PRIVATE CLIENT LETTER
This letter is intended only for accredited investors who are clients of either Blackburne & Brown or C-Loans, Inc. You signed up for this letter with Blackburne & Brown or by using C-Loans.com. Removal instructions are below. Today we'll discuss the Sushi Slump, the Fed's 's terror of deflation, and how the Fed is prepared to destroy the dollar, and our economy, in order to avoid it.
Joke
Du Jour
In the men's room at work, the boss placed a sign directly above the sink. It had a single word on it, "THINK!" The next day, when he went to the men's room, he looked at the sign and right below it, immediately above the soap dispenser, someone had carefully lettered another sign which read, "THOAP!"
The Sushi Slump
Japan has been in a deflationary "recession" for 18 years now. The prolonged Japanese slump stems from an ongoing credit crunch caused by the massive losses in real estate loans suffered by Japanese banks in the late 1980's. Many financial authors now refer to this almost endless economic malaise as the Sushi Slump.
Speeding Joke
My mother has a "lead foot", so I was not surprised when a state trooper pulled us over as we were speeding through Georgia. Hoping to get off with a warning, Mom tried to appear shocked when the trooper walked up to the car. "I have never been stopped like this before," she said to the officer. "What do they usually do, ma'am," he asked, "shoot the tires out?"
Bernanke and the Fed Are Terrified
If you think that deflation cannot happen here - if you think the Fed can always just drop money from a helicopter - you really need to read my new book, The Reverse Multiplier Effect.
Money supply growth here in the United States depends on the willingness and ability of our banks to lend. If the banks are too terrified to lend, or if their capital positions are too impaired to lend, the Fed could lower rates to 1% and our money supply would still contract. If you don't absolutely understand that, you really-really need to order my book.
The Fed therefore desperately needs to prop up home values in order to save our banks; otherwise the losses on home loans and credit cards will force our banks to stop lending.
By lowering interest rates the Fed hopes to lower the cost of funds to the banks and to allow them to make larger profits, which they can use to rebuild their capital base. Lower rates will also ease the debt burdens on the American public, hopefully resulting in fewer foreclosures, fewer bankruptcies, and fewer losses for the banks.
The problem is that these lower rates are destroying the value of the dollar. You need desperately need new investment strategies in order to safeguard your life's savings. Buying and holding most stocks right now is extremely dangerous. You need investments that will benefit from a falling dollar and lower interest rates. I recommend long term U.S. Treasuries, gold, and corn farm investments.
Bribe Joke
Taking his seat in his chambers, the judge faced the opposing lawyers. "So," he said, "I have been presented, by both of you, with a bribe." Both lawyers squirmed uncomfortably. "You, attorney Paulson, gave me $15,000. And you, attorney Hendren, gave me $10,000." The judge reached into his pocket and pulled out a check. He handed it to Paulson. "Now then, I'm returning $5,000, and we're going to decide this case solely on its merits!"
Corn Prices Are Soaring
Last week the government released some planting statistics that revealed that because of droughts in certain parts of the country farmers were unable to plant more grains this year than last year. Grain prices soared.
Wheat screamed upwards. Soybeans were up the limit in a single day - 50 cents per bushel. Corn prices were also up the limit for a single day - 20 cents - and the next day they were up another 18 cents. At one point this week corn for July 2008 delivery was selling for $5.37 per bushel.
Those of you who invested in our corn farm deals last year should be beaming from ear-to-ear. For more on corn farm investments, please click here.
You may want to call Warren More in our office at 800-606-3232 and get on our waiting list for the next deal. You can also email Warren at wmore@blackburne.com.
Elementary School Joke
Little Johnny comes home from his first day at school.. His Mother asks, "Well, what did you learn today?" Little Johnny replies, "Not enough. They want me to come back tomorrow."
Gold in a Deflation?
Gold is in an impressive bull market right now. It traded at over $900 per ounce earlier this week. How can gold go up in a deflation?
It has to do with the dollar. In order to save the banks, the Fed has no choice but to lower interest rates here in the United States. This makes holding dollars far less attractive, and the value of the dollar has been falling almost weekly.
Gold, if priced in dollars, does not lose its value. It therefore takes more dollars to buy the same ounce of gold, and the price increases.
But there is another reason to hold gold when banks, corporations, and borrowers are defaulting on their obligations. Physical gold held in your own hands cannot default.
25th Anniversary
My lovely bride, Cisca, and I just celebrated our 25th wedding anniversary. And we met through the video dating club, Great Expectations! Every few years I send the club a thank you note ... but Cisca threatens to sue them for malpractice.
Trust Deed Investments
For information about investing in 9% to 11% first trust deeds, please click here.
Interesting Police Story
This is the "true story" of George Phillips of Meridian, Mississippi, who was going to bed when his wife told him that he'd left the light on in the shed. George opened the door to go turn off the light but saw that there were people in his shed in the process of stealing things.
He immediately phoned the police, who asked, "Is someone in your house?" and George said no and explained the situation. Then they explained that all patrols were busy, and that he should simply lock his door and an officer would be there when available.
George said, "Okay," hung up, counted to 30, and phoned the police again. "Hello, I just called you a few seconds ago because there were people in my shed. Well, you don't have to worry about them now because I've just shot them all." Then he hung up.
Within five minutes three squad cars, an Armed Response unit, and an ambulance showed up. Of course, the police caught the burglars red-handed. One of the policemen said to George, "I thought you said that you'd shot them!" George replied, "I thought you said there was nobody available!"
Need a Commercial Loan?
Blackburne & Brown is now making hard money commercial loans and land loans as low as 9.9% and zero points for 15 years. Call Alicia Gandy at 916-338-3232.
Longest Sentence Joke
What is the longest sentence in the English language? I do.
Are You Bankable? Need a Commercial Loan?
C-Loans is a commercial mortgage portal, where 750 different banks, conduits, REIT's and hard money lenders accept commercial loan applications from borrowers and mortgage brokers. The user just fills in a single mini-app, and the same mini-app is accepted by every lender. You can sort through hundreds of commercial lenders in seconds, and C-Loans.com is free!
Hillbilly Pick-Up Line
Hey, Baby, nice tooth!
My New Book Could Save Your Retirement
My new book, The Reverse Multiplier Effect - When Crushing Deflation Destroys America, is a financial thriller that explains the dangers and significant chance of deflation.
Once you've read this book, you'll understand why the Fed simply must err on the side of allowing too much inflation. A deflationary collapse, as you will see, would be horrific.
The book will allow you to view our turbulent financial world with a totally new understanding. The book is like a roadmap through the scary future, where your investments and perhaps even your own life may be in significant danger.
Please click here to order my book. And c'mon, this is George here. You just know the book is gonna be fun.
Attorney Joke
Two physicians board a flight out of Seattle. One sits in the window seat, the other in the middle seat. Just before take-off, an attorney sits in the seat by the aisle. The lawyer kicks off his shoes, wiggle his toes, and starts to settle in, when the physician in the window seat says, "I think I'll get up and get a coke." "No problem," says the attorney, "I'm by the aisle. I'll get it for you." While he's gone, one of the physicians picks up the attorney's shoe and spits in it. When he returns with the coke, the other physician says, "That looks good, I think I'll have one too." Again, the attorney obligingly fetches the drink. While he's gone, the other physician picks up the other shoe and spits in it. The lawyer comes back and they all sit back and enjoy the flight. As the plane is landing, however, the attorney slips his feet into his shoes and realizes immediately what has happened. "How long must this go on?" he asks the physicians. "This fighting between our professions? This hatred? This animosity? This spitting in shoes and peeing in cokes?"
|
