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The party may be over in the conventional financial markets

ker
July 20, 2013

Hour 1 : 

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Hour 2 : 

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This has been a dynamic week what with significant social, I don’t want to use the word upheaval,  so I will use the word unrest; a continued rise in the price of the precious metals; and, a realization on the part of many that the party may be over in the conventional financial markets. We touch on all of these issues this weekend.

Hour 1 :

  • Segments 1 and 2: Big Al and Peter Grandich discuss financial and social topics.
  • Segment 3: Jay Taylor discusses junior resource stocks with a certain sense of optimism.
  • Segment 4: Peter Hug of Kitco discusses investing in gold.

Hour 2 :


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Discussion
158 Comments
    Jul 20, 2013 20:41 AM

    First stop as always, Chris Temple….

    He makes an excellent point regarding the amount of investable funds floating around with nowhere to go in a time when little opportunity remains in most conventional markets. There is no place left to find value except in those areas that are already so beaten it is hard to imagine they could fall further even if we did experience a serious correction. The precious metals sector is certain to be one of the beneficiaries in the search for a place to hold funds for wealth preservation initially but later on for appreciation. If you have doubts about bonds going forward, are afraid that equities in general are overpriced and worry that a slowdown in China will dampen enthusiasm for most commodities then the obvious outlet for investing is going to be in areas of energy (specifically Uranium and some oil plays) as well as in the sectors that literally are in the business of digging real wealth out of the ground. Companies that mine for money simply cannot be overlooked at a time when currency debasement is the theme of virtually every major government on earth. I agree that this will lead to outstanding future gains for those getting invested there at a time when they are already so low that many companies are almost literally in the emergency room room now awaiting a blood transfusion. I do however happen to believe more pain lies ahead yet. That is not to say we cannot start investing there now though. Bottom calling is almost always a game of folly for fools though (add me to that list of fools because none of us knows where the bottom truly is). Very few time markets well and it is easy to miss the gains that might come by waiting too long. Most of the profit comes in the early stages of course…momentum merely draws the latecomers to the party and that accelerates as time goes by. So I am in Chris’s camp when I hear him say to invest in the areas that are down because that is where the next flows of capital will begin to move in volume but also to do it carefully as there are hazards when some companies are this close to the edge. They say that moments like now are generational buying opportunities reserved for those who bet against the herd. I agree. We cannot overlook precious metals miners and key (strategic) commodity producers at a time when the rest of the investment landscape looks so barren. Once the flows begin it may really shock most people how quickly those good companies can rise again.

      BIRDMAN……….Since you are in Africa ,,surely you can find some great investment opportunities in Africa. Have you ever read the book…”ACRES OF DIAMONDS”,,in your back yard..Since, I can not remember the authors name, and the last time I read it was in 1975., In, short the book talks about finding opportunities where you live. And since, you live in Africa, it would appear the Chinese are there sniffing around looking for resourses, you should go sniffing around and bring us back some good information , so we might all profit……………BEST , RESPECTFULLY………….JEERY OOTB

        Jul 20, 2013 20:07 AM

        You would be utterly shocked at how many opportunities for investment exist. I hardly even know where to begin. The Chinese are here in large numbers opening factories in every area you could imagine from textiles and shoes to construction materials and steel. It is a very busy continent. It is boom times here and the population is energetic and youthful. Not like the rest of the world at all.

          Jul 20, 2013 20:26 AM

          Bird,

          Did not know you were over there.

          Please share your observations.

          Thanks

            Jul 20, 2013 20:36 AM

            Anytime Al. What would you like to know? It is actually amazing what is taking place here. The vibe is very positive. Nobody EVER talks about the problems in the West. It is not even a media story in short form. I need to go to the internet to keep up with what is happening back home or I would be completely in the dark. The debt crisis, worries over a stock market implosion or bond collapse are not even on the radar. I sometimes think that the sentiments of opportunity looking out into the future have over-ruled all else because it is so buoyant in mood here it is like being on a different planet (Egypt excepted of course).

            Jul 20, 2013 20:03 PM

            That sounds very cool!

            Jul 20, 2013 20:43 AM

            Al, people have to wake up and stop being afraid of this continent. All they ever think when they hear of Africa is the terrible stories of Zimbabwe’s hyperinflation, Rwanda’s ethnic troubles, Ethiopia famines long ago and the small group of criminals who operate the Nigerian internet scams. Nobody seems to see beyond that. Events of the past are too sharp in the minds of most Westerners. They are missing out on everything as a result. But the big multinationals are now here in force. Coca Cola is doubling its revenues annually here. Where else can they do that? Would they really come if it was so bad?

            Jul 20, 2013 20:04 PM

            Interestingly enough my daughter and son in law are headed over in Sept for a couple of weeks.

            Jul 20, 2013 20:18 AM

            James Dines said a couple of years ago that Africa would be next for big growth and was gonna chase India and China.
            I am here in the dead ol’ UK! by the way, my second cousin seems to have moved lock, stock and barrel to Colombia with his Colombian girlfriend and has just started 3 businesses there. He is an international type and it looks like he sees opportunities over there.

            Jul 20, 2013 20:52 PM

            James Dines was right. I reckon this is the only place in the world that has genuine growth right now. Everything else is just chasing your tail and hoping it does not take an inexplicable dive out of the blue one day. Not sure why Africa is seen as such a big risk compared to all the other hazards in the regular markets.

            Jul 20, 2013 20:52 PM

            But Obama said if Africa grows to the point “everyone has a car, if everyone has air-conditioning, if everyone has a big house….the world will boil over!”
            http://www.youtube.com/watch?v=fBE0RKbRbl4
            I am saving the above clip to play for those who in the course of conversation say that I am a “fear monger” and/or a “global warming denier.”

            Jul 20, 2013 20:50 PM

            It is a big place. Al. My best tip is to tell the kids to check out Lonely Planets website (called Thorntree) to get the latest updates country by country. Lots of material on vaccinations, health concerns, visas, border crossings, places to stay or avoid etcetera.

            Well worth the time spent researching on line.

            Jul 20, 2013 20:29 PM

            Thanks Bird, I will.

        Birdman…THANKS FOR THE REPLY. What to you think of TANZANIA MINING, that is a Sinclair mining operation? …………..ootb

          Jul 20, 2013 20:34 PM

          Sorry Jerry but I don’t know anything about it. This place is just too huge.

          You want to hear something funny? Africa is the second largest continent. The map you normally use does not display it that way though due to how it is drawn and it thus appears much smaller than it really is. Africa is roughly 30 million square kilometers while North America is a mere 24 million. Three USA’s would fit inside the borders here. A billion folks live here. There are untold numbers of mines I have not heard of. There are also untold numbers of opportunities which would explain why all the big US multinationals have arrived in force.

          Just for fun, check out the “Real Map of the World” that preserves geographic size without regard to the curvature of the planet. You will get what I mean in one second flat. It is a BIG place here. I never meet anybody twice (except my wife)!

