Why we are in the eye of the perfect storm or gold and silver
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In this show Al discusses:
- Segment 1 – Rick Ackerman starts out by discussing hyperinflation and other factors.
- Segment 2-4 – Marshall Berol, Malcolm Gisson, David Morgan, Del Steiner and Scott Baxter discuss how the actions of many of our elected officials are fueling the fire for higher gold and silver prices.
- Segment 5 – Chris Berry discusses American Manganese.
- Segment 6 – Scott Baxter brings listeners up to date on Sniper Resources.
- Segment 7 – Marshall Berol brings listeners up to date on Exorre Gold.
- Segment 8 – Marshall Berol and Malcolm Gissen discuss the Encompass Fund.
Click download link to listen on this device: Download Show
Click download link to listen on this device: Download Show
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
Click download link to listen on this device: Download Show
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“on the back of chinese sweet shops.”
Please………..just get back to your mother’s basement….it’s a lot safer for clown’s like you…..
I disagree. At this point I think you can write off the USD. Currencies like the CAD and AUD will certainly do well as they are commodity based. they also won’t experience the same inflation like we will in the US. This is why I like Australian Iron Ore and Canadian Junior Explorers.
“…on the back of chinese sweet shops.”
Hmmm…Jason, would that be seet and sour pork shops? 🙂
DAVE MORGAN IS A GREAT STUDENT OF HISTORY..
CUPLED WITH SILVER …HE KNOWS OF WHICH HE SPEAKS.
Americans need to look at history,,just to see what is possible.
and history does repeat itself.
GReat show…
RESPECTFULLY
Another excellent show, Al. I am always interested in Rick Ackerman’s case on deflation. His best case seems to be the paradox and irony (Jim Dine’s quote) of all those people in debt not getting away with it. Usually everyone caught at the top of any market gets screwed and it will probably be so in this case somehow, especially when highly leveraged. That has to be true for real estate debt.
However, I cannot avoid seeing the smaller and smaller packs of green beans and broccoli at my local food supermarket here in the UK. Even though we have ‘4%’ inflation or whatever the government claims, these packages look half the size of last year’s in the case of the broccoli. We hav some inflaiton all right and most of it is in food and energy prices (and gold and silver of course!).
I was reading ‘Lords of Finance’ by Liaquat Ahamed about the period 1910 to the 1930s which a thumping good read even though the view is too easy on Keynes. He pointed out that allies wanted to set the World War I preparations, war debt of Germany at $32 billion (in real money then of course) howver, it was reset or agreed at about $12.5 billion and finally the allies actually managed to get $4bn out og Germany. In other words, being kind, 30% of the debt was paid and the allies got only about 12.5% of what they really wanted. HOWEVER< Germany who had to pay the debt had HYPERINFLATION in 1923 and it's currency was reset afterwards at 1 trillion old units to one new unit. There is a huge dseeming contradiction there. Essentially there was a huge credit contraction of unpayable national debts and essentially a default but THE PEOPLE experienced hyperinflation. In the hyperinflation ,the total value of German Reichsmarks issued fell markedly in iterms of gold, dollars or Sterling even though the amount of units went towards infinity. This is the grand irony of hyperinflation.
They couldn't issue enough units to pay the debt.
I wonder if we can equate this to what the USA etc may experience?
You boys get yer taxes done?
I tell ya, every year at this time I get so angry.
Factor in FICA, fecal and all the various state and local payroll and income taxes and then factor in property, sales and other taxes and it’s easy to wind up paying what represents over 50% of everything you make to the government! (And in places like Taxifornia you can actually wind up having to pay taxes on taxes!) And that’s before the tax of inflation!!!
You would think with all that loot the government seizes the streets would be paved with gold and there would be plenty of money left over, but NOOOOOOOOO!
The streets are full of potholes and the government is $14+ trillion in debt and has tens of trillions of unfunded liabilities. And this does not count the incredible debt of the states, counties and cities!
The fact is we are not even economic surfs! At least a serf did not have more than a third of his production taken from him. And the lord of the manor never ran up ruinous debt for the kids and grandkids of the serfs.
Our government is beyond criminal!
All of this is bad enough but what really gets me is that people are more than willing to tolerate this situation.
When I talk about this people are either apathetic or they think I’m some kind of anti-government lunatic.
I find this reaction completely bewildering. And if that is the reaction of the majority of Americans I guess I really don’t belong in this country. Hell, maybe not even on this planet!
