From the 2012 Silver Summit

October 27, 2012

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In this show Al discusses:

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    Oct 27, 2012 27:32 AM

    Lauren Lyster for president.

    Oct 27, 2012 27:39 AM

    About to listen to the show, just thought I’d share this one…

    Forget 1%, 99% Or 47%: It Is The Turn Of The 70% To Be Pissed

    …Genuine and legitimate frustration permeates the land from sea to shining sea and rightly so. Ever since the banker coup of 2008, crony capitalism has been institutionalized as the only real way to make money. If you aren’t connected or “too big to fail,” sorry but America isn’t the place for you…

      Oct 27, 2012 27:57 AM

      Morning Missive,

      You make a couple of really good points. Specifically, the comments re: frustration. (Among at least a portion of us.)

      I realize the HUGE dollars seem to be in the area that you call crony capitalism. Not sure that it has really been ever much different.

      I realized that a long time ago and have quite effectively worked around it. I don’t need zillions I just need happiness and comfort. Fortunately, thanks to much help from my wife over the past almost 40 years we have both.

      I would bet that most of our family on this site is in the same position.

      Have a great weekend,

      Big Al

        Oct 27, 2012 27:19 AM

        Al, your comments made me think of one of the first things I typed here was to the effect:
        “You need to live in the most modest house your wife will let you.”
        For anyone who missed it below is must see TV. Our modern day Churchill calls it like it is at the EU. It is as if the Troika is condemning the developed European world to Jamaican-esque type debt prison. “Come Mr. Tally man!” Where will these technocrat banker thugs turn their attention to next? Watch Mr. Farage call out the debt master thugs in a manner reminiscent of Andrew Jackson calling them out as a “den of vipers”.

          Oct 27, 2012 27:01 PM

          It annoys me how the backbenchers laugh at each Farage punch, as if to suggest his accusations are silly. I’d for one would like to hear a few answers from them, ridiculous as they may feel it is to do so. Several EU ministers are on record saying that democracy should be suspended to certain EU states…how can anyone laugh at a person simply re-stating such quotes? Particularly at such a major interruption in democracy?

          The EU self-congratulates itself on no “war with Germany”, yet just as Farage points out, that was never really likely. Was it? But a Peace Prize was coming down the pipeline, and someone (or something) had to win it. Hypocritical, since the Nazi party wanted to suspend democracy.

          You can tell that most of the EU representatives…ah, um, I mean, appointees in Brussels are quite comfortable in their little cliques, still ridiculing Farage with their laughs, not realizing that it’s really themselves who are starting to look foolish. I hope Farage has a bomb-proof car. He doesn’t have many friends or allies in the EU proper, and that bothers me.

          Britain played a key and special “European” role in WWII, and then again in the Cold War, and they’re doing it again with the EU experiment. Get out. Get out now. You’ll thank yourselves for it. Yes, the pound won’t have any help if and when it’s destroyed by the UK’s very significant debts, but Britain stands a far better chance of “pulling an Iceland” and revaluing and then moving on, rather than being tethered to a Euromonster where votes don’t matter, currencies are still destroyed regardless, and maintaining some semblance of sovereignty. At best, Brussels wants a 27-nation new-continent-order for cohesion of misery, to share local Euro-nomic pain. At worst, well, Farage has already pointed that out.

          Get out, Britain, while you still can.


          There’s a quote from Star Wars…I’m sure I’m not the first to think of it, but this plays through my mind when thinking about the EU:

          Governor Tarkin: The Imperial Senate will no longer be of any concern to us. I have just received word that the Emperor has dissolved the council permanently. The last remnants of the Old Republic have been swept away.

          Commander: But that’s impossible. How will the Emperor maintain control without the bureaucracy?

          Governor Tarkin: The regional governors now have direct control over their territories. Fear will keep the local systems in line. Fear of this battle station.

          (Regional Governors could easily be replaced here with EU Ministers. The presence of a “battle station” is the only part of the analogy currently missing from the EU, though it doesn’t take too much imagination to figure out what form that might be…military force, monetary controls, food rationing, or some combination thereof, etc.)

            Oct 27, 2012 27:24 PM

            John W.
            The EU is just as devious as the Third Reich.
            How many saw Hitler for what he was when he was consolidating power.
            There were some big names who suppoerted his power but were oddly never called for their support of evil.
            In my opinion the leaders of the EU toady are as devious and as evil as Hitler but just seem less threatening. Maybe it is the powder blue stary flag.

