Al's Insights – Fri 9 Mar, 2012

As the title of the song calls it, “This Could Be the Start of Something Big”

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Al KorelinRoger Wiegand

  1. On March 9, 2012 at 10:08 am,
    John W. Robertson says:

    “The bond market in Europe is, for all intents and purposes, destroyed.”
    — Roger Wiegand, 2012

    I don’t want to unintentionally put Rog on the spot, but this statement will probably be a great quote looking back 20 years from now. Anyone who bought Greek bonds at 16% one year ago has to have perfected the art of face-planting over the last 24 hours. They may also have become quite good at Homer Simpson’s open-outcry of exasperation, “Doh!”.

    So, one to new business. Spain and Italy need to sell a few bonds. Anyone? Anybody??

    • On March 9, 2012 at 10:35 am,
      Tex says:

      I agree….that will be a great quote!

    • On March 9, 2012 at 10:47 am,
      castanheiro says:

      Hi John,
      Great post!

      • On February 3, 2014 at 2:23 pm,
        Jyoti says:

        You keep it up now, unretsdand? Really good to know.

    • On March 9, 2012 at 1:01 pm,
      Big Al says:

      Not me!

      Big Al

  2. On March 9, 2012 at 10:12 am,
    Reo says:

    Exactly..the politicians and Central bankers can do whatever they want. They don’t want Gold and Silver to Rise …nor the Mining stocks…which is why they aren’t going to the mega high prices they should be anytime soon
    …Eventually…probably they will..but by then the whole financial system will be completely different and we may not even be able to reap the profits of our inestements…they could just Change the rules,…AGAIN…Like usual.

    • On March 9, 2012 at 11:27 am,
      Marc says:

      Hey guys,
      I hate the group of words “change the rules”. I know Big Al, disagrees with me…..but I think we are headed for gold confiscation – eventually. Hey, this blog is way ahead of other people – now it is time to out think the moronic politicians and start planning now. Can you say – Switzerland, Canada, heck Brazil (?) and wherever else to put your PM’s. I will not let the Feds use me as a DOORMAT! As far as I am concerned, Silver and Gold made a BIG, BIG STATEMENT the last two days!

      • On March 9, 2012 at 11:28 am,
        Marc says:

        Those comments were generated by, what I believe are accurate words of wisdom by REO.

      • On March 9, 2012 at 1:04 pm,
        Big Al says:

        HI Marc,

        I would ask you the same question, “why is that the case?” This is the whole crux of the matter.

        Big Al

    • On March 9, 2012 at 1:03 pm,
      Big Al says:

      The really interesting question, Reo, out of all this is, “why is that the case?”

      I am, of course, referring to your first paragraph.

      Big Al

  3. On March 9, 2012 at 10:15 am,
    Superdobbs says:


    Expect the Media and Left Wing political class to pull out all stops to get Obama re-elected.


    …and BTW, have you ever watched Bill Maher?

    Talk about a low-class dirt bag….

    • On March 9, 2012 at 1:04 pm,
      Big Al says:

      Haven’t watched him for a few years now.

      Big Al

  4. On March 9, 2012 at 10:23 am,
    Matthew says:

    I agree. I think the HUI will be over 600 in 2-3 weeks. The recent plunge only strengthened the picture.

  5. On March 9, 2012 at 10:48 am,
    roger wiegand says:

    Watch for accleration toward more hard assets, faster trading on all fronts and Madame LeGarde says do not short Italy so Italy gets shorted with Portugal and Spain as Iceland moves toward dumping the Euro and using the Canada dollar for their currency. Good move – Traderrog

    • On March 9, 2012 at 1:44 pm,
      John W. Robertson says:

      The Caribbean islands of Turks and Caicos still want (by a very large majority) to become a Canadian Province. Who knew? Ice hockey in Iceland, I can see. Hockey Night in…Caicos?

  6. On March 9, 2012 at 10:49 am,
    David Ballard says:

    The global bond market is in a very precarious position. Yields will rise whether the tries to keep rates down or not. Risk premiums are going to go off the charts.

    I truly feel sorry for the Greek people. There is a major “brain drain” occuring with highly skilled professionals leaving the country right now. The infrastructure will crumble. The government will eventually default. They need to hang onto what gold they have left!

    • On March 9, 2012 at 1:07 pm,
      Big Al says:

      Hi Mr. Ballard,

      I have to wonder why that situation ever got to this point in the first place. Strikes me as being a perfect example of irrational and irresponsible actions.