          The Real Map of the World
          http://historum.com/general-history/9250-real-map-world.html

          And for even more fun…..check out Goldman’s map of Africa which shows that the continent is so large it could encompass all the land mass of India, China, the US, Europe and the United Kingdom combined. I kid you not. This is one BIG place.

          Go South Young Man…The Africa Scramble
          http://www.zerohedge.com/news/2012-10-27/go-south-young-man-africa-scramble

      Jul 20, 2013 20:30 AM

      As I said earlier, 2010 was a great year for us after 2008 and 2009′

    Jul 20, 2013 20:22 AM

    “Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that”.

    Martin Luther King, Jr.

      Jul 20, 2013 20:49 AM

      I love quotes from philandering plagiarists.

        Wayne,,good reply,,,Since, most do not read the bible, they would think,,MLK, came up with this revelation……and this great wisdom.

        Jul 20, 2013 20:36 AM

        WAYNE:

        Ha Ha Ha — that made me chuckle — thanks!!!

        Jul 20, 2013 20:44 AM

        I wish I understood your objection, Wayne.

      Jul 20, 2013 20:24 AM

      So very true!

    Jul 20, 2013 20:35 AM

    “You cannot fight debt with more debt” ~~ Jay Taylor

      Now that is biblical wisdom…..GO and OWE NO MAN………

        Jul 20, 2013 20:21 AM

        What is wealth? “Abram [Abraham] had become very wealthy in livestock and in silver and gold” (Genesis 13:2). Why? “. . . because Abraham obeyed me [God] and kept my requirements, my commands, and my decrees and my laws” (Genesis 26:5). More biblical wisdom. Quotes from NIV.

          Jul 20, 2013 20:22 AM

          Wayne and Jerry,

          A couple more amens!

          Wayne ,,,,,Noticed you are using the NIV…..DID YOU KNOW,,,(,this is just information, and not trying to show off), but, rather IRON Sharping IRON,,, to another believer.
          The NIV..is copyrighted……The KJV is NOT copyrighted…..Since, the NIV is copyrighted ,some of the meanings have been changed from the original TEXT to suit or protect the copyrighter..which I think is Zonderman Press. The KJV 1611, IS NOT copyright AND the KJV CAN BE PRINTED AND DISTRIBUTED AS MANY TIMES AS YOU LIKE FREE OF CHARGE….reason,,,,,GOD DOES NOT CHARGE FOR HIS WORD…. THERE ARE flaws in the NIV versions AND differ from the original KJV and can alter some of the original meanings. But, I understand that NIV is easier to read,,,but, we need to stay as close to the message and truth as possible. RESPECTFULLY SUBMITTED….HAVE A GREAT WEEKEND……………Jerry……….

        Jul 20, 2013 20:06 AM

        Or Shakespeare “Be neither a borrower or lender be” ……..Merchant of Venice

          Jul 20, 2013 20:20 AM

          Amen!

            I BELIEVE THAT IS PROVERBS………

            Jul 20, 2013 20:08 PM

            No Sh%t Shylock (aka a representation of ruthless money lenders who will eventually cause the demise of many humanity situated as we experience it)

            Act I Hamlet Polinious offers to Laertes:

            “Neither a borrower nor a lender be;
            For loan oft loses both itself and friend
            And borrowing dulls the edge of husbandry”

            Who is SHYLOCK……or is that SHERLOCK…?

            Jul 21, 2013 21:25 AM

            Shylock is a contender for Shakespeare’s most complex character offering.
            Merchant of Venice 3-1-6

            Hath not a Jew eyes? hath not a Jew hands, organs,
            dimensions, senses, affections, passions? fed with
            the same food, hurt with the same weapons, subject
            to the same diseases, healed by the same means,
            warmed and cooled by the same winter and summer, as
            a Christian is? If you prick us, do we not bleed?
            if you tickle us, do we not laugh? if you poison
            us, do we not die? and if you wrong us, shall we not
            revenge? If we are like you in the rest, we will
            resemble you in that. If a Jew wrong a Christian,
            what is his humility? Revenge. If a Christian
            wrong a Jew, what should his sufferance be by
            Christian example? Why, revenge. The villany you
            teach me, I will execute, and it shall go hard but I
            will better the instruction.

      Jul 20, 2013 20:10 AM

      Or “Spending yourself rich is like drinking yourself sober”…..My deceased Father…RIP

        Jul 20, 2013 20:20 AM

        Drink yourself sober? Okay, I will try and let you know!

          Jul 20, 2013 20:45 AM

          Ha Ha. I have tried that Al. Never worked out for me though.

            Jul 20, 2013 20:06 PM

            A winner never quits and a quitter never wins!

            Jul 20, 2013 20:58 PM

            Ditto….duh….yikes 🙂

          Jul 20, 2013 20:57 PM

          Dad also told his 6 sons to “Drink Canada Dry”. I was never successful…….. How about you Al?…………..

      Jul 20, 2013 20:23 AM

      Well duh!

    Jul 20, 2013 20:35 AM

    Awesome show Al. I really enjoyed all of it. I am a little ahead of everyone time-wise so my morning happens when all the rest of you are sleeping. Will add comments later on Potash, the TSX and other topics discussed in today’s show. After others have listened in first is better. For now…….I am going out to do a little harvest on my garden. The big rains are here now and they can be torrential some days. It has killed almost all my tomatoes but the sugar cane, peppers and lettuce are still holding up well. Until later……

      Jul 20, 2013 20:17 AM

      Many thanks, Bird!

    Jul 20, 2013 20:45 AM

    Is the US secretly stockpiling gold? I sure hope so!

      Bobby……THINK,,,IF Germany requested their small amount of gold ,,,and it is going to take 7 years for them to get that small amount back, THE FORT IS EMPTY…

        Remember, when you had renters and they said they would pay you next week,,they never paid, and did not have the money………..same thing here.

    CFS
    Jul 20, 2013 20:59 AM

    Bobby, Alas, no; the idiots have leased most of what they say they have in Fort Knox and West Point. Our government is run by incompetents.

      Jul 21, 2013 21:52 AM

      Boys, bookmark this prognostication. I think they could not be as dumb as they look.

    Jul 20, 2013 20:14 AM

    Only one ton of gold remaining at JPM according to Zero Hedge this morning. I guess we will see this week if the idea that an empty warehouse will really be the catalyst that sends gold rocketing higher or if the theory was just a pile of snot.

    http://www.zerohedge.com/news/2013-07-19/jpm-eligible-gold-plummets-66-one-day-total-gold-fresh-all-time-low

    Jul 20, 2013 20:44 AM

    The action (metals) has improved but, more work required whether through price/time or a combination thereof. As for the Miners, constructive, yet not out of the woods just yet. Nonetheless, Phase III awaits in the offing.

