"HSL puts the wind in your sails.
"
Big Picture “The predicted rainstorm came &
the Ark has set sail.” --Noah
Schultz. •••• Lesser boats have sprung leaks which re-
quire bailing out the water—or more precisely, bailing out
the debt ships. But suddenly almost everyone wants a
bailout, not just banks & big biz. Citizens by the million
with hefty mortgages want bailing. So do most US states.
Calif is a basket case, cries for fed bail. Greg Hunter calls
the US “A bailout nation.” It’s a worrisome trend/trait, &
guarantees rampant inflation when the billions in political
pipelines hit main streets, in say 6-12 months. Such over-
subsidizing is made fiscally possible via fiat currency.
The US Constitution forbids fiat, says money must be
made of gold&silver. Bush said the Constitution was “just
a piece of paper” & he let deregulation roar (as did
Clinton). Earlier, Nixon ended the $-gold link, making the
$ totally fiat. Irresponsibility set in, to fill the moral vac-
uum. That’s why Noah built the Ark. The Bible said soci-
ety had become so debased, God wanted it washed
away, save for those in the Ark. Bible belief or symbolic,
symbolic
society by any measure has rotted. Fiat money removes
the monitoring governor, permits govts to act without due
process or guarantees for economic justice. When govts
break the moral rules, people subconsciously follow suit.
Paulson/Bush/elitist firemen putting out bank fires while Main Street burns
Legendary coach Yogi Berra said: “If U come to a fork
in the road, take it.” ☺ US & UK govts have instead
moved both left & right in a confused state. To national-
ize all the banks or not? IMO, they will. UK seems to have
little choice, but hopefully they’ll stop at owning more
than 60-70% of each bank, to permit status quo of staff
& as taxpaying units. In the US, the elite secretly aim at
just one mega bank, done in stages. Citibank is bank-
rupt, so maybe they’re not the one. A new view has crept
in from UK: some banks are too big to save.
When U start downgrading not just banks but coun-
coun-
tries,
tries U know how serious the crisis is. So far, Spain,
Greece & Portugal have had their bond rating marked
down by S&P, with Ireland on the edge & Italy a worry.
HSL
“ HSL--
HSL--
—the Newsletter “Newsletter of the Year 2005”
with a Global “Newsletter of the Year 2008”
Conscience.”
------- Market Watch
HSL 669 - 1 FEB 09 ... The Letter for Millionaires — current & prospective (& former) ...
The Original
International Newsletter HSL
THE UNITED
STATES OF HSLM
AMBASSADORS
Harry Schultz Life Strategies
• Financial • Health • Geopolitical • Philosophical • Life Tactics
AKA: HSL, &/or The International Harry Schultz Letter
~ For THINKING humanoids ~ (worldwide)
Single copy price: US$50, Euro39, SwFr58, £34, A$78, C$61, 0.05 oz Gold
HSL 669 February 1, 2009 - DJIA 8,001 © Copyright F.E.R.C.
Bonds are mainly how govts
raise money. Downgrading IN THIS ISSUE :
costs govts a lot of income, low- 1984 now ............................. 6
ers their bond prices & scares Closed-out stock positions 10
some buyers away. Some worry Congress ............................ 7
the US may get downgraded as Credit crisis (early warnings) 3
it is technically bankrupt (so sez Futures (Back to the) ....... 11
the govt’s own auditor/ Gold ..................................... 7
comptroller). That would doubt- Govt futility (a sage) .......... 3
less finally end the US$ status Health .................................. 7
as world’s reserve currency. The HSL asset allocation box .. 9
previous reserve currency was HSL Jr (Next) ...................... 4
the British £. It reigned for HSL masthead .................... 3
150yrs or so. As recently as HSL model portfolio ......... 10
1948 one £ would buy 4.16 US HSL newsletter of the year! 3
$’s. In 1910 £1 would buy 4.86 HSL services box ............... 5
US $’s. Today 1£ buys only HSL-P (Mkt predictor) ...... 11
1.37, & many see parity soon, Irish to vote again? ............ 7
ie, 1 to 1. A similar fate looms Jobs! ................................... 6
for the US$, but in a much Kipling ................................. 8
shorter time frame, which is Mexico war (gringos) ......... 4
why I’ve persuaded most of my Notes ................................... 8
readers (I think) to move into Nutshell (Top stock picks) 11
certain other currencies, but Obama taxman ................... 4
mostly gold & Swiss franc 2-yr Off the cuff .......................... 8
govt bonds. When the £ was top Permanent Traveler (PT) ... 5
dog, it was backed by gold, so Potpourri ........................... 12
when it was replaced by the $, Recommendations (New) 10
it slid v.gradually, as it had ex- Tidbits ................................. 5
change value. It only fell sharply Uncle's notes .................... 12
after it went off the gold stan- Wills (need a new one) ...... 4
dard. The US$ is no longer gold- World mkts analysis .......... 9
backed, so when it resumes its
already steep medium term decline, it will also fall
sharply, IMO. The current $ rally results mostly from $-
repatriation, a 1-time affair fostered by distressed asset
selling, margin calls, unwinding of yen carry trades, etc.
World stock mkts fell in 08 from 30 to 90%; average:
43%. But, as I’ve explained annually, an index distorts or
covers up the real statistics, the real effect on people. If
an index drops 40%, it masks the fact that most stocks,
especially stocks outside the index—which are not man-
aged by the index-keepers, like DJIA, FTSE, DAX—fall
much more in % terms. Stks have far more leverage
than indexes, which smooth out the numbers. So a 40%
index fall normally means most stocks lost 60-80%.
That’s why many have-
n’t yet realized/fully ab- "To prevent inquiry is among
sorbed the extent of the worst of evils."
their losses. It’s a bit — Thomas Holcroft
1
 BY PRIVATE SUBSCRIPTION ONLY
like govt jobs, GDP, CPI, & inflation data, constructed to
whitewash the statistics. ••• FYI: World Stock Index
lost 43%, Greece 65%, Spain 39%, India 52%, Russia
72%, UK-FTSE 31%, Shanghai 65%, US-DJIA 34%,
France 42%, Japan 42%, HongKong 48%, Toronto 35%,
Dubai 72%, S.Korea 40%, Iceland 94%. NOTE:NOTE it takes a
300% rally to recover from a 75% fall.
Vital PS: if U follow our Asset Allocation recommen-
dations on pg 9 (formerly called Investment Box) U did-
n’t have over 8-10% of assets in non-gold stocks (long/
short), so U could not have suffered the big losses ev-
eryone else did. Also, our Model Portfolio, pg 10, has
been expanded to include the former Open Positions,
but don’t run away with these or any stocks beyond
the recom % in the Asset Allocations; that would be
cart before horse.
Changing the subject, there have been whispers that
1 or 2 Euro nations might want to drop out, or be forced
out, of the Euro currency, because they can’t keep up.
This has scared some people, thinking it would hurt the
euro. Wrong! The remaining states would be, obviously,
the strong ones, making the Euro much stronger
stronger, safer.
"For those who stubbornly seek freedom, there can
be no more urgent task than to come to understand the
mechanisms & practices of indoctrination. These are
easy to perceive in the totalitarian societies, much less
so in the system of 'brainwashing under freedom' to
which we are subjected & in which all too often we serve
as unwilling instruments." –NC.
Per our excellent page 1 cartoon by Clay Bennett, I quote
Nobel Laureate Joseph Stiglitz: “The banks are to blame
for all tthe
he major economic shocks of the past 25yrs.” I
would stretch that to the past 250yrs. He adds:“The func-
tion of financial mkts is to evaluate credit worthiness.
They did a lousy job & then run to taxpayers when they
make mistakes. But they earn huge salaries. When they
saw big profit opportunities, they didn’t care re the pub-
lic, only about Wall St. The crises were caused by debt,
now being ‘cured’ with more debt. No end of tunnel light
yet. Fundamental problems not being addressed.” Amen.
I doubt more than say 12 people in DC understand
what the crisis problem is or the solution. And say 8 of
them are opposed to the solution. So the solution won’t
be revealed (if it is) until things get much much worse,
as the 8 who oppose it hate it. It would include recog-
nizing this as a systemic failure, then flushing out bank
toxics, followed by transparency in all derivatives, &
calls for a gold certificate link to back/rescue a sharply
devalued US$. The elite don’t want it solved. They want
a total breakdown & are helping it happen. Why? So
they can impose Marshal Law, exchange controls, big
inflation, bank takeovers, reduce freedoms, centralize
power, & as many of their insane 1-world ideas as they
can get away with. They will have much opposition.
From Mr. O too? But insiders hold the levers of power.
Mr. O only holds a 4-yr lease on a white house.
Now to Mr. O: If U were not moved by Obama’s digni-
fied inauguration U have ice water in your veins. Every
nationality found it inspiring & hopeful. They also en-
joyed the chopper exodus of GB! It almost felt like the
chopper evacuating SaigonVietnam, in reverse terms.
Mr. O has special talents that surely (hopefully) will be
2 ... “Decriminalize & tax drugs to reduce street crime & reduce govt violation of individual privacy & rights.” H.D.Schultz …
HSL HARRY SCHULTZ LIFE STRATEGIES
used for good causes. At the moment, at least, he is role-
model-in-chief. I was most moved by Mr.O saying “We
won’t sacrifice our
our ideals for our safety.” And on Day 1
he put that into force by shutting down CIA prisons
abroad & Guantanamo, & ending torture in any form,
from threats & coercion to physical abuse. He also called
the enemy extremists,
extremists not terrorists, a far more useful,
accurate word. 300 cheers! Maureen Dowd said “GW de-
cided there was no need to be president of the whole
country. He could just be president of his base. O is de-
termined to be prez of as much of the nation as pos.
We’re trading a dogmatic prez for one who’s shopping
for a dog. It feels good.” The FT said “It’s a new start, not
just for the US but for the world.”
People are expecting Mr.O to change govt. Assuming
he wants to, as he says, we must add this: There is the
“Obama
Obama administration”, then there is the "govt"-"govt"-- the
insiders, the elite, the Illuminati, who don't care who is
president. They let each president tinker, but largely set
limits on what changes they will allow. They are the ones
who create (or withdraw) money/credit, & thereby (since
the beginning of govts) determine the balance of power--
& order the wars (& prevent shutting them down), to
keep the military-industrial complex (MIC) profitable. Ex
prez General Eisenhower warned us of it. That was from
the horse’s mouth. He’d been-there, done-that, in US, Eur
& Asia. Nothing has changed the MIC power structure so
far. We live in non-partisan hope.
