Politics Steals Center Stage
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In this show Al discusses:
- Segment 1 – John Embry from Sprott Asset Management discusses the election, gold and the mining companies.
- Segment 2 – Mike Neihauser discusses his publication, Beacon Rock Research.
- Segment 3 – Monty Agarwal, CIO of MA Capital Management, discusses the results of the election and the implications, in his mind, for investors.
- Segment 4 – Keith Schaefer sees opportunities for investors in the energy sector.
- Segment 5 – Al and Lawrence Roulston discuss the implications for investors of the recent U.S. election.
- Segment 6 – Bix Weir discusses gold and silver price manipulation.
- Segment 7 – Rick Honsinger discusses the importance of Formation Metal’s refinery in Idaho.
- Segment 8 – Big and Al and Rick Rule discuss their perception regarding the status of our country.
Click download link to listen on this device: Download Show
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Click download link to listen on this device: Download Show
Click download link to listen on this device: Download Show
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When will we be declared dissidents?
Should we self-identify ourselves as dissidents?
In the Soviet Union during the 20’s a symptom of the tyranny was voluminous regulation selectively aggressively enforced. Anyone the state decided was an enemy of the state was dealt with by the collective without due process harshly. Anyone could be found to be guilty of something. Under Article 58 of the Soviet Penal Code was the definition of an enemy:
“A counter-revolutionary action is any action aimed at overthrowing, undermining or weakening of the power of workers’ and peasants’ Soviets… and governments of the USSR and Soviet and autonomous republics, or at the undermining or weakening of the external security of the USSR and main economical, political and national achievements of the proletarial revolution”
So if you said the Potemkin village was a facade even though it was true you were classifiable as a counter-revolutionary subject to the wrath of Soviet Collectivists power.
Who will be our Aleksandr Solzhenitsyn ?
For an Article 58 if it does not already…..will surely exist. One will be subject to life imprisonment….death….property confiscation for speaking out against ACCORN…for anti-SEIU sentiment…for calling into question monetary mayhem that is and will increase. Who will follow the orders to put people who think in jail? Should we lie to ourselves and get our minds right (aka left)?
A series of Chinese proverb is almost too scary to write today, to wit…here goes:
“May you live in interesting times?
May you come to the attention of powerful people?
May you find what you are looking for?”
The question from this proverb(almost curse) is…..was it a diagnosis of a self-destructive self- fulfilling prophecy……or was it a more libertarian optimistic wish that truth will defeat tyranny?
If the former is the intent our society has shortened the ancient wisdom with “Don’t fight the Fed!”
Defenses of the later were at least once enshrined in our “Bill of rights”.
Unfortunately we live in interesting times.
Good thing Fort Sumter is in South Carolina……..a link to make you think:
http://www.wnd.com/2012/11/louisiana-residents-petition-to-secede/
It would kind of make a trip to the big easy a little more difficult.
Louisana is in fine condition to leave the union……hope the levies hold…..
But, I think if they secede….South Carolina, and Northern Florida would also, try
the same…..Heck, I bet Kentucky will even try…..maybe that is why Rand Paul is thinking……
With absolutely NO disrepect to all your FINE guests, Big Al – You surprised me with pulling “TWO BIG GUNS” out of your proverbial hat – John Embry and Rick Rule. Two highly intelligent guys with a lot of wit and candor to boot.
Thanks,
Marc
Good luck Aztecs vs. AF…..and Aztecs vs. Syracuse in HOOPS on the WW11 carrier MIDWAY here in Beauuuutiful San Diego…Go Aztecs!!!! 🙂
Hi Marc, since Jerry isn’t here I’m going to say Ditto how about Double Ditto!!
Hey,
DT, have a GREAT weekend!
All the best,
Marc
hello…….DT……TRIPLE DITTO…..I THINK…..
Hi AL, I have always admired Rick Rule, what can anyone say other than he knows how to speak in a way that is profound but is easily understood by all.
The essence of good writing is to learn to write the way that you speak, Rick Rule can do it all and still come across in a very genuine manner. DT
DT…….Sorry I haven’t written in the last few days…..my computer crashed,,,,I used my wife’s computer and it crashed…..I think Al, has the bug…..everytime I say mr.o…the computers throw a fit…..
The housing crash that happened in The US of A and still is not over is coming to Canada and it will be every bit as destructive, in Canada we have The CMHC which is The Canada Mortgage and Housing Corporation. This institution is much the same as Fannie Mae and Freddie Mac but I would say a degree worse. All of the real estate loans made by our banks and credit unions are guaranteed by The Federal Government Of Canada. Therefore there is no onus by the canadian banks to lend this money out responsibly and they haven’t because they are off the hook.
It’s sad when you talk to the average man in the street because although they may have heard about the CMHC 95% of them don’t know or understand it’s function. That’s why when Rick Rule talks about grade 3 math, ” I can’t believe what I am seeing in my own country even with knowing what has happened south of the border.” DT
“It will be every bit as destructive [in Canada].” <= Unlikely, except in the bubbliest of centers (Vancouver, Toronto). Take a look at the Canadian equivalent of sub-prime, and you find that we only permitted a few tens of thousands — the equivalent nationally of one medium-sized town — hardly enough to destroy the market. And the CMHC only insures a small fraction of all Canadian mortgages. And you couldn't throw in a car and a yacht and a motorhome and furnishings and new kitchen cabinets, etc. like in the USA. And we don't have the same title issues and various other things that will hold down the American market for a couple decades. Notice too that the limits have been raised for down payments — smart move by the Harper government — and the max duration is brought down to 25 years — another smart move. The market is "cooling" — prices are down 6% in my locale — but hardly in meltdown, except in hot spots like Whistler, which is self-destructing, but anybody with an ounce of sense could see that coming.
