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To: D.Austin who wrote (930)1/5/2003 8:41:27 AM
From: D.Austin  Respond to of 1116
 
Dow Jones Average - Treasury Debt: A Comparison Back On these charts,
1 Dow point equals $US 1 Billion in Treasury Debt.
The charts are updated to the Dow's all time high of 11326 set on August 25, 1999.
The first chart shows the growth of the Dow and of Treasury debt from the beginning of this century. As you can see, there was no particular correlation between the two right up until the early 1980s. In fact, up until the huge surge in debt issued to finance World War II, Treasury debt hardly registers on this chart at all.

The steady and inexorable rise in Treasury debt began with the 1970s. The most important event which made this possible was the removal of the discipline of Gold backing for the Dollar, which took place on August 15, 1971. This chart of Treasury debt was likened to a "hockey stick" in the mid 1990s. You can clearly see that 1970 marks the point where the blade ends and the stick begins.

the-privateer.com

The explosion in the price of real goods and services ("inflation", by modern definition) peaked at the beginning of this series, in 1979 - 1981. Real inflation - the increase in the total stock of money - is still increasing. All modern money is based on debt. But even though gross Treasury debt is still increasing too, it annual rate of increase is slowing down - fast.

In fact, the acceleration of Treasury debt peaked eight years ago - in 1991. 1991 was the year of the last (comparatively mild) recession in the U.S. To combat this recession, the Fed lowered interest rates from 8% to 3% in 16 steps between July 1990 and September 1992. The Fed Funds rate then stayed at 3% for more than a year, until February 1994.

That huge fall in interest rates led to a sea change in the attitudes of Americans. Slowly but surely, they began to abandon the banks and traditional investments like real estate. More and more, having shaken off the scare of the 1987 crash, they began to put what used to be their "savings" into the markets.

For thirteen years, the increase on Treasury Debt supplying more money to the system dragged the Dow upward. In fact, from 1982 to late 1994, the correlations between $US 1 Billion of Treasury debt and one point on the Dow was uncannily close.

But by 1995, the rate of debt increase could no longer be sustained. The slope of the "debt curve" began to flatten out. This was hailed as a sign of inflationary pressures going out of the system.

But the Dow didn't "flatten out". It took off! The last five bars on the chart show the extraordinary bull market which has taken the Dow from less than 4000 to well over 11000 in less than five years. Inflationary pressures have not gone out of the system. They have all been concentrated in one place - in the stock market.



To: D.Austin who wrote (930)1/7/2003 4:04:50 AM
From: RockyBalboa  Respond to of 1116
 
I received a similar BS tout letter....pfft.

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Thanks To A Little-Known SEC Regulation, You Can Own Some Of "The
World's Most Valuable Real Estate" -- For A Fraction Of It's Current Worth

On the Forbes Magazine list of America's 400 wealthiest individuals, real estate outnumbers every other source of income... historically, its the single biggest source of long-term wealth for the nation's richest families.

Today I'd like to introduce you to a unique strategy designed to help you own some of the world's most desirable real estate for a
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in:

-- HAWAII: worth $10,200 per acre...selling for $150/acre
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But because these values are buried deep within a given companies
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The Hawaii land, Barron's recently reported, "is worth a heck of a lot more than the market suggests." Plus, with this strategy, you avoid all of the usual hassles of real estate. You don't have
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estate agent. And you can begin with as little as $18, and a phone call to your regular broker.

The following report is an intriguing read... and may provide you
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I urge you to read the report today, if only to give you some great investment ideas for 2003 and beyond... please, enjoy:

The Biggest Secret In Real Estate.....