Pundit's Perspectives – Sat 16 Jun, 2012

Here is a question from Michael, a new member of our family.


I’m a new listener and I have a question for Bob Moriarty. The gold stocks have had a good run up in the past few weeks, can you ask Bob if he thinks the gold stocks will pull back soon offering us a chance to buy them at lower prices.
Thank you,



And, the answer from Bob:

Robert Moriarty bob@321gold.com
9:56 AM (4 hours ago)

to me
I think there will be a retest of the metals price but there are so many shares selling for less than the cash they have on hand that if someone spots something cheap they should buy now. This discount sale isn’t going to last forever.Sent from my iPhone


Bob Moriarty

  1. On June 16, 2012 at 4:36 pm,
    shawn says:

    Do you want to know how to invest, a Canadian developer just bought “The Penobscot Building’s in Downtown Detroit for 4.8 million and a building recently sold by The Bank Of Nova Scotia in Toronto ( same size same era same architecture),for $1.2 billion that is almost is so similar @ 5 million sq. ft of office space. Who do you think will be the developer that has the much better investment. Both of these gems were built towards the end of the 1920’s and are deemed to be Art Deco design. How could you not know!

    • On June 17, 2012 at 3:57 pm,
      Jerry O^OTB says:

      I bet, they are are going to sell it to the german politicans, after, they get ran out of germany , after they loan the money to the Greeks.

  2. On June 16, 2012 at 5:01 pm,
    Big Al says:

    Couple of interesting questions from a long time listener:

    Doug Caswell caswelldoug@hotmail.com

    Jun 10 (7 days ago)

    to al
    Long time listener and silverbug. Two concerns. One the fed seems to be able to do as they will when they will it, why should I think that might change? Two, Puru Saxena who I think is very bright had an article on the Kitco site Fri? talking about debt forgiveness, do you think that’s a possibility? If so why is no one else talking about it? Are they scared of it? Thanks and keep up the good work!


    The Fed can do what ever they want when they want to because, obviously, it is the Fed. The vast majority of folks down here don’t care because they aren’t even aware of its existence. Sad but true.

    Peru is a very bright man.

    I would be willing to bet that at some point in the future this will, in fact, happen.

    Big Al

    • On June 16, 2012 at 6:23 pm,
      John W. Robertson says:

      I’ll hazard an opinion, if I may?

      Don’t attribute too much power to the Fed. It goes to their heads. In all seriousness, the Fed cannot really do a lot (I think even Moriarty said something similar last weekend). I’m on the record as not really agreeing with a unidirectional conspiracy, so much as a bunch of powerful but separate interests in it for their own powerful but separate interests! i.e. IMF, central banks around the world, the Fed, JP Morgan, etc. When those interests align — as they have the last few years — it appears more organized than it really is. When it comes to one’s own paycheck (or paycheque, depending where you live), ranks break quickly. This has happened already. The Fed can only do so much with massive borrowing demands placed upon by the the US Treasury. Some spokesman this week said they have a ‘tool box’ of ideas in case Spain and Greece go down, but make no mistake, there’s only one tool left and it’s massive liquidity injection. I see the Fed more as a one-trick pony, and not an especially talented one at that.

      Debt forgiveness will probably come in some form, but this kind of thing only occurs when creditors feel every possible option has been exhausted, and that by not doing so will make matters worse for themselves. A lot of dominoes have to fall before we get there. And of course, trying to match-up a given creditor to a given debtor is not so easy these days.

      That is, to some extent, what happened in 81/82, and happened again in 2008. I told a friend back then a depression was coming, and that banks would not do anything about overvalued loans they could not collect on. She told that to a Bank of America branch or district manager in October 2008. I wasn’t there, but his reaction was ‘stunned’, and silence. He said he’d never seen anything like it, that he didn’t know what was happening, blah, blah, blah. Anyone with a brain knew it was coming. And of course, in an effort to get those bad loans off the books, banks like BoA just flooded the market with REO, got into robo-signing debacles, etc. They then brought in “experts” from the early 80s who were retired, to help sort through the paperwork nightmare. Today, many banks have voluntarily offered mortgage workouts and special principal reduction offers, just in the hopes to keep loans current. Look what had to happen in the ensuing 4 years in order for some discussion of this 10-15% debt forgiveness to occur! It’s not easy, and there will always be some creditors who will refuse it, choosing to risk bad loan blow-ups.