    Have an enjoyable / fun weekend~

      Jul 20, 2013 20:16 AM

      Thanks Simon.

      You too have a great weekend.

    ANYBODY READ……BLACK PANTHERS ,,HAVE $10,000 reward out for ZIMMERMAN.
    This could be one of those” BLACK SWAN” events. Politically, how does this president, allow , open advertisement for assignation of citizens..?

      Jackson and Sharpton are trouble……I think they should stay out of Florida, and I think Florida should not allow them into the State….Who needs their money, I think they would be better to stay in Chicago and contribute to their economy.

        Plus there are to many people in Florida , and who needs trouble makers in the SUNSHINE STATE…….It is the relaxation state, happy go lucky, and let the sunshine in,but trouble makers do not want anyone happy, because they are not happy….Jackson, is a want to be something other than what he is…….I bet he would like to be a Rainbow of another color.

          Peter mentioned CHICAGO debt rating being downgraded…..I mentioned that two days ago……………Jackson, should stay in Chicago, and continue contributing to the DOWNGRADE………..I think his SON was a great contributor to that situation…THE SON IS LIKE THE FATHER …..piss poor fathering…I would say……..IF you can not be a leader in your own home ,,you sure can not be a leader of anything else……

            Jul 20, 2013 20:12 AM

            Easy to lead the ignorant!

        Jul 20, 2013 20:23 AM

        Just call them the “race hustlers and poverty pimps” and we’ll know who you are talking about.

          Jul 20, 2013 20:10 AM

          Yep!

      Jul 20, 2013 20:02 AM

      It blows my mind that people cannot read between the lines – this is ONE of the ways the country is being divided (intentionally) – DIVIDE and CONQUER. Think it through Jerry: if you have 2.5 million troops and 300 + million citizens to oppress, how do you think one goes about “evening out” the sides? You need to do your utmost to DIVIDE your opponent into countless smaller groups (fracturing them). This is what we see going on right now from EVERY direction imagineable:

      1. Democrats vs. Republicans
      2. Patriots / Tea party vs. Big Government
      3. Blacks vs. Whites
      4. Illegal Immigrants vs. Lawful Citizens
      5. Gun owners vs. Anti-gun crowds
      6. Gay marriage proponents vs. anti-gay marriage groups
      7. IRS vs. Christians / Conservatives
      8. Pro-Choice crowd vs. Anti-abortion crowd
      9. No Proselytizing in military vs. Proselytizing in military
      10. Etc.

      Then you have your subdivsions within the smaller groups – for example, Christians broken up into various camps:

      1. Pro-government vs. anti-government
      2. Pro gay rights vs. anti-gay rights
      3. Pro-ecumenical agenda vs. anti-ecumenical agenda
      4. Pro social gospel vs. Pro REAL gospel
      5. Positive affirmations (New Age) in church vs. No positive affirmations
      6. Many ways to God vs. One way to God
      7. Prosperity gospel vs. No prosperity gospel
      8. Etc.

      And then you have subdivisions within those smaller groups — and so on — and so on — and so on!!! It is all about DIVIDING the masses into minscule groups. Martin Niemoller explained this perfectly when he said:

      “First they came for the Socialists, and I did not speak out because I was not a Socialist.

      Then they came for the Trade Unionists, and I did not speak out because I was not a Trade Unionist.

      Then they came for the Jews, and I did not speak out because I was not a Jew.

      Then they came for me and there was no one left to speak for me.”

      DO NOT BE FOOLED BY THE CHARADE – they NEED to separate the masses one from another by creating a variety of crises. Regrettably, the majority of people have less common sense than a lobotomized lab rat and will swallow the bait — HOOK, LINE, and SINKER!!!

        Jul 20, 2013 20:09 AM

        Great comment Bentnail.

        Jul 20, 2013 20:42 AM

        So, what’s your plan, Bentnail? Pray and hope that everybody turns into a Niemoeller, I guess.

          Jul 20, 2013 20:47 AM

          IMPEACH:

          How in the world did you arrive at such a moronic conclusion? Your “logic” is beyond ridiculous.

          Jul 20, 2013 20:58 PM

          The Serenity Prayer offers some guidance…………….

            Jul 20, 2013 20:31 PM

            The Serenity Prayer is great!

            Jul 20, 2013 20:11 PM

            As long as it’s not used as an excuse, yes.

            CFS
            Jul 21, 2013 21:01 PM

            Well I’m an old Fart, but I still picture myself always behaving like a Ram.

            As in…..

            Next time your found, with your chin on the ground
            There a lot to be learned, so look around

            Just what makes that little old ant
            Think hell move that rubber tree plant
            Anyone knows an ant, cant
            Move a rubber tree plant

            But he’s got high hopes, he’s got high hopes
            Hes got high apple pie, in the sky hopes

            So any time your gettin low
            Stead of lettin go
            Just remember that ant
            Oops there goes another rubber tree plant

            When troubles call, and your backs to the wall
            There a lot to be learned, that wall could fall

            Once there was a silly old ram
            Thought he’d punch a hole in a dam
            No one could make that ram, scram
            He kept buttin that dam

            Cause he had high hopes, he had high hopes
            He had high apple pie, in the sky hopes

            So any time your feelin bad
            Stead of feelin sad
            Just remember that ram
            Oops there goes a billion kilowatt dam.

        Hi Bentail,
        thanks for reading my post.
        EVER category you have mentioned……is either GOOD OR EVIL………….
        EVER category you mentioned …………is RIGHT OR WRONG…………….
        We can determine each , by what is written in the WORD……………….
        We do not have to make it difficult, it is very simple, THERE IS NOTHING NEW UNDER THE SUN…………………….respectfully……………..jerry

      Jul 20, 2013 20:21 AM

      Jerry, didnt know that.Wonder where they would come up with the 10 grand.

      Jul 20, 2013 20:14 AM

      Good question.

      Can you verify the “reward”?

    “the cup is half empty”……because, there are to many sucking it dry……..
    “the cup will be half full”….when the suckers start contributing …………
    Uncle Wally…..1988

      Jul 20, 2013 20:06 AM

      And the question remains, “will they”?

    Jul 20, 2013 20:45 AM

    Interesting Peter Hug was saying not to buy physical gold from a U.S. dealer.
    That was the point of Snowden, it doesnt matter where you buy, the U.S. government has your purchase recorded unless you buy on a street corner pay cash or have false ID etc.

      Jul 20, 2013 20:04 AM

      Peter also works for Kitco. A very reputable dealer in my opinion.

        Jul 20, 2013 20:49 AM

        I wondered if he was suggesting to buy from Canadian outfits like CEF or Sprott. The US government could still tax it there under the new regulations but it would be harder to actually confiscate. In theory it would be immune from a future seizure other than a forced sale.