Vancouver real estate update for anyone who’s interested. I don’t believe the numbers given, as I hear more negative personal accounts.
http://www.vancouversun.com/business/October+sales+pick+after+September+swoon/7491985/story.html
First off the number of CDN mortgages that are secured by The Federal Gov’t is huge.
Canadians have bored heavily in an unsustainable mortgage market, many of them who had paid their mortgages have gone back to the Banks and taken out lines of credit which is tied to and secured by a mortgage. Many of them don’t even understand that let alone care.
As far as credit cards most Canadians are maxed to the hilt some of them having multiple cards to be able to keep up with The Joneses and their new cars and furniture.
The real estate market in Toronto is rivaled only by New York city and now we have built so many more condos here, the size of many small cities over the last ten years that the correction is now becoming plain for all to see.
I simply do not see a soft landing and when the US addresses it’s fiscal cliff ours is sure to follow.
When interest rates here can no longer be contained it’s pretty plain to me that the market is in for an horrific crash and one that will end very badly for The Canadian consumer.
Hi DT, thanks for the response. A few more thoughts for your entertainment:
I understand the statistic for debt nationally is at an all time high, but that’s only a fraction of the population. Most of the people in my circles (Alberta, BC) have zero debt, especially the seniors, who paid their dues years ago. Debt is concentrated among young people: student loans and credit cards and i-Trinkets. It creates negative statistics, but hardly breaks a housing market.
I can’t respond to your point about lines of credit, as I don’t know anybody who has such a thing. I only ever heard of it in Accounting courses. It seems esoteric and unusual, but maybe reasonable under special circumstances.
We agree that Toronto like Vancouver is a bubble center, and those local markets will probably see considerable turmoil and depreciation, but they’re hardly representative of the nation at large. Shoebox condos are not a national phenomenon. Mature neighborhoods are not highly-indebted neighborhoods.
It’s not clear to me why areas that didn’t see froth (the majority) should get hit like those that did.
Anecdotally, it’s interesting to see that CMHC may get privatized. Makes perfect sense. If they have to stand on their own two feet, they will lend more responsibly. Government has no place in the housing market.
DT…..what is funny the msm…is using the term “cliff”, and I bet they do not have a clue as to what they are speaking of……
JERRY….They might think its Cliff Richard………WERE ALL GOING ON A BANKRUPT HOLIDAY………………….
Irish,,,how ya doing…..Holiday….and Guiness for all…..
DT- you describe the lack of a self correcting mechanism.
If you put a teapot on the stove the release valve/whistle both tells you the water for you tea is ready and keeps the teapot from exploding.
If you were to weld the valve causing the pressure from the steam to have no where to go……. the tepot would explode.
Fannie Mae and Freddie Mac are the equivalent of welding shut the self-correcting mechanism of the housuing market. The explosion was inevitable and hey look……. they are at it again!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Tea time everybody!!!!!!!!!!!!!!!!!
Hi Dennis, I remember those old teapots that were placed on the stove and whistled when the water was boiling, I always use to say coming master and then the dam think would burn my hand and that reminds me of when the British were Nabobs in India. DT
The guy on the street here is so clueless that he doesn’t realize this government debt will have to be paid by guess who? DT
Benb, I concur with your evaluation of what happens to gold after and before the official designation of gold as Tier one. It has been post poned temporarily because the large central banks have not been able to procure gold for their own banks and use that gold as currency. All of the gold hatters will become gold believers as wallstreet and the business media stops their bad mouthing of gold as an asset and the need to put it in your portfolio. The times they are a changing.
Thanks for the great conversations with the heavyweights,Embry and Rule.
I highly respect their opinion and the rest of the Sprott team.
How about that Stanford Kevin Hogan in his 1st start at QB?
Looks like his dance card is going to be full!!!!!!!!!!
Liked the show and the focus on financials, away from politics, at least compared to the last few weeks. John Embry is always enjoyable to listen to. You have some very influencial friends Mr. Korelin. I also enjoyed the prespective of Mr. Keith Schaefer. Diversification is enhanced by his contribution, he should be on more often.
Have a great weekend.
By the way, Rule may want to widen his understand of currency. The bond market is a giant scam, multiple times the size of any stock market, so of course those involved are not going to bad mouth it.
A Modest Enquiry into the Nature and Necessity of a Paper-Currency by Benjamin Franklin (1729)
http://etext.lib.virginia.edu/users/brock/webdoc6.html
Governments create out of thin air a demand for currency through taxation, they should certainly not attached it to obligations carrying interest and repayment. That is just adding insult to injury when goverments spend more than they take in.
And to widen economics understanding, which really can be healthy without the need for fractionnal banking, one may want to look into Raw Materials Economics:
Unforgiven [Paperback] – Charles Walters (Author)
http://www.amazon.com/Unforgiven-Charles-Walters/dp/091131167X/ref=sr_1_1?ie=UTF8&qid=1352597060&sr=8-1&keywords=Unforgiven+charles+walters
INFORMATION ON AURCANA’s mine”
http://www.mysanantonio.com/news/local_news/article/Silver-riches-carry-a-price-4027090.php
Since diesel is a large component of the input cost for gold mining companies, why haven’t they followed Southwest’s lead and implemented some sort of fuel hedging program? Maybe they already have but I haven’t heard anything about it. This seems to make a lot of sense and I think will be positive for margins. I think $70-$80 oil is a good floor and I see higher prices in the next 4 years.
I will bring this up to some of my friends in the business, Jimmy.
Thanks for this point,
Big Al
Seg 6. Maybe just my opinion but I think you guys underestimate the consequences of gold being teir 1. I figure teir 1 is going to make gold more valuable to institutions inparticular, it is going to change the way institutions think about gold.