3/11/11 Don Coxe Institutional Call

· Doesn’t look like Libya will fall to uprising and now we have the Japanese earth quake

· What does all this mean to investors?

· The group that is very strong today is the Base Metals Stocks but what this means is there will be a building boom in Japan and create demand for copper, etc. There will be positive GDP in Japan which is being taken as positive news

· For some reason the grains sold off dramatically. The speculators who had moved from PM into grains sold them off. Grain inventories are lower than they have been in the past. This sell off in Agriculture could be a buying opportunity for nimble traders.

· It does look like we have issues in Saudi Arabia. What has not happened yet is the jihadists blowing up the oil installations. That’s because the rulers have maintained authority. But Iran is a strong foe of Saudia Arabia so that could still happen.

· There’s been a lot of publicity about Bill Gross reducing the PIMCO’s Treasuries holding to zero. The monetary base is now showing possibility of some serious inflation. Up until now only source of inflation has been food and fuels. There’s been no wage pass through as the only people getting wage increases the last two years has been in the public sector. This looks like it is changing. We are close to the tipping point in our country where only half the people pay taxes. This means you could form a winning coalition of those who pay no taxes at all. My feeling is that in this country the situation is very fluid and the country will struggle to pay its bills. Debits continuing as far ahead as the eyes can see. Where you have a situation where interest rates cease to be real interest rates…well it was negative interest rates that fueled the precious metals rallies in the ‘70’s.

· Foreclosures are a self feeding issue. When you foreclose on homes, they drive down prices of the other homes which then make them subject to foreclosure. Most homeowners in US now have little equity in their homes.

· Global inflation is becoming almost inevitable. Paper money is losing its allure. So if there is any winner here, it’s the precious metals. Make sure you have some protection in the precious metals. Don has not changed his opinion on the agriculturals. Foreign governments will probably drive food up higher as they need to keep their people fed.

· The first place you should invest is in the four letter word….GOLD, and then figure out what you want to have after that.