different colored lipstick: same pig
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Different Colored Lipstick: Same Pig. Chuck Butler, President EverBank World Markets. For the legal beagles. Please remember: - PowerPoint PPT PresentationTRANSCRIPT
©EverBank® 2009.1
Different Colored Lipstick: Same Pig
Chuck Butler,President
EverBank World Markets
©EverBank® 2009.2
Please remember:• All comments and opinions are solely those of the speaker and are
not in any way comments or opinions of EverBank or any affiliates. Additional information is available upon request.
• Information in this presentation has been obtained from sources believed to be reliable, but the accuracy, completeness and interpretation are not guaranteed and have not been independently verified. Opinions expressed are subject to change without notice and, due to the rapidly changing nature of currency markets, may quickly become outdated.
• The opinions and information presented do not constitute a solicitation for the purchase or sale of any securities or options on securities. The speaker or EverBank may hold positions from time to time in assets discussed during this presentation.
• Past performance is not representative of future performance.
For the legal beagles
©EverBank® 2009.3
• 35 years experience trading foreign currency, metals, and bonds
• EverBank World Markets- over $1B in metals and foreign currency assets
• Author:The Daily Pfennig: www.dailypfennig.comCurrency Capitalist: www.worldcurrencywatch.com
Why listen to anything I say?
Chuck ButlerPresidentEverBank World Markets
Quoted on:
©EverBank® 2009.4
“It's obvious to me that Barack Obama is following precisely in the footsteps of FDR. One item that Time magazine left out of their special issue is that through a series of gold-related actions, which culminated in the Gold Reserve Act of 1934, the US realized a dollar devaluation of 41%, when the government officially raised the price of gold from $20.67 to $35 an ounce.”
Richard Russell’s Thoughts
©EverBank® 2009.5
“On the economics, Obama can't pull off an official devaluation of the dollar, but by spending trillions of dollars in his plan to defeat the bear market recession, he is de factor devaluing the dollar against other leading world currencies.”
Richard Russell’s Thoughts
©EverBank® 2009.6
Different colors of lipstick
©EverBank® 2009.7
National Debt
YOUR share of the national debt
©EverBank® 2009.8
Baby Boomers and Social Security
% of income tax revenue• 2008- 14%• 2020- 27%
and so on and so on
CBO estimates to balance spending (tax rates)• 10% = 26%• 25% = 66%• 35% = 92%
Since 1970, social security and Medicare spending has outpaced GDP by 2.5%
©EverBank® 2009.9
Alice Rivlin
The long term budget outlook: Impending Catastrophe
©EverBank® 2009.10
"No one needs to remind this Committee that the outlook for the federal budget is worrisome indeed, scary. Long before the financial crisis and the current deep recession, this Committee was anxiously pointing out that current federal spending and revenue policies are on a risky, unsustainable course. Promises made under the major entitlement programs (especially Medicare and Medicaid) will increase federal spending rapidly over the next couple of decades, as the population ages and medical spending continues to rise faster than other spending. Federal expenditures are projected to grow substantially faster than revenues, opening widening deficit gaps that cannot not be financed."
This is an Impending Catastrophe!
Alice Rivlin’s Thoughts
©EverBank® 2009.11
Start withSurplusMove to DeficitCrisisBail OutsLess tax/More support
This little piggy…..
1999 - Forecast for 2009$850MM surplus
Surplus
Deficit
$1.2 trillion
2000 – 2001 downtown –$291 billion2000 – 2008 Bush domestic plusIraq / Homeland$673 billion2007 – 2008 recession$479 billion
2008 Bail Outs$185 billion (and counting)2008 Other continuing$232 billion2009 Year One Obama$201 billion
©EverBank® 2009.12
This little piggy…..
ObamaCongressU.S.
TaxpayerBig
Government
©EverBank® 2009.13
How to Prepare
‘Old School’ Asset Allocation
Source: Franklin Templeton online
‘Global View’ Asset Allocation
©EverBank® 2009.14
Marketsafe BRIC CD
• BRIC countriesBrazilian RealRussian RubleIndian RupeeChinese Renminbi
• Benefits:• 100% principle protected- Unlimited upside/NO downside• Low minimum deposit• No account fees
• Deadline- August 18th (cash has to be in the bank)
©EverBank® 2009.15
Indicators of a bad economy
12. CEO's are now playing miniature golf. 13. I got a pre-declined credit card in the mail. 14. I went to buy a toaster oven and they gave me a bank. 15. Hotwheels and Matchbox car companies are now trading higher than GM in the
stock market. 16. Obama met with small businesses - GE, Pfizer, Chrysler, Citigroup & GM, to
discuss the Stimulus Package. 17. McDonalds is selling the 1/4 ouncer. 6. People in Beverly Hills fired their nannies and are learning their children's
names. 5. The most highly-paid job is now jury duty. 6. People in Africa are donating money to Americans. Mothers in Ethiopia are
telling their kids, “Finish your plate; do you know how many kids are starving in America ?"
7. Motel 6 won't leave the lights on. 2. The Mafia is laying off judges. And the top indicator: 1. If the bank returns your check marked as "insufficient funds," you have to call
them and ask if they meant you or them.