Let me further clarify my “V” formation 20-yr forecast.
Don’t confuse it with a stk mkt chart. It includes stk &
commodity mkts, gold direction & above all, your buying
power (BP) in real terms. Within this current 10yr down
channel, we’ll have 1-2yr stock bull mkts. Because acute
inflation can offset stk mkt gains, your BP can fall as
stks rise. Likewise, if your local currency falls (as in UK
today), U may lose BP, even if stks rise. If stks fall, U lose
double. Let me also explain why 2-yr Swiss govt bonds
are recom, not 5 or 10yr; because 2yr bonds, or 90-day
T-bills, barely move. U get nearly no interest, but U pre-
serve capital. U can also add a few German govt 2yr
bonds. Even a few French, Cad or Oz, all of which pay
more yield. Corp bonds are unsafe for now. So are most
stks, except for trading, shorterm. Add gold stks--if U pick
the best Relative Strength rated ones.
An anon journalist tells me: "The old world is passing
away. Life will not be the same again. Prepare your-
selves. Read the book on the terror during the French
Revolution. U must know the seriousness & the conse-
quences of what is to come." I agree civil strife has a
high probability, as joblessness spreads & strikes turn to
riots--& food supply goes short thereafter. From 09 to
2012 the situation will likely be touch&go. •••• My
crystal ball may have gravy stains ☺, but I seem to see
deflation getting a stronger grip in early 09, partly due to
the consumer buyer’s strike, despite a possible upside
breakout in CRB, rising gold & slipping bonds. It will in
any case probably gradually morph toward high or hyper-
inflation later in 09. 2010 looms as a mega inflate-year.
Only if deflation gets out of control in early 09 due to
govt failure to increase money supply enough, &/or biz/
bank sectors collapse in a sea of bankruptcies & law-
suits, will inflation be delayed. My crystal ball doesn’t
have a printout-of-dates option, but then it’s a very old
crystal ball, so what do U expect?
HSL 669 - 1 FEB 09
 BY PRIVATE SUBSCRIPTION ONLY
HSL named Newsletter of Year! A Sage
Author-analyst Peter Brimelow of CBS MarketWatch
(MW) bestowed the title Newsletter of Year-2008 on
HSL---especially noting “the extraordinary prescience
Harry Schultz showed in predicting what he called a
‘financial tsunami’ well over a year ago.” •••• Con-
versely, MW has repeatedly & erroneously reported
HSL’s profit/loss based on Hulbert Financial Digest
(HFD) who calculated only our “model portfo-
lio” (recently just 4 stocks! –but all showing a profit).
This was like judging a car’s worth solely by its hubcaps.
Whereas we show, on average, open positions in dozens
of stks—most with profits (long & short).
So, we were very pleased that Peter B. graciously con-
ceded, in his award announcement, that total stk results
are higher when combined with the HSL investment allo-
cation (eg, HSL Asset Allocation Box, see pg 9)—which
HFD does not follow/log). Peter B. also comments:
“Beyond this, the MW system of monitoring model port-
folios simply does not always catch the value investors
glean, sometimes quite subjectively, from reading be-
tween the lines {the essence} of some letters.”
To avoid future monitoring problems, like the one
cited above, we are from today, combining our old
Model Portfolio (only 4 stks left in it) with the Open
Positions, giving both readers & monitors a level play-
ing field for new buying & judging our results. We
should have done it long ago to avoid a hubcap
view. ••This is the 2nd time HSL has won the MW
Newsletter of the Year award. Previously we won in
2005. We lost it in 2006 & 07, now won it back for
2008. We hope to earn it for 2009. ☺
Early warnings On June 18, 2001 we
warned that JPMorgan’s
Interest Rate Derivatives position was $16trillion & was
a smoking gun. On Jan 28, 2002 we reported JPMorgan
Chase had $29trillion in derivatives, which was 223% &
361% of their total equity! I said: “That’s Russian rou-
lette. Derivatives helped bring down Enron. And all shoes
haven’t yet fallen. The Law of Unexpected Consequences
will play a role amidst the chicanery of central & mega
bankers, multi-nat’l’s & politicians.”
In HSL625, 6/10, 2002, Jim Sinclair & I wrote a 2pg
joint column explaining that hedging is now often done
via complex (& dangerous) derivatives—a new word to
the public. Banks nearly took over Ashanti Gold via de-
rivatives trickery. On 7/15, 2002 we quoted fund mgr
Tony Dye, warning of a “lurking time bomb in creative
accounting via derivatives.” We reported OTC derivative
contracts were $110trillion, 3 times the global economy.
On 6/20, 2004 I said “Derivatives are a nuclear bomb
awaiting detonation. Control: none. Transparency: none.
Public awareness: none. Registration? Greenspan op-
poses it.” (& we attacked him 3x for that)
Nobody in power listened. We rang the derivatives
bell 23 times betwn 2001 & 2007. So, it was easy for
me to specifically predict in HSL663 (12/9/07) “A finan-
cial tsunami is now upon us.” But it was hard for the pub-
lic/govt/big biz/banks to accept. Yet the handwriting
was writ large. People see what they want to see. If your
friends ask why U like HSL, show them the record.
HSL 669 - 1 FEB 09 ... “All governments, of course, are against liberty.” H.L.Mencken ...
HSL HARRY SCHULTZ LIFE STRATEGIES
for our time. Stephen Moore wrote a Wall
Street Journal article (Jan 9, 09) that was
WSJ's most read & most emailed story of that day. It
was titled "Atlas Shrugged: From Fiction to Fact in 52
Years." In competition with other gripping headlines like
Mideast wars, global economic & financial carnage, &
news of a president elect the world adulates, this story
beat them all. Why? For those of us familiar with Ayn
Rand's books (Atlas Shrugged is her epoch-making
1000-page novel published in 1957) the title hints at the
reason. It’s is a story that so eerily mirrors today's USA
that it's spellbinding.
Moore says: "For the uninitiated, the story’s moral is
simply this: Politicians invariably respond to crises─that in
most cases they themselves created─by spawning new
govt programs, laws & regulations. These, in turn, gener-
ate more havoc & poverty, which inspires the politicians
to create more programs...& the downward spiral repeats
itself until the productive sectors of the economy collapse
under the collective weight of taxes & other burdens im-
posed in the name of fairness, equality & do-goodism."
"Every new act of govt futility & stupidity carries with
it a benevolent-sounding title. These include the 'Anti-
Greed Act' & the 'Equalization of Opportunity Act.' These
acts & edicts sound farcical, yes, but no more so than
the actual events in Washington, circa 2008. We’ve al-
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• Editor Emeritus: Chevalier Harry D. Schultz, KHC, KM, KCPR, KCSA, KCSS.
• Mkt analyst: John McMillan. Spinner royalty recipient: Paul Griffiths.
• Editorial Dept editor: Gordon Frisch.
• Quoting HSL permitted if HSL name, address & subscription price given. • Repeated
photocopying of HSL is illegal. Violators will be prosecuted. $2,000 reward for
evidence of consistent violation. • Recommendations to buy or sell any security,
options on securities, futures or options on futures, are opinions of HSL & do not in
any way guarantee or assure that the investor will either make money or avoid losses.
We may/may not buy/sell stocks, bonds, options, commodities recommended in HSL.
• HSL does not advocate the violent over-throw of any govt. • As you are aware,
inserts/flyers are paid for by fee or commission. This is done to defray rising costs.
Without them, subscription rates would need to rise.
• Products/services advised in HSL & flyers are presumed to be of good quality, but
HSL expressly & explicitly disclaims responsibility for them.
• Harry Schultz is also: Founder, Int’l Investment Letter Assoc - 25 year-mbr, Nat’l
Press Club, Washington DC - Advisory Board, Nat’l Taxpayers Union, WashDC -
Charter mbr, Nat’l Assoc of Investment Advisory Publishers - mbr, Economic
Research Council, London - Advisory Board, Nat’l Comm Monetary Reform - mbr Free
Market Foundation, Joburg , S.A. - mbr Adam Smith Club, London -Life Patron,
Freedom Assoc, London - Listed in Guinness Book of Records as world's highest paid
investment consultant 1981-2003
3
 BY PRIVATE SUBSCRIPTION ONLY
ready been served up the $700 bil 'Emergency Economic
Stabilization Act' & the 'Auto Industry Financing & Re-
structuring Act'." And Obama "will soon sign with great
urgency the 'American Recovery & Reinvestment Plan.'
The current economic strategy is right out of Atlas
Shrugged: The more incompetent you are in business,
the more handouts the politicians will bestow on you."
For those who've read Atlas Shrugged, watching the fal-
tering antics of US politicians is Déjà Vu.
Ayn Rand came to America from the Soviet Union
where she experienced firsthand the horrors of totalitari-
anism & socialism. Her books are int’l bestsellers & in
2007, 50 yrs after its first publication, Atlas Shrugged sold
185,000 copies. A 1991 member survey of the Library of
Congress & Book-of-the-Month Club said Atlas Shrugged
was the 2nd most popular book after the Bible. Influential
people who said Ayn Rand had a significant effect on their
lives include Murray Rothbard, Congressman Ron Paul &
US Supreme Court Justice Clarence Thomas. Pres.
Reagan was a great admirer & Rush Limbaugh mentions
Rand on his talk show. 2007 Freestar Media/Zogby polls
found 8% of Americans had read Atlas Shrugged.
David Kelley, Atlas Society president, dedicated to ad-
vancing Rand's ideas says: "The older the book gets, the
more timely its message." Atlas Shrugged “is the only
classic novel of recent decades not made into a major
movie" but there are plans to do so. Yet, says Kelley:
"We don't need to make a movie out of the book. We are
living it right now." Sadly, he's exactly right. ─GF
Need a new Will? Wherever U live, U
now need to con-
sider which currency to use in your bequests. Eg, if U live
in the US & want to leave $50K to Ted or Mary, consider
that in case of a large US inflation, that $50K may be
worth only $30K or $25K in buying power at the time of
your death. Solution? Convert a substantial portion of
your assets to Swiss francs & gold now, & stipulate in a
Will that Ted/Mary shall be given xx SwFr &/or gold. Or U
could use yen. SwFr & yen are strongest currencies to-
day. Most vulnerable of the main currencies is the US$. If
U live in a 2nd/3rd world country, the need is equally
acute for a Will/asset clarification. In the UK, the £ is vul-
nerable too. Put the SwFr in 2yr govt bonds with auto-
matic rollover. Nearly no interest but no worries.
