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Welcome to the January 2011

Premium Edition of The Dollar Vigilante
Volume I, Issue 7 / January 2011

Dear fellow Dollar Vigilante,

Happy New Year to all!

I'd like to take this opportunity to thank all of our subscribers for their support in 2010 and we look forward to another
profitable 2011.

As you are about to read, we expect 2011 to be an incredibly interesting year. The monetary stimulus pumped into the
markets throughout 2009 and 2010 enabled the governments and central banks to obscure the truth that the entire
western financial system is in collapse.

We expect 2011 to be full of surprises. There are no guarantees for this year or the foreseeable future. Will the EU
exist a year from now? Will the euro? Will the US government default or collapse this year? Will the US dollar
survive? Will it start to hyperinflate?

As for how to prepare, it is crucial, beginning this year, to ensure you have at least a significant percentage of your
assets outside of the financial system. The easiest and best way to do that is to hold gold bullion in non-financial
institutions or under your direct control.

We are nearing the point of TEOTMSAWKI (The End Of The Monetary System As We Know It) and it is more crucial
now than ever to be prepared. It isn't, however, the end of the world. It is just the end of a very silly experiment where
men thought they could improve their lots in life by coercively manipulating the free market.

So, don't worry, be happy but be prepared.

Here are a few of the topics we cover in this month's TDV:

Awakening Thomas Jefferson

Every major event in our lifetimes has been a lie, propaganda or misinformation and the one chance we have for
truth, liberty, freedom and justice is now being attacked by the government
1984 & Brave New World were both right
Numerical proof that the US Government is on the verge of complete insolvency
What rate of interest would make the US Government insolvent right now? We have the answer
You'll never guess who is now the largest holder of US Government debt
Why you can't trust the ratings agencies on sovereign debt
The top 20 performing cities in the world since the financial crisis started
Why Chinese price controls on food & energy may end the "Chinese economic miracle"
We re-rate Gold this month and show why Gold Stocks are still highly undervalued
In the TDV Portfolio we add a gold mining junior in Mali with 20-bagger potential
In our expatriation section we feature a country which is home to the "nicest, most unknown place in the world"
Private Parts has some truly heartbreaking stories and always fascinating information from Inside the Belly of the
Beast in Afghanistan
In Survival & Health we feature two new ways to get in better shape, in less time and without even going to a gym

Also, please note that both I and Ed Bugos will be attending and speaking at the Vancouver Resource Investment
Conference on January 23rd and 24th. I'll be speaking at 3:30pm on Monday and I am also on a panel entitled "World
Outlook" at 5:30pm with Michael Berry and David Coffin (see full agenda here).

If you are in the area please come by and say hello!

I hope you enjoy our inaugural edition for 2011.

Regards,

Jeff Berwick

Chief Editor
 The Big Picture
by Jeff Berwick

Welcome, 2011. What in the world are we doing?

Imagine awakening Thomas Jefferson from his peaceful slumber to today’s United States of America. What do you
suppose his reaction would be upon hearing that the only realistic way to slow down the US Government’s issuance of
laws, rules, regulations and spending is to actually make them read the bills out loud as reading the recent 1,924 page,
$1.1 trillion omnibus spending bill would take 50 hours straight. Senate clerks pop throat lozenges and try to remain
hydrated just to read the monstrosity.

He’d also be surprised to find out that his lovely idea of a free state now has more people in prison than any other
nation on earth, with more than 2.2 million people – or one in every 32 American adults. It’s not that American’s are
particularly unruly, we would comfort him, but just that in the land of the free everything is now illegal.

He might also be surprised to hear that the US has 700 to 800 military bases worldwide with US military personnel in
156 countries and military bases in 63 countries and is currently “at war”, unprovoked, in Iraq and Afghanistan.

Did no one listen to his, “Peace commerce and honest friendship with all nations; entangling alliances with none,”
statement?

He’d be perplexed to hear that the one man responsible for this giant military that spends more on defense (offense)
than all other nations on earth combined and that is currently occupying and "at war" in Afghanistan, Iraq, building
billion dollar bases in Guam, operating concentration camps in places such as Cuba, killing civilians from unmanned
drones every day in Pakistan and threatening war with Iran is President Barack Obama. He won the Nobel Peace Prize.

1984 & BRAVE NEW WORLD WERE BOTH RIGHT

In the early part of the 20th century two futuristic books were written which both had very scary views of what the future
would be like. George Orwell’s 1984 and Aldous Huxley’s Brave New World.

In 1984, what Orwell feared were those who would ban books. In Brave New World, what Huxley feared was that there
would be no reason to ban a book, for there would be no one who wanted to read one. Fast forward to 2011 and
websites such as Wikileaks are being banned for telling the truth about what the government is doing and less than half
of all Americans read a book in 2009.

Orwell feared those who would deprive us of information. Huxley feared those who would give us so much that we would
be reduced to passivity and egoism. In 2011 the US Government, through the FCC, is attempting to regulate the
internet and President Obama has even expressed the desire for an "internet kill switch". Meanwhile the average
American is more interested in American Idol and the NFL as they watch an average of 153 hours of TV each month.

In 1984 people are controlled by inflicting pain. In Brave New World, they are controlled by inflicting pleasure. In short,
Orwell feared that what we fear will ruin us. Huxley feared that our desire will ruin us.

Given the evidence it is clear, sadly, they were both right.

EVERY MAJOR EVENT REPORTED IN MAINSTREAM MEDIA IS WRONG OR A LIE - RISE OF THE CITIZEN
JOURNALIST

It is now 2011, 16 years A.I. (after the internet), and still many people, even though they have access to the information,
believe in many/most of the state’s lies which are parroted by the mainstream media.

Look at the life of your average person born since 1940. Every single thing they have been told about the major
events in their lifetime is wrong or a lie.

They were told that the US was attacked, unprovoked, by Japan to bring the US into World War II. The truth is that
President Franklin Roosevelt, working in concert with Secretary of War (back when they were honest about the role of
the Secretary of “Defense”), Henry Stimson, to calculate a way to draw Japan into war with the US to serve as a way to
get the US into World War II. In July 26, 1941, Roosevelt froze Japanese assets in the United States, thus bringing
commercial relations between the nations to an effective end. One week later Roosevelt embargoed the export of oil to
Japan. As Stimson confided to his diary after a meeting of the war cabinet on November 25, “The question was how we
should maneuver them [the Japanese] into firing the first shot without allowing too much danger to ourselves.” The end
result? 418,500 Americans killed, 3 million more Japanese dead, including one million innocent civilian men, women
and children.

