The Gold Symposium Keynote Presentation 14 & 15 November 2011 Luna Park

1. Hinde Gold Fund
Singularity – Transcendent Money
Gold Symposium, Sydney Australia
November 2011

2. Singularity – tranScendent Money
Key ConCepTS
– Singularity
– exponential vs Linear Growth Trends
– Law of Accelerating Returns vs Law of diminishing Returns
– Financial Oppression
– internet Reformation
– Transcendent Money
– Monetary Singularity
02
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

3. Singularity - MatheMatical
03
Source: Ray Kurzweil, 1999
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

4. Singularity – Schwarzchild Black hole
04
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

5. Singularity – “Mother of all”
Big Bang - (Keplers) Supernova nucleosynthesis.
05
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

6. Singularity – technological
“The singularity will allow us to transcend the limitations of our biological bodies and brains.
There will be no distinction, post singularity, between human and machine.”
CoUnTDoWn To SInGULARITy
06
Source: Ray Kurzweil, 1999
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

7. Singularity – exponential trend
Linear vs exponential trend growth. note the initial imperceptible growth which accelerates
at a point in time called the “Knee of the curve”.
LIneAR VS eXponenTIAL GRoWTH
07
Source: Ray Kurzweil, 1999
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

8. Singularity – law of accelerating returnS
exponential curve on Log Scale – the exponential of the rate of exponential.
eXponenTIAL GRoWTH oF CoMpUTInG
08
Source: Ray Kurzweil, 1999
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

9. Singularity – Moore’S law
dynamic RAM (Random Access Memory) illustrates Moore’s Law.
dRAM size shrink by half every 5.4 years.
Cost of dRAM per square millimeter falling - dRAM bits per dollar doubles every 1.5 years.
DynAMIC RAM DynAMIC RAM pRICe
09
Source: Ray Kurzweil, 1999
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

10. Singularity - productivity
Half-lifes or doubling times.
10
Source: Ray Kurzweil, 1999
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

11. Singularity – progreSSive purchaSing power
pRoCeSSoR peRFoRMAnCe
11
Source: Ray Kurzweil, 1999
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

12. Singularity – productivity
demand outstrips deflation in cost of information technologies.
ToTAL BITS SHIppeD
12
Source: Ray Kurzweil, 1999
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

13. Singularity – productivity Miracle?
Real GdP growth. A productivity miracle or a function of credit expansion?
ReAL GRoSS DoMeSTIC pRoDUCT
13
Source: Ray Kurzweil, 1999
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

14. Singularity – law of diMiniShing returnS
DIMInISHInG ReTURnS FRoM An ADDITIonAL $1 oF DeBT In THe US eConoMy
1.4
Annual change in GDP divided by the annual change in total debt to GDP, 4Q mov average.
1.2
1.0
0.8
0.6
0.4
0.2
0.0
-0.2
-0.4
Sep-60
Sep-63
Sep-66
Sep-69
Sep-72
Sep-75
Sep-78
Sep-81
Sep-84
Sep-87
Sep-90
Sep-93
Sep-96
Sep-99
Sep-02
Sep-05
Sep-08
Source: Marc Faber – Gloom Doom Boom Report
14
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

15. Singularity – linear deBt trendS
TOTAL DEBT & LIABILITIES AS % OF GDP
400%
200%
0%
-200%
-400%
-600%
-800%
-10,00%
-1,200%
-1,400%
-1,600%
-1,800%
Italy Germany France Portugal United United Spain Ireland Greece
States Kingdom
Cost of ageing Structural deficit Initial debt level
Source: EU Commission, Eurostat, CBO, IMF, Morgan Stanley Research
15
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

16. Singularity – exponential deBt trendS
THe US M2 FITTeD To An eXponenTIAL TRenD THe US ToTAL DeBT (In USD BILLIon) FITTeD To An eXponenTIAL TRenD
12,000.0 60,000.0
10,000.0 50,000.0
8,000.0 40,000.0
6,000.0 30,000.0
4,000.0 20,000.0
2,000.0 10,000.0
0.0 0.0
Dec-58
Dec-60
Dec-62
Dec-64
Dec-66
Dec-68
Dec-70
Dec-72
Dec-74
Dec-76
Dec-78
Dec-80
Dec-82
Dec-84
Dec-86
Dec-88
Dec-90
Dec-92
Dec-94
Dec-96
Dec-98
Dec-00
Dec-02
Dec-04
Dec-06
Dec-08
Dec-10
Dec-12
Dec-58
Dec-60
Dec-62
Dec-64
Dec-66
Dec-68
Dec-70
Dec-72
Dec-74
Dec-76
Dec-78
Dec-80
Dec-82
Dec-84
Dec-86
Dec-88
Dec-90
Dec-92
Dec-94
Dec-96
Dec-98
Dec-00
Dec-02
Dec-04
Dec-06
Dec-08
Dec-10
Dec-12
M2 (USD billion) Exponential Forcast Total Debt (USD billion) Exponential Forcast
16
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

17. Singularity – log Monetary trend
US MoneTARy BASe (LoG TeRMS)
8.0
7.5
7.0
6.5
6.0
Dec-95
Jul-96
Sep-97
Nov-98
Jun-99
Jan-00
Aug-00
Dec-02
Jul-03
Sep-04
Nov-05
Jun-06
Jan-07
Aug-07
Feb-97
Apr-98
Mar-01
Oct-01
May-02
Feb-04
Apr-05
17
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

18. Singularity – Money velocity
MoneTARy VeLoCITy yoy
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
-12%
Jun-61
Jun-64
Jun-67
Jun-70
Jun-73
Jun-76
Jun-79
Jun-82
Jun-85
Jun-88
Jun-91
Jun-94
Jun-97
Jun-00
Jun-03
Jun-06
Jun-09
Recessions Monetary Velocity YoY
18
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

