Brent Cook and Big Al answer listener questions regarding Peru, Argentina and Chile
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HI Mark A,
You could very well be correct.
In your opinion, how would this affect the mining industry in North America. And, what about other industries?
Will, in your mind, govt regulation be so onerous that the stock market in total will simply collapse?
Interesting question!
Big Al
It is possible that do to the GREAT INTELLECT of our governing body, everything that NEEDS to be done right will be done wrong. It is possible that government will MANDATE the investment industry, passing laws that restrict your IRAs, 401ks, 403bs, Roth, Self-directed, etc. It is also possible that an increase in taxes or fees could be applied to those institutions or individuals who chose to invest in “other” investments not supported or mandated by the government. Controlling the flow of money is going to be the primary objective for the next administration. When chaos reaches the streets and riots break out, you are going to see capital restrictions reach a crescendo and the unavoidable martial law will determine what type of transactions are allowed. You and i may see a time when the amount of money we want to invest into a certain stock, mutual fund, what-have-you, be restricted in quantity and frequency, or else be penalized for “additional restrictive activity”. Gosh! What a great world to look forward to! But I hope that after it all comes crashing down, we can rebuild a better country…if we are still alive.
Hi Mark A,
Anything is certainly possible.
The point is not too loose sleep at night but to be completely prepared.
Best, my friend
Big Al
Mark Alan is right to point out that ANY country is vulnerable. I’m going to weigh in by reminding listeners about America’s new “National Defense Resource Preparedness Act.” You don’t write and enact such legislation without plans to use it. The thing that makes investment in American projects particularly dangerous is the amount of capital invested based on the perception that “It couldn’t happen here.” Complacent investors who imagine themselves protected by staying close to home may get a rude awakening.
Every country now suffers from legislative and media infection by Agenda 21.
For the time being, “No person shall be deprived of Life, Liberty or Property without due process of Law”…..and there is ample historical and judicial precedence in the case of property, without just compensation if a seizure.
An Obama laced Supreme Court scares the living daylights out of me; Kagan et al et ilk is a source of grave concern and that is why I believe that the 2012 election is arguably the most important one the history of our country and control of the Senate is every bit as important as the White House.
Am curious if Canada’s 1972 Charter, which protects Canadian rights (W/O a 2nd Amendment protection) contains similar safeguards re property rights……………
Getting dicey, huh Dai Uy!
Any meaningful demonstrations in Spokane yesterday. Big one in Seattle.
Big Al
Al:
Not a word in the paper so if there were demonstrations, I’m guessing that they were few and peaceful.
Biggest news over here is that the ZAGS BB team landed its first 2012 recruit of the season even though he was heavily recruited by both Cal and Duke. A 7’1”, 280 lb. center from Poland.
wow!! :)…7’1″…280…you kiddin me!
Totally serious Marc………Am going to nickname him “Big Przemek” in honor of our esteemed leader….apparently he is very agile in the middle and can shoot!
Golu Devta Niyaye ke devta hai Golu Devta Uttarakhand ke har ghar me puje jaate hai or golu Devta ki jaagar bhi lagyae jaati haiGolu devta Bhakto Ki manokaamna Puri Karte hai JAI GOLU DEVTA
Hi Lore,
Very, very possible.
I would pose the same question to you that I posed to Mark A above.
Comments?
Big Al
Hi Al, just checking old comments and spotted your question. I’m no industry expert, but given the banking crisis and Agenda 21, junior explorers and aspiring producers face a steep uphill battle for the foreseeable future. On one hand, getting access to capital will be like blood from a stone. On the other, you have the lobbyist industrial complex conspiring to stop anything that would interfere with an agenda to create an environment of austerity. That would include getting in the way of getting new production online, throwing up environmental roadblocks, rising taxation including new taxes based on fraudulent premises (e.g., “carbon emissions offsets / “carbon tax.” There is also the matter of governments claiming so-called “deep reserves,” which is tantamount to nationalization of ore bodes in situ / in the ground / prior to mining and production.
