Weekend Show – Sat 6 Aug, 2011

The week in the markets and our experiences in Idaho

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In this show Al discusses:

  • Segment 1 – Al and Dan Pisenti discuss the markets.
  • Segment 2 – Al and Dan Pisenti “grill” Christine Kopr on Premium Exploration. Know what? She passed the test!
  • Segment 3 – Why some of the comments made on this show are timeless, consider the interview with James Turk back on June 25th and relate it to the events of this past week in the gold market.
  • Segment 4 – Excerpts from Al’s interview on Wall Street Radio’s Butler on Business.
  • Segment 5 – Big Al and Trader Rog discuss the past week in the financial markets.
  • Segment 6 – Big Al and Trader Rog offer opinions on how to protect yourself in these tumultuous times.
  • Segment 7 and Segment 8 – Big Al, Trader Rog, Dan Pisenti, Jordan Roy-Byrne and others discuss the mining opportunities in Idaho with Craig Lydsay of Otis Gold Corp and Mike Ostenson of Premium Exploration.



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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

Click download link to listen on this device: Download Show

Click download link to listen on this device: Download Show

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Featuring:
Al KorelinDan PisentiJames TurkRoger WiegandJordan Roy-Byrne
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Comments:
  1. On August 6, 2011 at 4:17 am,
    Giuseppe Valente says:

    Hi Al,

    You people mentioned responsable leaders. Responsable leaders come about with responsable voters. If there are enough responsable voters out there requesting responsable leaders you will get your wish. Hiowever as I mentioned before you have more irresponsable voters(public employees) than responsable voters(private workers) Therefore responsable voters are way out numbered and therefore you get what you vote for That is irresponsable governemnt. Unless the private voters start a revolvution there is no hope. Now think about it how can you win a fight against a force that out numbers you and has the law enforcement on their side. Therefore when the bond markets decide to destroy the USA there will never be any change. That is the only way because public workers will never give up their fat pays and pensions at the expense of the private workers(voters). If any one wants to state why I am wrong take your best shot. Thank you

    • On August 6, 2011 at 7:52 am,
      Big Al says:

      Morning Gus,

      Can you provide me with the following stats: number of people on welfare and number of public sector workers.

      You may have a really interesting point. I have not thought about the numbers that you seem to be pretty sure about.

      If the number of folks on welfare plus the number of public sector workers is above 50% of the voters, you would be hard to argue against.

      Let me know,

      Big Al

      • On August 6, 2011 at 11:40 am,
        Giuseppe Valente says:

        Hi Al,
        I did not even consider the welfare population. I am Canadian I know from reliable sources that for the first time in history there are more people working for the government than working for private companies. Therefore it is simple mathematics.
        Again the government with the hep of law enforcement is also disregarding human rights(Constitution). The only help might come from the armed forces. If there is a revolution (remember they are out numbered) the only help they can get is from the armed forces if at that. Otherwise the greatest of the graet depression is coming
        This is the handwriting on the wall

      • On August 6, 2011 at 12:07 pm,
        Giuseppe Valente says:

        I believe the source was from Mike Sedlock Mish’s Global Economic Trend Analysis
        You can ask him where he got the info
        http://globaleconomicanalysis.blogspot.com/

  2. On August 6, 2011 at 9:55 am,
    Rob says:

    Giuseppe, you show a lot of dislike for Public sector workers. Using phrasing like ‘their fat pays and pensions’ is quite insulting. The Public sector workers have done nothing wrong. I work for the Government and have done for many years. We are ordinary people doing ordinary jobs for average wages. The problem is not with the public sector (although the money wasted on overseas wars is totally unjustified in my opinion but this was decided by Politicians not your average public sector worker).
    Instead the problem is with the Private sector. Go back 10 or 20 years. NOBODY wanted to work in the Public sector. You got laughed at. Low wages and no creativity or the chance to prospoer financially with a booming economy. At that time the Private sector was making money hand over fist. Millionaire kids were popping up everywhere and people were making money on the stockmarket every year (well, almost). Then, as we all know things changed for the worse. Suddenly the Private sector freedom to make one’s own choices (and mistakes) wasn’t so much fun for people anymore. They longed for some security, despite the days when they were earning huge amounts of money and having squandered it all. But now, all of a suuden its the public sector employees that are at fault – the mailman, the sewer cleaner, the shipping clerk, the teachers etc etc. We haven’t changed. Our pay scales haven’t changed. What has changed is the easy days for the private sector to make boatloads of money have gone. Now they have to work much harder and use more ingenuity to get ahead. Its still possible and the rewards for private sector will ALWAYS be higher than the public sector, but you have risk associated with it. That is what people have to understand. Life is a challenge and you have to persevere. This current generation has known only good times. Now a bit of adversity and they’re all crying foul. Well, get on with it, make a difference, you can be successful if you put your mind to it. But please, quit blaming average workers who collect average paychecks – with less risk, but zero chance of ever striking it rich.
    Its a trade off and always has been. Public sector workers are like Investors in dividend paying stocks. Private sector workers are like penny stock traders. Sometimes the penny stock trader hits it big but the risk of losing everything is always there. Dividend stock investors while they can lose out, at least can always collect the dividends. Thats my analogy of the day.

