Q&A

I get a lot of questions on certain market issues, so I will try and answer a few of them.

Q: Are we in a Recession or Depression?

A: Depression - we entered into a depression in FEB

Q: What type of depression will this be - Inflationary or Deflationary?

A: We should see a brief period of hyper-inflation followed by real deflation not asset deflation what your witnessing now.

Q: What is the current unemployment rate?

A: Officially around 9 % and unofficially(Pre-Clinton Formula) around 20%.

Q: Where is the DOW headed?

A: My best estimate would around the 3,800 to 5,200.

Q: What should I invest in to protect myself from the tidal wave of inflation?

A: Gold, Silver, Mining Companies, and related shares.

Q: Are there any green shoots of economic recovery?

A: No

Q: Will there be a Stimulus II package?

A: Yes

Q: Will things get much worse?

A: Yes

Q: Are we going to have a currency crisis with the U.S. Dollar?

A: Yes

Q: I don't have a lot money. What can I invest in?

A: Go to your local coin store and buy "junk silver coins" or Eagles, Maples, and Philharmonic coins. Don't buy a lot at one time. Slowly accumalate. You shouldn't be paying over 20.00 for

one ounce of silver.

Q: What is the projected price of gold in the next 12 months?

A: 1,200 to 1,500 an ounce and within the next three the price will be over 2,000 conservatively.

Q: What about silver?

A: 25 is the intial target and within the next three years a conservative target would be 40 to 60.

Q: Will gas and oil prices rise?

A: Yes, they're traded and priced in dollars. The dollar index is at 79ish. The dollar should

retest the 71 low and easily break through and head towards 50.

Q: Where are we at in this whole process?

A: We are currently in the "eye" of the storm.

Q: If we're in the "eye" of the storm, when will the storm resume?

A: September to November

Q: Are you always this negative or pessimistic?

A: Trick question. Look at the numbers for yourself. It seems everyone is

sitting on their hands waiting for the proverbial next shoe to drop. My question

is why is everyone sitting and waiting. Be proactive. I think one reason why people

are sitting around waiting is because the mass news media is giving terrible advice and

trying to be overly optimistic. The average American knows this is a catostrophe waiting

to happen, but they're in a state of denial or shock and refuse to do anything about it.

Q: What is the next crisis?

A: Derivatives, Mortgages (ARMs/ALT A), Commericial Real Estate, and a Dollar devaluation.