Weekend Show – Sat 4 Feb, 2012

Business, politics, world events and investing

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In this show Al discusses:

  • Segment 1 – James Turk of GoldMoney discusses economics, gold and silver.
  • Segment 2 – Alan Butler, Host of “Butler on Business” discusses investing and the U.S. economy.
  • Segment 3 – Axel Merk, discusses the question of who would be better for the U.S. dollar a democratic or republican president.
  • Segment 4 – Retired Federal Prosecutor and author of “A Modest Proposal to Amend the Constitution,” Paul Antinori discusses the Constitution.
  • Segment 5 – Ron Hera of Hera Research, discusses two public companies.
  • Segment 6 – Sean Brodrick of Weiss Research gives listeners his criteria for investing in small cap companies.
  • Segment 7 – From Australia, a listener gives his perspective on life in the U.S.
  • Segment 8 – Stuart Verner, President of the Wilshire Holding Group discusses current opportunities in the real estate sector.

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

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

Al KorelinJames TurkAlan ButlerAxel MerkPaul AntinoriRon Hera
Stuart Verner

  1. On February 4, 2012 at 1:45 am,
    naomal says:

    Big Al,

    Segment 1: I haven’t commented for quite a while but have been an avid listener.

    I feel I have to disagree with you on your assessment of Iran Al. Yes, Iran is smart but they also do not judge things the way we would. In the old days of the cold war the great deterrent was MAD (mutually assured destruction). That is why the USSR never launched anything against the US. They didn’t want to get blown away any more than the US.

    However that mentality does not exist with those in charge in Iran. They believe in an apocalyptic scenario where their saviour or ‘Mahdi’ will be brought in during a time of great global chaos. Not only do they believe this but they welcome it in terms of actively wanting to hasten the coming of this Mahdi.

    The Iranian govt has stated that they would willingly sacrifice millions to achieve this end. So, while being cunning & smart, they are not so stupid as to start a war that is not in keeping with their timeline.

    So, to make my point: Gold for oil? Yes, when it suits Iran, but don’t count on them not to be deterred by the potential of huge loss of life on their part.

    By the Way. Isn’t Mr. Turk THE MAN….apart from or course your good self & Trader Rog. In fact I’m surprised he’s not Dr.Turk by now!

    • On February 4, 2012 at 10:46 am,
      Big Al says:

      Morning Naomal,

      Thanks for the comments.

      Regarding Iran, you could be right, but I pray to God that you are not.

      Regarding James, yep he should be Dr. Turk by now.


      Big Al

  2. On February 4, 2012 at 5:19 am,
    Bobby says:

    Good morning Al, I have to disagree with you and your guest Stuart Verner. These premium (beach front) properties in Florida do not cash flow with 25% down. There are also many variables to consider. Taxes, condo association, beach erosion, insurance due to past hurricane damage, are not under the control of the owner. Here are the numbers in the condo that I rent, show me the cash flow. Formally 800k condo now listed for 350k, HOA is 10,200 taxes 2500, repairs, special assessments, unknown. Rental Income 18,000.00. IMO, this property needs to sell for 180K to pencil. I use and always have used 10x gross income as a starting point for my clients when I put them into an investment property.
    Love the show, buyer beware, DWBH crowd exists in all sectors. I do not even want to go into the huge overhang of bank (taxpayer) owned property that are hidden from the eyes of the consumer. Yes there are a lot of renters out there, but they dont have jobs. I am open for discussion or questions rather than me just ranting!

    • On February 4, 2012 at 10:48 am,
      Big Al says:

      Thanks Bobby,

      I will pass this along to Stuart as I too would like to discuss this issue further.


      Big Al

      • On February 4, 2012 at 11:49 am,
        Bobby says:

        Al, I do not intend to be rude, but i listened to the segment again. Stuart sums it up simply when you ask him, What are you doing now? His answer in a nut shell, “short sales” helping people get out of the properties that were “sold” to them within the last 5 years.
        And you are correct, real estate has to “come back” unfortunately, that direction is Down. Simply take a look at (google) history of inflation adjusted home prices in the US, the answer is crystal clear.