      Oct 27, 2012 27:35 AM

      Hi Miss. Wonder if you figered I would agree with that article?
      I have been saying just that now for how long? The article says things much better than I do, thats why he can make a living as a writter I guess. What I think has happened, is people are realising this too late, the election will happen, it will be rigged and there will be celebration etc, etc.
      This time tho, alot more people are going to know its rigged and they just lost more liberty and with the result they can expect more kids coming home in pcs and body bags no matter who won. Thus, frustration, We will see if the people have had enough, but now they have to get past the weapons made to control the people, and the thing the american military industry is good at is weapons.
      Somthing about facism that most people probobly dont know, ultimatly, facism terrorises itself.
      I was hoping to hear Doug Casey on this site,I just watched a 1 hour talk from him sent by casey research, he talks about how to insulat and protect yourself if you have the means. Unfortunatly for most working people he speaks to millionares. His advice to under 30 year olds is to move to Africa. Kinda like “go west young man” but this time its Africa.

    Oct 27, 2012 27:27 AM

    Ron Hera mirrors my feelings precisely.

    Oct 27, 2012 27:51 AM

    I truly hope you have that follow up piece on that film, Big Al.

    We need films like this to wake people up on how corrupt the system is!

    Just the other day I was watching a video about the Clintons. I knew they were corrupt but had no idea as to the extent.

    Here’s the video I highly recommend you see

    Oct 27, 2012 27:55 AM

    A link that makes you think is below. This Section C WSJ quasi-book review is well worth reading. If as Napolean put it “History is written by the winners” then this article is in and of itself is evidence that it is written by the winners of the battle of economic ideas. Kenneth Minogue’s masterful review of two books (I will not bother to read) is a prime example that sometimes reading a book review is more fulfilling than reading the book.
    The Death and Life of Liberal Economics, By Kenneth Minogue

      Oct 27, 2012 27:38 AM

      Hi Dennis, I agree with Napoleon. Alot of people will disagree, but I see Moses and Joshua in that way, victory allows the writing of history.

    Oct 27, 2012 27:00 AM

    Al, fantastic interview with D.Morgan

    Intervention a right or a wrong, when Central banks would intervene in the US$/CDA it was to slow down the trend, yes often it would prevent the advance but only for a day or week. It gave the international banks a great opportunity to get really long or short as the Central bank would provide a huge injection of liquidity but ultimately the trend continued. I never witnessed a trend change in Forex due to Central bank intervention….just look at the multiple times the BOJapan has tossed endless amounts of $yen with no trend change effects.

    I think all here would agree gold is a currency therefore as currency wars are taking place around the world to think the worlds true reserve currency is not being manipulated is very naive! Just as Central bank currency intervention never changes a trend these drops in gold pricing provides opportunity to buy at cheaper levels before the upward trend continues.

    Fwiw I’m not in the camp of diversity is best nor do I think a 5-20% weighting is enough I’ve always believed the most successful individuals have had all their eggs in one basket, Microsoft, Apple, IBM and countless other very successful businesses have had all their wealth in what they believe. The majority are hard at work doing whatever it is to maintain a standard of living so there is no time or experience in trading to go “all in” but for those of us who do understand currency and have the time I’m long up the waaazooo and I sleep at night because I have the liquidity from a few mouse clicks to unload my position… in Canada the #1 investment owned is real estate and that imo is a dangerous “all in” investment as it has very little liquidity.

    Al would you be able to tell us if there was any kind of a buzz, rumour, at the Silver Summit?


      Oct 27, 2012 27:41 AM

      Interesting to hear Mr. Morgan say manipulation by law. Seems Ted Butler has changed the way people see it now. I still think it is Andrew Maguire that deserves the statue. How about in London? lol

    Oct 27, 2012 27:57 AM

    Why vote for the lesser of two evils, wouldn’t we as a nation be kicking the can down the road!!! Wouldn’t it be better to vote for anybody but the Democrat or Republican!!! Wouldn’t it be better to have a billion individuals get one vote and minimal votes for either party!!! I’m voting for RON PAUL, if he is on the Michigan ballot. It is time to reject the two party system. Why wait untill tomorrow, lets start now.

      Oct 27, 2012 27:45 PM

      Bob, I could not have said it better myself. Totally agree and will AGAIN vote for Ron Paul.

        Oct 27, 2012 27:11 PM

        A big ditto.