      Big Al

      • On March 9, 2012 at 2:55 pm,
        Peter says:

        That’s an excellent question (and I know it’s somewhat rhetorical).

        I think the answer is very similar as to the one that explains how the housing bubble in the US got to that point in the first place.

        Greed on the part of lenders and the assurance that THEY (the perpetrators)would not be the ones holding the bag in the end allowed things to run their course. In a nutshell, cheap money and hyper-loose lending practices made it all possible.

        My big question is, HOW LONG will THEY be able to hold the price of gold down? common sense suggests things will change as soon as demand for physical overpowers the paper markets. We are continually hearing, things are getting very close to that point. The closer we get, the more desperate THEY get, the more radical their interventions will become. This implies that as things get better they will get worse and volatility will increase.

        The volatility is very difficult to trade because it is caused by artificial factors. You can never predict when it will hit and it has a strong tendency to nullify technical analysis, as it did last week. All you can do is grit your teeth and “keep the faith.”

        Then there is the question of just how emboldened THEY have become in creating new rules as they go, ignoring existing laws and just taking whatever they want. Who’s going to stop them?

        Another scenario is possible down the road: THEY are in it to make money. If we ever get to a point where THEY will set up a new gold-backed currency. We (falsely) tend to believe that THEY will try to stand in the way of a gold-backed currency. But their will be a lot of money to be made by THEM, once again.

        I believe that THEY have been busy for a long time accumulating physical as well. Do we really believe that THEY have not been quietly doing this? These guys are not stupid and they know that the current currency regime is going to collapse. After all, they are the once who have worked tirelessly to move us toward this very collapse. THEY will naturally be in charge of the new currency regime, as well. And since it will be gold-backed (for a while) they MUST have been accumulating gold behind the scenes. This is one of the reasons they are capping the price – to buy up real money using funny money.

        This means there will come a time when THEY will WANT the price of gold to rise.

        The question is simply one of “how long will it take.”

        • On March 9, 2012 at 2:58 pm,
          Peter says:

          Oops, excuse the many typos. I was in a hurry.

          • On March 9, 2012 at 3:16 pm,
            irishtony says:

            HELLO PETER……I agree, you think like me.

          • On February 4, 2014 at 3:28 am,
            Steluta says:

            Didn’t know the forum rules allowed such brniilalt posts.

        • On March 9, 2012 at 5:22 pm,
          Barry says:

          I agree also.

  7. On March 9, 2012 at 11:07 am,
    irishtony says:

    ROG i agree with you with regards to euro bonds, people would have to be INSANE, to want to hold them, a couple of months from now another one of these countries will be in the same situation, i believe this could be positive for the PM’s (physical ) my advice to people is still the same, buy the metals & store at home.

    • On March 9, 2012 at 11:19 am,
      Marc says:

      Is there another word that goes farther than insane! If not, lets make one up. That is the only thing I can think of. H___, I am crazy not to get rid of the last of my EE bonds!

      • On March 9, 2012 at 11:47 am,
        irishtony says:

        MARC………..What about TOTALLY BONKERS………Sod it thats two words, quick push them together……….TOTALLYBONKERS……..ah that’s better.

        • On March 9, 2012 at 11:56 am,
          Marc says:

          ALLLLLLRIGHT, “Fighting Irish” Tony!

          • On March 9, 2012 at 1:10 pm,
            Big Al says:

            Actually, Mr. Irish was the original leader of The Four Horsemen of the Apocalypse. (Didn’t know he played football did you!)

            Big Al

    • On March 9, 2012 at 1:07 pm,
      Jerry O^OTB says:


      • On March 9, 2012 at 1:08 pm,
        Jerry O^OTB says:

        RING MASTER……that is…..

        • On March 9, 2012 at 1:10 pm,
          Big Al says:

          Or is it, Bozo!

          Big Al

          • On March 9, 2012 at 1:44 pm,
            Jerry O^OTB says:


    • On March 9, 2012 at 1:08 pm,
      Big Al says:

      I’m with you Mr. Irish,

      Big Al

      P.S. I still like stocks as my recent actions prove.

  8. On March 9, 2012 at 11:39 am,
    irishtony says:

    The rest of the PIIGS governments must be looking on , & thinking its only a matter of time before its our turn, my advice to them is get together as a collective, & all default at the same time, before the powers that be DESTROY them as they have done to GREECE. I read they are putting a huge fund together to ring fence ITALY, Why not the rest its because they know if Italy goes it will bring down the rest. I believe that if GREECE goes, THEY could allow Ireland Spain & Portugal, to go in order to save Italy, as that is the largest economy of the group. That’s my thoughts on the situation, am i nuts ?