On June 4, 1963, a little known attempt was made to strip the Federal Reserve Bank of its power to loan money to the
government at interest. On that day President John F. Kennedy signed Executive Order No. 11110 that returned to the
U.S. government the power to issue currency, without going through the Federal Reserve. Mr. Kennedy's order gave
the Treasury the power "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the
Treasury". With the stroke of a pen, Mr. Kennedy was on his way to putting the Federal Reserve Bank of New York out
of business. Five months later and JFK was assassinated - an event whose official story many to this very day do not
believe (a 1993 CBS News poll found 89% of the population believed in the conspiracy and 81% believed there was an
official cover-up).

Not many Americans know that the Vietnam war was entirely predicated on a lie. The official story was that North
Vietnamese torpedo boats launched an "unprovoked attack" against a U.S. destroyer on "routine patrol" in the Tonkin
Gulf on Aug. 2 — and that North Vietnamese PT boats followed up with a "deliberate attack" on a pair of U.S. ships two
days later. Those attacks never happened in the Gulf of Tonkin. Final tally? 50,000 Americans killed and millions of
Vietnamese including thousands of innocent men, women and babies.

Leaving the topic of war, for the moment, the next big thing to happen in our lifetimes was HIV/AIDS. The HIV story
began only killing gays, mostly in San Francisco. Soon, however, it had become a heterosexual disease and
heterosexual activity was at risk. Oprah Winfrey stated in 1987 that by 1990 (three years later) over 1/5th of all
heterosexuals on earth would be dead from AIDS! This faded somewhat, especially since no heterosexuals died
directly from HIV and people like Magic Johnson look and feel great still to this day. It then moved on and now it is
mostly an African disease. How did this virus manage to manifest itself in so many different ways? Simple, HIV never
existed.

The gays in San Francisco were mostly dying from an incredibly wreckless drug-fueled lifestyle. The gays who died
after that were mostly killed by AIDS drugs themselves, which are highly toxic after they were told they had HIV. The
heterosexual AIDS story never really caught on.

But by this point AIDS was a billion dollar industry enticing African governments to denote anyone who died of nearly
anything as having AIDS. Died of pneumonia? AIDS. Get a check. Died of dissentary? AIDS. Get a check.

An excellent citizen journalist documentary on the HIV/AIDS topic can be seen here: http://www.houseofnumbers.com/.

On September 11, 2001, the US government said it was attacked by Osama bin Laden, a former CIA operative with
close familial relations with the Bush family, from caves in Afghanistan. The truth is likely far from the official story (an
official story that 86% of Americans reject). Many of the hundreds of questions about that day can be seen in the
excellent documentary Loose Change. Another excellent documentary has recently been brought to my attention
which all but proves the US government story about the plane hitting the pentagon on 9/11 is false. Excellent
investigative journalism such as these conducted by regular people is the only chance we have to discover the truth.
Whether you believe the information they provide or not you must agree that logical, rational questioning and
investigation of everything is a good thing. Ask yourself, where are the mainstream questioning of the official stories?

Returning to war, it is common knowledge now that the US attacked Iraq in March, 2003, under the lie that Iraq had
“Weapons of Mass Destruction”. Yet, despite the fact that the former US administration now laughs about how wrong
they were about the information to go to war in Iraq, it is now nearly 8 years later and the US is still occupying Iraq. It is
less funny, presumably, to the 4,000 American soldiers who have been killed and over 100,000 Iraqis including
countless innocent civilian men, women and children.

And, finally, Global Warming. There are still some who believe in this theory but every day now there is more proof of
how wrong it is. Mother Nature has been the biggest critic. Headlines from the United Kingdom’s Independent
newspaper, entitled “Snowfalls are now just a thing of the past” in 2000 look rather silly considering Heathrow airport
was recently snowed in so bad that there were calls for the Army to be called in to remove the massive amount of snow
which paralyzed the UK. Now, of course, the global warming scare-mongers, having to have changed their names to
“climate change” believers, are saying that this massive amount of snow and cold is proof that the climate is changing!
Of course it’s changing. New York used to be under one mile of ice and Greenland used to be so warm that farming
was commonplace. But human emissions of CO2 did not cause any of that and it is more than possible they aren’t
causing the climate to change significantly now.

An excellent citizen journalism documentary about the global warming story is "Not Evil, Just Wrong".

There are plenty of other lies and misinformation over the years including the Oklahoma City Bombing, Swine Flu, the
so-called Mexican Drug War and others but, suffice it to say, all of the major beliefs held by people about World War II,
the Vietnam War, HIV/AIDS, 9/11, the Iraq War and Global Warming are off-base, at best. In other words, for anyone
born since 1940, nearly every major event in their lifetime has been a hoax, lie, misinformation or just plain wrong.
Even the Apollo Moon Landing has credible evidence that at least part of it was also staged. And, of course, most of
our subscribers know that Keynesian economics, the economic theories under which most of the world's governments
operate, is all wrong as well.

Now, thanks to the internet, regular, caring people can investigate things for themselves and produce the results for the
world to see - something which used to be the responsibility of the mass media - long since owned and operated by the
same people who own and operate the US Government. And now, with the attack on Wikileaks and the plans to control
and regulate the internet being moved through Congress the governments of the world have realized that the internet
has the power to challenge many of their propaganda campaigns and they are moving to squash it. This is the most
important battle ground for freedom in the world at this time and a loss here will end any chance for truth, liberty,
freedom and justice in the world.

2011 – FINAL DAYS OF THE AMERICAN EMPIRE

The definition of insolvency is having liabilities or debts in excess of their assets and being unable to service payments
on the debt with existing income. The US Government certainly qualifies in terms of having much more debt than
assets. As for being able to service the debt, the time when they cannot is now drawing clear.
The US government released their “official” numbers for 2010 recently and so we can update our chart of total US
government debt as calculated by GAAP (Generally Accepted Accounting Principles) – the same accounting principles
to which all US companies must comply.

Total GAAP federal obligations rose to $76.3 trillion in 2010, up an astonishing $5.8 trillion since 2009. That is an
increase of federal debt of $18,709 for every man, woman and child in the US. In one year.

Versus liabilities, the US government, on its own balance sheet, records assets of $2.667 trillion.

That’s quite a glaring disparity. What are the chances they can make it up on income (taxes)? Zero.

Here is the 2010 income for the United States government:

• $1.061 trillion – Individual income taxes

• $940 billion – Social Security and other payroll tax
• $222 billion – Corporation income taxes
• $77 billion – Excise taxes
• $23 billion – Customs duties
• $20 billion – Estate and gift taxes
• $22 billion – Deposits of earnings
• $16 billion – Other

Note that they include Social Security payroll tax as “income”. This is highly fraudulent. Quite theoretically, these
payments are supposed to be held and/or invested on behalf of the payee. But the US government just includes it as
revenue and immediately spends it (which is why, under GAAP, the US now has such a massive unfunded liability).

