Epstein Secrets

Year Average Yield Weighted Average Treasury Yields (%) 0% . T T T T T T T T T T 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 KP Source: US Treasury. i USA Inc. | Income Statement Drilldown 165 Effective Interest Rates: If Debt Levels & Interest Rates Rise Dramatically Beyond 2010, Net Interest

s Helped Fuel It, Too, as They Reached For Yield Without Questioning AAA Ratings of A Subprime-Backed Investments Investors picked up 25-35bps over U.S. Treasuries with comparable maturity, typically levered 10:1 and generated 2.5-3.5% yield, meaningful against an 8% annual yield target Illustrative AAA-Rated S

Consider Review Tax Rates Changing MEE Reduce Subsidies / Tax Expenditures*/ eee Broaden Tax Base Note: *Tax subsidies / expenditures are losses to the U.S. Treasury from granting certain deductions, exemptions, or credits (such i as those on mortgage interest payments and employer-sponsored health insurance payme

insurance Trust Funds. www.kpcb.com USA Inc. | Balance Sheet Drilldown 215 Balance Sheet: Even Excluding Unfunded Entitlement Benefits, USA Inc.’s Net Worth = -$13 Trillion in F2010, Owing to $9 Trillion of Debt Total Assets / Liabilities / Net Worth of USA Federal Government, Using Government GAAP Accou

ns "cannot be allowed to lose money or be driven out by upstart competitors" who threaten their profits. 1° Financial Stability Oversight Council, US Department of the Treasury, hup://www.treasury.gov/initiativesifsocklesignations/Pages/default.aspx. " Mark Schoeff Ir., "SEC commissioners 'ush back against systemic desi:na

Crisis in the Propagation of the Great Depression." American Economic Review 73 (3): 257-276. Bernanke, Ben, and Mark Gertler. 1989. "Agency Costs, Net Worth, and Business fluctuations." American Economic Review 79 (1): 14-31. Bernanke, Ben, and Mark Gertler. 1995. "Inside the Black Box: The Credit Chann

Liabilities Minus Unfunded Entitlement Liabilities — Assets include cash & investments, taxes receivable, property, plant & equipment (as defined by Department of Treasury). — Liabilities include accounts payable, accrued payroll & benefits, federal debt, federal employee & veteran benefits payable... — Unfunded Entitle

Nevertheless, the trends are clear, and critical warning signs are evident in nearly every data point we examine. F2010 Cash Flow = -$1.3 Trillion; Net Worth = -$44 Trillion With a Negative Trend Line Over Past 15 Years USA Inc. Annual Cash Flow & Year-End Net Worth, F1996 — F2010 GOOD nnn ee eee eee ce