Keeping up to date on macro-economic issues is critical to successful investing
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In this show Al discusses:
- Segment 1 – Peter Grandich gives his views on debt reduction and the President’s response at Friday’s news conference.
- Segment 2- Rick Ackerman discusses why he is absolutely against big government.
- Segment 3 – Craig Lindsay discusses why his company, Otis Gold, is active in Idaho.
- Segment 4 – Frank Holmes discusses investing and the inter-relationship between politics and investing.
- Segment 5 – James Turk feels the economic problems in the U.S. are much more basic than the debt ceiling.
- Segment 6 – Geologist Brent Cook discusses how he invests in mining companies.
- Segment 7 -Al discusses investing in the energy sector with Steve Taylor.
- Segment 8 – James Turk wraps up the show by explaining why he continues to be bullish on gold and silver.
Click download link to listen on this device: Download Show
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Click download link to listen on this device: Download Show
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Hi Richard,
I really need to be perfectly clear on this issue. I often times know what I am trying to say but perhaps express it differently.
Okay, here goes.
Regarding the tax situation I believe that an increase of sorts in taxes is necessary for the revenue portion of the country’s income statement. I do however firmly believe that everyone needs to chip in not just those in high income brackets.
Regarding the deficit let me again try and be clear.
Of course expenses must be cut and I would only endorse higher taxes if expenses were dramatically cut.
Okay, so what I am saying is that the income statement has to be strengthened. More revenue and, in our case, way less expenses. The two, in my mind have to go hand in hand.
Okay lastly regarding the debt ceiling. I am not sure that I see any alternative for a rise in August. Help me out here.
I will also say that if the income statement of our country is not strengthened, I will have lost complete faith in our future. To me, it is now or never.
Thanks for letting me clarify this.
Best,
Big Al
[…] Hit segment 1 link […]
MORE TAXES EQUAL BIGGER GOVT. EQUALS LESS FREEDOM
Of course!
Big Al
Al
You have mentioned that 40% of the population is on subsidies(welfare)
many of the 40% are able body individuals, they can fend for themselves
but choose to rely on the govt. inlieu of themselves, but, since they have
big brother(which is broke) continue to expect to be taken care of by
big brother , which has to borrow from others (china) to take out
a loan to give back to themselves(the public) to make a servant out of
themselves (the receiptant 40%). I say to the majority of the 40%
stop relying on the tax master, which does not pay his bills, but, obligates
the citizen for something he can provide on his own…
Jerry,
Of course I agree with you. Entitlements are a huge disincentive.
My comment about the 40% has nothing to do with this segment truly needing entitlements. My comment is that a majority of this 40% could very well be rioting in the streets.
Do we continue to spoon feed them to keep them quiet? NO! We begin to change the whole messy and unfair and stupid system so that those who are able (notice I did not say willing) will shortly down the road have to depend on themselves and not you and I.
Please read my comment above to Richard.
Thanks for letting me clarify myself.
Best,
Big Al
Big AL,
Thanks for the followup….and by the way the show was great this weekend, along
with great guest speakers.
Many thanks, Jerry!
Big Al
wE NEED MORE TAX PAYERS PAYING INTO THE SYSTEM, NOT HIGHER TAXES…
HI Paul S.
I don’t disagree with you at all.
Here’s the rub.
Our entitlement system is totally corrupt. (See my comment to Jerry.) And, it must change.
Instead of having a taxation system that is a complete user tax we have a system that allows very shrewd people to not pay their full share. That is completely asinine.
Hey Paul, I really appreciate your comments. Thanks.
Big Al
Hi Al,
Sometimes I forget that our President is for all the citizens in the US. And the poor and left behind have to live too. I was young when President Kennedy said, “Ask not what your country can do for you, But what you can do for your country”.
I took this to heart. And even today still believe this. How do we get back to this thinking???
Hi Paul S,
Kathy and I went to a dinner last night that her Club put on to raise money for just those folks who you are talking about.
As always, I ended up in a political discussion of sorts with her co-president’s husband and Trader Rog who attended with us.
Joanne’s husband is a died in the wool conservative.