    • On August 6, 2011 at 10:14 am,
      Superdobbs says:

      Rob, could you kindly post what you consider to be an “average wage”

    • On August 6, 2011 at 11:51 am,
      Giuseppe Valente says:

      You must be a public worker. I chanellege you and all public workers to have their wages and working conditions to be exactly the same as the private workers including benefits and pension with benefits added the pensions. OH HA I BELIEVE THE PENSION IS HANDED OVER TO THE SPOUSE UNPON DEATH. These benefits are no fats cats benefits. Take your head out of your ass. At the end the USA will be bankrupt and kiss your benefts good bye. I hope for your sake the private citizens do not lynch you land your buddies the banssters
      Average Teachers contirbute approx $68,000 to their pension funds and get in return 2-3 MILLION
      Right now the unfunded liablity for only the states public pensions are unfunded to the sum of
      3 trillions dollars and counting. They(public pension investors) are relying on an approx 8% return on their money to help kept up with the funding. They also believe in Sanata Claus and the tooth fairy.
      Went you come down to think about it the private citizens are slaves to the public workers. From one form of slavery the USA has moved to LEGAL SLAVERY

      • On August 6, 2011 at 3:12 pm,
        Jerry says:

        Here is one for you….concerning legal slavery…..
        Student loan debt… is a debt to the us govt. that can never be forgiven…
        Once you take out the loan..and sign ..you are the debtor to the govt.
        forever….if anyone knows about the rule of 72 , you will see that anyone
        owing large sums of money can never pay it back , that is without a lot
        of pain,,and pain for a long time.
        The university and colleges now become the slave master ,,via the fed. govt.

        • On August 6, 2011 at 4:52 pm,
          Big Al says:

          Hi Jerry, Rob, Gus and Superdobbs,

          Okay, here is Big Al’s two cents worth.

          First of all I firmly believe that government workers are not a real problem to our country and the reason that I say that is that they do work. Some are sharp and some are dull. That’s life.

          Many of the folks who are receiving entitlements undeservedly are the problem. They are the ones who are cheating the rest of us. NOTICE I SAID UNDESERVEDLY.

          Most of those folks, at least the ones who I have had experience with, are so lazy and stupid that in reality they probably also don’t pose a problem.

          The problem is that group of people who are uninformed, never will be informed and don’t really know or care who they are voting for and why they are voting.

          Here is an example.

          We have a president who is very well intentioned. His political experience prior to his election was minimal. He was not particularly successful in the real world. But, he is articulate and very bright. He was truly in the right place at the right time.

          A close friend of mine told me that the only reason I did not vote for him was because I still had racist feelings.

          I asked him if he had read any of Mr. Obama’s books (which I had) and he said no. I asked him what he thought about Mrs. Obama’s comment at the age of thirty something that this was the first time in her life she was proud to be an American. He felt that she was justified in saying that. I asked him what he thought about Mr. Obama’s political experience and he had no comment. I asked him what he thought about his work experience and he had no comment.

          I mean, come on, how about being an informed voter and not one who votes strictly on his or her emotions.

          I also have to interject here that the negative emotions towards the Bush administration and, to an extent, towards Sarah Palin certainly did not help.

          These are the folks who are the problem not the government workers or the private sector workers.

          The downfall of our country, if it actually happens, will result from the something for nothing mentality and not because of the people who go to work every day.

          What do you think?

          Big Al

          • On August 6, 2011 at 11:31 pm,
            Rob says:

            Very good points Al.

            Giuseppe – you still continue to make agressive remarks directed at public sector workers. Really, get over it.
            Public sector workers always earned far LESS than private sector workers. Perhaps now the tables have turned a bit – remember the old adage of the hare and the tortoise. Well, working for the government is like being the toirtose, slow and steady and you hopefully get to the end in one piece. Private sector workers have the opportunity to earn FAR more still but the risks have dramatically increased, especially in the US and parts of Europe currently. In Canada, being in the public sector like I am does not bring big rewards. An average salary, slightly less than I earned when i worked in the private sector, but i made the transition to gain a little more security for my family in terms of benefits. Can’t fault me for that, can you?