So, if the $940 billion in Social Security payments are, rightfully, taken out of “revenue” then the actual income of the
US government was $1.44 trillion in 2010.

Mandatory Spending: $2.184 trillion

• $677.95 billion – Social Security

• $571 billion – Other mandatory programs
• $453 billion – Medicare
• $290 billion – Medicaid
• $164 billion – Interest on National Debt
• $11 billion – Potential disaster costs

Non-Mandatory Spending: $1.368 trillion

• $663.7 billion – Department of Defense (including Overseas Contingency Operations)
• $78.7 billion – Department of Health and Human Services
• $72.5 billion – Department of Transportation
• $52.5 billion – Department of Veterans Affairs
• $51.7 billion – Department of State and Other International Programs
• $47.5 billion – Department of Housing and Urban Development
• $46.7 billion – Department of Education
• $42.7 billion – Department of Homeland Security
• $26.3 billion – Department of Energy
• $26.0 billion – Department of Agriculture
• $23.9 billion – Department of Justice
• $18.7 billion – National Aeronautics and Space Administration
• $13.8 billion – Department of Commerce
• $13.3 billion – Department of Labor
• $13.3 billion – Department of the Treasury
• $12.0 billion – Department of the Interior
• $10.5 billion – Environmental Protection Agency
• $9.7 billion – Social Security Administration
• $7.0 billion – National Science Foundation
• $5.1 billion – Corps of Engineers
• $5.0 billion – National Infrastructure Bank
• $1.1 billion – Corporation for National and Community Service
• $0.7 billion – Small Business Administration
• $0.6 billion – General Services Administration
• $19.8 billion – Other Agencies
• $105 billion – Other

The numbers are pretty simple. The US government had total real tax receipts of $1.44 trillion in 2010. This only pays
for 66% of the Mandatory Spending, even if you got rid of 100% of the "Non-Mandatory" spending.

In other words, in order to balance the budget the government would have to cut 100% of Discretionary Spending and
34% of Mandatory Spending. What would that look like?

To do this, they would have to close every military base and lay-off every serviceman in the Armed Forces, shut down
the Department of Transportation, the Department of Homeland Security and every other government agency and, as
well, cut all Social Security, Medicare and Medicaid spending by 34%.

And that is just to balance the government deficit. To actually start to pay off the government debt they would have to
cut 100% of the government and 100% of all Social Security and Medicaid spending.

To summarize, in order for the US government to even have any chance of paying off any of its debt it would have to
completely disappear! We could only wish.

And even that doesn’t even take into account the possibility of greatly increasing interest expense. In 2010 the US
government paid $414 billion in interest expenses. But that was at historically low interest rates. Considering the US
had approximately $13 trillion in “official” debt in 2010 that implies a 3.1% interest rate. At what interest rate would
interest payments on current debt outstrip the current government income (minus social security taxes) of $1.44
trillion? 11.1%.

And there is bad news for the US Government there, too. Interest rates have begun to spike higher in response to Ben
Bernanke’s promise to devalue the dollar rising more than 1% in 6 weeks – a very large move in the Treasury market
and especially surprising considering that the Federal Reserve is buying the great majority of the US government debt
meaning that the small percentage of buying from other holders are only willing to buy at substantially higher interest
rates.
It should also be noted that all of the above speculation about the solvency of the United States Government is based
on the reported numbers given by the Government itself – if they are correct. For the 14th straight year, in 2010, the
Government Accountability Office (GAO), the department tasked with auditing the government’s own financial numbers
stated the following:

The U.S. Government Accountability Office (GAO) cannot render an opinion on the 2010 consolidated financial
statements of the federal government, because of widespread material internal control weaknesses, significant
uncertainties, and other limitations.

The main obstacles to a GAO opinion were: (1) serious financial management problems at the Department of
Defense (DOD) that made its financial statements unauditable, (2) the federal government’s inability to adequately
account for and reconcile intragovernmental activity and balances between federal agencies, and (3) the federal
government’s ineffective process for preparing the consolidated financial statements.

There has been “serious financial management problems” at the Department of Defense for a long time now. In fact,
on September 10, 2001, Donald Rumsfeld announced that the Pentagon had “lost track” of $2.3 trillion. This would
have been huge news if not for what happened the day after. After September 11, no one brought up the issue again.
Lucky timing on the part of Rumsfeld, you could say.

As if that’s not bad enough, nearly every state in the US is also insolvent with 46 states expected to have large budget
deficits again in 2011. And, below them, countless municipalities are also bankrupt.

2011 will see a wave of US municipality bankruptcies (60 Minutes had an excellent summary of the issues here called
the “Day of Reckoning”). That is, unless the Federal Reserve prints more cash to bail them out. Whether they do or
not is questionable but holding US municipal bonds right for many jurisdictions right now is incredibly risky – for three
reasons. One, if they go bankrupt you may lose all your money. Two, if the Federal Reserve bails them all out it will be
the final nail in the coffin for hyperinflation and you will end up losing your real purchasing power very quickly. And
three, by holding US municipal bonds you have your funds held inside of the US in US dollars. We are getting close to
the point where the US will be instituting capital controls and your money will end up trapped inside the US and at the
mercy of the US Government.

FEDERAL RESERVE NOW THE LARGEST HOLDER OF GOVERNMENT DEBT

We have often stated that the death-knell for the US government would be when the Federal Reserve became the
largest holder of US Government debt.

Well, ring the bell.

In fact, from August 2010 to August 2011, the Federal Reserve will have monetized 75% of the US government’s yearly
funded deficit (not including Social Security and other unfunded liabilities).

The proof is in the numbers. The Federal Government’s funded deficit is about $1.3 trillion for this period. Meanwhile,
between August 2010 to August 2011, QE-lite ($200 to $300 billion) and QE2 ($800 billion) will add up to at least $1
trillion in Treasury bond purchases by the Federal Reserve. So, the Fed is monetizing 75% of the deficit – and is the
largest holder of US government debt.

And as for Ben Bernanke insisting he is not printing money, you can believe him or you can believe the numbers.

NO "RECOVERY" IN SIGHT

It never ceases to amaze how easily the masses can be fooled by monetary inflation into thinking that "things are
improving". A quick scroll through the television dial will show that most are talking of "recovery" now. But there can be
no recovery unless and until all of the malinvestments are purged from the system and the bankrupt are allowed to go
bankrupt. Until then, the picture of recovery will continue to look like the one painted below.

The US, in a word, is a mess. Virtually everything connected to the US federal, state and municipal governments are
bankrupt.

Even the US Post Office and the Federal Deposit Insurance Corporation (FDIC) is bankrupt.

What a disaster. Well, at least there aren’t any riots, yet.