Before I gave any opinion, he said: :The president is not a bad person at heart, his agenda is simply different from mine. He is more of a socialist than I could ever be.
I said, “you took the words right out of my mouth. He firmly believes that our country would be a better place if it were more socialistic. I cannot support that agenda, because it is not what made us great. Of course, we must help people who truly need help. But, as one of our listeners (Paul S) commented, we need to support the honest folks not those who by hook or crook don’t pay their fair share of taxes.”
So, in a sense, you were a real part of that conversation.
Best,
Big Al
I don’t need to pay more taxes.
Allowing these criminals and idiots to steal more of your money will solve nothing!
No matter how much money politicians take they ALWAYS spend every penny and more.
Allowing them to take even more money is like giving another drink to an alcoholic.
Don’t you people ever learn?
Obviously not.
Hi Ken,
Of course you are correct. Please see my comments above.
Keep em coming, man. You have some great observations!
Big Al
Ken,
I agree with you 100%
Jerry,
It’s impossible to not agree with what Ken wrote.
Big Al
Government has been, is, and always will be inefficient. At somewhere around 25% of GDP, government starts to be a drag on the growth of any economy. It varies with birth rate , immigration, availability of resources and many other factors, but throughout history (omitting affects of wars) growth has been inversely correlated with taxation. The US is currently dying from over-taxation and over-spending, to increase spending or taxation further will merely hasten the death.
Besides taxation rates are due to become fairly irrelevent. It is clear that the current government is not serious even in reducing the growth of spending by any significant amount and since they will soon be unable to borrow funds at a reasonable rate of interest, it will require the printing of money and the resultant price inflation. It may be possible, given the relative infrequent travel of citizens outside their own country to mask temporarily the increasing collapse of the dollar, but only for a certain time period. It is positively clear that it is the intention of the government to inflate away the debt problem, thereby robbing the citizens of maybe 50% of their savings and wealth. It is clear the government intends to cheat its social security recipients by yet again fiddling the calculation of inflation. The only real question is how soon the sh*t hits the fan and by exactly how much will be the resultant inflation.
At the current rate of taxation: 40%, growth in the US is totally stunted.
The only surprising thing is the people are not yet revolting. The revolution is long overdue.
Afternoon David,
Your observations are spot on. Too bad, isn’t it.
I keep hoping and praying for a miracle.
Best,
Big Al
In feudal times we’ve had a flat tax of 10% (Zehent) too much for many Europeans emigrating to the Americas … and now?
Well, now it seems both the EU and the USA have come to the end of their respective flagpoles – neither further taxes, nor any kind of spending cuts can ever rectify the debt burdens – far beyond any redemption.
The only way out is inflating the respective counterfeight fiat (il-)legal tender and that’s what coming around the turn! … and if you, Al want to pay more in taxes I’m kind’a feeling you’re somewhat self-deceptive as any government historically has always found ways to go way beyond its spending limits.
Since Keynes, the long abandoned
Hi frr,
I cannot disagree. What I can say; however, is that raise it now and then start a SERIOUS fixing process immediately. I elaborated on this in some of my other comments today.
Thanks for your comment,
Big Al
Hi Al,
I don’t think we should raise the debt ceiling. If we keep raising it, why even have one. Cut the spending and start with the EPA, which is nothing more than a job destroying agency. As far a compromise, I do not think you can compromise with a president whose agenda is to punish the successful and redistribute wealth. More revenue can be brought into the government if more people were employed instead of raising the taxes on the shrinking workforce.
Karen,
Maybe your are correct. I realize I may be a bit of an idealist with my comments. But, what the hell, we have to do something.
Best,
Big Al
The best agenda for America is to keep Obama on a very short leash until we can get rid of him in the 2012 election. Charles Krauthammer has presented the best “spending plan” so far to accomplish this noble objective.
Hi Tommy John,
Please provide a link to Krauthammer’s spending plan.
Thanks,
Big Al
The reason a tax hike is unnecessary is that because of the coming inflation there will be bracket creep anyway. Further, again due to inflation, there will be increasing capital gain taxes. Taxes that will be immoral simply because had the government maintained a stable currency there would be much less price increase.