Gringos enthreatens
garde! A Mexico war is raging &
to jump the border into the
US. A Pentagon report, which identifies global threats &
potential wars, says "In terms of worst-case scenarios for
the Joint Force & for the world, two large & important
states bear consideration for a sudden collapse: Paki-
stan & Mexico. The Mexican govt, its politicians, police &
judicial infrastructure are under sustained assault by
criminal gangs & drug cartels." Over 5,700 military, po-
lice, govt employees, judges, journalists & civilians died
in organized crime violence in 2008. Mexico has become
Colombia on the Rio Grande.
When Calderón was elected in 2006 he vowed to fight
corruption & drug lords. The "Merida Initiative", signed
into law June 2008, committed the US to provide $1.4 bil
assistance to Mexico & Central America to fight organ-
ized crime & drug trafficking. A similar 1998 Colombia
program largely neutralized the Marxist-narco-guerrilla
4 ...“Silence (when freedom is threatened) is not golden; it is yellow.” Tom Anderson...
HSL HARRY SCHULTZ LIFE STRATEGIES
group FARC. US must support Calderón unless it wants a
nightmare: a failed narco-state on its border with thou-
sands of refugees fleeing to el Norte. Drug gangs, such as
La eMe, linked directly to the Mexican mafia, already op-
erate in many US cities. ••• A Mexico collapse means
Pres. Obama would need to commit thousands of troops
to maintain border security. Opportunistic, fascist one-
worlders would call for a N. American Union to give the
US legal authority to intervene & complete work on the N.
American Superhighway, already underway, & to unite
the US, Canada & Mexico politically. Mexico’s collapse
could mean Adiós sovereignty. —GF
Next HSL Jr due on March 8. It’s yours for
the downloading! Free. Via our
Net home. It’s worth doing! ☺. Mark your calendar. Here’s
how to get: The same password is useable for both Sr &
Jr. ••• Go to our website. 1) In your on-line browser, type
in: www.hsletter.com 2) Click on Subscribers Only button
on left-hand side of the Home page. 3) In the User Name
box, type in: hslm (not your name!). 4) In the password
box, type in the current password: noahsmiles 5) Click on
HSL Jr.
Jr If this is not clear—please fax or email us. •••If U
are traveling & miss an HSL Jr, check the Archives. Happy
reading! PS: U can still access the Dec 21 Jr.
Obama
based US com
taxman? WSJ (12/24) reports
“some Caribbean-
companies are moving to Europe, mostly to
Switzerland. They fear Obama the taxman.” For whatever
reason, O is antagonistic toward the theory or practice of
avoiding or sharply reducing taxes even though U do so
legally. Many to the Left of center feel that way. This, de-
spite the fact the USA was founded as a revolt against
an over-taxing Britain. It is some kind of mistaken Left-
wing envy-rooted tradition that U must love Big Govt &
distrust truly free mkts & bank privacy, & U can’t abide
people who are happy to pay fair-share taxes, but don’t
wish to pay more than is legally required. Many on the
left equate completely legal tax avoidance with tax eva-
sion—which is unjust, silly, & un-American, as US was
built on rugged individualism that didn’t want a fed govt
to exist at all…or only on a tiny scale.
There was no US income tax for 137yrs & then only
1%. The young prez O has grown up after the time when
the US was a free country, so he doesn’t know any other
way—except the so-called “rich” don’t pay enough. US
principles are 180 degrees away from where they
started. ••• In 07, Obama launched Stop Tax Havens
Abuse Act, & in 08 he helped launch the Incorporation
Transparency & Law Enforcement Assistance Act to stop
the flow of offshore funds to the US from hedge funds. In
the campaign he showed hostility to US co’s that use off-
shore jurisdictions for tax planning. The GOP knew all
this, but couldn’t sell it amid a financial crisis & a public
mood for change. The political change is great; good rid-
dance of war-mongering, Constitution-hating neocons;
the fiscal changes may not please US employers & the
hard-working middle class. ••• Our O-view is he’ll be
good for societal issues & foreign policy, but may be the
highest taxer in many decades, starting in mid or late
09. US readers should plan accordingly.
PS: the hypocrisy in anti-haven views is that several US
states are state tax havens (eg, Alaska/NV/DE,Montana,SD/
HSL 669 - 1 FEB 09
 BY PRIVATE SUBSCRIPTION ONLY
TX/WashingtonState/FL/Wyoming), & the UK is a tax haven
for non-UK citizens, & scores of other such. ••• The real
struggle here is between those who favour BIG govt that pro-
vides everything & thus needs to tax U heavily to pay for it, &
those who favour a tiny govt (as did the FoundingFathers),
with most things privatized, so taxes aren’t needed except
for courts & defence. It’s possible to have a no-income tax
nation. There are already several, eg, Monte Carlo, San Mar-
ino, Andorra, Dubai, Bahrain, Bahamas, Bermuda, Uruguay,
Seychelles, etc! Even Russia is down to a 12% tax; they’re
not a real haven, but they know high taxes discourage ini-
tiative & cause bright entrepreneurs to leave a country.
High taxes are always counter-productive. Taxes are largely
a gift to politicians so they can spend your money in ways
that get themselves re-elected. Did U not know that?
Tid bits Here’s an incredibly prescient, stunning
comment on where our society was
headed, by George Orwell, Mr. 1984. U’d think it was
written last week, but he died in 1950: “Actions are held
to be good or bad, not on their own merits, but according
to who does them. There is almost no kind of outrage---
torture, imprisonment without trial, assassination, the
bombing of civilians---which does not change its moral
color when it is committed by 'our' side. The nationalist
not only does not disapprove of atrocities committed by
his own side, he has a remarkable capacity for not even
hearing about them." -----George
George Orwell
After reading this quote by George Orwell, Bob Chap-
man’s newsletter doesn’t sound so radical. Bob’s interna-
tional_forecaster@yahoo.com is the most outspoken yet
competent in the newsletter world. Here’s a few words
from recent Bob ltr: “Mr. Obama has been chosen by the
Puppet Masters, the cabal of satanic trillionaires behind
our shadow govt, to oversee the final descent into depres-
sion, anarchy & societal breakdown which the despicable
Illuminati hope to exploit & amalgamate into an Orwel-
lian, corporatist, fascist police state of feudality via false-
flag terror attacks, implementation of martial law & an
expansion of World War III which is already under-
way. They’ve handed him the Nazi playbook as a guide-
line after setting up the laws & executive orders necessary
{under Bush} to implement martial law & to give the Presi-
dent dictatorial powers. A military draft is in the planning
stages to provide cannon fodder for the next planned wars
& conflicts for profit to bring us out of depression & to en-
rich the Illuminist-controlled military-industrial complex.”
PT Meltdown of the economy & financial system re-
quires extra vigilance & maneuvers for survival.
This crisis will run for years & we expect many more
banks & corps to fail. A small local bank shutdown could
short-circuit your ability to pay personal expenses, eg,
rent, mortgages, car payments, utilities, food. Having at
least a 6-month stash of cash, well hidden, in case melt-
down impacts U is not just a novel idea─it could be a
matter of physical & financial survival. As joblessness
rises, so does crime; high numbers can effect U.
Crises bring out the best & worst in people. We must
prepare for the worst, eg, home invasions (HI), which,
like car jackings, are rapidly increasing in the US, though
they're common in 3rd world countries. Burglaries are
usually quiet intrusions by a single criminal during the
day when no one is around. HI's usually occur at night or
on wkends when the family is home. HI's (usually cor-
HSL 669 - 1 FEB 09 ...“The right most valued by all civilized men is the right to be left alone.” US Supreme Court Justice Louis Brandeis...
HSL HARRY SCHULTZ LIFE STRATEGIES
rectly) calculate they won't have to deal with alarm sys-
tems, video cameras or silent alarms when someone is
home. HI thugs rarely work alone & especially target sin-
gle women, senior citizens & drug dealers (who have lots
of cash). HI's are often drug users themselves, & resort
to violence to feed their habits.
The most common home entry points are garages &
front doors. Often HI's will ring the doorbell, impersonate
deliverymen or say they hit your parked car, & unsus-
pecting occupants will open the door. Or they may bust
down doors or crash through windows with explosive
force. Either way, entry usually takes only a few seconds.
Greatest violence usually occurs within 60 seconds of
entry & HI's often bring handcuffs, duct tape, rope &
guns. Their first aim is to instill maximum fear & intimi-
dation & then hunt hidden valuables, credit card PIN
numbers, car keys, etc. Leave some cash where they can
easily find it & leave. On departure, the victims may be
tied up to give the criminals more escape time.
HI's often target their victims in public by following
someone home who wears expensive jewelry, drives an
expensive car or shops at top boutiques. They are often
home repairmen. Your car keys can be your weakest
link; never give an auto repairman or parking valet your
full set of keys, just the car key. Never leave a garage
door opener in the car while its given to a repairman or
valet. Constant awareness is your best defence.
Here’s how to strengthen your home security to resist
HI's: Install solid-core doors with heavy duty locks on
doors & windows; keep windows, doors & garages locked
at all times; use door peepholes before opening doors &
if U don't have a peephole, get one; have a porch light so
U can see who is knocking at night; don't rely on a chain-
latch for security if U partially open the door as it can be
easily torn out; never open the door to strangers, solici-
tors, etc; know your neighbours & organize a neighbour-
hood watch group; get a gun, provided U learn how to use
it & have family emergency plans in place to deal with a
worst-case scenario; have electronic security protection
when U aren't home &/or at night; & the best first-alert
protection U can have is often a dog trained to resist any-
one entering your house. Grrrr-woof! ─GF
2 HSL Services
HSL is available (12 pgs) by airmail, e-mail or fax. Airmail OR
e-mail: US$377/yr (€293/yr)—ie, $1.03/day (€0.80/day). If you
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Us’), or subscribe via fax or mail (see page 3 masthead for con-
tact details). Note: Special GCRU ‘2-Week Taster’ offer available
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don’t cost—they pay”). *A $20 deduction applicable on fax rates
noted above for No.American readers only.
5
 BY PRIVATE SUBSCRIPTION ONLY
"HSL.....before it happens."