            Great show as always Al and I totally agree with you on the people that are cheating the system. They are cheating all of us.

          • On August 7, 2011 at 4:01 am,
            Giuseppe Valente says:

            Hi Al,

            You see you are also part of the problem not acknowledging the problem. Of course there is also the bansters and lobbiests. Lobbiest also include public worker unions remember that.
            Government workers produce nothing andarea burden on society. You mean to tell me that 3 trillion dollars of unfunded pension liablities at the stae levels is not a problem. Disd not your foundingfathers warn against big goverment. How can you solve your problems if you deny what the problem is. What about all the rules and regulations. Look at Boeing who wanted to open a plant in SC Unions have blocked the deal. You have life guards earning $200,000/yr retiring at 50 with 90% pay.
            How many governemnt employees like that. Firemen, police, teachers, hospital workers, beaucrats, office workers etc etc
            Gettings back at the 3 trillion in unfunded state pensions you are telling me that this is not the problem. Add to that federal employees. How much interest are they paying and growing. This is a huge huge elephant in the room I am sorry Al but you are way way wrong and cannot see the elephant nor feel him standing on your foot.
            Get rid of all thiese employees and have the bare minimum like the founding fathers wanted it and see what happens.
            I can go on and on with no end But like the liberal lefties who refuse to believe I cannot do more to convience you either.
            Thank you

          • On August 7, 2011 at 7:00 am,
            Paul S. says:

            Very well said, Big Al. There is nothing wrong in working. It should be if you don’t work, you don’t eat,

          • On August 7, 2011 at 5:20 pm,
            Superdobbs says:

            Hi Al,

            This is the icing on the cake;

            “I asked him what he thought about Mr. Obama’s political experience and he had no comment. I asked him what he thought about his work experience and he had no comment. ”

            I’ve had the same discussions with Left Wingers myself.

            At the end of the day, conservatives research and then make a voting decision based on the candidate’s background and experience.

            On the contrary, Left Wingers are easily suckered by simple words like “hope”, “change” and “believe”.

            Without a doubt, the voting behavior of Left Wingers is based on emotions rather than reality.

        • On August 7, 2011 at 4:10 am,
          Giuseppe Valente says:

          Ya and why is it so expensive? Because government is involved. I again rest my case

          • On August 7, 2011 at 7:44 am,
            Big Al says:

            Good Morning gentlemen,

            Unfunded pensions are a huge problem. That is something no person can deny.

            I don’t believe that Boeing will ever leave the Carolinas and I don’t believe that the Machinists Union will get anywhere with their argument. Taking this one step further, Boeing may be opening a new 737 facility not located in Renton, Washington much to the dismay of the Machinists Union. The Machinists Union made a big mistake with Boeing and now there is a good chance it will pay for that mistake. Time will tell.

            Bottom line is, as Paul S said, if you don’t work you don’t eat. What’s wrong with that. Even if the work is cleaning the streets as the father did in the great movie The Legend of Baggar Vance.

            Sorry, I can’t believe that government workers are parasites on the economy. I would not want to live in a society with no police and fire protection.

            Gus, you seem like a really good guy and there is certainly nothing wrong with a certain amount of disagreement. How do you feel about the role of government and the tax structure in Canada?

            Best to you all,

            Big Al

          • On August 8, 2011 at 6:54 am,
            Big Al says:

            Good Morning Superdobbs,

            Are you the “Superdobbs” from Spokane?

            Big Al

  3. On August 6, 2011 at 11:46 am,
    ben brown says:

    I wonder if the Aden sisters were not correct a day or so ago when they said to sell everything. I forget the name but another chartist I read showed we are on the verge of a market collapse much larger than o8. Another fellow I read some months ago said the only thing to own is physical pm. I have read where the american constitution is being trashed. Does that equal no rule of law? Personally I think nothing will change until the federal reserve is abolished. I think they have many people still playing a rigged and corrupt game which they contol. Did anyone see the fellow from texas get on tv and suggest we all pray for guidance? I figure Celente is correct, the central banks are going to take us to war big time, and the only way to protect yourself and family is pm,maybe guns,ammo,land to grow food.To what extreme i dont know. Might i suggest a short 3 hour u tube.”the money masters” this fight with central banks has gone on at least from the time of julius ceaser. unfortunatly i think they have won, and the psycopaths intend to reduce population. giuseppe is correct, we get the government we deserve. Who said “thank goodness we dont get all the government we pay for.?” Kaiser is correct i think, he likes pm too.

