Dear CIGAs,

Here are the answers to the many communications today:

1. The economy is not improving, but is in reality bouncing along the lows. The only improvement is in Management of Perspective Economics.

2. That bottom bouncing is disappointing when you consider the degree of monetary and now fiscal stimulation that has been entered in to.

3. If interest rates rise here the lows will become an economic breakdown.

4.Commercial loans and residual OTC derivatives threaten up to 1000 banks according to certain establishment analysts.

5. When interest rates do rise (which they will) it will be a currency event impacting the long end then pulling at the near.

6. From 1968-1980 overnight money rose from 3% to 21%. The yield on 10 year money went to 14 7/8%. In the same period with rising interest rates gold rose to $835.

7. The GLIB assumption that rising interest rates means lower gold is world class because it fails to consider many items before coming to that conclusion. Short rates must rise at a percentage greater than expected inflation in the same period. Jump to any conclusion before we see where the economy is, and what the position of the US dollar is results in amateurish nonsense.

8. My suggestion that at a point one removes their capital from any investment, even gold, brought in howling bulls berating me. Doing capital recall is axiomatic for professionals and the reason why we last decades.

9. The gold price is the dollar value in the inverse. Right now that is enough to know.

10. Hyperinflation is a currency event based on a loss of confidence in the currency in question. Those that scream deflation never read economic history and have no knowledge of economics. Basically they are foolish shallow people making fools of themselves in public.

11. Dubai must threaten default, or you will never reach an agreement with creditors.

Hold on to this knowledge. Think about it. Don’t pick up the phone because I am on your speed dial or ram out an email because you disagree with me.

Everything you need and every question asked is here on JSMineset, usually multiple times from many different angles.

JSMineset is probably the largest book ever written on economics, currencies and markets in general. Please use it.

If you read this site only occasionally then you are missing the entire point. It is like attending class occasionally then calling the professor because you do not understand the lesson given last week when you were not there.

Please don’t send me articles that were on JSMineset in the last two days asking questions about it.