I feel the abuse.
There’s nothing like being subjected to the Federally Sanctioned Theft of your wages….
The Resolve. Actively engage your elected officials, especially Reps and Sens. Tell them:
1.) You are to write and pass legislation that places term limits on all elected officials at the Federal level.
2.) You are to write and pass legislation that reduces the pay of Federal elected officials by 50%.
3.) You are to write and pass legislation that reduces the Federal Income Tax to 3% Flat Rate and then imposes a National Sales Tax of 3-5%.
Schedule an appointment with your Rep or Sen and present these ideas. Look them right in the eye and tell them they have 3 months to enact on these goals.
If they fail to act, explain to them, in very clear terms, you will organize with other Americans, vote them out of office and replace them with some who embraces these ideas.
The defeatists say these goals cannot be achieved, but they are wrong. Responsible Americans just need to organize and get involved. Email or call your elected official a couple of times a week and tell them:
1.) Term Limits.
2.) Fifty percent pay reduction for all Federal elected officials.
3.)Flat Rate tax system.
Also, you might as well mention they get rid of the automated pay raise system and the retirement plan they voted in for themselves.
I actually did try to talk to my congress critter once. One of his aid said in so many words that just wasn’t going to happen unless I was able to show up at one of his town hall meetings but when I went I didn’t get a chance to speak.
I did get an irrelevant form letter a few weeks later. My tax money at work!
The only elected official that I have never had this problem with is Congressman Ron Paul. And, I don’t even live in his district.
Says something about the man.
Big Al
My wife asked Ron Paul via an email back in 2006 to run for president and he responded personally. I think she still has the email.
Exactly Ken. The real war that never ends is a psychic one. When people like you begin to win it, it’s not the elite who try to put you in your place, it’s the sheeple, canon-fodder-shit for-brains, masses. They are the enforcers at every level. The elite plot, then execute, always focused on the goal. They act in a way that is consistent with THEIR interests. The little guy however, hasn’t the faintest clue what is in HIS interest. Short term or long, micro or macro, any subject you choose, the masses always vote against themselves. This is why Rick Rule is right when he says “you’re either a contrarian, or a victim.” It’s “fractal stupidity” whereby each wrong is of a different scale but each still identical to the whole. So whether we’re talking politics, history, science, or religion, the more widely held a belief, the more suspect it probably is.
The most obvious contrarian play of this century so far, has been to get out of debt because everyone else has so much of it. This automatically means gold since the U.S. $
IS debt and all other fiat currencies, in extremis, are backed by it.
Pertaining to seg.2:
Ayn Rand, circa 1959 – “Watch money. Money is the barometer of a society’s virtue. When you see that trading is done, not by consent, but by compulsion – when you see that in order to produce, you need to obtain permission from men who produce nothing – when you see that money is flowing to those who deal, not in goods, but in favors – when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you – when you see corruption being rewarded and honesty becoming a self-sacrifice – you may know that your society is doomed.”
Pertaining to the world today:
The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists. – Ernest Hemmingway
Matthew,
Great post, first part…
Matthew,
had time to digest your writings.,,, and they are profound.
They sum up the present conditions of our society.
Wisdom comes from experience, of which you appear to have.
It is good to have people of you expertise associated with this web site.
With all due respect.
Thanks.
Jerry,
Thank you very much for the very kind words. I’m glad you have found some value in what I’ve written. All we can do is try to connect dots…
Regards,
Matthew
Very insightful, Mathew. Thanks for writing that. I’d like to see Big Al and Trader Rodge discuss some of this in one of their commentaries.
Thank you Ken. Here are two more excellent quotes that are especially pertinent today.
Regards,
Matthew
—->
“The consequences of inflation are malinvestment, waste, a wanton redistribution of wealth and income, the growth of speculation and gambling, immorality and corruption, disillusionment, social resentment, discontent, upheaval and riots, bankruptcy, increased governmental controls, and eventual collapse.” Henry Hazlitt 1894-1993
“Government interventions always breed economic dislocations that “necessitate” more government interventions.” Ludwig von Mises 1881-1973
Consider it done.
I am In Chicago today and will be back in the Desert tomorrow. I will get hold of Rog and we will do something.
Big Al
SUPERDOBBS. Fair comment. >PROBLEM< They will look you in the eye, and stick two fingers up, because they know THE SHEEPLE WONT FLOCK TOGETHER.