1984 Now If we obey the laws & mind our own
business, we have nothing to worry
about & no one should bother us, right? Wrong! Big
brother (BB) abhors privacy, is dreadfully invasive & does-
n't care whether you're Mother Theresa or Al Capone. BB
devours all. We're in the midst of a technology-
empowered surveillance revolution that is rapidly turning
us into a surveillance society cum electronic concentra-
tion camp. The magnitude & implications of our Orwellian
future were revealed by elitist Zbigniew Brezezinski, Nat'l
Security Advisor to Prez Carter, advisor to 4 other prez, &
a director in Trilateral Commission, in his book, Between
Two Ages: "The technetronic era involves a gradually more
controlled society. Such a society would be dominated by
an elite, unrestrained by traditional
traditional values.
values Soon it will be
possible to assert almost continuous surveillance over
every citizen & maintain up-to-date complete files contain-
ing even the most personal information about the citizen.
These files will be subject to instantaneous retrieval by
the authorities." This should strike terror in U. If BB is al-
lowed to continue, it will happen.
Like most things, there are benefits & risks. Ex FBI
boss Louis Freeh says "Ask the public if they want an FBI
wiretap & they'll say, 'no.' If U ask: do U want a feature
on your phone that helps the FBI find a missing child
they'll say, 'Yes.'" Or ask if they want their phones tapped
& they'll say 'no', but ask if they want phones tapped to
stop another 9/11 terrorist attack & they'll say 'yes.' In
theory, to catch a terrorist by wiretapping means every-
one has to be tapped. If BB only tapped terrorists, it
wouldn't need to tap in the first place as it would already
know who they are. But, if personal info on millions of
people collected in the process of wiretapping for terror-
ists falls into the wrong hands, it can ruin lives. Despite
assurances from Bush & others, we know govt & corps
often fail to protect private, personal info, identities get
stolen, bank accounts get drained by cyber-thieves, tax
audits get triggered, etc. Do benefits outweigh risks? Lib-
ertarians say No. Others say: Possibly (questionably) in
the short run, but emphatically not in the long run.
The mutating surveillance society spans the spectrum
from implantable chips to giant data-mining firms. Big-
gest users of personal data are big corps, but big govt
now works with big biz to gather personal data that was
previously only possible in science fiction. Personal info
formerly private is being collected & records created by
firms U never heard of. Eg, Acxiom Corp, Little Rock, AK,
is world’s largest single source of personal marketing
data. It has offices in 12 nations spanning the globe. It
collects more than 3 bil records per day & says CNBC, "is
the most comprehensive & accurate repository for phone
numbers in the US, listed & unlisted." Axciom's huge da-
tabase stores personal info about U gleaned from banks,
insurers, credit card issuers, retailers, telecoms, etc, &
creates records concerning your political, religious &
medical concerns & beyond.
Billions of transactions are recorded daily & it's all
electronically filed forever. Google keeps a record of
every search ever conducted, in most cases those
searches can be traced back to the individual who made
them, & the info can be used in court. Courts have long
held that when U are “in public” U can't have any expec-
6 “The spirit of resistance to govt is so valuable on occasions that I wish it to be always kept alive.” Tom Jefferson
HSL HARRY SCHULTZ LIFE STRATEGIES
tation of privacy. Guess what? The Internet is considered
the public domain!
domain Many restaurants & shops now have
cameras (little black bubble balls on the ceiling) to moni-
tor both clients & staff. Most cars now have an EDR
(Event Data Recorder) installed without your knowledge.
It's the black box of the auto world & captures what hap-
pens just before & after the airbag deploys. Many cars
have GPS satellite navigation systems. EDR & GPS info is
being used in courts & the day is almost here when BB
knows every detail of U & your driving habits. Most cell
phones have GPS tracking chips which enable BB to fol-
low your every move as well as record every conversation.
US Supreme Court Justice William O. Douglas, the
longest serving justice in US history, saw a worrisome
future taking shape before his death in 1980: "The pri-
vacy & dignity of our citizens [are] being whittled away
by sometimes imperceptible steps. Taken individually,
each step may be of little consequence. But when
viewed as a whole, there begins to emerge a society
quite unlike any we have seen─a society in which govt
may intrude into the secret regions of a [person’s] life."
What can U do to avoid the BB hi-tech juggernaut?
Best defense: limit your exposure to the world to max
extent possible; don’t give personal info, eg, social secu-
rity number when asked or tel/cell numbers, only when
legally essential; use cash to avoid credit card trails;
make sure kids don’t become victims of Facebook/My
Space craze by splashing their personal info on Internet;
vote for & support legislators who understand BB dan-
gers; become a PT (got our very old PT set?); buy all PT
books & newsletters; take a defensive attitude. Study
our many PT definitions to give U ideas, eg, Permanent
Traveler, Passing Through. Perpetual Tourist.
Tourist ─GF
Jobs!
I’m very angry. FT headline on 1/27: More
woe as 72,500 jobs axed in one day. That
was a global count of mega corps head-chopping. It’s a
daily drumbeat . 10K here, 20K there. When a com-
pany is deep in debt, losing money, job cuts are OK. But
many corps have cash reserves & running at a profit--&
cut jobs to increase profits. I think that’s socially unac-
ceptable. Profit job cuts & merger job cuts only for the
sake of profit usually result in less service to customers
(eg, M&S closing its Paris branch despite its profitability,
banks close branch in small towns leaving no facility,
govts closing small town PO’s). Corp job cuts can often
be avoided via 4-day work week or part time, which re-
tains workers & saves their “sanity”(morale) & helps
community. Germany & France are leading the world in
this kind of job preservation. But US corps lag. Caterpil-
lar cut executive salaries by half, but cut 20K jobs, de-
spite still being in profit.
In this recession cum depression, job cuts should be
avoided as policy. I was furious with Pfizer paying $68bn
for Wyeth to become world’s biggest pharmaceutical,
cutting 15% of workforce in order to make the deal!!. An
ego move, as was Swissair buying Polish Air. Pfizer CEO
Jeffrey Kindler (misnamed) may have rioters at his house
soon, demanding food. Civil strife/riots are ballooning;
ballooning
anger is in the air over Wall St greed. Unnecessary job
cutters may rank with bankers as the enemy. ••• Robt
Zoellick writes in 1/26 FT: “It’s time to herald the Age of
Responsibility.” Amen! Failure to do so re jobs would
haunt & harm us all.
HSL 669 - 1 FEB 09
 BY PRIVATE SUBSCRIPTION ONLY
Irish to vote on Lisbon again? This is criminal.
A committee of Irish MPs con-
cluded that a 2nd referendum on EU's hotly disputed Lisbon
Treaty is “legal.” On basis nothing against it! Leprechaun
logic! Irish voters rejected the reform treaty in a referendum
in June. But poli’s say it’s ok to vote again “either on the
same issue...or some variation thereof."
The No campaigners insist that "no means no" & there
cannot be a re-run of the referendum. The treaty can’t take
effect unless all 27 states ratify it. Most have done so, via poli-
ticians, but Ireland was the only one to hold a referendum on
the treaty. Citizens were disenfranchised because prior votes
on an earlier version were turned down in NL, DK, & France.
Poli’s don’t trust the public to do their bidding. Swiss style
5* democracy, where referendums are frequent on key is-
sues so citizens have a voice, has never spread in rest of
world. Democracy hangs by a thread in most. Objections to
the treaty have delayed ratification in Czech Rep. & Poland.
Critics (like HSL) see the treaty as further evidence of a feder-
alist, pro-integration agenda at work in the EU. The treaty is
just a modified version of the EU constitution, rejected by
French, DK, & Dutch voters in 2005. Even some architects of
the defunct constitution say the Lisbon Treaty is very similar
to it. Elitists are behind the treaty, needless to say.
Gold It helps that gold bullion seems to be disconnect-
ing from its inverse relationship with the US$
habit. Lately both have often been moving in tandem, rising/
falling. But we don’t need that to boost gold; it’s just comfort-
ing that gold has regained its monetary independence—
independence
resulting from a virtual run on banks & a real run to gold,
gold es-
pecially physical gold, bars & coins. US/UK govts can still
short gold to try capping it (we assume Obama will continue
that practice of govt’s PPT), but it isn’t working as demand is
overtaking supply. •••• Mathematically it will need a US
$2,300 gold price to equal the $800 gold peak of 1980. So,
gold is cheap today, is well under ½ its 1980 worth in infla-
tion adjusted $’s. •• Basis one French Curve chart projec-
tion, gold will reach $3,500 by 2012, then fall to $2500
(29%), then rise to $10,000. There are a lot of projections
around by some able technicians. If we go into Weimar infla-
tion, the sky is the limit. But, HSL will play it a stage at a
time, by the charts, because being over-confident about any
future prices has been the undoing of many souls.
Nobody now trusts govts, banks, insurers, raters, mortgag-
ers, brokers, talking heads. So smart people are turning to
the best safe havens, ie, physical gold, 2yr govt bonds in
Switz, Germany, France, NL, Oz, Cad, & some gold shares.
Here’s a sample of haven-seeking:Telegraph, UK 1/9/09 By
Ambrose Evans-Pritchard. “Merrill Lynch has revealed some
of its richest clients are so alarmed by the state of the finan-
cial system & signs of global political instability, they’re in-
sisting on purchasing gold bars, shunning derivatives or
‘paper’ proxies.” Gary Dugan, ML chief investment officer,
said “There’s been a remarkable sentiment change. People
are genuinely worried about what the world will look like in
2009. It’s amazing how many clients want physical gold, not
ETFs. They’re so worried they want a portable asset in their
house. I never thought I’d be getting clients saying they want
a box of krugerrands." Merrill predicts gold will soon blast
through its all time-high of $1,030 & hit $1,150 by June.
Citigroup joined our club; predicts:“Gold is poised for a
dramatic surge, could blast through $2,000 an ounce by the
end of 2009 as Central Banks flood the world monetary sys-
tem with liquidity.” Ambrose Evans Pritchard writes
(Telegraph 1/09):“The damage caused by financial excesses
of past 25yrs is forcing world authorities to take steps never
tried before, a gamble that could end in one of two extreme
ways: a resurgence of inflation, or a down spiral into depres-
HSL 669 - 1 FEB 09 ... “We have not abolished slavery; we have nationalized it.” Herbert Spencer ...
HSL HARRY SCHULTZ LIFE STRATEGIES
sion, civil disorder, & possibly war. Both outcomes will cause
a rush for gold.” ••• Jim Sinclair & I urge US readers should
consider taking delivery on one contract of Comex gold; it will
limit the amount of jiggling they can do to the gold price.
Health “It is said the US has a sick-care system, rather
than a health-care system, with emphasis on
use of drugs & procedures for diagnosed conditions" says David
Katz, director of Prevention Research at Yale University School
of Medicine. Tis true & not only the US. The key is to think (&
act) prevention & alternatives, not be stampeded into tests &
drug prescriptions. White coats are intimidating (of course, not
all white coats are equal ☺)••• Start here: Switch to drinking
warm, not cold water, never ice water. Nations with best lon-
gevity (entire Far East) have warm drink with & after meals, eg,
tea. Cold water is a habit; I grew up with it; it’s dumb!
Cold water solidifies the oily stuff U’ve just eaten. It also
slows digestion. Once this 'sludge' reacts with the acid, it will
break down & be absorbed by the intestine faster than the
solid food. It will line the intestines. Very soon, this will turn
into fats & can lead to cancer. It’s best to drink a cup of hot
soup, tea or warm water (even coffee?) during &/or after a
meal. ••• Next: It’s not easy! But U/I should try to find/buy/
eat organic fruit/vegetables/meat. It’s hard work getting,
staying healthy . This route helps! ••• They (on AOL) say:
2-tablespoons of Extra Virgin Olive Oil is as helpful in relieving
pain in many people as ibuprofen. They also say: eat ancho-
vies, fish oil from sardines (&/or Omega-3 fish oil tablets).
Avoid farmed salmon. ••• Hslm, nutrition expert Dr. Ian
Crabbe, UK, writes me he supports Vit B17 Laetrile theory for
cancer prevention/treatment. Sez: Google “Cancer, the Win-
nable War.” Also: World without cancer. IC says: eat fish/
poultry as main protein source. Oily fish contains omega 3.
Eat lots of seeds (recom in the Bible by the way! Genesis 1:
29). Dietary deficiency causes 1/3 of all cancers! Eat v.little
or no red meat (beef/pork/lamb) (risk of bowel cancer). If U
do, reduce risk via nuts, seeds & 2 coffees a day.
Cousin Marylin says: “I used NutraSweet to kill carpenter
ants in our summer home, as well as red fire ants in our gar-
dens. Never would I consider putting it in my body.” I’m with
U, cousin! NO to artificial sweeteners. ••• Mouthwashes
containing alcohol could increase the cancer risk by 9 times,
scientists claim. Can cause oral cancer & should be removed
from markets, a dental health study claims. The ethanol in
mouthwash is thought to allow cancer-causing substances to
permeate the lining of the mouth. (Scotsman.com
1/23/09). ••• Bon santé!
Congress Alexis de Tocqueville, French historian
& astute America observer, said "The
American Republic will endure til the day Congress discovers
it can bribe the public with the public's money." That day has
arrived. Congress' draft $819b stimulus bill was 12% stimu-
lus & 88% pork. The bill was loaded with 40yrs of pent-up
social programs & is being dumped on taxpayers in the name
of rescue. White House Chief of Staff Rahm Immanuel admit-
ted it: "Never let a serious crisis go to waste. What I mean is
it's an opportunity to do things U couldn't do before."
This draft will go through days/weeks of political sausage-
7
 BY PRIVATE SUBSCRIPTION ONLY
making in Congress & White House, along with urgency cries.
Voters must remember, govts never produce a penny of in-
come; govts only have what they take from taxpayers. The
best stimulus would be deep tax cuts so citizens could
choose how to spend their money instead of Congress grab-
bing it & making that choice. Small parts of the stimulus bill
may help, but Congress is mainly using it as cover for one of
the most massive expansions of federal entitlements in US
history. As Mark Twain said: "There is no distinctly American
criminal class─except Congress." ─GF
Kipling defined the strategic rivalry between British
& Russian Empires in Central Asia from
1813-1907 as "The Great Game." The epicenter was Afghani-
stan. A modern-day Great Game is replaying in C. Asia with
the US & Russia as main actors & the battlefield epicenter
once again is Afghanistan. Pres. Obama faces several crises
as he steps onto the world stage. After the global financial
meltdown, crisis #2 is Great Game chess maneuvering in C.
Asia involving Russia, US, Afghan & Pakistan. Of critical im-
port are overland supply routes via Pakistan to Afghan,
through which 3/4 of supplies reach US-NATO troops. US con-
voys are under Taliban attacks, & alternate supply routes,
most through Russian-controlled C. Asia, are needed.
Enter Henry Kissinger. He's had direct talks with Putin &
it’s likely a deal will be struck enabling US-NATO to supply
Afghan via C. Asia. But, Russia will extract a big price for co-
operation, such as: US must abandon expanding NATO into
Ukraine & Georgia; stay out of the Baltics; agree to withdraw
from C. Asian bases after the Afghan war; abandon plans to
put missile installations in Poland & Czech Republic. Perhaps
not a bad trade-off, as many feel US meddles too much.
Many advocate US-NATO leave Afghan, which means Taliban
& al Qaeda would quickly take over. Exiting Afghan is not yet an
Obama option & he'll attempt a version of Gen. Patraeus' Iraq
strategy to achieve “victory.” Pakistan is big worry. Pres. Zardari
(Benazir Bhutto's widower) is very weak, & nuclear-armed Paki-
stan teeters on edge of collapse. The world worries about Iran,
but if an already-nuclear Pakistan falls to Taliban-al Qaeda, the
regional strategic balance goes instantly critical. ISI, Paki-
stan's govt intelligence service, created the Taliban & is sym-
pathetic to them. ISI was linked to Mumbai terrorist attacks,
which leave Indo-Pakistan relations fragile & uncertain. ─GF
Off the Cuff New US Treasury boss Geithner
got off to a bad farce. He accused
China of manipulating its currency. Pot calls kettle black! US
has manipulated the US$ for last 20yrs. ••• Many say Larry
Summers should have been named Treasury chief. ••• FT
7-col headline: French workers strike over loss of jobs. Strike
turned violent. This is becoming more frequent. As said ear-
lier, job cuts are often made without considering 4-day wk,
half time, & partime. Prez Obama said same thing the other
day. BigBiz is going to arouse bitter anger, riots, deaths, thru
callous cutting. Some CEO’s look for an easy way out--to raise
profits, raise share price (make their stock options click in) by
cutting or over-cutting jobs. Their days are numbered; society
is changing. Greed, ego-mergers & buy-backs are no longer
acceptable. Ruthless job cuts are next on the chopping block.
CEO’s may find themselves on the block, by rioters, stock-
holders &/or media. A benefit of this creditcrash is a morality
rebirth is underway, a revision--of what really matters. The
tinsel of the last decade suddenly has lost its sparkle.
Wikipedia says Karl Marx wrote this & LondonTimes says
he didn’t. I don’t care; the text is interesting as perspective, &
he might well have thought it in 1867: "Owners of capital will
stimulate the working class to buy more & more of expensive
goods, houses & technology, pushing them to take more &
more expensive credits, until their debt becomes unbearable.
8 ... “It is dangerous to be right when the government is wrong.” Voltaire ...
HSL HARRY SCHULTZ LIFE STRATEGIES
The unpaid debt will lead to bankruptcy of banks, which will
have to be nationalized, & the State will have to take the road
which will eventually lead to communism.” (Das Kapital
1867) If it was a forecast, the essence of the stages seem
valid, so far. J. Schumpeter says capitalism’s foundation is
“creative destruction,” a natural process whereby excesses
are corrected by collapse & then rejuvenation. Obviously
we’re in the collapse stage.
Jim Sinclair’s site excerpts: jsmineset.com: “Re curren-
cies: Another affront to one’s intelligence, & of course part of
the Hold the Hill (in DC) strategy, is the argument broadcast
by all media (& all the Hill’s friends) that spins the story that
currency value is determined by competitive economic activ-
ity. When push comes to shove, what determines a currency’s
value will be the degree of financial failures & size of the fi-
nancial bailouts, as these events cause the volume of paper
money to increase substantially. The value of currencies,
when written about in the history of this time, will not be a
function of competitive levels of economic activity, but rather,
who held the most OTC derivatives. The US is the eye of this
hurricane of financial weapons of mass destruction already
acting true to their name.” ••• “Dear Jim, Why is S&P pick-
ing on Spain with these numbers coming out of the US? 1/
Because Rating Agencies now predate prostitution as the old-
est occupation in human history? 2/ Because if they down
rated the dollar they would have to close shop the next day?
Take your pick. I know U can add more. Jim.”
•••Too much credit & easy money. Those were the big-
gest culprits behind the financial crisis. Yet, the govt's rescue
attempt is built on more credit & even easier money. ••• The
huge attack on short selling is misguided, tho transparency
on large positions should be required. Driving shares up via
pools & hype is apparently ok, but not driving them down.
The uptick rule must be restored. Poli’s don’t savvy mkts.
Notes
8-col headline in FT 1/26/09 reads: More big
UK compa
companies consider tax exodus. This fits
my earlier remarks & proves that companies are no differ-
ent than citizens in wanting to move to nations where taxes
are not repressive. France, Germany & the US were cited as
among the highest taxers, in that order, whereas among
light taxers mentioned were Netherlands, Ireland, Luxem-
bourg. What’s unfair is that corps don’t get attacked for a
tax-move, but citizens & tax havens often do. Govts should
slash overheads via privatization & biz-like management,
thus making tax slashing easier.
Norman Thomas (1884-1968) was a leading US socialist,
pacifist, & 6-time presidential candidate for Socialist Party
of America. In a 1944 speech he said: "The American peo-
ple will never knowingly adopt socialism. But, under the name
of ‘liberalism,’ they will adopt every fragment of the socialist
program, until one day America will be a socialist nation, with-
out knowing how it happened." ••• On Jay Leno show, Robin
Williams joked re Canada/US relations: “Canada is a nice
family living upstairs, over a micro bar.” •••
Eric de Carbonnel (www.marketskeptics.com) predicts the
big surprise of 09 will be China moving into hyperinflation by
mid-09. It will catch the West off-guard. China will reverse low
interest rates. Their inflation will destroy the US$. Eric sez our
thinking on China is upside-down. ••• Prof. James Nathan
has suggested a solution to the impossible Afghan dilemma,
ie, the US or NATO should buy the entire opium crop. That
might end the Taliban’s money stream & block the traffick-
ers. ••• The CRB commodity index has built a chart base. Co-
mods are set for either a strong rally, or an upside reversal of
size. ••• Globalization was a crafty greed scheme engineered
by mega corps, who are a virtual govt. More nextime! ••• I
hope U don’t mind; I used smaller type size on page 7&8 &
Uncle Notes today in order to squeeze everything in.