I only hope that after the collapse of the dollar, if a re-writing of the constitution becomes necessary we are blessed with re-writers as intelligent and knowledgeable as the founding fathers.
Yep, David I think you are correct.
Big Al
Al,
I enjoy all you guests but especially like James Turk. Thanks for having him on the show. He brings a lot of valuable information.
Morning Karen,
James is one of the most intelligent and caring individuals who I have ever met.
His wife Margaret is great and his youngest son, Charley, is absolutely brilliant.
Big Al
I enjoyed James too. Thanks for having him on Big Al.
Yep. James is always calm and rational. Always good to hear him on KER and other programs.
Al, without a vote from the people to tell the Democrats nomas when it comes spending money we can’t hope to restriict government spending. Also, the federal government and wallstreet are married to fiat money and will not change their stand without a gun to their head. It is a matter of their own self interest.
Hi Larry,
How can an rational person disagree with what you said?
Thanks, Larry
Big Al
Comment:
We are not the world’s ‘cop’, unless the model is the one of the crooked cop that needs a bribe to keep you out of the pokey.
Hi Mark,
Look for a Daily Editorial on this subject this coming week.
Big Al
On the possibility of a debt ceiling breach:
Politicians’ pledges show interest groups’ sway
http://www.cnn.com/2011/POLITICS/07/14/pledges.interest.groups/
This is why people shouldn’t be sanguine that a debt ceiling breach couldn’t happen.
Signed pledges by politicians are being used by some interest groups to hold politician’s feet to the fire. I think this tactic will become more common, even dominant, fairly soon.
The other wild card in this, as that no one necessarily has to reveal what pledges they have signed, what the pledges say or commit them to, nor which citizen groups provided them. Probably makes negotiations much more difficult and somewhat more obscure in their outcome and efficacy.
In short, business as usual, is coming to an end…
Of course, if a politician is stupid enough to sign two pledges from two opposing groups, it will eventually be figured out. Whether the pledges could be the foundation for a legal action against the politician in question is one thing, but certainly there will be public disclosure of duplicity with the attendant ridicule and embarrassing publicity…
If this debt ceiling is raised, and odds are still that it will, I think next time might be different, because of these pledges…
Hi Mark,
Many thanks for your input.
I am off to Seattle this morning, but will go to your link later and comment.
Have a great rest of the weekend,
Big Al
AS A RESULT OF INCOME TAXATION WE NOW HAVE A GOVERNMENT WITH MORE POWER THEN THE KING WE FOUGHT WITH OVER 200 YEARS AGO! GOVERNMENT IS SELF SUFFICIENT AND INDEPENDENT OF THE WILL OF THE PEOPLE. THE ELECTIONS DO NOT ALTER ANYTHING IT JUST CHANGES THE GUARD.UNTIL AMERICANS BURN FREEDOM INTO THEIR HEARTS ABOVE ALL ELSE IT IS ONLY GOING TO GET WORSE!
AL! I I CANNOT AGREE WITH YOU ON YOUR COMMENT ABOUT AGREEGING TO TAX INCREASES ,NO MATTER WHAT THEY ARE FOR ! ARE INTENTIONS SHOULD BE TO HALT AS MUCH MONEY AS POSSIBLE OF GETTING INTO GOVERNMENTS HANDS . THE GOVERNMENT INEFFICIENCY WILL NEVER CEASE ! PEOPLE IN THIS COUNTRY WILL ONE DAY HAVE TO CHOOSE BETWEEN STATISM AND FREE MEN ! I FEAR MOST WILL CHOOSE STATISM!
Good Morning Joseph,
I think (truly hope, perhaps more than think) that the “free men” concept will always win out.
We do; however, have a large percentage of our population that have chosen “statism” whether they believe it or not. Having the government take care of you is obviously a form of “statism”.
It would be really interesting to see the true percentage of the population that is dependent on the government for survival.
My guess is that this number is big enough to cause real inefficiency in the system, but not big enough to cause permanent change. I don’t know this for a fact, but it is my feeling.