  3. On June 16, 2012 at 5:36 pm,
    benb says:

    I dont think it will be debt forgivness, I think its going to be revaluation of gold.
    Obviously I’m guessing, just my guess, but with the eropians talking about backing bonds or whatever in gold and so many countries etc buying, I just think its the plan. Revaluation fixes everything debt wise, just the price of rice wheat and energy to deal with, might be easier than dealing with the debt.

  4. On June 17, 2012 at 6:09 am,
    shawn says:

    My neighbor is a banker who works for GE, they too have their own banking division something that all the big companies are into these days, I wonder why? He avoids talking to me about the role of gold because as he say’s,” I’ve heard all your points before and they just aren’t relevant.” Whenever I discuss what we on this board think you can see him fidget as in he wants to drop the subject and slip away unnoticed. Who do you think people would trust more, the banker has won hands down without a doubt, that’s how much stature our society gives these people based on nothing. I must admit that when these subjects come up it really depresses people so much so that they will just eventually have to face the reality the hard way. At least during the 1930’s you could see the bank lines forming now most people won’t get that opportunity because of ATM withdrawals, when the switch is thrown these machines will go silent leaving most in the dark and out of luck.

    • On June 17, 2012 at 10:10 am,
      Big Al says:

      Morning Shawn,

      The conclusion that I have come to is that the majority of people don’t want to think about the issues that we discuss on this site. It is often times too uncomfortable for them.

      You know, as Grant Williams said last week, sensible preparation is simply prudent action. So what if you are wrong? You go on living and nothing changes. If you are correct, you go on living!

      I simply choose to deal with these issues, enjoy my life and go on living knowing that I am at least somewhat prepared for whatever happens.


      Big Al

  5. On June 17, 2012 at 6:29 am,
    shawn says:

    There are over 60.000 people in Russia who die from alcohol related diseases each year but their deaths are indiscriminate some here some there across a vast country. If they all died in one spot you would say my God what has happened here, I am using this as an analogy for The use of ATM’s when the rout starts it won’t be so easy to spot so it’s best to prepare ahead if you are so inclined.

    • On June 17, 2012 at 10:06 am,
      Big Al says:

      Good point, Shawn!

      Big Al

    • On June 17, 2012 at 10:32 am,
      Marc says:

      I have really read your comments along with John W.’s. Yes, I am in agreement again with most of what you say. But, my mantra, and I do say this often, I know. But, it literally astounds me that the mainstream people I come into contact with have no idea of what is going on. Heck, they don’t even know what the very generic term “money printing by our central bank” means LET ALONE the vast economic/social consequences it has coming down the pike. It just flabbergasts me. Yes, it will it be ugly when things finally come to a head only because people refuse to believe a shift is coming or are completely comatose to macro events…amazing!

      • On June 17, 2012 at 10:35 am,
        Marc says:

        Oh yeah, that GE banker “your points (gold) isn’t relevant”? What the h___is relevant to him then – a hundred dollar bill that buys a cup of coffee and a cold sandwich….c’mon..man!

        • On June 17, 2012 at 11:41 am,
          Jerry O^OTB says:


          • On June 17, 2012 at 12:10 pm,
            Big Al says:

            Hi again In the Box,

            Interesting that GE got so lucky in their federal tax situation!

            Big Al

          • On June 17, 2012 at 12:26 pm,
            Marc says:

            Yes, Jerry….they are definitely in the FED “cookie jar”.

          • On June 17, 2012 at 8:47 pm,
            John W. Robertson says:

            Any company that starts with the letter “G” is in the with government:

            * GE – General Electric
            * GS – Goldman Sachs
            * GM – General Motors
            * Solyndra.