HSL 669 - 1 FEB 09
 BY PRIVATE SUBSCRIPTION ONLY HSL
WORLD MARKETS ANALYSIS
Note 1: Apply our trailing stop strategy to lock in shorterm profits on all posi-
tions. Exit at mkt if trends turn sharply against you. Don’t wait for stop levels
to be hit. 1, 2-day close entry or exit levels should be changed to mkt orders
if intraday run-away action develops. Note 2: Where short selling (S/S) is
not possible, use our guidelines to aid U in determining price levels for sim-
ply selling, & our S/S stops as buying levels. TPS= Trailing Profit Stop.
Canada:
Canada Per HSL668, short sellers took ½ profit at
target ☺, & exited rest at breakeven. Gamblers sell
short bit at mkt; cover ½ at 7120, & trail stop rest. Buy
(or cover shorts) after 2-dc over 9460; stop: 2-dc below
8360; sell ½ at 10,980.
SoAmerica:
SoAmerica •Brazil:
Brazil Per HSL668, short sellers ex-
ited with loss . Traders then bought at 42,312;
lighten up or exit at mkt. Risk of 6-week H&S top. Gam-
blers sell short bit at mkt; cover ½ at 29,850, & trail stop
rest. Buy (or cover shorts) after 2-dc over 40,870; stop: 2-
dc below 36,100; sell ½ at 48,400.
Europe:
Europe •Belgium
Belgium:
Belgium Per HSL668, gamblers sold
short at 2069. 10-week trading range. If out, sell
short bit at mkt & if rallies to 1950; cover ½ at 1450, &
trail stop remainder. Buy (or cover shorts) after 2-dc over
2020; stop: 2-dc under 1800; sell ½ at 2430. •France:France
Per HSL668, gamblers sold short at 3283. Nov upwedge
& breakdown. If out, sell short bit at mkt &/or if rallies to
3150; cover ½ at 2510, & trail stop remainder. Buy (or
cover shorts) after 2-dc over 3420; stop: 2-dc below
3095; sell ½ at 3950. •Germany:
Germany Per HSL668, short
sellers took ½ profit at target ☺, & exited rest at break-
even or better. Poss
triple bottom vs Nov
upwedge & break-
down. Sell short bit
at mkt & if rallies to
4640; stop: 2-dc
over 4820; cover ½
at 3730, & trail stop
rest. Buy after 2-dc
over 5050; stop: 2-
dc below 4640; sell
Italy Per HSL668, gamblers sold short at
½ at 5780. •Italy:
21,545. Broke to new 3-month low. Sell short at mkt;
stop: 2-dc over 20,500; cover ½ at 15,400 &/or tight
trail stop downside. Buy after 2-dc over 21,630; stop: 2-
dc below 19,500; sell ½ at 24,980. •London: London Per
HSL668, gamblers exited shorts at breakeven. Oct-Jan
3777-4639 trading range (basis L/O/C). Gamblers sell
short bit at mkt &/or more aggressively if rallies to
4390; cover ½ at 3777 &/or 3510, & trail stop rest. Buy
(or cover shorts) after 2-dc over 4650; stop: 2-dc below
4175; sell ½ at 5340. •Netherlands:
Netherlands Per HSL668, gam-
blers sold short at 252. Nov-Dec trading range. If out, sell
short bit at mkt; cover ½ at 188, & trail stop rest. Buy (or
cover shorts) after 2-dc over 275; stop: 2-dc below 234;
sell ½ at 336. •Switzerland:
Switzerland Per HSL668, short sellers
took ½ profit at target ☺, & exited rest at breakeven or
better. Nov bear flag & breakdown. If out, sell short bit at
mkt &/or if rallies to 5420; stop: 2-dc over 5650; cover
½ at 4820, & trail stop rest. Buy after 2-dc over 5880;
stop: 2-dc below 5420; sell ½ at 6460.
Asia/Pac
Asia/Pac Rim:
Rim: •Australia:
Australia Per HSL668, short sellers
took ½ profit at target ☺, & exited rest at breakeven
or better. 2½-month trading range. Sell short bit at mkt
&/or if rallies to 3620; cover ½ at 2805, & trail stop rest.
HSL 669 - 1 FEB 09 ... “National freedom is an illusion without legally-protected individual freedom, private property & personal privacy.” --H.D. Schultz ...
HARRY SCHULTZ LIFE STRATEGIES
Buy (or cover shorts) after 2-dc over 3770; stop: 2-dc be-
low 3380; sell ½ at 4270. •Hong Kong: Kong Per HSL668,
whipsawed for losses in shorts & longs . Oct upwedge
& breakdown. Sell short at mkt &/or if rallies to 13,880;
stop: 2-dc over 15,100; cover ½ at 10,780 &/or trail stop
weakness. Buy after
2-dc over 16,000;
stop: 2-dc below
13,880; sell ½ at
19,500. •Japan:
Japan Per
HSL668, traders sold
short at 8367. If out,
sell short bit at mkt
& if rallies to 8540;
cover ½ at 7080 &/
or 6440, & trail stop
remainder. Buy (or cover shorts) after 2-dc over 9330;
stop: 2-dc below 8170; sell ½ at 10,940. •New Zealand
(NZSX 50): Per HSL668, gamblers sold short at 2767. If
out, gamblers only sell short toehold at mkt; cover ½ at
2580 &/or trail stop weakness. Buy (or cover shorts) af-
ter 2-dc over 2810; stop: 2-dc below 2660; sell ½ at
Singapore Per HSL668, traders sold short at
3050. •Singapore:
1738. If out, sell short at mkt; cover ½ at 1485, & trail
stop rest. Buy (or cover shorts) after 2-dc over 1920; stop:
2-dc below 1700; sell ½ at 2240.
HSL ASSET ALLOCATION BOX
Managing your assets is a job you can’t totally delegate. Know-how is
your best protection; learn to do-it-yourself. (Changes are underlined).
COUNTRY/REGION WEIGHTING: US: 18%; Europe: 18%; Cda:
18%; UK: 5%; Oz: 18%; Asia: 18%; Latin Amer: 5%.
---------------------------------------------------------------------------------------------
• 35-45% GOVT NOTES/BILLS/BONDS: In 2-year Swiss/French/
German/Dutch (or other 1st world non-$) govt bonds/bills/notes. Con-
tinue to avoid longterm bonds till the recession cum depression deep-
ens, whereupon a new buy signal will be planned.
• 8-10% STOCKS (non-gold’s). Maintain a balance in longs & shorts
(in strongest/weakest sectors only), temporarily over-weighting expo-
sure in favor of very shorterm mkt direction. Don’t fear shorting.
• 10-13% COMMODITIES: via futures &/or commodity stocks long & short.
• 35-45% GOLD STOCKS & BULLION: 18% blue chips, 2% junior/
speculative. 15-20% bullion via futures &/or buy physical bullion for
safety & to help the gold price, & rare coins (buy only high quality cer-
tified CAC/PCGS or NGC coins). Buy coins partly as method to exit
banking system, for protection against bank failures, to legally trans-
port wealth, to offset inflation, & for privacy. Buy very rare, collector
(set) coins if live in USA, not bullion coins (except some for barter).
• 0% CURRENCIES: close out all fiduciary time/call deposits, money
market funds & municipal bonds, pension funds, & convert to 2-year
Swiss (or other non-$) govt notes/bonds (see above) held in true cus-
todial-ship accounts (ie, where your assets are not on the balance
sheet of the host financial entity & clearly segregated in your name).
• 0-5% BEAR STOCK MARKET PROTECTION via Proshares 200%
inverse ETF’s (which seek results twice (200%) the inverse (opposite)
of the daily performance of an index). Eg: Proshares 200% inverse
Nasdaq ETF (QID), Proshares 200% inverse Dow ETF (DXD),
Proshares 200% inverse S&P ETF (SDS).
Gold Stocks
& Bullion 35-45 %
Commodities
10-13 %
Bear Stock Mkt
Protection 0-5 %
Stocks 8-10 %
Govt Notes/Bills/
Bonds 35-45 %
9
 BY PRIVATE SUBSCRIPTION ONLY HSL HARRY SCHULTZ LIFE STRATEGIES
HSL MODEL PORTFOLIO lies to 59.40; stop: 1-dc over
(merged with Open Positions on 1/31/09) 64.60. Kinross (NYSE: KGC –
*Take P/P = take Partial Profits * U/ = Under given price gold – US/Brazil/Russia/Chile);
Short Price Jan % Gain/ bullish reverse H&S base. Buy after
STOCKS Sale Paid 31/09
STOPS Action To Take
Loss 2-dc over 18.65; stop: 1-dc below
Australia 14.90. Myriad Genetics (Nasdaq:
Rio Tinto (minerals) 14.00 42.15 1-dc U/33.80 Cover hedge at mkt +201% MYGN – medical-genetics); round-
Canada ing base & upside breakout. Spec
Capital Gold 0.46 0.76 1-dc U/0.42 Take P/P at mkt +65% buy at mkt & if dips to 69.10; stop:
CGA Mining 1.05 1.47 1-dc U/0.90 Take P/P at 1.58 +40%
63.30-stop. Zenith Nat’l Insurance
(NYSE: ZNT – insurance-prop/
Eastmain Res. 0.82 0.88 2-dc U/0.65 Take P/P at 1.18 +07%
workers compensation); 2-month
Eldorado Gold 8.00 9.60 1-dc U/6.40 Take P/P at 11.20 +20% upwedge & gap breakdown on high
New Gold 1.79 2.60 2-dc U/1.40 Take P/P at 2.90 +45% volume. Sell short at mkt & if ral-
Osisko Mining 2.14 5.21 1-dc U/2.45 Take P/P at mkt +143% lies to 30.40; stop: 1-dc over 33.60.
