the NASDAQ to fall below 250:  =>Bear Market Model
How about a one or two year deadline or you buy the ad? 

OECD: India Should Cut Fiscal Deficit to Support the Monetary Policy

How To get your:
FREE Annual Credit Reports Online, by Mail or by Phone

-------- Original Message --------

Subject:	OECD: India Should Cut Fiscal Deficit to Support the Monetary Policy
Date:	Tue, 22 May 2012 02:22:12 -0700
From:	Jas Jain

OECD: India Should Cut Fiscal Deficit to Support the Monetary Policy

How come OECD is not giving the same advice to the US? Well, the US is the big dada, or the goonda boss, engaged in dadagiri. The same dadagiri that the "Russian" mafia engages in Goa, India, is done at the federal level in America by debt pushers in-charge of both the fiscal and monetary policies. The American big dada has the big dalla, the reserve currency. Abuse of a privilege results in losing the privilege some day. And that day might come sooner than people are prepared for.

INR hit new lows and there is lot more to go, because RBI simply does not have much firepower. besides, INR is overvalued relative to the USD as are many other currencies. Debtors can't be choosers unless one is the big American dada. People simply don't grasp the shaky foundations of the Indian economy; it wouldn't take much troubles in the global economy for the Indian economy to collapse.

Rich countries can get away with borrow-and-spend longer than poor countries. India, the UK and the US are on a bad path and would not be able to avoid severe depressions. There are bad and corrupt leaders in India, but nothing like those in America where we have legalized fraud and Facebook (FB) is the latest example. BTW, how many people in India understand what causes depressions in an American-style capitalism? Heck, how many Americans understand it? It is the debt, stupid! (The stock market is a substitute debt market).

Ja

A Record Low!  10-Year Treasury Bond Yield History From 1900 to May 2012

Facebook Inc Charts and Quote

FWC: Rupee falls to all-time low, but FM says no need to panic

May 16  What is the Best Dividend Paying Exchange Traded Fund (ETF) for Income?

-------- Original Message --------

Subject:	FWC: Rupee falls to all-time low, but FM says no need to panic
Date:	Wed, 16 May 2012 10:42:09 -0700
From:	Jas Jain

FWC: Rupee falls to all-time low, but FM says no need to panic

RBI is intervening to keep the rupee (INR) from falling. India is not Switzerland and rupee is no Swissie. SNB intervened because Swissie was grossly overvalued and bringing it down became a necessity for the economy. INR is overvalued and needs to fall. Once the global depression begins (could happen at any time without much advance notice) the foreign capital that is leaving leisurely now would flee like a herd getting out of a narrow gate and trampling one another. Only stupid people would keep their capital in INR. Indian govt's ability to manage the economy during the depression is next-to-nil. Crooks would manage their own interests with hired goondas while the govt looks the other way and politicians blaming one another. Bhagavan pe bhrosa hai. What a system!

Jas

-x-x-x-x-x-x-x-x-x-x-x-

http://www.yourmoneysite.com/news/2012/may/rupee-falls-to-all-time-low-but-fm-says-no-need-to-panic.html

Rupee falls to all-time low, but FM says no need to panic

The currency is back in focus with the rupee falling to new lows on increased capital outflows amid strong demand for the greenback.

Surrendering to the sharp risk aversion hitting global markets, in addition with country's fiscal and economic outlooks, the Indian rupee today fell to a record low against the dollar.

On Wednesday, the rupee fell to an all-time low of 54.46 per dollar. However, the finance minister said that there is no need for panic, as the rupee could be under pressure but RBI is keeping a close watch on the currency.

On Monday, it was assumed that the Reserve Bank of India had defended rupee at the 53.90 level, and there were hopes that the central bank would intervene at the 54 per dollar level. However, RBI Deputy Governor said that the Reserve Bank of India does not intervene to protect any level of the rupee.

He clarified that the central bank intervenes in forex market only to contain volatility. "The regulator will act to stop speculation in forex markets."

Speaking to Bloomberg UTV, sources said that the central bank may sell dollars directly to oil companies. They further said that special market operations (SMO) window will be opened which might probably be announced this week. "Could keep SMO window open for 2-3 weeks," they added.