The hallmark symptom of hyperinflation is the complete loss of faith in a country’s currency by its people. Upon receiving the hyper inflated currency, people immediately turnaround and trade it for something tangible (e.g. food, gasoline, other necessities). Under this definition, I would say that are current economic trajectory puts us on a very likely collision path with hyperinflation. With the national election about 1 1/2 years away, it is very unlikely that the political will in Washington will be present to do the right thing to get us back on track. QE3 or some reasonable facsimile will be employed to levitate the markets and the economy for as long as possible.
Great weekend show guys, Keep up the good work.
The tipping point in the Gold and Silver campaign has arrived!
http://silverliberationarmy.blogspot.com/2011/04/golden-tipping-point-university-of.html
Hi Matthew,
Allow me, along with Ken, to congratulate you on a well reasoned and well postulated blog. Appreciate the effort it took.
Al and Rog, Great show as always! Superb guests. Enjoying the free, better than University-level, education. This is information we can absorb, assimilate, and use in practical ways to prepare ourselves and our families for what’s coming.
Just a general comment about the deflation/inflation arguement. Generally, we tend to think of these in terms of having either one or the other. But, in this case I believe we are and will continue to experience both. We have monetary inflation going on right now, resulting in higher prices for food, gas, etc… and at the same time we are seeing asset deflation, housing, pensions, cars, trucks, boats, second homes, etc.. are all deflating in terms of value. So, I see both going on simultaneously, definately the worst of all possible senarios. If I’m wrong, someone correct me.
God Bless!
Dan
Of course we have both going on right now.
I wish more people in our society stopped and thought about really is going on. And, I don’t just mean the co-existence of inflation and deflation. Dammit, people need to become better informed.
Oh well,
Big Al
Sorry for the typo. What is meant to say was “thought about WHAT really is going on.”
Big Al
Hi Dan,
Thank you for the compliment. And well reasoned is exactly what your stance on inflation is.
The bare necessities, like food and energy will reflect inflation of the money supply first, since they will be cut last from our lives. Next, should be the raw materials needed for all the items you listed which are deflating since they are still very limited in supply compared to global money creation. I believe it is going to make less and less sense to buy a new house or car, and especially things like boats and atv’s. The price gap between new and even slightly used is going to continue to widen as the collapsed economy forces liquidation or at least distressed sales on one hand, while rising input costs make lower prices in the “new” market impossible on the other hand. This is what’s meant by “cost-push” (vs. “demand-pull”). Everyone is a victim, though most will blame everything but the cause. They won’t understand that the producers of goods have their hands completely tied and have already slashed profit margins due to collapsed demand. Consider too, that where credit (debt) makes a market, like housing, we don’t even know the true free market price. This is due to the artificial availability of cheap credit to unqualified buyers who then bid up prices against qualified buyers. As with any “auction” or market, more participants=more demand=higher prices. In a free market, more savings equal more available credit and lower rates. With record household debt, and a negative savings rate in the U.S., little money should have been available. What was available would have been bid up by the market (higher interest rates) and available only to the most qualified. Instead, money that did not exist was made available to virtually anyone at very low interest. In other words, savers were forced to finance the housing boom/bubble. Of course, now, post bust, there is far less money available for long term loans. For this and other reasons, I expect virtually all real estate to continue to decline for the next 2 to 3 years. If we ever get to an all cash market, we will have price discovery, fantastic deals, and an ugly world. For a time.
In order to track how your investments are really doing, I think everyone should operate as if there is no such thing as the $, and value your paper assets in terms of how many ounces of gold their worth. I do this every Friday after the market closes. After all, if we’re unable to consistently outperform gold, we’re better off holding nothing but gold.
Regards,
Matthew
Matthew,
Really an insightful bunch of comments.
Isn’t it interesting how complicated all of this has gotten?
Listen to Jeff Deist’s comments. He, unlike myself, feels that there is a way out of this mess. I guess that if everyone tightened their belts we could work our way out. I am not convinced, as of today anyway, that the level of society that would have to do this is large enough.
Selfishness seems to be a characteristic that most people are unwilling to let go. That, after all, is what really got us into this mess.
Rather than use the term “selfishness” perhaps I should say a complete disregard of responsible values. I mean, how responsible is it to live completely beyond your means? How responsible is it to disregard true accounting principals? How responsible is it for people to not answer questions directly? Gee, am I talking about all aspects of our society? You betcha!
