October 16, 2009 Trader’s Gathering

Speech by Richard Martin

Deflation is more devastating than inflation

The average American is now making less money than in the 60s in real terms – American’s standard of living had been on the decline since the 60s.

USA is losing its position in the world but they will not give it up without a fight. They will not allow their hegemony to diminish unnoticed.

The turning point of American power globally is on Aug 15, 1971 when President Nixon ended the gold parity with the USD.

Proof of American arrogance:
Iraq war – went to war without the support of the United Nations & without any proof of WMD
Tariffs on Chinese made tires without consulting WTO or other relevant international parties – introduced the tariffs due to lobbying from US businessmen and without any regard to international relations; this is usually how wars are started.

Singapore is at the forefront of the next economic resurgence in Asia and has established a financial niche for itself - Richard Martin himself had relocated here from the US to be at the forefront of the economic revival.

The Dow should lose 90% of its value from the peak of 14,000.

Interesting facts about the Dow

1901: Hit 100 for the first time
1941: Touched 100 for the last time Took 40 years to do this

1966: Hit 1000 for the first time
1982: Left 1000 for the last time Took 16 years to do this

Believes that none of us will see the Dow hit 14,000 again in our lifetimes.

Best track record of interest rates prediction over the last 25 years:
Lacy Hunt www.hoisingtonmgt.com