    • On August 6, 2011 at 7:17 pm,
      Big Al says:

      Yep, Ben we definitely get the government that we deserve.

      Regarding guns, I don’t think that is a good idea unless you are a real expert with them and I definitely am not. I am not necessarily a pacifist but I believe in the power of the spoken word.

      As everyone is aware I have some significant concerns for our future. I am dealing with those concerns by cutting spending, pretty much eliminating (already have) debt and investing sensibly. Sensible investing, for me, means diversification and not trying to make all my profits overnight. Security is king.

      Stay informed.

      Best,

      Big Al

  4. On August 6, 2011 at 5:13 pm,
    Karen says:

    Al,
    I agree. It’s not the actual people working in the private sector but rather the union leaders who are negotiating against the very people they work for..the taxpayers. The unions negotiate a rediculous pention plan then they take the union dues and it goes straight to the democratic party. Governors like Chris Christie and Scott Walker are not intimidated by the union thugs.

    • On August 6, 2011 at 7:10 pm,
      Big Al says:

      Hi Karen,
      I just read a very good piece by Mark Mix the President of the National Right to work Legal Defense Foundation.

      Mr. Mix brought out some very interesting facts that go right along with what you are saying.

      This article will be the subject of my Daily Editorial on Monday.

      Best,

      Big Al

    • On August 7, 2011 at 4:09 am,
      Giuseppe Valente says:

      Hi karen,

      Yes and see if the public employees are willing to give up pensions, pay increases or fire other employeses instead and most of the time they would rather have firings than pay cuts.
      Do yoiu think they are reasonable people. This part has nothing to do with the unions.
      The employees are just a greedy and self serving as politiens and union leaders.
      Check out Mish Global economic rend anaylst he has all the info tell friends
      Thank you

  5. On August 6, 2011 at 7:37 pm,
    Carlton says:

    Al,

    Here’s an article to read regarding the number of people receiving some form of government assistance. It’s over 52% according this the link below:

    This seems rather high but if true back in 2007 I would imagine that number is higher today since we have a worse financial mess now.

    Click below to read one source that may help you.

    http://www.csmonitor.com/2007/0416/p01s04-usec.html

    One reason for the growth of the public sector is in my view, and this is no accident (as FDR said, “”In politics, nothing happens by accident. If it happens, you can bet it was planned that way.” – Franklin D. Roosevelt) is because the public sector pays somewhere between 40-50% higher wages/salaries that the private sector.

    If this is the case and you were looking for a job who would you want to work for?

    Most people would say Uncle Sam.

    This is one incentive to expand civil government and particularly the Federal government. They have unlimited funds since they can borrow money from the Federal Reserve.

    Look at our public schools. Teachers here make alot more than most private or Christian schools but they deliver an inferior product. They have more misconduct,
    assaults, thiefs, knivings and shootings. Most if not all of the mass killings across our nation have been on public school campuses. This should tell you something.
    If I were married with children I’d never send my children to a public school. I would home school them.

    If I were to enter the teaching filed I would NOT work in the public school because I would not be allowed to teach from a God centered perspective without risking my job or being continually harrassed by the principal or my non-Christian peers.

    • On August 8, 2011 at 7:37 am,
      Big Al says:

      HI Carlton,

      I just finished the article. It was a good one and I will ask Sarah to post it on our site.

      Thanks,

      Big Al

  6. On August 6, 2011 at 8:14 pm,
    Carlton says:

    Rob,

    Sounds you are falling into the trap of the Statists who revel in higher pay for government workers so as to attract more of the same.

    I have to agree with Giuseppe as he makes some excellent points. The private sector is getting slaughtered and becoming slaves to the public sector just as Obama and Washington would have it. This gives them more power and insures their position of power.

    Who will the increasing number of government or public sector workers vote for?

    Not less government but more.

    You don’t bite the hand that feeds you do you?

    • On August 6, 2011 at 8:53 pm,
      Big Al says:

      Hi Carlton,

      Your feelings about public schools parallel mine exactly. And, that is unfortunate.

      Regarding the public school pensions, I can say the following which is really interesting: we know a guy who was a superintendent in the public school system. He was so bad he was fired. But, know what, he stayed an extra two years as a counselor and then received his pension (as a superintendent) which is around $125K per year.

      Now, my problem here is that if I don’t perform for my clients they simply stop paying my company. There is none of this union negotiated retirement. I simply don’t get paid. Better believe that for the last thirty years that I have run my business I made sure that people wanted to pay our company because of our good performance.