EUROPE

Perhaps the only thing that can stave off a US Government and US dollar collapse in 2011 is if the European Union and
euro collapses first - something that looks like a distinct probability.

The US Government, as well, knows this is the only chance it has to survive another few years and for this reason the
Downgrade Wars have focused ever more attentively upon the European countries.
The ratings given by American ratings agencies (Moody’s, S&P and Fitch) are as fraudulent and nonsensical as the
statistics given out by the US Government itself but for those who are playing from inside the game, such as pension
funds, they are still affected by these ratings as in many cases they are not allowed to invest in debt instruments below
a certain “quality”.

But even with the numerous downgrades in European debt that occurred this month the ratings agencies still have
much higher ratings than the markets imply themselves as shown by Credit Default Swap implied ratings versus S&P’s
ratings:

The market itself is saying that Spain should be given a rating of BB- whereas S&P still states Spain is AA despite
mountains of evidence to the contrary.

Junk bonds are typically thought to be anything at BB or less. Note that the market has declared that the debt of
Spain, Ireland, Portugal, Greece, Belgium and Italy are junk.

Also of note is how quickly the market can go from perceiving very little risk to perceiving massive risk as shown in the
great rise in CDS swaps for the PIIGS in the period of only one year.

One way to gauge the health of a country, in today’s fiat currency monetary system, is just to look at the current
account balance of each country.

Here are the top ten countries with a positive current account balance:

Rank Country Current Account Balance (Billions USD)

1 China 296.2
2 Japan 131.2
3 Germany 109.7
4 Saudia Arabia 95.762
5 Russia 76.163
6 Iran 70.797
7 Norway 59.983
8 Netherlands 52.522
9 Kuwait 48.039
10 Singapore 39.157

As you can see, the list is heavily weighted to Asian countries and countries mostly outside of the western financial
system.
More eye-opening is the bottom 10 countries in terms of current account deficits:

Rank Country Current Account Balance (Billions USD)

172 South Africa -20.557
173 Portugal -21.987
174 Romania -23.234
175 United Kingdom-32.37
176 Australia -33.31
177 Greece -34.43
178 France -43.67
179 Italy -55.44
180 Spain -69.46
181 United States -380.1

Here are just a few snapshots of some recent activity in 6 of those countries on the list:

The US sticks out as the worst on that list but as long as the US Government can keep the pressure on the EU to fail
first then they can forestall their inevitable collapse.

On December 16, EU leaders agreed to create a “permanent euro crisis fund”. They are going to need it because this
crisis is permanent. It will not cease until the EU fractures or collapses.

And, in perhaps the saddest case of being the last to enter the burning house before it collapses, Estonia joined the
European Union, believe it or not, on January 1st.

Europe, for all intents and purposes, is done. The Europe that used to exist finally exhausted all of its wealth
accumulated over centuries and has now bankrupted itself after numerous wars and decades of socialist, welfare
statism.

Many of the riots above were caused by cutting subsidies to schools or raising the retirement age from 60 to 62 or from
freezing government bureaucrat salaries. What do you think will happen when the euro is worth nothing and all
pension payments cease and nearly all government workers are laid off?

A leading British think tank, The Centre for Economics and Business Research, released a report on December 31st
stating that they believe the euro has a 1 in 5 chance of surviving in its current form over the next 10 years.

We consider their findings to be extremely conservative. If the euro makes it in tact through 2011 we will be surprised.

ASIA

The US and Europe are going to be disaster zones for the foreseeable future. Where, then, can one go for
opportunities? Head East, young man.
Look to the Current Account balance leaders (above) as a good starting point for where some of the action is at.

A recent study prepared by the Metropolitan Policy Program at the Brookings Institute, examines 150 of the world’s
largest metropolitan economies in 53 countries from 1993 to 2010. The cities were ranked based on two measures –
economic output and employment – and during three economic time periods the study defines as: pre-recession 1993-
2007; recession year of minimum growth 2007-2010; and “recovery” (which we prefer to call the “eye of the hurricane”)
2009-2010.

The following are the top 20 metro areas that have performed best since 2009:

1. Istanbul
2. Shenzhen
3. Lima
5. Singapore
6. Shanghai
7. Guangzhou
8. Beijing
9. Manila
10. Rio de Janeiro
11. Hyderabad
12. Mumbai
13. Bangalore
14. Melbourne
15. Guadalajara
16. Kolkata
17. Chennai
18. Tianjin
19. Buenos Aires
20. Jakarta

Not one city from the US or Europe. Notice with the exception of Istanbul and Melbourne they are all Asian or Latin
American cities. Remember this list, many of these places are where the future lies.

CHINA

Much still rests on the shoulders of China. Just like how much of the world believed Japan was the new paradigm at the
height of the Japanese credit bubble in 1990 and believed that there was a "new economy" in the internet at the height
of the previous US credit bubble in 2000, many now believe that China is the great hope for the world in 2010.

While we have mocked the US and Western Governments, comparing them to China and how China appears to be
more capitalistic than them in our ongoing series, "Who's Communist Now?", this shouldn't be taken as us believing
what China is doing is correct. At best, it is a centrally planned economy that, thanks to the industriousness of nearly a
billion entreprenurial-minded Chinese, has allowed their own version of a giant credit bubble to inflate.

As with all credit bubbles it will end in tears. However, this is not to say that the future in China doesn't have a lot of
potential. It certainly does. But its potential will not be reached through the printing of money - a technique they
learned/stole from the Americans, no doubt.

A chart of the Shanghai Composite may be the biggest clue, right now, that the "Chinese miracle" hypothesis is about
to be discredited.

The SSEC still remains more than 50% below its late 2007 peak despite the massive amount of Yuan monetary inflation
since. Much of the bubble money has gravitated to the Chinese property market now but it is also beginning to cause
major problems in other parts of the economy.

Food prices in China have risen by 10% during the past month, including a 20% rise in fruits and vegetables.
Kweichow Moutai Co., China’s largest liquor maker, is expected to raise prices on their products by 24% this month.
There isn't much that aggravates the public more than the rise in price of food and liquor. And now, showing that the
Chinese Government is no smarter than most governments, there are statements being made about implementing
price controls to try to stop the rise in prices. Never in history have price controls ever done anything but make the
situation worse as all it does is reduce the suppliers motivation to produce and increase the buyers motivation to
consume.

If the Chinese Government does move forward on price controls on food and energy commodities it will officially mark
the end of this stage of the "Chinese economic miracle".

GOLD

What we are and will continue to witness throughout 2011 is the collapse of the US dollar based financial system. Also
known as The End Of The Monetary System As We Know It (TEOTMSAWKI).

Buying gold continues to be the best method for shorting governments and the fiat currency monetary system. It
remains as the one viable and liquid investment that enables a person to pull his or her wealth out of the financial
system.