I believe that the situation today is a result of government becoming too large and the population becoming to complacent. The recent complacency in my mind has resulted from the acceptance of instant gratification resulting from too easy credit, the housing bubble, etc.
Americans and the rest of the world are in a situation where people have to really stop and think about their priorities.
My experience is that my friends and colleagues are doing just that. Who knows, maybe we will start to see some changes.
Joseph, you seem like a very intelligent individual. Your comments are rational; however, I hope and pray that you and to an extent other listeners and myself are wrong and that we will get back on the right path.
Thanks for taking part in this great forum which is made great by all of the participants.
Big Al
It is said that nearly half of the working class citizens of the United States pay no income tax whatsoever.I’m with Marco Rubio on the tax question. We need more tax-payers, not more tax increases.
–> http://youtu.be/WkFIXdby4Cs <–
When nearly half of my paycheck, which I receive bi-weekly, is going to Fed, Soc. Sec., Medicare, and State… I do not feel the need for them to increase the amount taken from me for more of what they cannot solve. I hear the same arguement over and over from liberals saying, "well, would you agree to just paying an extra $100 a year more if it fixes it?" So I say, "What happens to the last $100 more that they took? And what happened to the one tax increase of $100 a year more that they took to "fix" it?" It's always the same thing.
In Proverbs, there is a lot written about the slothful. I'm not saying that all of those 47% of non-income tax paying citizens are capable of working. But millions of them are. JFK talked about teaching neighbors how to make themselves weathy in his inauguration speech. We sure a long way away from that when we hear people agreeing that increasing taxes will somehow solve the problems. It is so overwhelmily obvious that the Nice Government Men couldn't solve anything with what they already had. Why advocate to give them more?
I mean, if my hard earned tax “money” is going to places like this –> http://youtu.be/fu6ok5ykyuQ <– I would say NO MORE TAX INCREASES!!
Good Morning Lynn,
It may not sound like it, but I completely agree with you in theory.
I guess that my question is, what the heck are we going to do as of July 18, 2011?
Big Al
1. How did you find my blog? I think through toncherati, noticed you linke me2. How long have you been visiting my blog? as long as my brain has been jelly for remembering things, but it has been about a year, that is a guess3. What would you like to see MORE of on my blog? i love seeing pics of s. cal, i miss it a bit, with of course you and your family doing stuff in it, of course4. What would you like to see LESS of on my blog? it’s your blog! do what makes you happy!5. What would you like to know about me? OR my family? i’d like to know about your interest in Fishbone 🙂
Federal Tax as a percentage of gross income:
year
1900 5.9%
1920 12.0
1940 17.9
2008 26.6%
2009 26.9
2010 27.7%
Taxation on tea at time of Boston Tea Party 2.5%
(It had been as high as 5% but at the time of the tea party it was 2.5%, sixpence in the pound = 240 pence)
I believe the US public is like a frog placed in warm water…..It does not realize it is being boiled!
IT IS THE SPENDING, STUPID.
Agreed! I keep saying the same thing to the left voters, “It’s the SPENDING, STUPID!”
Why would anyone listen to Steve Forbes?
He was over in Greece, representing the U.S. Chamber of Commerce and was licking his chops trying to purchase” cheap” Greek properties at the expense of the
common Greek citizenry. In my opinion, if he proposes anything, it is at the expense of the average wage earner.
And ask Peter Grandich, what christian principles did the Forbes Family adhere to while amassing their family fortune?
So true. Always watch out for the fakes speaking out of both sides of their mouths. Forbes is only in it for himself. Now he gets to steal the property of the greek people.
HI Bill,
Peter and I will discuss this in a macro sense on the upcoming Weekend Edition.
Best to you my friend,
Big Al (who is getting smaller!)
Part II.
I did not mean to come across so caustic on the above post. I do not know Steve Forbes personally. He seems quite congenial on financial television shows and is probably a decent chap.
But the Forbes family made their fortunes at the height of British colonialism in South Africa and China. They are great capitalists. but I do not think they act in my best financial interests.
