Gold RISES

... against Fiat Abuse!

“Facts do not cease to exist because they are ignored.”

~ Aldous Huxley

“It's never too late to buy gold and silver, to be held

until the end of the fiat money era.”

~ James Dines

Louis Boulanger, CFA

Founder and Director, LB Now Ltd

BMG Bullion Bars Authorized Dealer

Presentation at The Gold Symposium 2011

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FACTS:

1. All Currencies Are Being Debased (to ZERO?)

2. Gold Ownership Offers Protection from this

Ongoing Insane Fiat Abuse and Delusion...

• Whether it‟s Deflation or Inflation or Both

• Until the End of our Unsound Money Era

• Until the End of Irredeemable Currencies

Fiat currencies

What makes a currency a „fiat‟ currency?

when it has value only because of government

regulation or law (i.e. legal tender laws)

What‟s „legal tender‟?

an offered payment that, by law, cannot

be refused in settlement of a debt

Example of fiat currency?

Federal Reserve Note (also known as US dollar or $)

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Money

What is „money‟?

anything that is generally accepted as payment

for goods and repayment of debts

Why was money once based on gold?

because of human action and human nature

(read Carl Menger‟s “On the Origins of Money”)

Why is gold now outside the monetary system?

because we have been misled and deceived!

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“Up until August 15, 1971, there has never in

history been an era when no paper currency

was linked to Gold.

In all other eras of history, people could always

escape to other currencies, whose Gold

backing remained intact.

But, since 1971, there is NO escape because

NO paper currency has any link to Gold.”

“The global paper currency system is very

young. It depends for its continued functioning

on the BELIEF that the debt upon which it is

based will, someday, be repaid.”

- William A. M. Buckler

Publisher of The Privateer

www.the-privateer.com

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Gold‟s essential role

Society needs to relearn that:

1. Gold is Money and Nothing Else a. It‟s what turns fiat money into sound money

b. Fiat only money has no discipline or measure

2. Gold offers a reliable standard of value a. Its characteristics make it ideal for such a role

b. Currencies‟ should be defined in gold terms

Armed with this knowledge…

You can protect wealth from fiat abuse!

Here‟s the problem

Without the ability to redeem any currency on

demand in gold at defined weights, as a result,

today‟s currencies are only as good as:

the ability of the issuing state to pay its debts

AND/OR

the belief that holders of financial assets have

that the value of currencies (in which all such

assets are denominated) will be maintained

It’s all a confidence game! (with central bankers as croupiers)

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How good is the magic trick?

A good magic trick consists of three stages :

The Pledge

The Turn, and...

The Prestige

We‟ve seen the Pledge (fiat paper promises)

The Turn (turning gold into fiat paper money)

Will there be a Prestige? (turn paper into gold)

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The ongoing mind game

There is an expectation that our leaders

will know what to do when the time comes

Our leaders encourage us to have this belief

We end up expecting miracles from them…

Soon, we find ourselves no longer able to

see our own folly/insanity/false beliefs/delusion

Is our confidence/delusion going to last?

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US debt (i.e. US$) is the key!

Since 1961 the US national debt has never gone down

It took the US government 191 years – from 1791 until

1982 – to run up its first US$1 trillion in debt

The national debt stood at US$10.6 trillion on the day

Barack Obama took office as President

Obama has already added more than US$4 trillion to

that debt (it now already stands at US$14.99 trillion!)

US debt „ceiling‟ increased in August 2011 (93rd time!)

by… US$2.4 trillion (0.4/0.5/1.5) to US$16.7 trillion

Will it be enough to last until 2012 Presidential elections?

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Make that $48,000 now… and STILL growing!

THAT‟S MORE THAN IN GREECE!! ($36,000)

The tragedy in human terms…

Are you (honestly) confident…

…that the US federal government will one day

start paying back (i.e. settle) its debt?

…that the US federal government will continue

to be able to service its debt forever?

…that the US won‟t default on its external debt?

Or… is it that you expect/‟hope‟ the Fed (central

bankers) will keep inflating the problem away…

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Source: Bud Conrad, Chief Economist, Casey Research, October 2010

Consider this:

How long do you expect „it‟ to last?

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There is a lot more of it now…

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No matter how it‟s „measured‟

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It‟s the banking system stupid!

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What the hell?!!...

“There must be some

kind of way out of here,”

said the joker to the thief.

(Bob Dylan)

There is too much confusion...

This is not a coincidence

This is what the monetary elite want

They wanted you to think it was a credit crisis

They now say it‟s a European debt crisis

The above are just symptoms/manifestations of…

The Global Monetary Crisis now unfolding

was it all planned? what‟s the „end game‟??

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The true nature of the problem

What passes for „money‟ today is just debt!

‘Money’ no longer has a reliable MEASURE

You can‟t solve a problem with more of the same the problem (debt) can‟t also be the solution!

A fiat only monetary system perpetuates debt it‟s a financial bubble making machine!

TO RESTORE CONFIDENCE: Currencies should again be redeemable in gold

AND

trade deficits should again be SETTLED in gold

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Source: Hugo Salinas Price presentation at GATA‟s Gold Rush 2011 conference in London

This is where

the bubble is!

So how do you protect yourself?

SIMPLE: Don‟t invest all your assets

DEFER investing some of your money…

SELL some investments (financial assets)

EXCHANGE the proceeds for some bullion!