      Jul 20, 2013 20:05 AM

      There are ways around Ben B 😉

        Jul 20, 2013 20:33 PM

        There are ways around it, fake id, black market, buy and sell from home etc. There are also dealers here in canada anyway, that dont care who you are, but those generaly dont have much to purchase. Albern, the bigest one I know of in Calgary has you on film and has you sign for metal. Which is a recent thing.
        We are being recorded, big brother is here. Some people will protest, countries may evict ambassadors but nothing of significance will be done.
        Snowdon is telling us, we have moved into an orwellian state, it is a facist police state and people that figure they understand it will moan and cry, but nothing is going to be done.
        It has to burn utterly and completly before we begin to move in another direction.
        Of course there is always the chance mana from heaven starts dropping on all of us.
        As history as my guide, cities have to be ruble, one way or another. Detroit is a clue I think.

          benb……it is man, and his sin nature………..nothing has changed as you have indicated……ALL have fallen short …………

    Jul 20, 2013 20:53 AM

    Mr.Hug disagrees with Jim Rogers and Dr.M. Faber, “never sell your gold”
    Lighten up if the price is up? How do we know its not about to jump up further?
    For me, its never sell unless forced to.

    I have to wonder about useing PMs as insurance, if we get to a “mad Max” scenario the question really goes to whats valuable, medicines,bullets etc. I dont see PMs as high on anyones priority list. Majauana would be extremly sought after, but I dont know about PMs, we cant even buy a cup of coffe with it, seems nobody is interested in it to me except those that are today already.

    To each his own, but for me, I feel beyond a shadow of a doubt the value of currency is dropping, PMs is not gauranteed to drop. So at least there is a chance of preserving some wealth.

      Jul 20, 2013 20:03 AM

      Good points.

      Tom
      Jul 21, 2013 21:37 PM

      I know a couple of countries you can go with your gold

    Jul 20, 2013 20:57 AM

    Al, did you get a chance to ask J Taylor about golden goliath?

    I like his thinking about San Gold at least, nice to have one going up a little when so many others are moving so slowly.

      Jul 20, 2013 20:01 AM

      I am close to Golden Goliath.

      Paul Sorbara and Stephan Pearce are good friends.

      What would you like to know?

        Jul 20, 2013 20:29 AM

        Some time back Jay Taylor didnt think goliath was the best place to put cash, then I herd he changed his mind.
        Any way to find out why he felt that way and what changed his mind? I have kept my eyes open but never found his reasoning.

        gng was 1 of the companies I made alot on after the 08 crash, I sold but kept a few, so I follow a little bit. Its more of a curious thing for me.

          Jul 20, 2013 20:32 PM

          Bemb, GNG is on Jays buy list, but he has not mentioned or done a recent update. I am also very curious.Trading at 3 to 4 cents for weeks now.

            Jul 20, 2013 20:12 PM

            Count on n update shortly and thanks for the other information.

            Jul 20, 2013 20:28 PM

            Maybe anything that cheap could be on a buy list if a person thought they were going to survive another year no matter what they did. Its been said recently tho alot of companies are about to become extint.

            gng had some fantastic numbers, then nothing happens, agnico makes a deal to drill, nothing happens.Another company or 2 as well if I recall, nothing happened with them or it. If there were a chance what they say is actually there, why are they 4 cents?
            If what they say is there why wouldnt agnico buy all their shares for …say 25 cents?
            Put the buy order in for 10 cents and they would own 50% of it, why dont they?
            Agnico has lots of millions if I recall, so maybe they see better opportunity?
            But even if it does nothing, it could double triple etc just with the price of PM, doesnt have to be anything there nor would it have to be drilled and much less mined.

            Anyway, was interested why Jay didnt like it at one time, then changes his mind. I was wondering why.

    Jul 20, 2013 20:05 AM

    FISH FOR DINNER

    A fish is unhappy when it is audibly flapping
    Most fish do not realize they are wet.
    In one instant the fish could be fighting and flapping on the deck of a boat.
    The wet for all the fish’s existence was taken for granted.
    It is just the way it is!
    Your life experience is too often mistaken for being perpetual.
    The assumption is an extremely dangerous one especially when the assumption is made by most about something that by its very nature will cause it to change.
    The municipal pensioners in Detroit will find the promises many of them corruptly connected themselves were illusory. Many hard earned pensioners will find they chose the wrong partner with which to dance.
    In an instance a light switch flicked changes everything.
    “Westerners” mistake debt as being wealth.
    Wealth is consumption deferred and well stored.
    It will be high irony that in a flash a poor Indian peasant farmer with a few bangles on her wrist will have more of a fortune than many “Westerners “ who consider themselves today wet and wealthy.
    It will be a rapidly emptying crowded theater. It will be a struggle to reach the emergency exit. The desperate trick will be to squeeze through the door jam and keep air in your crushing lungs. In a panic all will not successfully maneuver the crush. It will be tragic financial suffocation and like the hooked fish a panic struggle for air.
    In an instance the digital wealthy can find themselves unhappy….in panic…. fighting and loudly flapping on the deck of a boat.
    The Indian peasant or Chinese farmer will sustain themselves with fish for dinner.

      Jul 20, 2013 20:59 AM

      Great comment, Dennis M!

      Jul 21, 2013 21:56 AM

      Some very sobering truths in what you write Dennis. Thankyou., A

    Jul 20, 2013 20:20 AM

    Peter Hug of Kitco!

    Thank you for your common sense approach about investing in gold 🙂

      Jul 20, 2013 20:54 AM

      I completely agree Mark.

      Big Al

        Jul 20, 2013 20:04 AM

        BTW Big Al

        Thanks for the work you are doing with your show!

      Jul 20, 2013 20:55 AM

      Thanks Paul

    TGB
    Jul 20, 2013 20:32 AM

    @Peter Hug : Recalibrating your postion in gold is a recipe for disaster in an hyperinflationary situation. You will recalibrate your goldpostion to zero in that environment and you’ll end up with no gold at all at a time when you most need it. You intend to buy gold to protect yourself from money printing with high inflation and high gold prices as an inevitable consequence and exactly in that environment you choose a method where you are recalibrating your gold position to zero to “protect” yourself from inflation?? This method is exactly the opposite of insurance, it is an utter recipe for disaster!

      Jul 20, 2013 20:13 PM

      I think it is wise to have a defined trading position and a defined core position.
      When your trading position takes out the upper Bollinger bnad sometimes taking a profit is wise. It is usually the case when something has a run significantly there are quality undervalued sectors/securities relative to the recent outperformer that may deserve investment attention. Be mindful not to churn yourself. As TGB points out the term DEWORSIFICATION was coined for a good reason. As TGB points out there are environments where you are crazy not to deploy the currency in the coffee can.
      It may be advisable on occasion to lighten up on a runner in favor of near term challenged quality play. I am considering taking some of the FNV I recently added at 32.42 in favor of something that has not enjoyed the summer as much. Things can be over valued relative to other resources sector plays. DYODD
      There is nothing wrong with taking profits.
      However no matter what you do with the proceeds….you have reinvested the proceeds.
      It is a two-stepper.
      Ring the cash register but also resituate the cash wisely.
      And for those of you being advised… like a Wallenda balancing is requisite!
      http://www.bing.com/videos/search?q=wallenda+grand+canyon&view=detail&mid=CFE7128EE81694C87A69CFE7128EE81694C87A69&first=0&FORM=NVPFVR
      But do not let constant rebalancing fee yourself to poverty.
      You want to stay up and not find the canyon floor!