          Oct 28, 2012 28:27 PM

          I cant see how anyone that says they want what america is supposed to stand for,
          Liberty,, can in good concience vote for either Romny or Obama.
          If a person wants their kids in body bags to further the power of the banks, wal street, expand the police state, etc either will do just fine.

    Oct 27, 2012 27:59 AM

    Hi Al,
    Good show as always. Did you hear anything on HDA Huldra from the show?

    Oct 27, 2012 27:02 PM

    Al, I enjoyed the segments with John Kaiser and Marshall Berol. The resource sector is looking very positive right now—–I especially am taking a good position in the coal stocks. They’ve just been hammered. In fact, this week ACI surprised on their quarterly earnings. They should further be supported with a sigh of relief when Romney moves into the WH. Fossil fuels will once again be looked on favorably. The technicals for the stocks also look good. The PMs are pretty much moving as I’ve suspected for some time. Now is the time to buy selected PM stocks. I’ve been waiting for this opportunity and am slowly moving to a fully invested position—-from 80% cash to at the current time 45% cash. We’ ll continue to move sideways to down in the PMs for another 2-4 weeks and then start moving up again. However, we won’t break out to new highs until (in all probability late into next year. We will not challenge the previous highs this year. I agree with Kaiser—-we’ll see some enormous moves in the resource and PM areas in the next few years. Now is the time to take your positions.

      Oct 27, 2012 27:42 PM

      Hi Richard, I noticed Resource World Magazine came out with a recommend on a Cdn coal junior about Wednesday last week called appropriately Canada Coal TSX V.CCK, this play has over 100 seams 53 billion tones in Nunavut.(huge deposit) I like the juniors and now this play is getting some serious attention. Low float and price but remember it’s buyer beware and Due Your Own Due Diligence.

      Oct 27, 2012 27:42 PM

      As always thanks for your input!

    Oct 27, 2012 27:13 PM

    As Monty Python would broadcast “And now for something completely different”:

    WARNING!!!!!!!!!!!!! Truth in a base nature follows.

    Have you ever wondered what causes a ‘piss shiver’?

    A piss shiver is the uncontrollable spasms one has (almost always a male) upon or soon after voiding urine. ‘Immediate piss shivers’ as they are named occur concurrent with the act of peeing and yes they can be messy. The less common ‘delayed piss shiver’ occurs when there is a usually brief time separation between the act of peeing and the uncontrollable spasms. For example….you are at a sports bar and relieve yourself….after you return to the bar and grab your beer for a swig…… you begin shaking and quivering spilling beer everywhere causing the bar maid to roll her eyes, retrieve a bar rag saying “What gives?”
    The theory goes that upon the expulsion of the 98.6 degree F urine the hypothalamus recognizes a sudden loss of heat associated with the voided urine and activates involuntary reflexes associated to counteract rapid body heat loss. Severe ‘piss shivers’ incidents can occur especially during periods of stress. The stress related piss shivers can even cause the pisser to pass out. Although ‘piss shivers’ are a biological false alarm and usually harmless in and of themselves significant injury can occur from passing out while peeing and striking ones head on hard surfaces associated with modern day bathroom fixtures. It is therefore strongly recommended that during times of high stress the male pisser should consider peeing while seated or wearing a helmet. Therefore, everyone should pee seated and/or wear a helmet at least until the end of the Obama administration.

    Oct 27, 2012 27:20 PM


    Just listened to your commentary with David Morgan.

    I’ll agree, if people don’t understand what is really happening, then I would say diversify as you suggested. People need to sleep at night!

    If you really do understand what is happening, and don’t view your portfolio through a dollar based indicator only, then expand your holdings of gold and silver to as much as you feel comfortable with.

    The whole point is, gold and silver are money/a store of wealth!!! It is the safest investment for 5000 years, and has never failed to retain value.

    People get worried about confiscation – wake up people, they are confiscating your wealth from dollar based investments as I type this!!! They do this because it is infinitely easier that way than trying to take your gold and silver. That’s why they created a fiat currency. And many Standard and Poors 500 companies have dollar based holdings, etc., so they will underperform gold.

    If families would have saved their wealth over the last 100 years in gold and silver, they would be very well situated. Simple do the math. Take James Turk’s story about his father buying a tank of gas in the 1950s for two silver dollars, and today those two silver dollars still buy a tank of gas. Amazing!

    Where’s the risk?