Engalnd ••AUSTRALIA
AUSTRALIA:
AUSTRALIA Lihir Gold (ASX:
Centamin Egypt 37.25 42.00 1-dc U/34.00 Take P/P at 48.70 +13% LGL – gold – Papua New Guinea/
Germany Australia/ West Africa); bullish re-
Solarworld (split 2:1) 1.78 16.51 Hedged at 15.50 +828% verse H&S base. Buy after 2-dc
U.S.A
over 3.15; stop: 1-dc below 2.48.
Sino Gold (ASX: SGX – gold –
Agnico Eagle 45.75 53.04 1-dc U/36.60 Take P/P at 63.90 +16%
China); bullish reverse H&S base.
Bank of Ireland S/S 48.13 3.00 6.30 +94% Buy after 2-dc over 5.20: stop: 1-dc
Barrick Gold 33.92 37.49 1-dc U/26.80 Take P/P at 44.80 +11% below 4.00. ••CANA CANADA
CANADA:
DA Alexis
California Water Svc 43.00 43.50 37.90 Take P/P at 48.30 +01% Minerals (TSX: AMC – gold – Can-
Deutsche Bank S/S 116.20 25.65 35.70 +78% ada); 5½-month reverse H&S base
Emergent Biosolutions 14.70 21.93 19.40 Take P/P at 25.70 +49% & upside breakout. Spec buy at
Gannet S/S 28.75 5.77 8.60 +80% mkt & if dips to 0.50; stop: 1-dc be-
*Goldcorp (Ex Glamis) 3.27 49.97 1-dc U/19.50 Cover hedge at mkt +1 428%
low 0.38. Atna Resources (TSX:
Ishares Semiconductor S/S 46.53 27.63 33.10 Take P/P at 20.40 +41%
Miller Herman S/S 14.49 10.99 13.60 Take P/P at mkt +24%
NRG Energy S/S 34.96 23.36 26.50 Take P/P at 16.40 +33%
Randgold Res. 33.41 44.46 1-dc U/31.90 Take P/P at mkt +33%
Royal Gold 32.11 48.08 1-dc U/32.80 Take P/P at mkt +50%
Sector Spdr Utilities S/S 35.93 28.98 30.70 Take P/P at 25.20 +19%
Terra Nitrogen 114.42 122.48 96.60 Take P/P at 130.60 +07%
*Goldcorp (Ex Glamis) includes takeover bid terms (1.69 GG x 1 GLG shs held)
The average gain for the 24 stocks listed above is 138.58%.

NEW RECOMMENDATIONS ATN – gold US); 6-month reverse H&S base & upside
breakout. Spec buy at mkt & if dips to 0.72 & 0.62;
Mkt = market. Non-US stk stops are 1-dc (1-day close) above/below price
for all trades. The following recommendations remain valid until the next
stop: 1-dc below 0.50. Lake Shore Gold (TSX: LSG –
HSL Jr, & will only be added to the ‘Open Position’ box if activated. gold – Canada); reverse H&S base & upside breakout.
Spec buy at mkt; stop: 1-dc below 1.06. Franco Nevada
••AMERICA
AMERICA:
AMERICA Brinks Home Security (NYSE: CFL – secu- (TSX: FNV – gold royalty/platinum/oil&gas); 5½-month
rity alarm systems); bullish reverse H&S base. Buy after reverse H&S base & upside breakout. Buy at mkt & if
2-dc over 23.40; stop: 1-dc below 19.80. Columbia dips to 23.25 & 21.60; stop: 1-dc below 17.80.
Sportswear (Nasdaq: COLM – apparel-clothing mfg);
3-month coil & breakdown on rising volume. Sell short PROFIT TAKING & CLOSED POSITIONS
at mkt & if rallies to 30.90; stop: 1-dc over 34.10. Corin-
thian Colleges (Nasdaq: COCO – comml schools-svcs); HSL recom’s are followed by a wide selection of investors, ranging from
novice traders to professional fund managers. Hslm’s have requested we
reverse H&S & upside breakout. Spec buy bit at mkt &
give partial profit taking signals (at intermediate resistance levels) to allow
if dips to 16.50; stop: 14.90-stop. Harmony Gold (NYSE: incremental exit from medium to large share positions. Thus, recom’s to
HMY – gold – So.Afr/Papua New Guinea); 5½-month take partial profits are given 3 times before a position is finally exited.
reverse H&S base &
upside breakout. ••Per
Per HSL668 Nov 1616: Bank Of Ireland +88%;
+88% NRG En-
Spec buy at mkt & if ergy +50%;
+50% Ishares Semiconductor +41%;+41% Proshs Ul-
dips to 10.40; stop: trashort Msci Eafe +41%;
+41% Emergent Biosolutions +27%;
+27%
1-dc below 8.80. Select Sector Spdr Utilities +20%;
+20% Universal Forest Prods
Holdrs Tr-regional +20%.
+20% ••PerPer HSL JrJr Dec 21: 21 Emergent Biosolutions
Bank (NYSE ARCA: +77%:
+77% Osisko Mining +63%;
+63% Royal Gold +43%;
+43% Randgold
RKH – index track- Res +29%;
+29% Capital Gold +28%;+28% Eldorado Gold +25%;
+25%
ing); bear flag & Denso Corp +12%;
+12% Macerich –16%. ••Profit
Profit taking or
breakdown. Sell Stopped out:
out Canadian Nat’l Resources +179%;
+179% Jkx Oil &
short at mkt & if ral- Gas +160%;
+160% Winnebago +61%; +61% Proshs Ultrashort Msci

10 ... “Newsletters are the alternative press.” George Stoll, Founder of the Flint Schools ... HSL 669 - 1 FEB 09
 BY PRIVATE SUBSCRIPTION ONLY
Eafe +6%;
+6% Canadian Imperial Bk –5%; Universal Forest
Prods –8%; Denso Corp –9%; Genoptix Inc –14%; Com-
pass Minerals –15%; LHC Group –15%; Goldcorp –16%;
Intercontinental Hotels –16%; Sba Communications
–16%; Magna Int’l –20%; Int’l Tower Hill Mines –35%.
NASDAQ – HSLP (HSL MARKET PREDICTOR)
HSLP-Nasdaq briefly popped above resistance of its
Dec-Jan peaks, & shows growing bullish divergence
when compared against its benchmark index, the
Nasdaq Comp. Every significant divergence signal HSLP-
Nasdaq has given, has pointed us in the right direction.
But, as today’s markets are plagued with so many sud-
den & unpredictable events, we prefer to play safe, &
won’t start to trim back on short sales & increase expo-
sure to longs (strongest sectors only) unless the Nasdaq
rises to validate HSLP-Nasdaq’s lead strength via a 2-dc
over 1300 (basis March mini Cx). Time will tell if HSLP-
Nasdaq is set to lead the Nasdaq higher. But, in the
meantime, put its early warning signal to good use, & do
some homework, so you are prepared & ready to
pounce, should its bullish intonation confirm.
BACK TO THE FUTURES
•Written: Jan 31, 2008. Comments below follow on from trade recoms/
updates given in Dec 21 HSL Jr. Line On Close (L/O/C)
..Euro
..Euro:
Euro Per HSL Jr, exited Mar longs with loss . Sell short
Mar bit at mkt & if rallies to 1.2980; cover ½ at 1.2470
&/or 1.2140, & tight trail stop rest. Buy Mar (or cover
shorts) after 2-dc over 1.3280; stop: 2-dc below 1.2690;
sell ½ at 1.4060. ..£ GBP Per HSL Jr, took ½ profit at
.. - GBP:
target in Mar shorts ☺. Sept bull wedge vs rebound to
lower resistance of Nov-Jan trading range. Sell short Mar
at mkt & if rallies to 1.4660; stop: 2-dc over 1.5060;
cover ½ at 1.3580, & trail stop remainder. Need obvious
base action &/or 2-dc over 1.5610 to justify new longs;
stop: 1-dc below 1.4860; sell ½ at 1.6730. ..Yen
..Yen:
Yen Per HSL
Jr, whipsawed for losses in Mar longs & shorts . Risk of
Dec-Jan double top vs 8-day bull flag. Buy Mar after 1-dc
(decisive) over 112.80; stop: 109.40-stop; sell ½ at
118.30. Sell short Mar bit after 2-dc below Sept uptrend
line (now 108.10); stop: 2-dc over 111.50; cover ½ at
104.10 &/or trail stop downside. ..US$ Index Per HSL Jr,
..US$ Index:
exited Mar shorts with loss . Buy Mar bit at mkt & if
dips to 85.40; sell ½ at 88.80 &/or trail stop strength.
Buy again after 2-dc over 87.10 & 89.40. Sell, or sell
short Mar after 2-dc below 84.40; stop: 2-dc over 87.10;
cover ½ at 81.10. ..DJIA
..DJIA:
DJIA Per HSL Jr, exited Mar longs
with loss . Traders then sold short at 8280 &/or 8159.
3-month coil formation. If out, gamblers sell short Mar at
mkt & if rallies to 8160; stop: 2-dc over 8510; cover ½ at
6830, & tight trail stop rest. Buy Mar bit after 2-dc over
8880; stop: 2-dc below 8160; sell ½ at 9980. ..Nasdaq
..Nasdaq
100:
100 Per HSL Jr, exited Mar longs with loss . Traders
then sold short at 1138. Fragile 2½-month ascending
triangle. If out, gamblers sell short Mar bit at mkt; stop:
1300-stop; cover ½ at 902, & tight trail stop remainder.
Sell short again after 2-dc below 1125. Buy Mar after
2-dc over 1300; stop: 2-dc below 1125; sell ½ at 1525.
..S&P500
..S&P500:
S&P500 Per HSL Jr, exited Mar longs with loss . Trad-
ers then sold short at 817.60 & 806.00. Nov bear wedge
& breakdown vs uncertain 2½-month ascending triangle.
If out, sell short Mar at mkt & if rallies to 841.00; stop:
2-dc over 884.10; cover ½ at 739.10 &/or 682.00, &
trail stop rest. Buy Mar bit after 2-dc over 936.80; stop:
HSL 669 - 1 FEB 09 “Govt is not reason; it’s not eloquence; it is force. Like fire, it’s a dangerous servant & a fearful master.” George Washington
HSL HARRY SCHULTZ LIFE STRATEGIES
2-dc below 841.00; sell ½ at 1090. ..10yr
..10yr US T-
T-Notes:
Notes
Per HSL Jr, traders sold short Mar at 125^07 & 124^10.