19. Singularity – “puMpty puMpty puMp...”
19
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

20. Singularity – e.f.S.f.
european Financial Stability Facility or european FUBAR Slush Fund?
“it is tied to higher risks of losses and to increased sharing of risks. The way they are constructed,
the leveraging instruments are not too different from those which are responsible for creating
the crisis, because they are concealed risks.”
Jens Weidmann, President of the German Bundesbank
20
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

21. Singularity – Monoline
AMBAC: the muni and sub-prime monoline insurer.
A taste of things to come for the eFSF monoline insurer?
AMBAC US (SHARe pRICe)
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Jul-91
Jul-92
Jul-93
Jul-94
Jul-95
Jul-96
Jul-97
Jul-98
Jul-99
Jul-00
Jul-01
Jul-02
Jul-03
Jul-04
Jul-05
Jul-06
Jul-07
Jul-08
Jul-09
Jul-10
Jul-11
21
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

22. Singularity – gloBal Monetary trendS
UK Qe has been 45% bigger than the Fed’s Qe.
BAnK oF enGLAnD ToTAL ASSeTS eCB ToTAL ASSeTS
600,000 3,500
3,000
500,000
2,500
400,000
2,000
300,000
1,500
200,000
1,000
100,000
500
0 0
Jun-06
Sep-06
Dec-06
Jun-07
Sep-07
Dec-07
Jun-08
Sep-08
Dec-08
Jun-09
Sep-09
Dec-09
Jun-10
Sep-10
Dec-10
Jun-06
Sep-06
Jun-07
Sep-07
Jun-08
Sep-08
Jun-09
Sep-09
Jun-10
Sep-10
Jun-11
Sep-11
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Jun-11
Sep-11
Mar-07
Mar-08
Mar-09
Mar-10
Mar-07
Mar-08
Mar-09
Mar-10
Mar-11
Mar-11
22
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

23. Singularity – gloBal Monetary trendS
The illusion of sobriety.
JApAn BoJ BALAnCe SHeeT ToTAL ASSeTS (100 MILL Jpy) CoMpoSITIon oF FeD BALAnCe SHeeT, SeCURITIeS poRTFoLIo
1,800,000 100%
90%
1,600,000
80%
1,400,000
70%
1,200,000
60%
1,000,000 50%
800,000 40%
30%
600,000
20%
400,000
10%
200,000
0%
Dec-08
Jun-09
Aug-09
Dec-09
Jun-10
Aug-10
Dec-10
Jun-11
Aug-11
Oct-08
Feb-09
Apr-09
Oct-09
Feb-10
Apr-10
Oct-10
Feb-11
Apr-11
Oct-11
0
Apr-98
Oct-98
Apr-99
Oct-99
Apr-00
Oct-00
Apr-01
Oct-01
Apr-02
Oct-02
Apr-03
Oct-03
Apr-04
Oct-04
Apr-05
Oct-05
Apr-06
Oct-06
Apr-07
Oct-07
Apr-08
Oct-08
Apr-09
Oct-09
Apr-10
Oct-10
Apr-11
Agencies MBS US Treasuries
23
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

24. Singularity – price trendS
Qe impact on corporate bond spreads, S&P500, Commodities and dollar.
BAA CoRp SpReAD AnD S&p RATIo ConTInUoUS CoMMoDITy InDeX AnD ASIAn CCy InDeX
700 500
1,900
650
1,700
480
600
1,500
550
460
1,300
500
1,100
440
450
900
400
420
700
350
500
300 400
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Apr-06
Oct-06
Apr-07
Oct-07
Apr-08
Oct-08
Apr-09
Oct-09
Apr-10
Oct-10
Apr-11
Oct-11
Jan-06
Jul-06
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Apr-06
Oct-06
Apr-07
Oct-07
Apr-08
Oct-08
Apr-09
Oct-09
Apr-10
Oct-10
Apr-11
Oct-11
QE1 S&P
QE2 BAA Corp Spread (scaled) QE1 Asian Currency Index (RHS)
On Hold to 2013 QE2 Continuous Commodity Index
On Hold to 2013
24
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

25. Singularity – coMModity vS fiat paper Money
Gold price (y) or (1/x) is an inverse function of paper money (x).
pURCHASInG poWeR oF FIAT Money AnD THe GoLD pRICe
Gold Price
Purchasing Power of Fiat Money (increasing) >
25
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

26. Singularity – financial oppreSSion
Monetary and Fiscal Policy at a ‘practical limit’
Financial Legislation, regulation and taxation enables ‘Capital Conscription’
Conscripted Capital ie ‘grab’ capital mandatorily
• Quantitative and Qualitative easing (financial repression)
• ‘dodd-Frank –esque’ Global Financial Regulation Acts
• nationalisation of Money Centres and Pension companies
• FATCA, FTT or Tobin Tax, double Tax Treaties (US, UK and Switzerland)
• Mining Taxes, Windfall Taxes, nationalisation of Mines
26
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.

27. Singularity – financial oppreSSion
Game of Twist(er) anyone?
US 30y GoVeRnMenT BonD yIeLDS
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
Jan-80
Jan-82
Jan-84
Jan-86
Jan-88
Jan-90
Jan-92
Jan-94
Jan-96
Jan-98
Jan-00
Jan-02
Jan-04
Jan-06
Jan-08
Jan-10
27
Hinde GOLd FUnd november 2011 All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Singularity – Transcendent Money The presentation is for information purposes only and is not a solicitation to invest.
Confidential Unauthorized reproduction or distribution is strictly prohibited.