    Like Mr Morgan said, they can’t manipulate the free markets in the long run.

      Oct 27, 2012 27:34 PM

      Jerry C.
      Great post!
      If the 47%, 70%, and or 90% had saved their $ in precious metals then the 1% would be bigger.

        Oct 27, 2012 27:41 PM

        Dennis, we would have an extremely wealthy country. At least for people who work for a living.

      Oct 27, 2012 27:14 PM

      Jerry C.
      IMHO, that is EXACTLY my thoughts on diversification, etct. That thought process is what I use when distributing my families wealth into hard asset investments….as in A LOT!

      Oct 28, 2012 28:53 AM

      Jerry: Your comment about confiscation of wealth brought up a point which is well worth noting. Your right of course, but still so many people fail to see the long term obvious results. Like a frog sitting in a pot of water when the heat is turned up to boil, the frog does not notice anything even when dead.

      People have been so conditioned to think of wealth in Dollars that they can’t imagine the end of a dollar. This is why the Federal Government is having such a hard time removing cash from the system and forcing everyone to plastic credit. Most people who have credit will use it and in most cases use it until it is gone then ask for more. Governments are no different than people except they are worse.

      The Federal budget as outlined by Obama is the most unbelievable accounting anyone could come up with. They actually believe that they can drain debt out of the financial boat by drilling more and bigger holes through its bottom.

      The concept of “This time is different” is so pervasive throughout America, that even the most obvious bubble of them all, Bond Market, is believed by many to be a safe and wise investment. Bob Brinker of Moneytalk has told all his followers for decades that the government will never default on its debt because it never has.

      The World is about to experience a major change in history. The dollar will loose world currency status, the bond market will collapse and it is my belief that the Federal Government will engage in a huge war with Russia and China to try and prevent it. The Federal Government will loose the next big war and a whole new world will begin.

        Oct 28, 2012 28:57 AM

        Great points, Clay.

        The whole game is built around people not knowing what real wealth is. I remember back in the 60s, when I was a kid, my dad filling up jars with silver. He understood what was going on back then. I think you could say he had a “memory” of what real wealth was/is. Probably the last generation, collectively, to have some understanding of that.

        My generation, I was born in 59, grew up when the propaganda went into full stride with dollar confidence game. Fortunately, I ran across some great writings about ten years ago that rang the bell.

        And yes, it’s unfortunate, but the water will be boiling when they wake up. I hear frog legs taste like chicken 🙂 …..I know, a bad joke to a serious situation. Sometimes a little humor is good.

        Remember, Mr. Brinker is a self admitted banker.

    Oct 27, 2012 27:24 PM

    I will follow up my last comment by saying this; if you are getting greedy with mining stocks, maybe there is risk there. When greed enters the picture, your vision becomes blurred.

    Oct 27, 2012 27:36 PM

    I don’t believe that we have seen Real Estate bottom or even stabilize, ala John Kaiser or Paul Van Eadon, I’m in TR’s camp on this one, once mortgage rates start to rise because the markets can’t be controlled forever we will see a weakening of residential values, just ask yourself how can people who bought into the market with these teaser rates and are still holding on now stave off foreclosure when mortgages are renewed at double or triple and their home equity has declined.

    The numbers don’t add up for me. DT

      Oct 27, 2012 27:52 PM

      DT, I agree. If you look at a current Case Shiller 100 year chart we’re light years yet from the mean. That means we have a lot of deleveraging yet in the housing market.