        Jul 20, 2013 20:11 PM

        No, canyon floors are not a good place to be!

          Jul 20, 2013 20:49 PM

          Just ask Evil Kneivel!

          Jul 21, 2013 21:22 AM

          http://www.youtube.com/watch?v=llzIVDbvSAc
          Do not tempt fate.
          Matthew 4:5-11
          Then the devil taketh him up into the holy city, and setteth him on a pinnacle of the temple.
          And saith unto him, If thou be the Son of God, cast thyself down: for it is written, He shall give his angels charge concerning thee: and in their hands they shall bear thee up, lest at any time thou dash thy foot against a stone.
          Jesus said unto him, It is written again, Thou shalt not tempt the Lord thy God.
          Again, the devil taketh him up into an exceeding high mountain, and sheweth him all the kingdoms of the world, and the glory of them;
          And saith unto him, All these things will I give thee, if thou wilt fall down and worship me.
          Then saith Jesus unto him, Get thee hence, Satan: for it is written, Thou shalt worship the Lord thy God, and him only shalt thou serve.
          Then the devil leaveth him, and, behold, angels came and ministered unto him.

          I do not think Evil Kneival studied this scripture when he chose his stage name and/or when he climbed into his rocket.

      Jul 20, 2013 20:07 PM

      Thanks for the comment TGB.

    Jul 20, 2013 20:39 PM

    I liberated nearly $40k from the stock market this month … ringing the cash register, so to speak.
    Some will go to charity; some to purchase bullion.
    Not sure if any proceeds will find its way back to the stock market.

    Age of Boomers now ranges from 49 to 67 years.
    I think it’s a mistake to discount the effect they will have on markets, when Boomers no longer stay invested.

    Have to admit though … habits die hard.
    EEM (emerging markets) look interesting right now.

    Snip:
    “The market has priced in an event and crisis that hasn’t occurred in emerging market stocks. For a few months, I have been arguing that BRICs (Brazil, Russia, India, and China) are likely the “next fat pitch” upon rotational leadership. The difference between the MSCI Emerging Markets Index and the S&P 500 is among the largest in history year to date, harking back to 1998.”
    ~Michael A. Gayed

    http://www.marketwatch.com/story/1998-where-are-you-2013-07-17

    Jul 20, 2013 20:24 PM

    The US debt is HUGE!!! But the interest rates have started to move up if this is being orchestrated by The Fed to me that means they are testing the waters for sure but they are also going to say when the crash hits we still have room to rediscount, and I know it won’t work but it is bound to fool the uninformed public. DT

      Jul 20, 2013 20:06 PM

      The elitist Brussels-esque control freaks will in the not far distant future make a Monday morning memorably miserable for the whole world!

    Jul 20, 2013 20:52 PM

    And speaking of the suggestion made by Chris Temple that the party may be over in the conventional markets…I just came across an interesting set of charts today on Zerohedge that puts a very fine point on it.

    The article is called “All about Commodities in 6 Charts” and it is a doozy.

    For those wondering how a slowdown in China will affect us over the coming years it is time to sit up and pay attention. Go to slide number 4 titled “2011 commodity consumption by country” and just ask yourself what the future of prices will be if China keeps wobbling.

    The reason that I bring this up is because recently we have been hearing from some quarters that the commodity bull is back in session. I doubt that very much and here is why. As I pointed out in a short article the other day, China is now at serious risk of a credit event due to little more than the fact that the collateral that underlies the edifice of lending above is now falling. If property prices fall there is little supporting the system (but property never falls right…especially when it is in a bubble?)

    This is a huge signal of danger in my books and reason enough to be avoiding certain miners altogether. They are certainly not created equal in this kind of setting. Now we all knew that China was consuming the lions share of the global commodity pie already but even I was a little surprised by just how extensive that consumption is.

    If Europe continues to falter and demand falls while simultaneously consumption remains flat in the US we probably had a problem anyway. If a credit event spawns widespread business failures in China though we have something more like a global depression coming. None of this is good news but best keep it on your radar.

    Chinese GDP growth is now reported to be at a 23 year low and falling. The latest data suggests that even the current numbers are being massaged. I really don’t know how long we have before this bites but certainly a long period of very low growth is ahead for everyone and there will be plenty of losses for anyone invested too heavily in resources at a time when the biggest buyer seems to be sputtering.

    Obviously this cannot be ignored. The US itself is overdue for its next recession although some will claim we are still in the one from 2008. Europe clearly needs to get its act together and stimulate something resembling expansion while boosting employment or the US along with a few of its closest friends will be the only support holding this battered ship together.

    All About Commodities
    http://www.zerohedge.com/news/2013-07-20/all-about-commodities-6-charts-aluminum-zinc

      Jul 20, 2013 20:56 PM

      Some really good points, Bird.

      I would not say that we are going into a second recession, I have to say that, in my opinion, we never left the first one. That, to me, is a very simply fact.

      Stay informed and nimble!

        Jul 20, 2013 20:31 PM

        Remember in 2008 when the liquidity dump was bazooka-esque requested at 700 billion.
        The first vote for the socialization of bad results failed and market tanked hard.
        Today we are socializing bad business with 85 billion per month.
        The Feds balance sheet has grown 4X plus it is growing.
        85 billion x 12 months equals $1.02 trillion or $1,020,000,000,000.
        All is well?

          Jul 20, 2013 20:32 PM

          All is not well!
          Al is right we are in 2008 and about to arrive at a rally bad hang over.

            Jul 20, 2013 20:41 PM

            I second that Dennis M!

            Jul 20, 2013 20:23 PM

            You guys could well be right that we never broken out of the first recession. We have been struggling for pretty much five years now and even though an equities bubble has been blown it seems most individual investors have STILL NOT seen really great results in their investments.

            For some time now I have been worrying over China because it seems to me it is the cornerstone of current global activity and growth. Had they not taken the bullet for everyone following the GFC and pumped the biggest asset bubble in history on their own soil we might all be wallowing in a deep depression already.

            But how much more of the commodity pie can they eat before they get serious indigestion? How much more copper, iron ore, steel and aluminum can they hoard before it becomes obvious that merely buying commodities and warehousing them does not indicate genuine growth or consumption?

            China’s epic credit behemoth has bought us all time and in theory allowed us to earn a few extra bucks while getting organized for the really big show that still lies ahead. Put another way, China can simply not allow its property bubble to burst in the current climate as that event will lead directly to a surge in unemployment across the globe. I don’t need to warn you all that a huge burst of unemployment at a time when many Western developed nations are already at depression levels of joblessness would be a DISASTER.