            Alright, Solyndra doesn’t start with “G”, but dammit, I’m putting it in the list!

          • On June 18, 2012 at 9:42 am,
            Big Al says:

            Great observation John W!

            Big Al

        • On June 17, 2012 at 8:45 pm,
          John W. Robertson says:

          You just wait Marc. When the USD dives to .70, then .60, then .50, people will say “Ah, I should it seen it coming. All the signs were there.” We resist things that seem too terrible (maybe a good trait some of the time), but also ignore ugly possibilities to our own detriment.

      • On June 17, 2012 at 12:12 pm,
        Big Al says:

        Hi Marc,

        Comatose because they really don’t care and/or don’t want to know!

        Big Al

        • On June 17, 2012 at 12:32 pm,
          Marc says:

          Big Al,
          Boy, I would really like discuss the reasons of WHY? Simply, WHY don’t they care? WHY don’t they want to know? We have touched upon it, but there must be something deeper…no? Maybe it really is just the culture most are engulfed in? Is that really, really the reason. Aren’t people just, at all, inquisitive to and about future scenarios GREATLY affecting their way of life as Americans? “Things that make you go HUMMMM!” – to quote Grant Williams!

          • On June 17, 2012 at 2:14 pm,
            Big Al says:

            Hi Marc,

            I am completely convinced that these folks are knowingly putting their heads in the sand.

            Big Al

  6. On June 17, 2012 at 3:00 pm,
    benb says:

    Comment on why people dont want to know whats going on.
    I read an article written by a german fellow that lived thru the rise and fall of Hitler. He covered the entire story and how the nazi’s got away with everything they did. Without going step by step his conclusion was people refuse to think, Refuse to think, not that they cant.
    The “theory of everything” on u tube explains how the brian/mind works, as it turns out the brain protects beliefs of the mind, whether they are true or not.
    I spent some time trying to figure out just why people dont want to know they need pm’s etc, anyway for me, I feel I discovered that they Refuse to think and their beliefs are protected. Quite the defense actually.

    • On June 17, 2012 at 8:48 pm,
      John W. Robertson says:

      Do you have a link/book where you read it? I’d like to see it if you do! Thanks benb.

  7. On June 18, 2012 at 8:36 am,
    Brad H. says:

    Shawn/Marc… Fellas, my pop is in his late 50’s and close to retirement. He’s saved well all his life and worked hard as a framing contractor. He has a decent nest egg, but is such a conservative investor, he can’t sleep at night with even only 20% in equities. I’ve done all I can to pursuade him of the merits of real value, tangible assets like gold and silver and what’s happening in the world and the idea of using a meager 10% of it as an insurance policy. The world’s blowing up around us, but even smart folks like my parent’s can’t see the forest for the trees because his ignorant advisor preaches that gold is useless. Futility. I think I may just have to sit him down and show him a Mike Maloney video…

    My thought: people DON’T want to know what’s going on, but they will be right there buying PM’s with everyone else at the top….

    • On June 18, 2012 at 8:43 am,
      Big Al says:

      Hi Brad,

      Your point is very well taken regarding the top.

      Regarding you Dad, my opinion is let him do what makes him comfortable. It sounds like he did pretty well by you so I would assume that he is pretty smart.


      Big Al

  8. On August 25, 2012 at 3:51 pm,
    Kristine says:

    I’d totally go for the sclaolp ballet flats- they’re just so simple and unassuming. In a way I kind of feel sorry for her… just sitting (standing?) there all lonely like. How I remember when she was the belle of the ball, the “it” girl that everyone wanted… her plain, elegant looks made her so appealing, and now? Now everyone just wants a piece of the bootie! But despite it all shes still a team player, just as shes always been. She works so well with anything, a way-to-short dress, a simple cardigan, some torn up jeans, sheer nakedness. Shes got a good soul (sole?) and is the most faithful of companions. Oh ballet flats, I still like your simple sclaolps, your modest sensibility, your charming simplicity… you will always be MY friend.