Take some of your money ‘OFF THE TABLE’

instead of investing 100% invest only (100-X)%

„X‟ (bullion) depends on what you BELIEVE in:

central banking?… or settlement of debts?

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FACT: all currencies are dying…

Currency debasement is not new

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-100.00%

-80.00%

-60.00%

-40.00%

-20.00%

0.00%

20.00%

1833-49*

1867 1885 1903 1921 1939 1957 1975 1993 2011

US Dollar Purchasing Power Valued Against Gold

1833-Q3 2011

Source: NMA.org, PacificExchange. ©2011 Bullion Management Group Inc.

This is just the latest chapter…

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Gold 'Price' Annual Change 2001-2011

USD AUD CAD CNY EUR INR JPY NZD CHF GBP Average

2001 2.5% 11.3% 8.8% 2.5% 8.1% 5.8% 17.4% 8.6% 5.0% 5.4% 7.5%

2002 24.7% 13.5% 23.7% 24.8% 5.9% 24.0% 13.0% -1.1% 3.9% 12.7% 14.5%

2003 19.6% -10.5% -2.2% 19.5% -0.5% 13.5% 7.9% -4.5% 7.0% 7.9% 5.8%

2004 5.2% 1.4% -2.0% 5.2% -2.1% 0.0% 0.9% -4.0% -3.0% -2.0% 0.0%

2005 18.2% 25.6% 14.5% 15.2% 35.1% 22.8% 35.7% 25.0% 36.2% 31.8% 26.0%

2006 22.8% 14.4% 22.8% 18.8% 10.2% 20.5% 24.0% 19.2% 13.9% 7.8% 17.4%

2007 31.4% 18.6% 10.4% 23.0% 17.9% 17.5% 24.7% 20.5% 21.5% 29.2% 21.5%

2008 5.8% 32.5% 32.4% -1.1% 11.9% 30.4% -14.9% 39.0% 0.2% 44.3% 18.0%

2009 24.0% -3.6% 6.0% 24.0% 20.4% 18.4% 27.1% -0.7% 20.2% 12.0% 14.8%

2010 29.7% 13.3% 22.5% 25.2% 38.5% 24.4% 13.5% 20.1% 16.6% 33.3% 23.7%

Annual 18.0% 10.9% 13.2% 15.3% 13.8% 17.4% 14.0% 11.4% 11.6% 17.4% 14.3%

Compounded

1,000 Invested

5,216 2,826 3,443 4,158 3,652 4,975 3,720 2,934 2,997 4,971 3,889 On 1 January 2000

And 2011?

21.1% 17.0% 21.3% 16.9% 16.5% 32.2% 16.5% 16.2% 13.1% 17.3% 18.8% Year to Date (31/10)

In summary:

Fiat currencies (in which financial securities

are all denominated) are rapidly losing value

There is no exception; there are only timing

differences and currency volatility is increasing

This has happened before and, if history is

any guide, then there is still a long way to go

So… if fiat money is dying, what can you do?

DIVERSIFY AWAY from fiat currencies!

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It‟s a currency war!

“All warfare is based on

deception.”

(Sun Tzu)

The Race to Debase

0%

100%

200%

300%

400%

500%

600%

Australia Dollars SwitzerlandFrancs

Japan Yen Euro Canada Dollars British Pound United StatesDollars

Base Currency is Gold OuncesIncrease from March 2001 - September 2011

Source: Goldsilver.com

Perception management

1924: John Maynard Keynes famously says:

“In truth, the gold standard is already

a barbarous relic.”

1971: US President Nixon famously says:

“I’m temporarily closing the gold window.”

2011: Ben Shalom Bernanke famously says:

“Gold is not money.”

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The deception now relies on…

Keeping interest rates artificially low

and…

Making you believe this is a good thing

and…

Making you forget about real INFLATION

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WHY?

Servicing that huge debt!

Keeping interest rates low is crucial

Monetizing the debt (QE) if necessary

Hiding the true monetary inflation

In the meantime…

your financial wealth is surreptitiously eroded

to baby boomers looking to retire, the working

middle class, this means financial repression

UNLESS YOUR MONEY IS NOT ‘ALL IN’!

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What is Inflation?

“Inflation is an increase in the amount of currency in the circulation, resulting in a relative sharp and sudden fall in its value and

a rise in prices of goods and services.”

- Webster’s Dictionary, 1983

Gold and real interest rates

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Source: US Global Investors‟ Investor Alert dated 2 September 2011

Outlook is good for gold

Negative real interest rates have historically

been good for gold owners/hoarders

Ben Bernanke says zero rates are here to stay

until at least mid 2013

The Fed, BOE, ECB, basically all central banks

are expected to continue to debase currencies

This means real interest rates will likely remain

negative for quite some time to come (WEE)

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But remember… it‟s only money!

You‟ll need to sell your bullion eventually

Bullion ownership merely stores wealth

Bullion in itself is not an investment

It‟s money waiting to be redeployed (invested)

Only when you later sell your bullion to buy

stuff or invest that money again will your

wealth increase (assuming you invest wisely)

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Louis Boulanger, CFA

Founder & Director,

Louis Boulanger Now Ltd

tel: +64 9 528 3586

mob: +64 275 665 095

louis@lbnow.co.nz

www.lbnow.co.nz

Thank You.

Any questions?