            This is obviously understood from above and the numbers have already been worked into the models. So somewhere along the way an idea was hatched that if China could save our sorry hides for the past few years then surely Japan also has the muscle to do the same.

            Enter Abenomics from stage left.

            An idea so preposterous most of us cannot fathom how it will NOT result in hyperinflation in the land of the rising sun. The point is not the survivability of the Yen though. I now suspect the key idea is that if a period of strong expansion can be manufactured there it will keep the global economy afloat for another few years. That is the hope anyway. Why else would it be that absolutely nobody present at the past few G20’s has raised any objections whatsoever to such a bold devaluative process of the one initiated by Mr Abe in Japan?

            The answer to that question of course comes courtesy of the collective output numbers and indicators of economic health that tell us the rest of the world is already in a deep funk and that even the last bastion of growth (China) may be about to hit the skids.

            In theory of course, we only need to buy a little more time for a recovery to kick in elsewhere and then we will be on our merry way and can put all the current troubles behind us. It is not a bad idea if it can be pulled off.

            The small detail about structural corrections that become secular though are that they tend to run for many years before resolving themselves. I don’t therefore think we can bridge the gaps between the deleveraging process underway in the West, nor the market clearing event coming for China by using Japanese inflation targeting to paper over the difference in time. If anything, Japanese policy will at best only function as a band aid solution over the short term while effectively destroying that countries currency, savings and bond markets in the process.

            In other words, the global economic Waterloo may be much closer than I first thought.

            At the point when we print negative growth numbers in any two of the worlds four major economies simultaneously then every bell in the fire alarm factory is going to start ringing off the hook at the same time. That may indeed be an event on the horizon.

            But surely there must be some indicator to warn us in advance that trouble THAT BIG is a;ready brewing. Is it interest rates? Is it the equities bubble? Is it growing bond troubles everywhere or perhaps even the wild gyrations in currency markets?…..nope, nope, nope. It is oil.

            By coincidence we do indeed have something in the commodity charts that should be of great interest to all of us. Go back to the Zerohedge charts that I noted above and take a long hard look at slide number 5.

            Can you see the dark black line representing Crude Oil prices? This chart is the long-run of indexed real commodity prices going all the way back to the year 1900. Anyway…..do you also notice that Crude made a massive peak near the end of the chart and then……..almost unbelievable….it repeated the massive peak until it formed a nearly perfect double top? Not only that but if you look closely you can literally see how the impacts of intervention globally pushed the price of oil up until they nearly match the prior peak on a visual basis.

            And there is your answer.

            Some of you will look at that and see the best crude oil short that has existed in living memory is now coming. Others will imagine that the remainder of this past price rise lies dead ahead and want to play it to its conclusion. Still others will be running for the exits and selling off everything in a rush as they try to get into cash.

            But what the big picture really tells me is that we are heading for a global depression which will be represented by a dramatic decline in energy consumption and the price of Crude will deflate heavily for the next years as demand falls everywhere at once.

            Sorry to say but I think we (the developed nations) have not yet come close to seeing how bad things could really get. The picture is so damning that it is hard not to see the inevitability of trouble on the horizon. More so because it is not China or Japan that are the heaviest users of crude and thus dictate global prices nor the coming fall…..IT IS US!! So you had all better get prepared now….that bad day many of us worry about may be coming a lot sooner than most imagine.

            See chart #5 —- Long Run Indexed Commodity Prices – Crude Oil
            http://www.zerohedge.com/news/2013-07-20/all-about-commodities-6-charts-aluminum-zinc

            Jul 21, 2013 21:38 AM

            I surely don’t need to tell anyone here what would happen to above ground silver stocks if there were large scale closures of mines devoted to lead, zinc, copper, nickel or even gold during a China slowdown.

            It should be patently clear to all that above ground sources would be exhausted quickly even during hard times as the many industrial uses of silver would continue more or less unabated as they relate to so many fundamental applications that might be quite immune to a global slowdown.

            This might be one of the most interesting aspects of a worldwide growth soft-spot. Silver prices (in theory anyway) could see a spectacular rise in value as recycling runs its course in the absence of steady ongoing mine supply. Military applications alone (these usually rise strongly as large economies falter) could be the major impetus behind price rises.

            It has long been my contention that a day is coming when silver might be declared a strategic natioanal asset and not therefore generally available to the public to purchase or trade. Time will tell if my hypothesis is correct but we do know one thing for certain…..even known and proven reserves globally offer little more than a twenty year future for this metal. Unless someone finds a Motherlode soon, silver could well end up being the most spectacular of long term investments two decades out.

            Just don’t tell anyone you own any!!

          Jul 20, 2013 20:39 PM

          Of course not Denis!

    BIRD……..WE ARE IN A RECESSION ,,,WHEN 50% of the youth are unemployed, and the real unemployment exceeds 17%, and there are 101million on food stamps……

      do they call that a rolling recession, it just keeps rolling along……….

      Jul 20, 2013 20:48 PM

      I do believe this is a depression that is merely masked by interventionist policies Jerry.

        Jul 21, 2013 21:17 AM

        What scares me about my own analysis is that it is only stating the obvious. We don’t really need to look that deeply to appreciate how much trouble is coming. It is just as plain as the noses on our faces with only a rudimentary understanding of economics, capital forces and credit markets to guide us. I happen to think the shit will hit the fan about a year out from now, possibly late 2015 when we finally see troubles materialize in both China and Japan simultaneously. There is therefore very little time to prepare and it must be used wisely unless you want to be a victim of what is coming. What is coming is going to be a life altering depression across much of the globe that will bring a whole new appreciation for what it means to be in debt and why savings really are important in the end. I also think that most pension funds are going to be substantially destroyed in the process as equity markets take a swan dive of epic proportion. There won’t be anywhere left to hide after that.

          Jul 21, 2013 21:52 AM

          And just in case there remain doubts……we need to keep in mind that we have debt fueled asset bubbles that are threatening to break or are currently in the process of bursting in Hong Kong, Singapore, Sweden, Australia, China, Canada and a half dozen European countries. It is all fine and dandy when the US housing bubble burst as there was eventually quite a bit of capital available to prop prices back up. But when everyone else goes down who will be available to pick up the pieces?

            Jul 21, 2013 21:58 AM

            PS: For all you inflation and hyperinflation buffs…..what I am talking about today is undeniably deflationary.

