Slidedeck to accompany speech at METals International re: investment strategies given upcoming pivot. Focus on MDEF™ (Metals, Defense, Energy and Food) investment strategy.

1. Protecting Assets During Global
Economic Upheaval
Jeffrey C. Borneman, CEO
Presentation at METals International
October 18, 2014

3. What do we mean by a Pivot?
A Pivot is an event or closely aligned series of
events which will change the current human
paradigm: most likely a military conflict that a
direct effect on our financial, geopolitical,
military and agricultural reality. A Pivot has the
potential to severely impact the wealth of those
who remain unprepared.

4. What is the MDEF™ Investment
Strategy?
At the most basic level, Metals, Defense, Energy
and Food are the only resources mankind has
consistently used, coveted, and warred over. From
an investor standpoint it is useful to know that
control of MDEF is the most guarded secret by the
powers that be. Control of these resources has
guided and shaped mankind to the present time.
The MDEF™ investment strategy leverages history
and human nature as well as geopolitical analysis
and knowledge to ensure timely investment in the
the resources that will always be in DEMAND.

5. METALS

6. Why Metals?
There have been instances in human history
when people used sticks, shells, stones or ability
to trade goods and services. However, precious
metals, iron, copper and even tin have used as a
means of exchange with great success for
centuries.

7. DEFENSE

8. Why Defense?
Throughout history the capacity for self defense has been
critical for any kind of economic success. From the iron
spear through the atomic age and drones, our ability to
defend ourselves has relied on our ability to manipulate
metals in one fashion or another. Most wars target the
resources of others. War has also been the best business
around for centuries – especially if one controls vast sums
of valuable metals.
Wars have begun for other reasons as well: to deflect a
population’s attention from failed leadership or
retaliation of unpaid excessive debt. Currently, it is these
last two examples that should concern us most as
investors.

9. ENERGY

10. Why Energy?
Energy means different things to different
people. Over the millennia, it has meant wood
or coal fires, steam, solar or nuclear electric
generation. Since the industrial revolution,
access to cheap and abundant oil has been the
key to all achievement. Wars have been fought
for it and have been lost for lack of it. Nothing in
our current world system is grown,
manufactured, transported or “works” without
energy from oil – period.

11. FOOD

12. Why Food?
Well into the industrial revolution, most of humankind had spent most of its time
growing, harvesting and storing food. We cannot live long or produce much else
without a steady and healthy intake of food.
The world population has exploded over the last century primarily due to increased
food production. However, food scarcity is not uncommon at times. Manufactured
famines have killed millions of people in both Europe and the Far East in just the past
century. We take for granted the over-abundance of cheap food at our local
supermarkets, and know the better part of the world survives on a fraction of the
quality and quantity of the average American diet.
Last year’s world-wide drought was considered the second costliest natural disaster in
US history. Prices in the US jumped; portions shrank, and; profit margins were
squeezed. Think of the ‘just-in-time’ delivery system now employed by every industry
in America. Your local suppermarket carries only a two-day supply of most foodstuffs.
If there were an interruption of the supply-chain due to fuel availability/costs or
natural disaster, for example, how much and how fast would food costs rise?

13. Signs of a Pivot-The reality of current
unemployment

14. At what point does food inflation
become untenable?

16. Incentive for War? Witness NATO
Creep…

17. The link between oil and military
conflict remains consistent

18. The future of energy-post pivot

19. Why MDEF™? Metals, Defense,
Energy and Food
It is now mid-2014 and I’m asked constantly what to expect
next? Let me be frank: My view of this market is short-term
bullish and long-term catastrophic. My goal is to have my
client monies primarily in MDEF™stocks as the currency of
survival has never changed. We all must have an alternative
to fiat money (metals); be able to stand against some
outside force for ourselves and loved ones (defense); have
electricity and transportation (energy); and, be able to feed
ourselves (food). It is just that simple. This is why MDEF™
sectors have historically retained their values while all other
asset classes/financial instruments are discounted at
varying rates.

20. Surviving a Pivot with MDEF™? Metals,
Defense, Energy and Food
It is now mid-2014 and I’m asked constantly what to
expect next? Let me be frank: My view of this market is
short-term bullish and long-term catastrophic. My goal is
to have my client monies primarily in MDEF™stocks as
the currency-of-survival has never changed. We all must
have an alternative to fiat money (metals); be able to
stand against some outside force for ourselves and loved
ones (defense); have electricity and transportation
(energy); and, be able to feed ourselves (food). It is just
that simple. This is why MDEF™ sectors have
historically retained their values while all other asset
classes/financial instruments are discounted at varying
rates.

21. What will it take to survive a Pivot?
A return to investment in what individuals,
cities, states and nations must have access to
regardless of circumstances. Again:

22. In Essence:
As company earnings for non-essential goods and
service diminish, as DEMAND for them contracts, investing
capital races to where DEMAND is strong and rising. While
the MDEF™ strategy offers no guarantees of performance,
capital always seeks areas of DEMAND first. Remember that
money (capital) does not "make the world go 'round."
DEMAND is the force that commands the capital; and even in
the best of times, markets are driven by the human
psychology of fear and greed. The coming inflation and market
cycles must be treated like combat – not unlike those Marines
on the landing craft who discarded all unnecessary items in
favor of tools to aid their survival. These will be the cold
equations of crisis investing.