Big Al
Hi Al,
I’m with you on this, to argue otherwise is to ultimately argue that a free lunch, to some extent, is possible after all. It is worth pondering whether we should even hope to avert disaster. This sounds radical I know, but if the pain is not something close to the inverse of the fraud, nothing will be learned, and the most ignorant and arrogant among us will continue to dominate our lives, with the heaviest price paid by savers and producers.
I also agree with your use of the word “selfishness” in its common usage. However, I would define selfishness as doing what is truly in one’s own best interest. If this is right, the real problem is the complete lack of selfishness. Fraud, theft, and coercion is in no one’s self-interest in the big picture. Doing what is sound, right, and true, is in everyone’s self-interest. Indeed, if we would each hold The Golden Rule above all others, en.wikipedia.org/wiki/The_Golden_Rule there would be very little wrong in the world from a social perspective. The real problem is and always will be stupidity and criminal stupidity. The distinction to me, is that the first is passive and the latter is aggressive or acted upon. To sum up, true selfishness (self-interest) does not include doing deeds that could land one in jail or make one a target for retribution.
Stupidity alone was exploited most by the elite. They provided the noose and the people happily slipped it on. There’s plenty of perceived force, but very little actual force. No one was forced to live beyond their means.
I don’t in any way intend to excuse them, but only want point out how any conscience they may have can be quieted.
Regards,
Matthew
“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.” Money and Wealth in the New Millennium, by Norm Franz, copyright © 2001, Whitestonepress, page 154.
Hi Big Al and Ken, Appreciate your gracious comments, Ken. Wow, I am learning so much from all of your blogs. Great stuff!
I agree with your comments Al, about personal responsibility, greed, selfishness, etc. But, just to take a slight detour from you position, I would highlight the fact that the ugly system we are under, i.e. the “banking system” was conceived, designed, and perpetrated on the peoples of the world, without their knowledge or consent, and many, many decades later many still do not know what kind of lecherous and despotic monetary tyranny we live under. It was the elite banksters who created the Central Banking system, and they did it precisely with the objective of robbing the unsuspecting of their wealth. Then they capitalize on the natural human tendencies of greed, selfishness, and lack of personal discipline to perpetuate the scheme. The masses are victims of a couple of things. First, their own weaknesses, (the inability to delay gratification, “gotta have it all, and I’ve gotta have it now, whether I can afford it or not”), and second, the schemes of the parasitic “banksters”, i.e. usury, boom and bust cycles, manipulating economies, etc. Well, enough. I’m preaching to the choir. You all know this already.
Best to you,
Dan
Hi Dan,
I don’t think anything you just laid out can be refuted. The reason I choose to focus on the shortcomings of the victims is because without their complicity, none of the banksters dreams would be possible. We cannot control or change what they do if we the people do not understand or care what they do. Education is the only chance we have. The banksters power is an illusion built on ignorance.
If history is a guide, and I believe that it is, the parasite/host relationship will always exist in some form.
Ironically, the collective would benefit most if we held the individual in the highest regard. For only then, would we each be properly moved to action when another individual’s rights are violated. It would be accurately interpreted as a violation of, and threat to, each individual. Society today has it completely backwards. Everything is done “for the greater good” as if there is a greater good than each and every individual.
The worst atrocities would not be possible if we valued the individual as we do the collective. We would not expect the sacrifice of others.
Regards,
Matthew
John Adams, on the importance of a financial education:
“All the perplexities, confusion and distress in America arise not from the defects of the Constitution, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit and circulation.”
Sure seems to have turned out that way.
Good piece in the New York Times today summarizing the stance of the Left and the stance of the Right. Non judgmental and written for someone who wants a concIse explanation.
Best,
Big Al
@Superdobbs
Look at how the dollar pulled back some ground today. Even with gold going up.
What does that tell you about what other countries are doing with there currencies.
It’s such a balancing act when it comes to currencies and this why I think global
hyperinflation is a possibility. None of your trading countries like China , India etc want a weak dollar as they will see a drop in exports and will start running budget deficits.
In fact a weakening of the dollar can be viewed as a good thing in that the country needs to go back to manufactoring it’s own goods again instead of importing everything on the back of chinese sweet shops.
I wouldn’t write the US dollar off just yet until the domestic demand within China, India, Russia etc can support there own economies. Right now they will have to devalue there own currencies to keep that balance and this is where the hyperinflation scenerio “could” come in. Either way I think there is going to be some global inflation headed our way.