            Jul 21, 2013 21:15 AM

            And just to back me up, here is an article I just read from Mish Shedlock (a guy who obviously gets that we will deflate before we hyperinflate). Mish writes that a flood of credit downgrades are now coming for a host of major US cities that cannot meet pension obligations promised in the past. Good call Mish. If anyone doubts that the gutting of municipal funded pension plans does not have a self reinforcing effect on the deflationary impacts on an economy in decline then please take a long hard look at Greece which defines falling incomes on economic activity on a much smaller scale. I agree with him that bond holders will be taking a much harder look at muni’s in the coming days and months. Anyone sane will want a better rate and as spreads rise we will probably see all competing rates rise to meet the changes. I don’t know if there is another way of saying this easily but Detroit’s bankruptcy is really a watershed moment in how investors view safety in bond markets. It will be very difficult to turn back the tide from this point on.

            Avalanche of City Downgrades and Bankruptcies Coming. ~~ Mish Shedlock
            http://globaleconomicanalysis.blogspot.com/2013/07/moodys-downgrades-chicago-debt-citing.html

          Jul 21, 2013 21:50 AM

          Birdman…..just wanted to say that I find your commentaries rivetting. Thank you.

            Ann
            Jul 21, 2013 21:14 AM

            Wow rivetting to say the least.Scary!!! Birdman,so what specific things are you doing to prepare which you mentioned countless times?? TIA.

            Jul 21, 2013 21:18 AM

            I packed up and took my assets to Africa, Anne, where there is at least a reasonable probability of surviving the economic carnage that is coming. Africa is very unique in the world right now. It is almost totally disconnected from the global financial system. There is little in the way of bonds issued here….there are almost no social programs whatsoever….pensions do not exist for the vast majority. As an outcome there are NOT unfunded liabilities nor the myriad of complicated financial instruments that are threatening the West banks and institutions. Banks are serious here too. They actually demand collateral, don’t issue credit cards or lines of credit and interest rates are high. In the background, only the folks who are proven solvent qualify for credit. It is very old fashioned. You need to show you are credit worthy before cheques get cut. As a result of the shortage of facilities that exist (the things we are familiar with in the West) systemic risk is very low. Quite honestly, it is already too poor to get hurt by economic distortions elsewhere. The fall is not a big drop even in the worst case scenario. One unfortunate downside though is that assets are currently quite overvalued here just as they are in parts of China. That means some pain lies ahead if China falls as the wealth effect will vanish. Where I live though they still plow fields by oxen and deliver local goods by donkey or carriage. Most people are agricultural and rural. The world could collapse and most would never even hear about it.

            My solution is not for everyone though. You need to live in Africa to enjoy it.

            Jul 21, 2013 21:38 PM

            Many Thanks Shoobedoowa. Sometimes I wonder if anyone reads them given they are a bit depressing in outlook. Happy to hear you are enjoying the commentary though. These are my personal ruminations into what the future holds in store for us.

        I must have misread you …., I would agree that we never came out of the so called recession, and it closer to a depression……….

          Jul 21, 2013 21:48 PM

          You know what is interesting Jerry is that we have become so numb to the daunting statistics that confront us each day. Prior to the GFC none of this would have even been imaginable to most people. Few would have believed it even possible. And yet here we are on the edge discussing as many as a third of the population on food aid and unemployment rates at 17% in real terms. The structural damage has been unprecedented. Debt is so large it is unrepayable. To me it is a certainty that there will eventually be a revaluation of the currency to bring the debts in line with tax revenues. That tool is in the toolbox as a last resort if all else fails and there is no real expansion to offset the distortions. It does mean an instant drop in living standards though.

          Jul 21, 2013 21:59 PM

          Of course it is Jerry!

    Jul 20, 2013 20:58 PM

    To call McEwen disingenuous is being kind. Rob’s known about the gold and silver price management scheme for more than a decade, as I talked him on the phone about this back in 2001 and, at my request, he even sent a $1,000 donation cheque to GATA. He, and other large Canadian gold miners…who were all in the know at the time…could have done something [if not individually, then at least collectively] a long time ago…but they could care less about their own shareholders. That’s why I hold this industry in such contempt. You should, too.

    A thought from Ed Steer concerning mux and other miners. He might very well be right. Maybe they are unworthy of investment, maybe my dollars would be better invested in medical advancment etc.

      Jul 21, 2013 21:05 AM

      How about forming OREC
      Organization of Resource Exporting Countries

      Thinking about it makes you realize that OPEC is just a cartel.

    Jul 21, 2013 21:43 AM

    That’s great Coca Cola that’s just what they need, sugar laden garbage. That makes for a really optimistic future! Give them the sugar and watch the rest. As usual you are as wrong as could be…

      Jul 21, 2013 21:56 AM

      I am supposing you are speaking to me James and that you missed the point altogether.

    Jul 21, 2013 21:18 AM

    I didn’t miss your point. And don’t worry, I guess soon enough you will have plenty of Starbucks, McDonald’s and pizza huts to your hearts content. Prog

    Jul 21, 2013 21:19 AM

    progress is coming!

      Jul 21, 2013 21:57 AM

      Judging an observation of facts like you have done is like shooting the messenger, James. I am merely reporting what I have seen. There is no emotion that can be attached to it after the fact. I just thought you guys would find some of this interesting from a first hand account. I am trying to point out that dynamics here are in a very strong growth mode right now. Many of these countries have GDP growth rates between 5 and 10% annually. Above China in fact. To discuss that seems appropriate on a commodities based website. Especially when the rest of the investing universe in most Western countries seem hard pressed to produce growth above two percent. What happens here now will affect you in the future whether you like it or not. Africa represents 1/7th of all the people in the globe and it is booming in many of the 54 countries here. What objection should that engender unless it is just resentment?

        Jul 21, 2013 21:38 PM

        It is very appropriate to discuss it on this site!

    Jul 21, 2013 21:14 AM

    It’s Sunday!

    quote:
    The song is based on the Biblical Psalm 137:1-4, a hymn expressing the yearnings of the Jewish people in exile following the Babylonian conquest of Jerusalem in 586 BC: Previously the Kingdom of Israel, after being united under Kings David and Solomon, was split in two, with the Kingdom Of Israel in the north, conquered by the Assyrians in 722 BC which caused the dispersion of 11 of the 12 tribes of Israel. The southern Kingdom of Judah (hence the name Jews), home of the tribe of Judah and part of the Tribe of Levi, was free from foreign domination until the Babylonian conquest to which Rivers Of Babylon refers.

    “By the rivers of Babylon, there we sat down, yea, we wept, when we remembered Zion… They carried us away in captivity requiring of us a song… Now how shall we sing the Lord’s song in a strange land?”

    The namesake rivers of Babylon are the Tigris and Euphrates rivers. The song also has words from Psalm 19:14:
    “Let the words of my mouth, and the meditation of my heart, be acceptable in thy sight…”
    (www) en.wikipedia.org/wiki/Rivers_of_Babylon

    Rivers Of Babylon
    http://www.youtube.com/watch?v=gBb1r97SrXs

    Jul 21, 2013 21:04 AM

    Thx Irwin, I hadnt herd the song in awhile, I prefer boney m tho.
    History is interesting to me wherever I find it. Funny how things work out sometimes, I was just watching a video about the pharasee writing the Talmud in babylon. Apperantly Jesus didnt really agree with those guys from what I am hearing. Seeing a little of whats in it I understand why. But I do enjoy that song.