We comment further on the case for gold in The Markets section below.

THE NORMALCY BIAS

There is a psychological phenomenon that explains the human tendency towards disbelief and inaction: the normalcy
bias. If people haven’t directly experienced an extreme event before, they are prone to believe that it can’t happen.

The normalcy bias explains why people in Poland spent much of the summer in 1939 lazing about and enjoying the sun
while Hitler’s German forces were aligning along it’s border with well-known intentions for attack (Of interest, Germany
used a false-flag/staged attack called the Gleiwitz Incident to justify attacking Poland much the same way the US
Government did in the Gulf of Tonkin to justify the Vietnam War and at 9/11 to justify Iraq, Afghanistan and the War on
Terror).

The normalcy bias also explains why so many people get caught unaware by hyperinflationary events and explains why
people refuse to get out of their dollars and buy gold.

2011 is going to be anything but normal.

The Markets
by Ed Bugos

CURRENT MACRO OUTLOOK

SECTOR SHORT TERM MEDIUM TERM LONG TERM

0-3 months 3-12 months 1 year+

US Stock Market Bullish Neutral Neutral

USD Index Bullish Bearish Bearish

US Treasury Bonds Bearish Bearish Bearish

Gold **Neutral** Bullish Bullish

Gold/Silver Stocks Neutral Bullish Bullish

Commodities Bullish Bullish Bullish

**Highlighted areas show change from last month. Color shows in which direction it has moved from last month. Red=Downgrade Green=Upgrade

2010 was an excellent year for The Dollar Vigilante portfolio. All of our major themes (gold, silver agriculture and
uranium) were up substantially. Even our bullish stance on the US stock market paid off well for those who took
advantage of it.

Gold rose 27.7% in 2010, Silver rose 80%, our Agriculture holdings rose 24.52% from our initial recommendation in
September, our Uranium fund holding rose 87.85% in the same time period and even the Dow Jones Industrial Average
rose 13.99% (including dividends) in 2010.

And so while all the dollar vigilantes had a very happy Christmas and New Year it is time to get back to work and make
sure we profit again in 2011.

GOLD RE-UPGRADED

After worrying about a correction in gold off and on since September, first as it approached my $1,400 target price
(representing the lower band of my $1400-$1650 range), and then as it laid down a rather choppy sequence of higher
lows and highs over the past two months, I finally downgraded our short-term outlook from neutral to bearish in our
December 18th Interim Update, expecting the market to give in to the stronger than expected back up in Treasury
yields, a firming dollar, and recovering sentiment about the economy.

But, only days later, the market started to run away during the final week of 2010 in what could well be a hasty tell by
the bulls about what’s coming in the New Year.

This bull looks like it wouldn’t yield to a train full of bad news.

So why worry?

After all, amid the competitive currency devaluations, uncontrollable growth of the public debt(s), collapsing confidence
in reserve currencies, foreign tensions, scarcity of essential goods and the general trend toward decivilization – all
brought about by a blind adherence to ideas that continue to dominate and confuse cause with effect - there is no sign
of the fundamental factors that could end the bull market in gold.

So why not throw caution to the wind?

Call me a worrywart but I’ve seen enough corrections to know that they can wipe out all the advances you made since
the previous correction.

This trend has legs right now. The precious metals sector is hot and heating up. We would be happy to see a $100
correction just to clear some extra froth off the top.

However, it is very possible that we have entered into a new phase for gold and it could just continue to push higher.

In either case, we don't expect more than a 10-15% correction in the price of gold, at worse, under any scenario and
therefore we have re-upgraded our short-term outlook on gold to neutral - feeling that the next $100 in price action
could go either way.

Our medium and long term outlook remains resolutely bullish and we will not be selling our gold bullion holdings under
any circumstances until we see massive changes in the world financial system - whether by default, collapse or
hyperinflation.

GOLD STOCKS

Our short-term guidance on gold stocks remains at neutral for the short-term as well. But this is not to imply that gold
stocks are overvalued - not by a long shot!

In fact, when comparing the Gold Bugs Index of gold mining majors versus the price of gold itself, it is evident that
compared to the price of gold, the major gold stocks are priced at the same level as they were when gold was at
$360/ounce in 2003! Gold is now $1,000 higher than in 2003 yet the market has given no credit to the gold stocks for
having any leverage over the price of gold.

This chart, alone, is proof that gold stocks are not only not in a bubble, but they are ridiculously undervalued to the
underlying product they produce. In fact, by many measures, this gold move has yet to show any signs of getting any
recognition from the investing public for being the best performing asset since 2000.
At some point there is going to have to be a massive upward re-rating of gold shares. The only question we have is
whether it will happen in the coming 3 months or not. Beyond anything but the short term we remain unabashadely
bullish on gold mining shares.

The Dollar Vigilante Portfolio

by Ed Bugos

Stock/Investment Symbol Chart Last Price Reco Price Change Reco Date Original Writeup

JUNIOR MINERS
Sabina Gold & Silver TSX:SBB Chart/Quote $5.61 $3.49 60.74% 8/15/2010 Click Here
Golden Star Resources NYSE:GSS Chart/Quote $4.59 $5.04 -8.93% 9/15/2010 Click Here
Jaguar Mining NYSE: JAG Chart/Quote $7.13 $7.56 -5.69% 10/18/2010 Click Here
Nautilus Minerals TSX: NUS Chart/Quote $2.26 $2.05 10.24% 11/29/2010 Click Here
Market Vectors Junior Gold Miners NYSE:GDXJ Chart/Quote $39.89 $36.18 -3.34% 11/1/2010 Click Here
Gold Explorers ETF NYSE:GLDXChart/Quote $19.00 $17.80 6.74% 12/1/2010 Click Here

AGRICULTURE & ENERGY

Powershares DB Agriculture NYSE:DBA Chart/Quote $32.35 $25.98 24.52% 9/1/2010 Click Here
Global Uranium Fund TSX:GUR Chart/Quote $4.02 $2.14 87.85% 9/1/2010 Click Here

GOLD & GOLD MAJORS

Central Fund of Canada NYSE: CEF Chart/Quote $20.73 $14.51 42.87% 8/1/2010 Click Here
Agnico Eagle NYSE:AEM Chart/Quote $76.70 $55.75 37.58% 8/1/2010 Click Here
Newmont Mining NYSE:NEM Chart/Quote $61.43 $55.90 9.89% 8/1/2010 Click Here
Market Vectors Gold Miners NYSE:GDX Chart/Quote $61.47 $57.29 7.30% 11/1/2010 Click Here

New Stock Selection: Merrex Gold

Merrex Gold Inc (TSXV:MXI), last price $0.405, is a Canadian exploration company advancing its gold and zinc-lead
discoveries in West Africa and Canada.