        • On February 5, 2012 at 5:18 pm,
          Big Al says:

          Hi Bobby,

          I certainly did not take it as you being rude. Trust me.

          My time frame for real estate is way out there. I am talking twenty years or there about.

          We will leave a couple of great places to our kids. And, you know what, I am really happy about that!


          Big Al

    • On February 4, 2012 at 12:31 pm,
      Jerry O^OTB says:

      I have to agree with bobby, concerning the investment property.
      Going forward, the real estate taxes are going to be a big issue…
      I think if you are going to purchase now, and try to rent , then try to sell
      in a couple of years, a big consideration will be the increase in interest rates to the
      new purposed purchasers…the interest rate might be low now, but in three years
      the fed. will be raising rates.. and if history is a consideration , you might go back to
      1979-1982 when rates were 15-21%, so if you think financing and qualifing is hard now,
      wait tell the higher rates come into effect and you are trying to sell the investment.
      The banks are the owners of the forclosed properties which there is a glut.
      and there are more foreclosures to come…wait till after the election, when the
      banks will not have to concider who is president.
      Real estate should be left to the professionals and if you like being a landlord , good luck.

  3. On February 4, 2012 at 6:55 am,
    James B from Canada says:

    In my humble opinion, NO company should be allowed to be publically traded until they have verifiable revenue from non related parties for at least 2 years. We can discuss the definition of the term ” non related parties” but this would quickly reduce the scam companies on the OTC, and the TSX.Venture.

    Not all the companies are scams. I am not saying that. But I am saying that too many are. Too many people have been burned and will continue to get burned.

    This will reduce the casino effect North American markets have become.

    These companies could still trade on the pinks or grey sheets but nowhere else.

    A small step but a big one too.

    How will those companies the nget financing? They will not and those projects may never be realized. But as is, those projects will not get realized and companies such as Anglo Swiss Resources, cannot be traded and therefore people will not lose money. ASW has been public for at least 15 years. No revenue as far as I know. It once hit $29. Now $.06! And this is typical.

    Sorry Jim SInclair but this includes your Tanzania too. Maybe it is the best thing where companies have their properties in locations that could be nationalized ie Chrystallex in Hugo Chavez Land.

    • On February 4, 2012 at 8:44 am,
      Matthew says:

      Spoken like a statist. Sorry, those of us who take personal responsibility should be allowed to take whatever risk we choose. Those who buy the explorers expecting to make big money without risk, and without doing any due diligence, will get an expensive education. Education is good. If someone has so little respect for their own money that they would put it at risk without first educating themselves, then they will get what they deserve. Government intervention is the biggest cause of this “casino effect”. Without their meddling with money and credit, speculation wouldn’t be so attractive and even necessary. Without their meddling in education, it wouldn’t be so easy! — for the few.
      The “something for nothing” mentality is alive and well. It’s ironic that the segment of the population that wants to eat the rich buys the most lottery tickets.

      • On February 4, 2012 at 10:23 am,
        James B - Montreal says:

        I am not a statist. I do not like your US demoncrats. But I know that too many are getting burned. This would easily reduce that

        • On February 4, 2012 at 10:56 am,
          Big Al says:

          HI James B,

          I do not believe that you are a statist.

          My problem down here is BIG GOVERNMENT and that is happening from both major parties!

          Sad but true.

          You may have a new neighbor in Canada.

          Big Al

      • On February 4, 2012 at 10:55 am,
        Big Al says:

        That is soooo true Matthew,

        Those who want to eat the rich do buy the most lottery tickets.

        One of the reasons that I dislike casinos is that I always observe the people who are in there. 90% of them should definitely not be there in my opinion.

        Thanks for the comment!

        Big Al

        • On February 4, 2012 at 4:35 pm,
          Marc says:

          Matthew – You are right on, my friend!

    • On February 4, 2012 at 10:53 am,
      Big Al says:

      HI James B,

      That would immediately rule out all of the exploration and development stage mining companies and I would hate to see that happen.

      I think that the real key is for people to be responsible in their investing and due proper and complete due diligence.


      Big Al

    • On June 14, 2012 at 3:00 pm,
      Shingare says:

      :Its like you read my mind! You appear to know a lot about this, like you wrote the book in it or sohiemtng. I think that you could do with a few pics to drive the message home a little bit, but other than that, this is excellent blog. An excellent read. I will certainly be back.Thank you for the good writeup. It in fact was a amusement account it. Look advanced to more added agreeable from you! However, how could we communicate?

  4. On February 4, 2012 at 7:06 am,
    James B from Canada says:

    Perhaps 2 years is putting the bar too high.

    How about at least in a production mode that should not represent an atypical situation but a realization of the facts and data in the example, 43 xxx Natl Instrument and not a one hit wonder.

    • On February 4, 2012 at 10:57 am,
      Big Al says:

      Yep James B,

      That does start to make sense.

      Big Al

  5. On February 4, 2012 at 7:27 am,
    BJ says:

    Great weekend show.
    Mr. Merk nailed it regarding the two major parties–spend, spend, spend.

    • On February 4, 2012 at 11:16 am,
      Big Al says:

      Oh yeah B.J.

      That’s what BIG GOVERNMENT is all about.

      Big Al

    • On February 22, 2012 at 3:38 pm,
      Kenzi says:

      Hi Milly,I was froeardwd your website from Queenie and was delighted when I opened it up to see your blog. It makes for an excellent read, along with providing fab ideas – especially for school hols and visitors. I only wish I had accessed it a few weeks ago when my family were here! I have froeardwd your page on to others, as well as my former Kindergarten.Cathy, a neighbour from your street!

  6. On February 4, 2012 at 9:58 am,
    Silverbug Dave says:

    Interesting comment about Iran and gold for oil, etc. There are more bilateral trade agreemebts by the month. I was lienening to this:
    “Every Friday morning, SAfm’s AMLive’s radio anchor Gillian De Gouveia speaks to Martin Creamer, publishing editor of Engineering News and Mining Weekly. Reported here is this Friday’s At the Coalface transcript”

    In this podast, here are a couple of quotes:
    “Moving on to a different topic. Brazil and South Africa now focussing more on the rand and the real rather than the dollar and the euro. That sounds quite interesting.”
    “South Africa’s State-owned Development Bank of Southern Africa (DBSA) has held talks in Brasilia with the Brazilian National Bank of Social Economic Development. Their conclusion is that they should try and do much more trade using their own currencies. Why should we have to use the euro, why should we have to use the dollar if we are trading.”
    Soutn Africa and Brazil too! Also some interesting comments on platinum in that interview.

    • On February 4, 2012 at 11:18 am,
      Big Al says:

      Many thanks Silverbug Dave,

      That is valuable information for all of us here.


      Big Al

  7. On February 4, 2012 at 12:39 pm,
    Jerry O^OTB says:


    • On February 4, 2012 at 12:47 pm,
      Jerry O^OTB says:


      • On February 5, 2012 at 5:21 pm,
        Big Al says:

        HI Jerry,

        Yep, Paul is a great guest and we will definitely have him back!

        Big All

  8. On February 4, 2012 at 1:10 pm,
    Matthew says:

    Re: Seg. 7

    Free markets need strong fraud and contract laws, and clear and strong, but minimal, regulations. All must be ENFORCED. The problems today rest purely on the lack of enforcement of the laws already on the books.
    Too much involvement by the government always reduces the participants to children. As with soccer, if an authority figure is too watchful, they take on the role of parent. Participants then do as a child does, and seek to manipulate and gain favor with that authority rather than focusing on achievement based on merit. People are more likely to become verbally or physically abusive in the presence of an authority figure. An informal softball, basketball or soccer game is far less likely to result in fists flying than a sanctioned event. People take less responsibility when an authority figure is on the scene assuming it for them. Otherwise timid people also grow “brave” with the knowledge that the enforcers will also act as protectors, stepping in to halt any skirmishes. Assault could lead to criminal charges in an informal game, but is unlikely to when the pros play. So we see 35 year-olds acting like they’re in high school.