    • On March 9, 2012 at 1:55 pm,
      Big Al says:

      Are you nuts?

      That is a very interesting question.

      Guys, what do you all think!

      Big Al

      • On March 9, 2012 at 2:10 pm,
        Jerry O^OTB says:

        NO ONE CAN QUESTION THE WISDOM OF THE “nutty professior”, with that said,
        Well, we do know who Iives in Italy…

    • On March 9, 2012 at 3:01 pm,
      Peter says:

      Hey Tony,

      Did Al give you permission to use his “am I nuts” line?

      • On March 9, 2012 at 3:24 pm,
        irishtony says:

        PETER……..ooops no……….suppose i will have to pay him a royalty, i know a cheap bottle of plonk from the supermarket, fancy label that should fool him.

        • On March 9, 2012 at 3:36 pm,
          Big Al says:

          Okay Mr. Irish I caught you,

          None of that cheap stuff for me!

          My lawyer will be in contact!

          Big Al

          • On March 9, 2012 at 3:49 pm,
            irishtony says:


          • On March 9, 2012 at 7:56 pm,
            Jerry O^OTB says:

            Sorry IRISH,,,I missed your disstress call…..I was busy with a coin auction today…
            big money in those old coins….it is like treasure hunting, without the pick and shovel

    • On March 9, 2012 at 3:21 pm,
      John W. Robertson says:

      “…get together as a collective”

      Maybe call it the DefaultZone?

      • On March 9, 2012 at 3:30 pm,
        irishtony says:

        JOHN nice one. made me laugh…………Hey JERRY their all muscling in on our comedy act, quick lets get serious , that will confuse them.

        • On March 10, 2012 at 9:08 am,
          Jerry O^OTB says:


  9. On March 9, 2012 at 11:43 am,
    CaliJoe says:

    What is going on with your Exeter? The management keep printing shares, everyone thought after releasing PFS market will take rethink about its value, but so far its totally absent. Not a shareholder yet but followed the company and believe in management.

    • On March 9, 2012 at 1:56 pm,
      Big Al says:

      HI CaliJoe,

      I will have a discussion on this subject today or tomorrow.

      Thanks for asking,

      Big Al

  10. On March 9, 2012 at 12:39 pm,
    Bob Leppien says:

    Al, I’m trying to find out who the transfer agent is for Exeter.
    Can you help me ??

    • On March 9, 2012 at 12:58 pm,
      CaliJoe says:

      It would be great to hear someone from Exeter what their plans are as for putting, “For Sale” sign. So far no one seems gung-ho about their monster gold deposit in the ground, and don’t see much coverage in the media either.

    • On March 9, 2012 at 1:58 pm,
      Big Al says:

      Sure Bob,

      It is Computershare Investor Services Inc.


      Big Al

  11. On March 9, 2012 at 12:53 pm,
    benb says:

    Rule of law Al? I say there is no rule of law, when the american constitution means nothing there is no rule of law.
    Roger, good move for greece to adopt the canadian loon? Im canadian, i see what our gov does, our currency is just deteriorating slower than others, it is still fiat.
    Iceland I believe would be better off importing some tons of silver and minting grams.
    Of course that risks american invasion, but the canadian loon only delays problems.
    I think Max Kaiser has been saying the Greek gold is going to be taken for some time.
    A look at his site today about how the people of britain are being watched is UNreal, I think we see the same thing developing elsewhere. I think people need to think about what they type.
    Hey, just because your paranoid doesnt mean their not out to get you.

    • On March 9, 2012 at 2:00 pm,
      Big Al says:

      That’s true, benb,

      Just because you are paranoid doesn’t mean they’re not out to get you!

      Big Al

  12. On March 9, 2012 at 1:01 pm,
    frr says:

    Aren’t we all Greeks!

    We’re almost feasting on the austerity measures Greece has succumbded to, due to coercion and the usual atrocities of the IMF, WB and whomever else stealing and raping the last real assets of a country not adhering to their intents; Criminal intents forcing their victims to hand over their last real resources for paper and enforcing it.

    Would you believe in our times that medieval feudal forces, now disguised as corporatis’m (an early fascis’m), have taken over the land of the brave and free.