Canada’s federal Conservatives are sending dangerous mixed messages in regards to endorsement or purging of Agenda 21. Either they get it and throw out all the global-warmist garbage, or they go all in. Right now there seems to be an internal tug-of-war between believers and empiricists. Look how we are subsidizing “carbon sequestration.” What GARBAGE! Uncertainty and falling prey to cons, no matter how sophisticated, does not help a nation’s investment climate. Canada needs to stop that crud and get off the pot!
Getting back to your question of whether the stock market will simply collapse, I don’t think so. Have you ever watched a vortex / “dust devil” on the Canadian prairies? It exists for as long as you can see the dirt and debris spinning around, and then suddenly it doesn’t. For me, that’s like a money system. It works until it doesn’t, but you are left with the stuff that it lifted up, some of which is recoverable. We already see company stocks denominated in more than one currency. If there is a dollar collapse, companies would do well to list in other markets in the interest of stability and preservation of shareholder value amidst economic upheaval. Canada is supposed to be comparatively safe, but nobody is safe from what’s coming. America is our biggest trading partner; the storm is going to affect us all. If I was a Canadian producer, I would think seriously about the costs and benefits of listing abroad, e.g., China. They may pay lip service to Agenda 21, but their apparent respect for greater market freedom and the fact that they are a creditor nationally makes their exchange a viable alternative. JMHO…
Al:
Any thoughts on possible problems, if any there be, in Mexico?
Dai Uy,
I think it really depends on the area and future actions.
I have heard that the Mexican govt is considering taking the illegality out of the issue in hopes of minimizing the problem. Wow, not sure how that would help!
Big Al
FOR PEACE OF MIND……JUST HOLD PHYSICAL.
When you say “physical” Mr Irish, does it matter if she is blonde, redhead, or brunette?
MARK………. definitely not, so long as she is over the age of consent…….& willing haha
Hey Irish,
We watched the Iron Lady last night. I believe that she was a better leader than many of those we have today.
Also, did not realize that she went into such a serious dementia state. Shame!
Big Al
Divine Mother Azna, Please pray for me and my family, I have been prniyag to God to win or hit the Florida Fantasy five because this is the only way, that we will be able to afford a new car, we got all kinds of debts and to win the Lottery will really help us now in Jesus name. And the reason I have been prniyag to God to hit the lottery is because I have arthritis in my right knees which the bad one and I have it in my left knee, also and I am constantly in a lot of pain and I don’t want to have surgery, so I have been prniyag to God for healing in both. So I need a car because I am not really have a hard time catching the bus, and I really don’t know much about the buses. Thank you in Jesus name. It’s really hard for me pray for us.
Hey Kyle, just so you know The new site design works fine when I’m at home using Firefox. But at work I have to use Explorer, and enieythrvg‘s misaligned and unusable.
Ah, a bird in the hand but do you really trust all those Leprachauns running around over there?
HEY! DAI UY…..Don’t disrespect my little buddies, once you get to know them , (apart from the fact they are devious little critters ) they can be quite honest. PS. never never , smile at them if you have gold caps or filling’s in your teeth, that turns them into gremlins…………then the chase is on.
Oh my God, no wonder that happened to me.
I will never fly across the pond again!
Big Al
Al …..don’t worry about them…..i will give you the password..you will be safe.
Dai Uy
You can keep your bird…i want a redhead. I hear that Ireland has a lot of Redhair-blue-eyed lasses.
And Mark A, Big A got one of them! (Only a blond!)
Big Al
Hi Tony,
You are correct on the physical my friend…..nothing replaces the physical. The stocks will be great for a number of years to come and huge profits will be made by the inherent leverage.
But in the end smart investors would be wise to heed the great John Exeter’s inverted pyramid hierarchy of finance.
HI VORTEX. I just happen to think that with so much uncertainty around the world, one needs to keep one’s retirement fund in the hand.
HI Vortex,
John Exeter was truly an interesting individual!
Big Al
Howdy Big Al,
Yes indeed Al. Still as relevent today as the first day it was written.