    On another note A friend of mine from Montana that knows I follow precious metals told me that 3 mines shut down due to low prices in silver. A few people have been saying we would start to see closures. I guess its happening.

      Ann
      Jul 21, 2013 21:54 AM

      One that also shut down a couple of weeks ago and a 2 hr drive from where i reside is Huldra Silver (HDA )

        Jul 21, 2013 21:42 PM

        Ann,

        I took a lok at that company some time back courtesy of Sean Rakhimoff.

        Didn’t really work for me.

        Big Al

    Jul 21, 2013 21:32 AM

    High demand and low supply = gold up up up!

    Jul 21, 2013 21:44 AM

    I have to disagree with those predicting higher metal prices. From my view, here in Florida, and from what I have been reading about other areas of the country we appear to still be in a recession and very close to a depression. This is not a good environment for higher metal prices, Until this president starts creating jobs instead of destroying them I don’t see a change anytime soon. I’m fully invested in the metals and I have moved my time frame for higher prices to 2018-2020. Where am I wrong in my thought process?

      Jul 21, 2013 21:08 PM

      Gator,
      The metals perform quite nicely in economic downturns.
      It will not be a question of the price of the metal it will become a question of what the metal purchases. The distinction between price and purchasing power will be moved from the not considered column to a survival skill.
      Stop thinking price….start think how many ounces.
      The debasement of the dollar measure will quicken to address obligations un-addressable without creating money by waving a magic wand at levels far in excess of production.
      When the economic tectonic plates decide between inflation and deflation the way I see it I do not want to own paper prolifically profligated by the greedy government that created the unsustainable in the first place.
      The unsustainable will end in further debasement. A substitute currency will be suspect.
      It will be like when on my honeymoon in 1995 Mexico. The merchants would chase desperately to obtain dollars which they then saw as protection from their government.
      As birdman illustrates above it will be all paper this go round…..not a preference between paper.
      I agree with you gator. But I am confident that in the long run the precious metals will protect purchasing power.
      There will be former Wall Streeters and London Bankers then trying to survive in the streets of Manhattan and London chasing purses of metal because they will then understand the difference between price and value.
      Dennis

        Jul 21, 2013 21:44 PM

        I certainly agree with you Dennis M!

    Jul 21, 2013 21:06 PM

    1957 Billy Graham ● New York Crusade

    quote:
    “Evangelist Billy Graham preaches on “How To Live The Christian Life” to 20,000 people in Madison Square Garden during his famed 1957 Greater New York City Crusade. This historic Crusade was attended by more than 2.3 million people over 100 consecutive nights in the Garden, as well as several services at Yankee Stadium. The great final Crusade service was held in the open-air streets of Times Square, attended by more than 100,000 people.”

    http://www.youtube.com/watch?v=ApKocs2T3VI

      thanks for the post……..Irwin,,,,enjoyed……..

        Jul 21, 2013 21:29 PM

        I just briefly paused at the 26:51 mark.
        WOW
        I just had the spine tingle thing reserved for Diva-esque singers.
        Thank you Irwin!

          Jul 21, 2013 21:45 PM

          Yes Irrwin, thank you!

    Jul 21, 2013 21:51 PM

    I thought it would bring back some memories!

    Doc Billy’s message never changed over all those years. Quite an amazing choir too.

      Jul 21, 2013 21:24 PM

      When your message is right you need not change it and/or tweak it for an audience.
      We in fact live in society divided by truth and deceit.
      That fact has been an will continue until it is what it will be:

      When Henley wrote:

      INVICTUS

      Out of the night that covers me,
      Black as the pit from pole to pole,
      I thank whatever gods may be
      For my unconquerable soul.

      In the fell clutch of circumstance
      I have not winced nor cried aloud.
      Under the bludgeonings of chance
      My head is bloody, but unbowed.

      Beyond this place of wrath and tears
      Looms but the Horror of the shade,
      And yet the menace of the years
      Finds and shall find me unafraid.

      It matters not how strait the gate,
      How charged with punishments the scroll,
      I am the master of my fate:
      I am the captain of my soul.

      Invictus is a powerful poem….but upon study maybe William Ernest Henley would have been better served putting his reference to God not in the form a question….capitalizing his reference as well as singularizing the same.
      Like Billy said you can be on the write track but we are not playing horseshoes with our souls! You can be in the right library….. even on the right shelf…close is not enough …..we need to choose the right Book! If he had the right book in his fox hole he would have rightfully bowed his head often.

    Jul 21, 2013 21:02 PM

    Over the past month I have been writing in the Korelin Economics Report and discussing what I see as impending risks that could destabilize China with regards to heavily inflated asset values, particularly property, and how these have led to outsize growth and credit creation that now pose systemic risks.

    Well this morning, without identifying my posts specifically, I now have a report produced by none other than JP Morgan addressing my ideas and breaking down the worries into their component parts while offering more analysis on exactly that topic. They write in synopsis of the problem:

    “The liquidity squeeze in the interbank market in June has raised concerns over financial risk in China, and given the structural economic slowdown, how it will evolve in the coming years. China has experienced rapid credit growth and house price inflation in the past four to five years that would likely have engendered severe financial stress in other countries. Allowing this to continue could lead to a financial crisis; tightening credit and forcing deleveraging should slow growth to a more sustainable pace but risks a faster-than-desired slowdown. This is the dilemma facing Chinese policymakers”.

    And that in a nutshell defines the problems arising from a combination of rising property values, collateral presented for loans, credit issuance and the downside that may come about if growth slows and assets decline in value to quickly.

    I was really pleased to see they are addressing the issue.

    In an article posted on ZeroHedge today titled “JPMorgan Asks “How Similar Is China To Japan In The Late 1980s?” we gain insights into how those most deeply involved in the financial investment markets view the risk as comparisons are made to Japan as a means to seek answers to China’s dilemma.

    What worries me here and what is not addressed in the report is the interaction between global credit markets and growth issues that stand to compound the slowdown in China in ways never experienced by the Japanese. There may indeed be no new eras but we can probably all agree it has been a long time since any Western countries faced the genuine possibility of a deflation trap themselves.

    The current economic issues in Europe, Japan and the US particularly as they relate to deep indebtedness and slow economic growth will stand to compound problems for China going forward. It is the growing interconnectedness of all the major economies that creates the most acute risk now and so comparing two nations in isolation does not adequately address the real risk to the system.

    The report is worth your time to read though if you are investing in China currently and wonder how the future may unfold as China slows. See it here on Zerohedge:

    JPMorgan Asks “How Similar Is China To Japan In The Late 1980s?”
    http://www.zerohedge.com/news/2013-07-21/jpmorgan-asks-how-similar-china-japan-late-1980s