    The old elefant is shedding his trunks in shame – as the 2 front runners are embarrassing themselves and the donkeys are happy with more of O’bummer and a few Trillion more deficit. While Roger W. finds the EU bond market destroyed – he may not wait to see the same happening to the “Oh; So indestructible and world class TSY mkt of the US”; The (ob)-destruction of same, at any rate would mean the end of the one polar monetary system of hegemon, becoming renegade US $ Reserve system of the past. The US System has been marked for decades by corporate, military and government corruption and has deteriorated to an ever more totalitarian state, akin to the 3rd. Reich’s Faschis’m; And lastly to all the heinous crimes against humanity as was accompanied by these monsters!
    Please, be so kind as to tell me where to draw a border line between what has happened back in the 1930’s in Germany and what is happening today in the US.
    Personally, I’m more than concerned as my latest visits to the US have reminded me of crossing demarction lines in my own little country in the 1950’s, and I’ve made up my mind as to never go back again.
    So, my friends staying brave and free may become a matter of individual resilience; … Only few seem to be left to right the onslaught on the US Constitution, the best ever,
    and personally I’d wish Ron Paul to come on a snext presisent; The rest seems just chaff!

    • On March 9, 2012 at 1:12 pm,
      Jerry O^OTB says:


      • On March 10, 2012 at 2:54 am,
        irishtony says:

        JERRY..How did the coin auction go, did you bag any bargains?….Send me your address, i would like to send you a couple of nice old silver coins……………………………… Have a great weekend.

        • On February 4, 2014 at 3:07 am,
          Koteswara says:

          Pin my tail and call me a doynek, that really helped.

    • On March 9, 2012 at 2:03 pm,
      Big Al says:

      Afternoon frr,

      I am not concerned about the issue of our country committing the atrocities that occurred during the time of Hitler.

      I simply do not believe that it would ever happen here.

      Big Al

  13. On March 9, 2012 at 1:25 pm,
    benb says:

    I just thought of something, as this is an invester site. Monsanto is the largest of the “seed controling” companies. I just saw on cbc where the last bastion of seeds is ethiopia for many reasons. Im wondering if ethiopia is not the place to invest in agriculture. Sure they could get invaded but other than that.
    Other than that, its peak everything now. I listened to a show where a fellow was reporting from Australia, little cafe, he had a chicken pot pie,salad and a drink,not a special cafe. $57. I went to the grocery store yesterday, about year ago a package of 3 chickens was $18 and change, yesterday $32 and change. Peak everything and the result of inflation is coming. I see everything increasing including gold/silver, there is just no way for prices to stay down, of anything.
    Some form of wealth is required,oil well,farm,fishboat and if you dont have somthing like that it leaves gold/silver.

    • On March 9, 2012 at 1:54 pm,
      John W. Robertson says:


      I visit Sydney in 2008 (wonderful city). I realized pretty quickly it cost about $1 Aus per 50 calories you ate. So, $30 for 1,500 calories of food (eating out or shopping for groceries in downtown Sydney didn’t help). Good place to lose weight! But in all seriousness, yes, inflation is conquering away, like the hour hand of a clock. Too slow to see it as you watch, but come back after a few months and you see it.

    • On March 9, 2012 at 2:04 pm,
      Big Al says:

      You are making a big mistake benb,

      Remember that food and energy are not counted in the computation of inflation. What are you trying to do, start trouble of something!

      Big Al

  14. On March 9, 2012 at 2:07 pm,
    benb says:

    About a year ago I was telling people about inflation, univercity educated guys, they didnt believe me. Actually they didnt know what inflation was. Anyway its coming,
    And when those treasuries come back to the states, its gonna be unreal for those people that are unprepared. To some people I described it “as a sledgehammer in the teeth” Ignorance is bliss, wish I was sometimes.

  15. On March 9, 2012 at 2:09 pm,
    benb says:

    Your right Al, foolish to put food/energy into the equation.

    • On March 9, 2012 at 3:38 pm,
      Big Al says:

      Little tongue in cheek? I thought I had a monopoly on that!

      Big Al

  16. On March 9, 2012 at 2:19 pm,
    Karen says:

    It is a disgrace the way the unemployment numbers are being reported. Since Obama took office there are 2 million fewer jobs. This is causing a lower unemployment rate. Proof positive that the so called journalists are on the Obama payroll.

  17. On March 9, 2012 at 2:23 pm,
    Keep Stacking says:

    Hi Big Al and Trader Rog,
    Once this news gets digested by many, my gut says off to the races in PM’s
    Best to all.

    • On March 9, 2012 at 3:39 pm,
      Big Al says:

      Oh yeh!