The company’s flagship Siribaya Gold project in Mali, discovered in 2006, sits within a contiguous land package
spanning 840 km2 at the southern end of a prolific sequence of Birimian age greenstones shared by Randgold’s Loulo
mine and IAMgold’s Sadiola and others. A trend of greenstone belts continues southeast into Ghana, where it hosts
such mines as Red Back’s Chirano and Anglo’s large Obuasi mine.

Merrex acquired the Siribaya gold project in 2005 based on wide spread gold in geochem showings further south than
most explorers were looking at the time. It drilled out an NI 43-101 compliant 378,000 oz gold resource between 2006
and 2009 (4,015,000 tonnes grading 2.39 g/t Indicated plus 946,000 tonnes grading 2.29 g/t Inferred), which it thinks is
but a sample of the potential of the 10 km long Siribaya structure.

IAMgold thinks so too having signed on to earn 50% (by spending $10.5 million by the end of 2012).

Companies as large as IAMgold don’t waste their time on exploration projects that don’t have the potential to host 5
million ounce+ deposits. The resource estimate spans less than a kilometer of strike, but wide spaced drill fences since
then have demonstrated continuity in this zone by up to 3 kilometers so far on strike (southward), with diamond drill
results confirming the discovery of a distinct zone (Timeta) 7-10 kilometers to the south. The Siribaya mega-structure
is now interpreted to contain two distinct sub-structures: zone 1B is 500m wide and 10.5 km long (ten times as long as
the strike of the NI 43-101 defined zone 1B); and zone 1A to the west is 500m wide by 9.5km long. The zones contain
multiple subparallel shear structures. Given these dimensions and the drill intercepts we’ve seen so far, there’s a good
chance the resource at Siribaya will grow substantially in coming years. In plain English, we believe Merrex and
IAMgold are on the verge of a big discovery. The Siribaya Trend itself potentially hosts 5 million oz plus.

In October, based on the success of its drill program, IAMgold announced it would accelerate exploration spending by
$750,000 this year ended Dec 31, 2010, putting it way ahead of schedule. The accelerated drill program includes
8,000 meters of RC drilling – 4000m to complete the previously announced 14,500 meter drill program and the rest to
trace the "excellent" intersections encountered on trend earlier this year. Additionally, IAMgold plans to test the
Bambadinka trend with 3200m of auger drilling. The New Year will be busy with news of drill assays. We view its
decision to accelerate exploration spending as a bullish sign, and suspect that it will earn its 50% interest by the
summer of this year…a full year early.

IAMgold obviously thinks highly of Siribaya as one of its holdings in Mali, and Mali itself, where it already has a minority
interest in two mines operated by Anglogold –including the 10Moz Sadiola gold mine. And there are whole swaths of
targets to the east on a claim block called Babara, which has geochem showings far more intense than those on the
Siribaya trend.

The stock is cheap, thanks to some tax loss selling pressure, and we think it is an underappreciated 10-20 bagger from
here. We are adding it to our TDV Portfolio as a high priority buy up to 60 cents.

Expatriation of Ass & Assets

by Jeff Berwick

"Because you can't fight city hall, but you can leave town!"

This month we return to Asia just to the south of last month's feature on Thailand: Malaysia.

This modern, industrialized country of 29 million was first colonized by the Portuguese in 1511 and was later captured
by the Dutch but was turned over to the British in 1795 who held it until it achieved independence in 1957.

Due to its long colonization by the British, English is very widely spoken. Eighty percent of urban businesses in
Malaysia conduct their business in English and there are several English language newspapers and radio stations.
This makes it very easy for English speaking foreigners to get by.

Malaysia has had one of the best economic records in Asia, with GDP growing an average 6.5% for the first 50 years of
its independence. The economy of the country has, traditionally, been fuelled by its natural resources, but is now also
expanding in the sectors of science, tourism, commerce and medical tourism.

The only possible negative for non-muslim foreigners in Malaysia is that it is an Islamic country and the ongoing,
centuries old battle between Christians and Moslems looks like it isn’t going to stop anytime soon. That said, of all the
Islamic countries I have visited I would consider Malaysia to be the most moderate. You still hear about girls in certain
provinces where they are more strict being arrested for wearing clothing that is “too sexy” or for dancing, believe it or
not, but these are more the exception than the rule.

The three major areas I visited were all very moderate and had active nightlives with bars, lounges and discos.

LOCATIONS
Malaysia is very unique in that it has two “parts”, Peninsular Malaysia and East Malaysia located on the island of
Borneo. Nearly 1,000 kilometers of the South China Sea separate the two sides and in between is the Strait of
Malacca, the leading shipping lane on the planet.

Thailand, Singapore, the Straits of Malacca and the Indonesian island of Sumatra share their borders with the
Peninsular Malaysia on the north, south, west and east respectively.

For those looking for “big city” life and all that it entails there is really only one main choice,
the capital, Kuala Lumpur (or K.L. as the locals refer to it). K.L. is a very modern, clean,
beautiful city with all the shops, services and luxuries you would expect in any major capital.

The only thing I dislike about K.L. is that it is quite a car-centric city. Everyone has a car and
when you go somewhere it is almost always by car, rarely walking.

Petronas Towers - Click to My favorite city in Malaysia is what I still call to this day, the most unknown, nicest place in the
Enlarge world! In fact, I wouldn’t have even gone there except I was invited by a friend to see a
mining property nearby in 2006. That, plus I was in Bangkok and Air Asia, my favorite
regional airline, had flights to there from Bangkok for $20!

Malaysians refer to it as K.K. but its official name is Kota Kinabalu. I can almost guarantee you’ve never heard of it
because I’ve never known anyone who has! But that is part of the reason it is so great!

Kota Kinabalu is a small city with a population of about 600,000 and is the capital of the state of Sabah on the island of
Borneo. From what I saw of driving around much of northern Borneo, the whole island is lush and beautiful. And K.K.
is a really nice little town.

The weather is perfect practically 365 days per year and rarely ever changes. Almost every day in KK has a high of
86F (30C) and lows of 73F (23C). Almost all of the locals, like most Malay’s, are really nice, laid back, witty and
intelligent.

And the few foreigners who live in K.K. are for the most part quite interesting as this place just is not on any travel tour
map.

I highly recommend flying to K.K. and staying at any of their very nice,
modern hotels (for generally quite cheap prices – I enjoyed staying numerous
times at Le Meridien) and renting a car and driving around Mount Kinabalu
(the highest peak in Asia at 4,100 meters) and to another nice, green town Near Mt. Kinabalu - Click to Enlarge
called Sandakan.

While there are hardly any foreigners in K.K. there are even less in Sandakan. Just being a white male I was gawked
at, smiled at and had my photo taken numerous times as though I was some sort of novelty!