Possible bull flag vs Dec-Jan (double) H&S top. If out, sell
short Mar at mkt & if rallies to 124^00; cover ½ at
119^27 &/or 117^27. Buy Mar after 2-dc over Dec
downtrend line (now 126^29); stop: 2-dc below 123^13;
sell ½ at 131^22. ..Gold
..Gold:
Gold Per HSL Jr, took ½ (or full)
profit at target in Feb longs ☺, &/or rolled over to April
Cx. Buy Apr at mkt & if dips to 902.20 & 886.10; stop:
1-dc below 839.60 (use mini Cx to offset wide stop); sell
½ at 993.40 &/or tight trail stop upside. Need Spinner
confirmed top &/or break below Nov uptrend line (now
828.30) to justify new short sales.
Created with TradeStation by Omega Research © 2000
ACTIONS TO TAKE - IN A NUTSHELL
•• Hold approx half of your assets in Swiss/French/
German/Dutch (or other 1st world non-$) govt bonds,
& approx half in a mix of blue chip gold shares &
physical gold bullion (best bought & stored in Switz,
Canada, Oz, HK or Sgpr). •• Retirement programs,
public benefits & services are in danger of collapse.
Where possible, pay down all credit & reduce your liv-
ing expenses to meet your budget. Consider cashing
out retirement plans while still solvent. Or, switch in
the plan to gold stks. •• Close out all fiduciary time/
call deposits, money market funds & municipal
bonds, pension funds, & convert to 2-year (non-$) govt
custodial-ship accounts
bonds (see above) held in true custodial-
(ie, where your assets are not on the balance sheet of
the host financial entity, & clearly segregated in your
name). •• Keep a minimum of 6 months cash needs
at home/office &/or a secure location outside of bank
vaults. •• Prepare against spreading civil unrest.
Stock some extra food, water, personal medication,
light & heating sources, etc – to avoid potential short-
ages/inconveniences. Denial & fear are not a plan for
hunkering down & preparing for hard times.
the Month • • • • • • •
• • • • • • • Top Picks of the
AMERICA Harmony Gold (NYSE: HMY – gold – So.
••AMERICA
AMERICA:
Afr/Papua New Guinea); 5½-month reverse H&S base
& upside breakout. Spec buy at mkt & if dips to 10.40;
stop: 1-dc below 8.80. ••CANADA
CANADA:
CANADA Franco Nevada
(TSX: FNV – gold royalty/platinum/oil&gas); 5½-month
reverse H&S base & upside breakout. Buy at mkt & if
dips to 23.25 & 21.60; stop: 1-dc below 17.80.
11
 BY PRIVATE SUBSCRIPTION ONLY
Uncle's Notes Forced (by price drops) repa-
triation of US$ global posi-
tions will slow soon, which will remove support for $-rally.
IMO, odds favour rally topping out in 90-92.50 +/- area, ba-
sis US$Index. Perhaps in 4-6wks. Is 5-wave chart pattern. By
that time, the other currencies should have completed their
base patterns. Did I mention that mkts can fail to do what
they should? ☺ -- If this $ projection misfires badly we’ll
send U an online Flash Bulletin, if U have given us an email
address (if not, do so!). If situation evolves slowly, we’ll
cover it in next HSL Jr.
Here’s a Sinclair-Schultz poli update: “Sadly it’s business
as usual in Washington. Despite election promises, we’re
looking at political priorities & insider-driven bailouts &
money pumps. The Fiscal Stimulation bill isn't. As presently
presented there is no real fiscal stimulus ‘til later in 2010 &
2011. The bill does re-establish social safety nets, which is
spiritually correct, but economically questionable. As far as
‘Bad Bank’ is concerned, it already exists. It is the US Federal
Reserve--having purchased the least desirable of the non-
functional OTC Derivatives that broke the back of US financial
concerns. Note: the stimulus bill measures only 5.6% of GDP,
& is spread over several years. Kindly lower expectations.”
Hslm Preston Henn reports: “Finally got delivery of Dec
Comex gold! Now asking delivery of Feb Comex. Will follow-up
with April delivery. Thanks to U for good idea.” Preston is a
good soldier in the hard-money army. Hope many of U will do
same in NY, to break Comex stranglehold on price mecha-
nism. ••• HSBC exec Stephen King rightly says: “Deflation is
the worry at the moment.” Everyone wants inflation (tho they
differ in scale!), but nobody wants deflation. Yet in the in- vs
de- battle, deflation has the edge, due to job cuts, consumer
dropouts, defaults, bankruptcies. Both in- & de-flation get un-
controllable beyond a certain point. We’re in no-man’s land
just now. Watchthispace ☺ ••• My Sage of LV says “1984 &
Atlas Shrugged get closer every month.” ••• DJIA must hold
8000, or else! ••• German chairman of SPD party called
many bankers “gangsters” & a threat to democracy. •••
My sage of Zurich sez “Bankers are the bad guys today;
politicians are the bad guys of tomorrow, when their fixes
don’t work.” ••• Don’t buy GLD, GTU, SLV, CEF gold/ag
funds. Buy bullion & PM shares, as safer! Gold ETF’s are a
form of debenture; if an ETF provider goes into liquidation,
U become a general creditor. ••• The reason India bought
less gold lately is: their Rupee currency fell big, which
made gold go to new high in their currency. Indians buy low,
sell hi. Westerners do the opposite! They’re professional; we
are amateur. ••• Gold is bit overbot; stks are bit oversold.
• Overlay DJIA chart of 1929-1940 vs 2000-2008 & U see
a rally due. ••• Re job cuts/mergers/takeovers: save me
from synergy! ••• Your banks are your future. U don’t
have a future if your banks go under. Be sure they’re sol-
vent, OTC derivative-free & in any case that your funds
there are safe in case of bank holiday or closure, ie, in govt
bonds & segregated gold.••• Read HSL twice. ••• “Only
the paranoid survive.” -Andrew Grove. •••
IHT checked year-ago forecasts of VIP’s. Fred Bergsten,
director of PG Peterson Institute of Int’l Economics in DC
said: “It is inconceivable, repeat,
repeat inconceivable – to get a
world recession.” ••• U must’ve noticed, slowly the big guns
are jumping on my bandwagon re the length of this crisis.
Bill Gates is latest one; says “It’ll be at least 4 yrs before we
get back to growth.” ••• Earthquakes are increasing dra-
matically; do U keep a packed bag by the front door? EQ in
Costa Rica (our reader svc dept) killed 15. ••• A-$ is the
carry-trade of choice now. ••• If U can’t wait for more from
me ‘til HSL Jr on Mar 8, then join our every Wednesday read-
ers of Gold Charts R Us. Life is about choices. ☺
12 ...“A newsletter that makes or saves you money doesn’t cost you anything.” Dr. Vernon Coleman...
HSL HARRY SCHULTZ LIFE STRATEGIES
Potpourri Golf is dangerous. Not from balls, but
from buddies. One might be a Madoff.
Don’t tell, don’t ask. ☺ ••• "U can't stop the waves, but U
can learn to surf."--Jack Kornfield. ••• Straws in today’s
wind: “Stock markets went down today, on fears that they
would go down.” ••• “Get my broker, Miss Jones." "Yes
sir. Stock, or Pawn?" ••• “The market may be bad, but I
slept like a baby last night. I woke up every hour &
cried.” ••• “The problem with investment bank balance
sheets is that on the left side nothing is right & on the
right side nothing is left.” ••• “How do U find a good
small-cap fund manager? Find a good large-cap fund man-
ager, & wait.” ••• “The credit crunch has helped me get
back on my feet. My car's been repossessed.” •••
“There are 2 types of economists: those who cannot
forecast interest rates & those who do not know that they
cannot forecast interest rates.” ••• The worst part of this
financial typhoon is, due to leap in cocoa prices, chocolate
prices are to be raised! That’s hitting home! ☺ ••• Don’t
send me anything via courier.
courier Post/mail is often faster,
safer, no red tape. ••• Message to poli’s: “Rules are for
when thinking stops.”—H.Dean Mallory. ••• Re computers
& updates & all that jazz: Hi-tech=low results=hi
stress=notworthit. ••• Not only stockpile cash/gold coins
at home, but veg&fruit seeds as well. GM seeds are pro-
grammed not to reproduce; guaranteeing global starvation.
Look at India. Seeds will become priceless.
Top geopolitical analyst & my Geo Editor, Gordon Frisch
has written 6 articles in HSL today—each signed as GF (as
he has on&off for many yrs) to help me analyze the mass
of creditcrunch events/data. I’ll ask GF to do more if it
gets deeper or if I need/want a cruz break ☺. ••• One
dog to another dog: “I buried my bones in the backyard, &
then they foreclosed on the house.” ••• Bumper Stickers:
“When blondes have more fun, do they know it?” ••• “It's
not whether U win or lose, but how U place the
blame.” ••• Next publication dates: HSL Jr goes on-line
Sunday, Mar.8 (free to Hslm’s). Next HSL Sr will be avail-
able on April 5 or 12, depending on travel, but due to mon-
eymeltdown crisis, we’ll send Flash Bulletins if needed.
Revised deadlines will also appear in HSL Jr & GCRU. Next
Gold Charts R Us on Wednesday, Feb 4. ••••
“I wonder if other dogs think poodles are members of a
weird religious cult.” ••• Can U believe the Bible said it
first? Psalms 118:8. “It is better to trust in the Lord than to
put confidence in man.” Guess they had Madoffs back
then also. ••• To wit: Madoff’s yacht name is Bull. As a
supreme BS artist, that was a subtle hint nobody around
him understood; he did warn them, U see. ☺ •••
Ex president Harry Truman observed, “My choices
early in life were either to be a piano player in a whore
house or a politician. And to tell the truth, there's hardly
any difference.” ••• In a logical follow-on from that
quote, here is the philosopher don of India: Mahatmas
Gandhi famously said, when asked, on a visit to London,
what he thought of western civilization: “I think it would
be a very good idea, & should be tried.” Pow! That puts us
in perspective & in our place. ☺ ••• Closing cheerful: “U
can say any foolish thing to a dog & he
will give U a look that says: ‘Wow,
you’re right! I never would’ve thought of
that!” ••• And that’s all the smoke sig-
nals from this wigwam for today. Bye
from your Uncle Harry D (for Deluge Di-
vulging) Schultz at Crisis Control.
HSL 669 - 1 FEB 09