Hi again Bill,
Didn’t think you were caustic. I sensed that you were talking about what I call “predatory” capitalism. As listeners are aware, I do not approve of this at all.
Best,
Big Al
Wow. I was shocked that Peter agrees higher taxes are needed, and that corporations should be forced to start paying tax instead of hiding their profits overseas.
Next up would be Denninger’s idea of eliminating Homeland Security. It costs a fortune, it only takes away citizens rights, and it’s doing the function that the FBI and CIA were founded to do.
Eliminate DHS, the Bush tax cuts, and corporate tax loopholes and you get a balanced budget!!!!!
Hi never accept the terms of service,
Please explain to me why corporations should not be forced to start paying tax instead of hiding their profits overseas.
I would like to hear your rationale behind that.
Best,
Big Al
Hey, I want them to pay taxes. I just figured that Peter would be against it. Nice to see him prove me wrong. So of course, this means he would also be in favour of ending the corrupt lobbying that gave them the loopholes too?
The US is one of only two countries in the world, to the best of my knowledge, that taxes based on citizenship and not residency.
Can someone explain to mewhy ir is moral for the US to have the right to tax someone on money earned by labour in another country and never brought into the US. I have no problem with taxing money that is brought into the US, but if money never touches the US, wherein is it reasonable for the US to have anything to do with it?
David,
Of course, your point is well taken.
The question becomes, how fair is it for U.S. corporations to move offshore; provide no employment for Americans; provide no federal or state benefits that would help all of us; and, reap all the financial benefits?
In theory, you appear to be absolutely correct.
In reality from an American’s prospective, I am not sure.
Don’t get mad at me, just give me your view. I have been known (sometimes too often) to change my mind.
Best,
Big Al
Hi Al,
First you have to look at the reasons why corportation move offshore. Rules, regulation and taxes eats away so much of their profits that they counld not stay in business if they did not go to another country. Remove the overreaching of the government and the capital gains taxes and this country will boom.
Hi Karen,
Of course, in a perfect world. Which, quite frankly, is more of what we need.
Big Al
The Soviet Union collapsed under the disincentive of socialism and the over-regulational control of communism. Now Russia is rising from the ashes with a 13% flat-rate tax, and selling $5 million rides into space for americans. (the space ride part just included to show how the mighty have fallen)
Now the US economy is being destroyed by the Obamagedden of socialist over-spending, over-regulation, and indecision over an energy policy. The finest healthcare system in the world will soon rapidly decay into third world quality, because the proposed Obamacare will never be sufficiently funded.
When we rise from the ashes, do you think we might learn from the Russians?
IT IS THE STUPID SPENDING.
Hi again David,
I agree with all of the above except one thing. The stupid and irresponsible spending did not start with the current president. It started before him.
Does that make it right that this administration has not curtailed it let alone increased it? OF COURSE NOT.
Best,
Big Al
Bill Clinton did a good job of eliminating the deficit, didn’t he? Then GW came along and destroyed everything.
Hello never accept the terms of service,
I am a Republican who does not disagree at all with you.
Big Al
Actually, russia is corrupt. You would be found dead in a gutter if you tried to do business there. The majority of their growth right now is in oil and gas, and with the opening of the German shale gas fields Russia’s future looks a lot worse now.
Oh and they are a one party fascist state where political opponents are jailed or executed. You really prefer that to the USA?
If Global Economy Crumbles, Blame Murdoch
His greed driven agenda to misinform the US public has led to political meltdown and debt.
http://thetyee.ca/Mediacheck/2011/07/18/BlameMurdoch/
Really interesting and unique perspective in this article…
Thanks Mark,
I am looking forward to reading it.
Best,
Big Al
Al, I listen to and enjoy every edition of your program. I am surprised to hear you believe we should pay more in taxes and increase the debt ceiling. You are now one of those who want to kick the can further down the road.
The only reason politicians want to increase the debt ceiling is so the government can legally spend the money. If you want more revenue, get people back to work. Two years from now the politicians will tell us the solution is to raise taxes and increase the debt ceiling and the problem will be solved over the ensuing ten years. The same story will be repeated until we are bankrupt.