Another very nice city island to check out is Penang which is close to the Thai border.

Between K.L., K.K. and Penang you have three excellent choices for places to reside.

LIVING IN MALAYSIA

There aren’t many countries in the world that are nicer places to live in than Malaysia. The lifestyle, as with the people,
is very laid back and relaxed.

Living there, as a tourist, however, can be a little difficult because they offer such short stays for tourist travel. In
general, Malaysia only offers most foreigners 30 day stays in the country. This is too short to comfortably live in
Malaysia for most people as most do not want to have to travel every single month just to keep their travel documents
in order. However, Malaysia is close enough to numerous interesting locations, and generally for flights under 1 hour
and under $50 you can visit Bangkok, Singapore, Jakarta, Philippines and many more interesting and nice locations.

RESIDENCY IN MALAYSIA

By far the best way to utilize Malaysia, however, is as a resident. Malaysia has one of the easiest policies of any
country in the world to gain residency – in fact they market is heavily as they have a great interest in attracting
foreigners to bring their capital to the country.

Malaysia has a program called “Malaysia My Second Home” (commonly abbreviated MM2H) which enables foreigners
to live in Malaysia on a long stay visa of up to 10 years. The requirements are quite simple. If you are under 50 years
old you need to place 300,000 Malaysian Ringgits ($100,000 USD) in a Malaysian bank fixed deposit account
(Malaysian banks, in general, are very solid and well capitalized). After the period of 1 year you can actually take out
150,000 Ringgits ($50,000), needing to leave only 150,000 Ringgits ($50,000) in the account.

If you are over 50 the requirements are less. You can either open a 150,000 Ringgit ($50,000) deposit or show proof
of monthly off-shore pension income of at least 10,000 Ringgit ($3,000).

It’s as simple as that. You can even file all the paperwork yourself or use an agent who may take anywhere from $500-
$3,000 for services – but all of the paperwork is in English and the Malaysian government websites are easy to use and
full of information so you can easily do it yourself.
Plus, Malaysia has a low-tax/no-tax center called Labuan. You can have bank and brokerage accounts here that are
subject to 0% tax. Plus, since Malaysia has tax treaties with most countries you could declare Malaysia as being your
“country of residence” and for almost all nationalities (except Americans) you can shelter all your investment income at
a 0% tax rate.

Labuan is also an excellent place to locate a profitable business as operating companies have the option to either pay
3% of their profits, or simply pay a flat tax of 20,000 Malaysian ringgits ($6,300 USD). That's it. A company can earn
millions of dollars in profit and still pay $6,300.

CITIZENSHIP IN MALAYSIA

Citizenship in Malaysia is very difficult, if not impossible, unless your father is Malay. Therefore, it is best to use
Malaysia solely to live as a tourist or to live as a resident and look elsewhere for a second passport.

Dispatch From Within The Belly of the Beast

by Private Parts

Editor’s Note: We include these casual comments from a former US NCO (Non-Commissioned Officer) currently working as a
contractor of the US Government on the ground in Afghanistan as an eye-opening look into what American taxpayer dollars are
being used for in the “War on Terror”

Happy Festivus from Kabul!

It’s actually a lot of fun being here during the holidays. Ironically, the best Christmas party I went to all week was at the
Iranian embassy…go figure! Anyway, the other 50 weeks out of the year we sometimes have to go through the
charade of pretending to work, usually just when our bosses fly in from the states to visit, but for these couple of weeks
we don’t even have to pretend! I can’t remember the last time I was in my office or sent in any daily reports or “status”
reports. It’s not like anyone is at the corporate or govt. offices back in D.C. to read them anyway.

I enjoyed the last WikiLeaks release, particularly the DoS cables from Kabul showing the Afghan Interior Minister
freaking out about the American contractors who hired a “dancing boy” for their party (google “bacha bazi” if you’re
interested). But that story was nothing new, it was already common knowledge here 18 months ago. I’m just annoyed
that anyone in the media or in the public back home can still be surprised that there’s widespread “Animal House”
behavior over here.

What do you think is going to happen when you send thousands of well-paid, unsupervised men to a poor foreign
country, especially when very few of them have even one iota of respect for the locals (or their culture)? At least in the
military, with senior NCOs and officers working side-by-side with their subordinates, they can maintain *some* discipline
…some…usually. But the vast majority of civilians, contractors, even special operations units, have no oversight at all.
Hell, most of our bosses are back in the US! I know some guys who have never even met their own “supervisor” and
only know his name and phone/email info back at their corporate office. So it should be no surprise how many
“internationals” get caught up in prostitution and sexual misconduct, weapons trafficking, drug usage (and not just the
obvious, steroids, but a LOT of hash, meth and opium too), even some drug trafficking.

I’ve even visited ODA camps (i.e. US Army Special Forces) that had live-in Chinese and Filipina hookers! Er, I mean,
Chinese “laundry assistants”. Sorry. Yeah, I guess it’s possible that they ALSO cleaned and did laundry sometimes.
And back when I was living on the “Green Zone” in Baghdad, CID (Army criminal investigators) busted at least two
prostitution rings that I knew of, mostly Iraqi girls, and some underage even. I actually knew one of the girls that got
kicked off the Green Zone after one of those investigations. I didn’t know she was turning tricks, I just knew her as one
of the street kids that sold DVDs in front of the bazaar. She couldn’t have been more than 13 or 14.

Excuse me if I reminisce a bit, but I always liked her. She had great business acumen. A lot of those Iraqi kids spoke
English pretty well, but unlike most who only wanted to talk to the Americans about trivial pop culture like Tupac or
Michael Jordan, or just beg “give me money, give me money, just one dollar”, she was always talking business. She
was always trying to broker deals for you with other vendors she knew, undercutting her competitors, offering discounts
and specials, etc. She probably brokered more deals on rugs, souvenirs, artwork and electronics than her actual “job”
of selling DVDs! It was pretty impressive for a young girl in that type of environment.

It’s too bad. Being kicked off the American-protected Green Zone as an Iraqi was pretty much a death sentence
already, let alone being kicked off for giving oral sexual favors to KBR contractors (or at least that was the allegation
that got her booted). I doubt she lasted more than a couple of days out in Baghdad before someone killed her.

Anyway, nothing is going to change over here. The US govt. dished out over $450 billion to contractors in 2010, and
from all indications from the DoD and DoS they’re ready to spend even MORE here in 2011 (don’t worry, it should be
off-set by the massive 5% cut in US congressional staff budgets)! With all that money flowing and still with very little
oversight, the bad behavior that goes along with it, the behavior that would land you in jail back in your home country,
will just continue.