    The moral hazard is significant. Consider the misplaced confidence brought about by the perception that that the SEC is there to protect you from the “Madoffs” and not the “Madoffs” from you -as has long been the case. How many would have been saved from catastrophe had they known that there were really no assurances, nor recourse? Because of this illusion that there is a “cop on the beat” the bulk of three generations now have their guard way down. Yes, it’s slowly coming back up, but thanks to all these safety-nets (FDIC, SIPC, etc.) and regulatory bodies, people have shunned responsibility for so long that they no longer even know where to begin when attempting to assess their risks. Few know the first thing about the money and debt that is central to their daily lives.

    Please watch the following. It’s less than 3 minutes and gets better -I mean worse!- toward the end.

    • On February 6, 2012 at 12:57 pm,
      Big Al says:

      Hi Matthew,

      You know the wisdom that comes into this forum never ceases to amaze me. Your comment was great and I thank you for it.

      My question is, what ever happened to personal responsibility?


      Big Al

  9. On February 4, 2012 at 4:43 pm,
    Marc says:

    Big Al,
    Segment 5 was real, real interesting – I would like to touch upon that junior topic when we meet in Indian Wells next week, ok?
    BTW, took detailed notes about Hera, also McCoach, heck even Sprott spilled very important info on some gold juniors. Thanks again, Big Al, much, much appreciated for a neophyte junior investor like me – I am trying to do due diligence, but much work and clarification is needed!
    All the best,
    P.S. I get to Matthew’s expertise and seemingly bountiful info regarding juniors, I know I will be close to your class! :).

    • On February 4, 2012 at 5:48 pm,
      Matthew says:

      Hi Marc,
      Thank you for the comment, but please be as critical of any info I post as you would anyone else’s. With any given stock, there’s bound to be info that I am unaware exists. I guess that’s why we diversify!

      Thank you for all your contributions and the positive way in which you deliver them. The consistent optimism you bring is very appreciated. It’s also a good asset to have in this volatile sector!

      Best to you,

      • On February 4, 2012 at 11:32 pm,
        Marc says:

        Again, all the best

  10. On February 4, 2012 at 5:00 pm,
    Eric Dubin says:

    Paul Antinori means well but a Constitutional Convention is not needed – and to have one would be ungodly dangerous. Many interests are active today in destroying the letter and intent of the Constitution and the Bill of Rights. Those very same big money interests (of all types) have the power to bastardize elections (Ron Paul was defrauded out of Iowa, for example) and control the political process through “K Street” and other means of corrupting sausage making factory that is Washington, DC. They would have NO TROUBLE applying the same tools and resources to take over the Constitutional Convention process and driving what’s left of the Constitution into the ditch.

    Above and beyond the risks of a new Constitutional Convention, it would be easier to focus strictly on the drafting of carefully worded new laws. Getting new law through Congress is far more doable. That – and real getting real representatives into office are what is needed.

    While I’m ranting, I’ll also say that the nation spends way too much time focusing on electing the President. The people still have much power at a local level on up through their reps to the House of Representatives. That’s where we have big power, and that power influences the other offices like the Executive Branch.


    Eric Dubin
    Independent Buyside analyst and manager

  11. On February 4, 2012 at 5:18 pm,
    Matt R. says:

    The last place I want to buy a second home is the U.S. Buy another place overseas if you can so you have another option and diversify yourself internationally.

  12. On February 5, 2012 at 8:20 am,
    Big Mike says:


    Would it be possible to post the whole Saturday show on itunes? It appears that only one or two segments from the Saturday show get posted on itunes every week.


    • On February 5, 2012 at 10:31 am,
      Tex says:

      SHOW SUGGESTION-Would it be possible to interview a US ‘Tax Expert” on the financial transaction tax that is due next year?

      • On February 6, 2012 at 12:59 pm,
        Big Al says:


        Big Al

    • On February 6, 2012 at 12:59 pm,
      Big Al says:

      HI Big Mike,

      I will ask Sarah to do just that

      Big Al

  13. On February 7, 2012 at 4:10 pm,
    Nate says:


    Longtime listener, first time commenter. I am invested in a few junior exploration companies that you follow and I really enjoyed your segment #8 on Real Estate investing. I am a young father of 3 and frankly do not have the time, resources nor the desire to be a landlord, but I would be very much interested in a future segment that discussed more passive investing in real estate through REITs or ETFs or some sort of investment vehicle that did not involve actually purchasing a property. Do you have plans for such a segment?