      Big Al

  18. On March 9, 2012 at 4:26 pm,
    Clay says:

    Good opening comments from Al and Roger, very good. Also very good comments and takes from all the above people. No fools on this page, which can’t be said about so many other web sites. I used to read a post on several others, still do on Zero Hedge, but the MSM sites are loaded with really stupidly sand people, because that is where their heads are. Ok not a very nice thing to say, but it is true.

    Trust and confidence is breaking apart in all these things, Rule of Law, governments, paper currencies, trade, contracts, business deals, arrangements, agreements and now democracy of one person one vote. The result of this will be the end of nations. We are already hearing and reading about States concerned about the Future of the Federal Government and the US. I expect this to accelerate rapidly this year, especially after the election which likely will be fraught with fraud.

    When the cops become criminals, crime becomes the law. Because most people are good, criminal and corrupt ridden governments can not stand long, especially in large areas like the US.

    I found this written by Brandon Smith to fit nicely with me, something of familiarity.

    • On March 9, 2012 at 5:22 pm,
      Big Al says:

      Many thanks for the kind words, Clay.

      Also thanks for the link.

      Big Al

  19. On March 9, 2012 at 6:28 pm,
    ConservativeCanuck says:

    sounds like the first Santorum victory where they “found” a bunch more votes for him; now they’ve “found” 61k more jobs that were produced in the past 2 mos….I don’t think you can trust this administration to produce anything legitimate unless it benefits them; whether it’s job figures …(and how many of those jobs were full time?)…or otherwise …including inflation numbers…as per Ron Paul’s last meeting with Bernanke.

  20. On March 9, 2012 at 7:06 pm,
    MattB says:

    After the market close Bill Downey sent this out from
    This means that the CDS (credit default swaps) will be put to the test. This is the insurance that bond holders though would be their protection. This is also what brought AIG down in 2008 and triggered that “event”

  21. On March 9, 2012 at 7:08 pm,
    Steve says:

    Hey Hey Hey!
    Had to delete what I wrote from here for keepin myself serene.But, People are fool enough to get here and not know how to stand against the facsism the will conform to a new rageo giv me quite well and quickly.Am just glad I live in Montana whre the masses will not be scooped up for camps so easy.I think Gov. will take the weak and helpless first and start ridding the burden of thier existance quickly.They almost have the whole weak from imune deficincies of regulated foods and medicines.That are really worthless anymore. I just do not trust the Corps as it is put in the aboveposts.And they will have control of may by having everyting corraled and RIGHTED so to speak by then.I can say no more Time for serinity!How ever it turns out .May God bwith those who know Him and blind those who do not.
    God Bless!

  22. On March 9, 2012 at 7:11 pm,
    MattB says:

    As Jim Sinclair advises,this is not a $3.5 billion dollar event.
    This ‘event’ is up to half of the $37 TRILLION owing.
    Jim says this means you go ‘flat’ investing in gold(and I would think especially silver).
    Ultimately ,PM positive but short term…..Jim says get out or ‘go flat’.

  23. On March 9, 2012 at 8:55 pm,
    benb says:

    I read that, what I dont know is what does go flat mean? This invester lingo…a guy needs a course. Took me awhile to figure out “soar” means up maybe 5%.
    parabolic means maybe 20% overstatments I think. anyway, whats “go flat” mean?

    • On March 10, 2012 at 9:33 am,
      Matthew says:

      Going flat means you don’t trade at all. You stay out of the market because the risks are too great, long or short.

  24. On March 10, 2012 at 1:07 am,
    irishtony says:

    BENB……..i think it means…..lie down!!!

  25. On March 10, 2012 at 7:17 pm,
    benb says:

    Thx matt
    Tony lie down?
    So matt, sell everything? not sure im gonna do that. the aden sisters recomended that many months ago if i recall. then bernhart after mf global, bob hoye? last week.
    these markets are entirly crooked so makes it hard to figure. think im going with roger
    advice. he says sell in may, some guys are saying good things after may, think im going with roger,he is pretty good, been around awhile and his projections on the election have been spot on. if i traded futers i would get his tradertrax, obviously i thought about it, i think rog is right about this one. im not trading but im not layin down either. bounce coming then the sell off.
    thats my plan and im stickin to it. somthing about mice and men comes to mind.
    thanks guys.

    • On March 10, 2012 at 8:16 pm,
      Matthew says:

      I’m not selling anything. Sinclair said “But strictly for traders, this does not apply to investors,…” Of course many investors trade a portion of their holdings. So, for that portion (20-30%?), the advice would apply. All others should sit tight, and get ready to HOLD-ON if the unthinkable happens.