      It makes me very sad that in many cases people get rewarded for failure as in the case mentioned above about the superintendent who was fired.

      I think that what we are talking about here is a prime reason that our country is on the ropes at this point.

      Best,

      Big Al

  7. On August 6, 2011 at 10:53 pm,
    Jed Davis says:

    There is really nothing left to invest in but Gold. I can’t believe it when experts say you you should be 5% invested in Gold. What are they thinking?

  8. On August 7, 2011 at 7:49 am,
    Big Al says:

    Morning Jed,

    Most of my colleagues have raised the number to up to 20% and I am starting to agree. I still; however, like QUALITY mining stocks.

    Best,

    Big Al

    • On August 7, 2011 at 1:47 pm,
      Jed Davis says:

      I agree with you on the Gold stocks. I have taken some very nice profits in the juniors this year. The big and mid-tier producers are still very undervalued. They stubbornly will not decouple from other equities, in part, because the liquidation is needed to cover shorts. Some day, they will go parabolic.

  9. On August 7, 2011 at 8:20 am,
    going down fast says:

    Big Al – Just to let you know, I am no longer in need of an Aurcana update. I am sure you tried and the non-response told me to unload and go in a similar but different direction. Monday should be interesting in precious metals.

    Take Care

  10. On August 7, 2011 at 8:42 am,
    Big Al says:

    We did provide an update.

    I have not given up on this company at all. The situation in Texas could be huge and profits continue to increase at La Negra.

    Best,

    Big Al

  11. On August 7, 2011 at 8:44 am,
    Big Al says:

    Hi All,

    I added my comments to Roger’s Market Trends of Friday for any of you who are interested.

    We are “vegging” in eastern Washington right now so I am a little slow on the uptake.

    You all have a great rest of the weekend,

    Big Al

    • On August 7, 2011 at 10:40 am,
      Giuseppe Valente says:

      Hey Al ,
      No one said to live without policemen and firemen But these guys are also public workers and their pensions plans are fat and juicy like all the rest of the public workers. Some counties are privatizing everything includng police men and firemen. And the services are better and cheaper no pensions to pay either. Some couties cannot even get voluntary firemen because unions will not allow this. These people can retire early with fat pensions and they go work in the private sector afterwards of continue working for the government and get even bigger pensions. They all do not contibute to their pensions like the rest of the vultures.
      When they are asked to contibute more they go on strike and threaten the government with statement like “we voted you in we can vote you out” You see what I mean by the government does what the voters want. The private citizens are out numbered. The public employees have you guys in checkmate or better yet THEY HAVE YOU BY THE BALLS AND THEY ARE NOT LETTING GO AS A MATTER OF FACT THEY ARE SQUEEZING EVEN TIGHTER.

    • On August 7, 2011 at 9:19 pm,
      John W. Robertson says:

      As you probably know Al, being a Washintonian, apples and peaches are in season!

      I hope I can make my annual road trip to Vancouver this year, as that’s always a highlight (it’s the only time I get a truly good couple of fruits..er, can I say that here??)

      • On August 8, 2011 at 7:41 am,
        Big Al says:

        Hi John,

        You can say anything you want here as long as it is true!

        Best,

        Big Al

  12. On August 7, 2011 at 3:56 pm,
    John Flinn says:

    Thank God! I don”t have to judge the people, who do not want to pay taxes. That is god job.

    • On August 8, 2011 at 12:50 am,
      Har says:

      The Greeks, Italians and Spaniards are big tax dodges and hate their governments.

      Hum?

      • On August 8, 2011 at 7:43 am,
        Big Al says:

        Haven’t heard from you for a while, Har.

        The research I have done pertaining to Greece really opened my eyes. And, I do agree with where I think you are going.

        Big Al

    • On August 8, 2011 at 7:42 am,
      Big Al says:

      Good Morning Mr. Finn,

      Yep, that is God’s job and, I believe, he will.

      Best,

      Big Al

  13. On August 9, 2011 at 2:06 pm,
    David G says:

    I have just been thinking about the Premium Exploration situation and it appears to be a “naking shorting” attack that often occurs in the penny stock markets. Since we have no regulators in the US, particularly the SEC, it is very easy for a hedge fund or even market maker to short a company without retribution for the purpose of either facilitating takeover, buyout or a guaranteed reversal when the naked shorting lets up. Don’t know if that is the case but you can see definite manipulation in companies such as Endeavor Silver where they run it up and down every other day not necessarily having anything to do with silver. Market manipulation by unregulated hedge funds and indiscriminate use of algorithms. Not sure if Premium can ID any cuprits but somebody is working them over in my opinion.