V
IRISH…….JUST GET PHYSICAL……wasn’t that OLIVA NEWTON JOHN
Mark,
If an individual operates from the premise that in the years ahead gold, silver, and even oil are going to be valued vastly vastly higher in term’s of depreciating world currencies then all one has to do is take the next step, and acknowledge that the impossible can and will become the possible.
It’s no to far fetched at all to justify a theory that all mine’s be they gold, silver, diamonds, REE’s, oil fields and even vast underground water aquifers will be nationalized in some draconian fashion.
The need to keep government’s afloat at all costs combined nationalistic population hysteria to do anything to keep key wealth infrastructure and natural resources within nation-state boarders will become the last grasp at solvency as a failed worldwide socialism model is brought to heel after decades of morbid and corrupted economic central planing.
Profitable mining operations of all stripe’s the world over will not elude the eventuality of theft by bankrupt banker’s, dictators, tyrants and presidents respectfully.
In the end even the so called safe jurisdictions such as Canada and the U.S. will succumb to draconian measures that will effectively result in some form of nationalization either directly or indirectly. Many diverse avenues can be concocted by stupid irresponsible politicians and used against these extractive industries and in-turn the investment market, thus destroying the extractive mining operations and subsequent wealth/resource removal.
Good Afternoon Vortex
I don’t disagree with you one bit in your statements. I should have emphasized that the South American countries may react first before we in the U.S. and Canada do. But as recent history proves, even Alberta, Canada is showing some interesting signs of natural resource extractions. The only thing that gives me a greater comfort with U.S. based companies is that States can still exercise their own sovereignty…at least…long enough for me as an investor to get out before it all hits the fan. Canada has its debt burdens no doubt, but nothing like the U.S. It is a sad world that we will live in when this all happens.
Hey Mark, good day as well,
Let me caveat my previous post by saying if these obscene actions of nationalization do come to fruition I believe that in Canada and the U.S. respectively you will see the writing on the wall ahead of time and potentially be able to maneuver to safer ground.
But there are a whole lot of if’s involved in what is taking place. History is being made.
As far as South America goes, those countries will be just as dangerous and aggressive in the future as Russia is today. I personally would not invest one penny in Russia………ever. Putin is a nationalizing monstrosity on steroids.
I still can’t believe anyone would want to invest in Russia. I have seen a few miners starting up in Romania, Bulgaria, and some Easter European countries, but to me, they are not much better than countries in South America. Time is the only reason I like Canada and the U.S. because the writing will be on the wall before it all goes down….I hope.
Flinder Resources in Sweden is about as close as I will get to Russia….guys!
All the best,
Marc
PS. Excellent, excellent dialog and scenarios on future nationalization possibilities down the road.
MARK A & VORTEX……Great comments, based on common sense & logic, & also a knowledge of history. ME, I TRUST NO GOVERNMENT.
ditto……Irish……
Pretty much getting to that point guys!
Big Al
Me three here from TEXAS too!
Sorry, late to this particular party….Jerry, I see your ditto and raise you another! 🙂
Marc
Marc……the party starts early…..and ends early……so get with it…..
Hey back in Feb when I came back from Latin/Central American I brought this up. Now that is is starting to happen, you want to talk about it?
I’m done wasting my time here.
I’m doing what John Embry is doing, taking dekivery of PM’s at these prices. We are at the bottom or close to it. Everything else seems too complicated for me.
Al, instead of having Brent comment on South America,
why not have Yale Simpson who actually is closer to the politics and
knows first hand what is going on.
Why can’t Al get Hugo Chavez on the line and let’s just ask him what he thinks his neighbors are gonna do!
I agree with Brent on this issue, but I part ways with him when he says “I think”. This debt crisis is going to be unbelievable in its consequences and ANY country that has resources IN DEMAND, you can bet your last red cent that ALL mining companies are going to be effected in one way or another who operate in many of these South American countries. Irregardless of the ‘region” they are operating in now, it doesn’t take much to kill a miner with a government organized protest and accusations. It’s corrupt, wrong, immoral, and down right deceptive, but when a government fears for its own survival, you can bet they will pull out all the stops. Too bad to, because there are some really great companies there.