Oh, and that company that hired the “dancing boy” up in Kunduz, just this week they were awarded a 2-year/$700
million contract to continue training the Afghan Police. Dancing boys aside, it’s the same company that was contracted
to train the Afghan Police for the past 7 years! And we all saw how well that turned out.

Best,

Private Parts

Survival & Health News & Notes

by Jeff Berwick

I never thought I’d be on the same page as Ashton Kutcher but after reading about his latest interview in Men’s Fitness
I found that Ashton is doing many of the same things we are doing!

According to Kutcher he is preparing for a breakdown of “normal” society in the near future and is doing one hour per
day of Bikram (hot) yoga, running in the canyons of Los Angeles, buying guns and learning Krav Maga, a style of
fighting/self-defense based on street fighting skills.

I’ve mentioned a few times now that I do 30 minutes of power yoga five mornings per week as part of my own training
regimen.

In my constant quest to learn about ways to improve health and fitness I also have been trying two new other ways to
exercise in the last 2 months that have both had excellent results. And here is the really good news: both resulted in
me exercising for smaller amounts of time than before to get better results!

PERSONAL TRAINER/TRAINING PARTNER

The first is quite simple but, believe it or not, in 20+ years of training I have never used a personal trainer. It’s probably
part of my “I don’t need any help” personality that I never even considered the idea. Until recently.

My 67 year old father has been using a personal trainer (after training for 40+ years without one and still bench
pressing over 250 pounds at 67 years old!) and he kept telling me what a difference it makes.

Then, my 29 year old girlfriend started using a personal trainer about 6 months ago at the gym we go to in Acapulco.
In the last 6 months she has completely transformed her body… so much so that she is considering entering into a
women’s bodybuilding contest this year!

After seeing my 67 year old Dad and my 95 pound girlfriend (now 110 pounds of solid muscle) both outworking me in
the gym with a personal trainer I finally gave in last month to working with a trainer.

The results have been tremendous. First, let me say, that here in Acapulco a personal trainer is really cheap! Both I
and my girlfriend pay him a total of $25/week for 5 days of training per week. Second, I used to train in the gym for 60-
90 minutes of weight training but we rarely ever do more than 45-50 minutes with the trainer.

But he keeps the intensity very high and I’ve noticed my body has been improving much more than in the past from the
training. Why?

Only the most focused athletes can keep their effort at 100% and push out the very last rep on every set. Why?
Because it’s so easy to just say, “ok, that’s good enough”. But it is the last few reps, and especially reps that are done
past the point where you can do it on your own (the trainer helps you with the weights once you reach this point) that
are so important. Why? Because it is only when you push your muscles to the point of failure that they are torn
enough that they need to rebuild (but bigger and stronger). If you work out hard but do not take every set to beyond
failure (which you can only do with a trainer/spotter) you are missing most of the benefits.

A training partner who understands form and technique can also function the same as a personal trainer.

PEAK EIGHT

The other big discovery I have made in the last two months has been Peak Eight exercising. And, again, like I found
with the trainer, I am managing to get in a much more beneficial workout in much less time. In fact, you can’t do it more
than 3 times per week as your body just can’t handle it. Less time, more results? What more can you ask for! Plus it
floods your body with the “anti-aging” human growth hormone.

Peak eight is “high intensity” training. An excellent book has been written on the subject called “Ready Set Go”.
Essentially, all it is, is an exercise where you run/swim/row/climb as hard as you can for 30 seconds, then rest for 90
seconds, and repeat 8 times.

Sound easy? It’s not… but all you are really doing is exercising at your maximum heart rate for a total of 4 minutes!
Here is a video of a man doing Peak 8 on a stationary bike in a gym that will show you just how difficult it is.

The great thing about Peak 8 is that you can do it almost anywhere. As example, here is how I do it. I live in a 30 story
high building. So, three days per week I go down to the beach/pool and get some sun (very important to do daily if
possible for maximum Vitamin D and immune system health) and when I am done I start in the basement and have a
stop watch on my phone. I set the stopwatch and immediately run up the flights of stairs as fast as I can. I generally
can do 5 flights in 30 seconds (a bit more for the first few reps, a bit less by the last reps).

As soon as the 30 seconds are up I walk around the hallway of the floor I am on for 90 seconds and when the 90
seconds are up I run up the stairs again as fast as I can.

The first two or three repetitions aren’t too bad. But by the 4th and 5th repetition you pretty much can’t feel like your
legs and you feel like you are going to die. My building is 30 stories so I can only do 6 repetitions which I am always
thankful for. But even if my building was taller I probably wouldn’t be able to do much more than that. I have been
doing this now for more than a month but at some point in the next month or two I will try to descend the stairs for my 90
second rest period and do a full 8 repetitions.
However, how I feel has been the big difference. Since doing Peak 8 I feel like my body has improved significantly and I
feel very healthy and relaxed.

All you need are some stairs or a place to run or a stationary bike and only 2-3 times per week for a total of 8-12
minutes of max-heart rate exercise and you can flood your system with human growth hormone.

Q&A: Ask The Dollar Vigilante

Q: I have a 17 year old son and am wondering if you have any advice for how he can have the best
chance at having a successful life? - Robert M., Sarasota, Florida

A: Success is measured in different ways by different people. For example, one might consider them successful if they
had a life full of love and lived life to its fullest whereas another might consider themselves successful if they made a lot
of money and had a very comfortable lifestyle. However, I presume your question is more to do with financial/career
success. It is impossible to give specifics when we don't know anything about your son so we can offer the following
generalities. Only go to college for specialized scientific or medical pursuits. 90% of things taught in college can be
learned and used outside of the expensive college system. When looking at which sectors to go into, the strongest
sectors for the next decade will likely be in agriculture, mining, biology, computing and physics. As you know from being
a subscriber we believe the majority of opportunities lie in Asia and Latin America at this time. And, if he has the
mindset for it, the most exciting pursuits are always entrepreneurial. Rather than save up for college why not save up
for an angel investment into a small business your son starts. One year of running your own business is worth as much
as almost any formal, traditional education.

Please email any questions or comments you have at any time to TDV@dollarvigilante.com and every month we will
endeavor to answer them either publicly or privately.

Conclusion & Items to Watch in Coming Weeks

US and Canadian stock markets tend to be strong in early January. Small-cap stocks tend to be stronger than large-
cap stocks in the first few days of the year as they are less liquid and are relieved of pressure from end of year tax-loss
selling. We'll be keeping a close eye on our junior stocks to see whether this trend continues this year.

End Quote
"Liberty lies in the hearts of men and women; when it dies there, no constitution, no law, no court can save it" - Judge
Learned Hand, May 21, 1944

The Dollar Vigilante | Tel: (310) 928-1520 | Fax: (310) 496-1512 | Em ail: TDV@DollarVigilante.com | Website: DollarVigilante.com