SMO is special market operations to supply dollars. Way back in 2008, RBI had temporarily opened a special window.

Treasury Rates at a Glance

May 11 AAII Sentiment Survey Data and Chart

Dollar Projections & US Currency Manipulation

-------- Original Message --------

Subject:	Addendum-- US Currency Manipulation…
Date:	Wed, 9 May 2012 11:27:28 -0700
From:	Jas Jain

Addendum-- US Currency Manipulation…

I forgot to add that just as the dollar came crashing down after the artificial strong dollar policy, it would shoot back up from the artificial weak dollar policy once something triggers the global meltdown in the financial markets. It must be obvious by now that morons like Jim Rogers and Peter Schiff, both born-and-bred American dopes whose corrective mechanism have been disabled, don't know chit about currencies and Treasury bonds.

DXY above 100 and USD more than 100 INR within the next three years is a sure bet.

Jas

-x-x-x-x-x-x-x-x-x-

US Currency Manipulation and Its Victims During the Reagan (Now Kudlow) Strong Dollar Policy

Attached Chart of the dollar index (DXY) is from an external source and the comments on the chart are not mine.

Two groups that were hurt the most during the Reagan-Baker strong dollar (King Dollar) policy of mid-1980s were farmers and manufacturing. The reasons should be obvious as to why. The biggest beneficiary of the Reagan policy was S. Korea, though Japan also benefited handsomely. China also got its start at the same time. Amazingly, the bicoastal economies did very well under Reagan, but the coastal states are still primarily Democratic.

Under the Bernanke-Obama weak dollar policy the two groups are doing very well, but the long-term damage to manufacturing done under Reagan can't be repaired unless overall wages fall something like 20-40% from the current levels.

The US has been as much of a currency manipulator as any, but one can count on dishonest born-and-bred American dopes to always blame others. All economic manipulations are bad long-term. Consistent long-term policies are the best.

Jas

May 8 Dow-Gold Ratio Continues Climb As 'Civilized' Investors Buy Equities
May 7 ECRI Has Mixed WLI Readings As Economic Growth Worsens

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Peter Schiff, Marc Faber & Jim Rogers on Bond Bubble vs Jas Jain

U.S. Borrows 53.7 Cents Of Every Dollar Spent In March

-------- Original Message --------

Subject:	Peter Schiff on Bond Bubble, Again
Date:	Tue, 1 May 2012 16:39:05 -0700
From:	Jas Jain

Peter Schiff on Bond Bubble, Again

This born-and-bred American dope, and a financial dope dealer, has been talking about hyper-inflation and bond bubble for a very long time, e.g., Schiff: Bond Bubble Going To Burst Published: January 11th, 2009. He was on CNBC-World this afternoon bombasting about the imminent bursting of the Bond Bubble. Another financial dope dealer on this subject is Martin Weiss, but I stopped following his propaganda couple of years ago after determining that the guy is peddling worthless advice to unsuspecting dopes.

Another certifiable moron on the subject, Marc Faber, has been trashing the long-term US Treasury bonds for some 7-8 years. Not to be outdone, born-and-bred American dope Jim Rogers, a supposed investment guru, had shorted US Treasury bonds several times over the past ten years and has gotten burned. How come these morons never figure out that they simply don't understand the fundamentals of the US economy? Rogers also asked people to buy sugar for the past couple of years because "as the world prospers it consumes more sugar"! Hey, moron, Indians eat more sugar per capita than Americans. The very fact that these morons have followers around the world tells you the role propaganda plays in the investment world. Dopes love to be duped!

The 30.5-year-old bull market in the US Treasury bonds in alive and kicking. Only dopes would get in its way. Dope Jim Rogers has been trampled upon, but he is too stupid to learn his lessons or too proud to admit that he is clueless.

Being too proud to admit one's lack of knowledge about economics and politics is a defining characteristic of all born-and-bred American dopes. The dope knows the truth! Rush Limbaugh is among the biggest offenders.

It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so.
-- Mark Twain

My record on the US Treasury bonds, among the best in the world, speaks for itself.
Jas


ECRI's WLI Moves Higher; Q1 GDP Positive Due To Deficit Spending