        Oct 28, 2012 28:47 AM

        I agree with DT and Richard.
        Fannie Mae was established in 1938 as a Government program to directly subsidize housing. It was simple. By subsidizing housing the government subsidizes the banks collateral. Fannie Mae became a GSE so that LBJ could remove the program from the government books. Freddie Mac was created in 1971 as a GSE to “compete” with the Fannie. The two market corrupting organizations now present a 5 Trillion Dollar (5,000,000,000,000) problem to its creator government. If housing deflation occurs simply put 5 trillion on top of the 16 trillion government tab.
        This brought us to the average mortgaged home owner scrapping together payments to pay for the debt submerged roof over the families head. No wonder the Fed’s QE3 40 billion a month is directly targeted at residential housing. The Fed is desperate to inflate this mal-invested mistake away. Like Fannie Mae being created in 1938 QE3 intervention will eventually fail. When?
        In the end when money is loose (especially when it is targeted) stay away from asset categories that predominately require debt for purchases at current valuations.
        I agree with Richard that it is instructional to look at the Case Schiller 100 year housing chart.
        Consider this…..look at a 100 year average 30 year bond interest rate.
        Who besides the fed is going to take on this paper in perpetuity at current levels?
        How much of the qualified market able to buy your house disappears when 30 year Fed rates corrects to the 100 year average of 5%….what about when the rates over correct and approach 10%?
        When rates correct we will arrive at Richards Case Schiller FMV Housing correction.
        When rates over correct then we will see housing valuations will follow suit.
        The often viewed black and white depression scene of the banker with sheriff by his side standing on grannies porch to either collect or evict will return in high definition to a neighborhood near you.
        In 1938 government intervention began to leverage up housing just 5 years after gold was removed from circulation. Real estate became the banks collateral that gold once was.
        In 1965 the once caged teller was freed because her drawer now contained circulating currency and coin without intrinsic value.
        Banking vaults became file cabinets with thick metal walls protecting piles of medium of exchange debt paper.
        Housing became the anchor to this leveraged up debt system.
        Then reality visited itself upon the scheme.
        The truth of the matter is leverage works both ways.

      Oct 28, 2012 28:22 AM

      If rates are rising, and confidence is being lost in dollar based assets, that means velocity may be picking up and inflation might be starting to get ugly. Dollars may flow to housing at that point, looking for safety, putting a floor under prices. But in real terms, housing may still be adjusting to “simple” real wealth, i.e. gold. So, I agree in that sense, the housing bottom is not in.

      Oct 29, 2012 29:32 PM

      I agree too. Until debt is reconciled, a depressive wave of devaluation has and must continue. There will be fake-outs every summer (the traditional moving season), which invariably will be accompanied with scads of poorly-written articles entitled “Is Housing Really Turning Around?”

    […] : Share […]

    Oct 28, 2012 28:54 AM

    Off Topic: – musical interlude for Americans about to right the canoe or sink it … all I can do is watch.

    Concert presented by Gaithers and Homecoming Friends in NY (I believe recorded in 2002) one hour and 53 minutes.

    For those not wanting to listen to the whole thing, these are segments I enjoyed most:
    at 0:28 minutes – everyone singing
    at 0:53 minutes – Armond Morales
    at 1:02 – Mort Crim
    at 1:11 – The Isaacs
    at 1:27 – Ken Davis
    at 1:41 – Jessy Dixon

    Oct 28, 2012 28:23 AM

    When Hurricane Sandy hits the east coast later today on an area of over 800 miles affecting greater than 50 to 60 million inhabitants the impact could be a Black Swan event for financial markets.

    Remember Katrina and this storm is supposedly much bigger and is coming ashore in a very vulnerable location

    Somewhere at some point the financial boat will flip over and it is usually caused by an unforeseen event that can’t be totally prepared for.

    Oct 28, 2012 28:42 AM

    In college the price of admission to a “kegger’ was $3. $3 purchased a 22 oz (usually red and/or blue) solo cup. The solo cup with an identifying mark rendered to the holder of it unlimited access to the keg(s).
    With the above common knowledge I enterd philosophy class on the topic of proofs.
    The Prof. submitted the argument that anything exists until it is proven it does not.
    I asked then if there was a keg in my kegless dorm room until we search for it and find there is no keg located in my dorm room.
    The Prof. said yes a keg of beer existed in my dorm room until it was proved there is no keg!
    I then asked if it was appropriate for me to sell solo cups at $3 a pop to drink from said keg. The Prof said Yes! I offered to him the chance to purchase a cup.
    This story was reminded to me when I read the following at GATA:

    Oct 28, 2012 28:56 AM

    In college the price of admission to a “kegger’ was $3. $3 purchased a 22 oz (usually red and/or blue) solo cup. The solo cup with an identifying mark rendered to the holder of it unlimited access to the keg(s).
    With the above common knowledge I enterd philosophy class on the topic of proofs.
    The Prof. submitted the argument that anything exists until it is proven it does not.
    I asked then if there was a keg in my kegless dorm room until we search for it and find there is no keg located in my dorm room.
    The Prof. said yes a keg of beer existed in my dorm room until it was proved there is no keg!
    I then asked if it was appropriate for me to sell solo cups at $3 a pop to drink from said keg. The Prof said Yes! I offered to him the chance to purchase a cup.
    This story was reminded to me when I read the following at GATA: