Al's Insights – Mon 24 Feb, 2014

If the world were a perfect place, I would be right!

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Marshall BerolAl Korelin

  1. On February 24, 2014 at 6:42 pm,
    bill says:

    “If the world were a perfect place, I would be right!”

    And you, Big Al, would also be the prettiest baby in the nursery!

    • On February 24, 2014 at 7:33 pm,
      Al Korelin says:

      Yes, but it is not and I am certainly not!

    • On February 25, 2014 at 4:09 am,
      Bird Man says:

      That was a terrific commentary, Al. Thanks for taking the time to express it. I can understand the objections that others have expressed by the way but I think it is mostly a kneejerk reaction that just assumes the idea is a failure before serious thought has been given to what is actually proposed. Those in power are looking for answers to our collective problems that can be implemented easily under a fairly restrictive climate of political bickering and lack of cooperation. I think they may have found an answer everyone can get on board with. Your views get my support.

      • On February 25, 2014 at 7:00 am,
        Big Al says:

        Thanks Bird.

        Nothing like “theory” is there? Unfortunately “reality” always rears its ugly head. Mankind can be so stupid and self centered.

  2. On February 24, 2014 at 6:44 pm,
    bill says:

    I gotta admit Big Al, after you said K voted for Obammie twice there is nothing you can say that surprises me anymore!

    • On February 24, 2014 at 7:36 pm,
      Al Korelin says:

      She is still the Greatest in my life.

      I just wonder how many people can accept those who disagree with the

      I would bet that you can and do!

      • On February 25, 2014 at 3:46 am,
        Bird Man says:

        A good wife is better than a fat bank account, Al. Find the right one and the riches follow anyway. My first one almost ruined me. Wish I had never laid eyes on that lump of negativity but I grew accustomed to it until 20 years had passed and all the bullshit started to seemed normal. Thank God we split up.

        • On February 25, 2014 at 7:01 am,
          Big Al says:

          Hope it is a better situation now, Bird. Sounds like it is.

  3. On February 24, 2014 at 7:19 pm,
    CFS says:

    Do you know the carrying cost of generating $2 trillion in Keynesian spending money if interest rates were normal, say 5%? The carrying cost would be $100 Billion per year. Neither the US nor the EU could afford that extra drag on the economy, even IF the money was perfectly spent on shovel-ready jobs. We are mathematically in an economical death-spiral. The can is being kicked down the road by printing more and more money to keep interest rates low via buying new debt. While it may appear this can go on indefinitely, it cannot and will not. Eventually it will end in default and EVERYONE who owns treasuries and other debt issued against Treasury collateral will be left with only pennies on the dollar.
    Keynesian injection of government spending only works as a temporary measure and we are far beyond such band-aids. We are living in a fool’s paradise at the moment. The Government is still digging the hole deeper and deeper and will bring down the whole world economy; the only question is when and what triggers the collapse.

    • On February 24, 2014 at 8:07 pm,
      HEAVYHITTER says:

      and that road…CFS….leads to gold

      Thats the road we are on…without…ANY DOUBT.

      • On February 25, 2014 at 3:53 am,
        Bird Man says:

        Well, except for the fact gold, along with most assets, decline during a period of deflation. Please do not bother to tell me about the Great Depression experience either if that is going to be your counter argument to falling gold prices. As you should well know, the only reason gold soared then was because the US revalued metals and in effect defaulted on its debt…..not because gold is particularly good in disinflationary periods. Read what Robert Prechter has to say on the topic. He is spot on.

        • On February 25, 2014 at 6:18 am,
          HEAVYHITTER says:

          Prechter……HA …


          SHOT GUN……

          One good call 87 crash….maybe a few others.

          Yep….listen to Prechter. ?….are young going to make a lot of money.

          ??????????????????? Uh huh

  4. On February 24, 2014 at 7:39 pm,
    Al Korelin says:

    Sure I do Professor.

    I believe we need a miracle. Don’ t fault me for that!

  5. On February 24, 2014 at 9:48 pm,
    Eric says:

    In my opinion, the dollars toward infrastructure would have worked in the past — before they decided to bail out the bankers and wall street. At least we would have been sitting today with something to show for the additional debt — updated roadways, bridges, electric grid, etc.

    As it is, doing it know would just add to the debt burden that CFS addressed above.

    Here is my idea on how to pull out of the mess. First, you hit the re-set button and allow the losses to be taken. A lot of money will go to ‘money heaven’, as bond holders lose big time. But a lot of debt would be removed from the system.

    Secondly, create tax incentives to allow entrepreneurs to create the industries and jobs of tomorrow. Things like a renewed space program; advanced transportation systems; alternative energy; medical device technology; bio-technology.

    We can grow a new and vibrant economy on the back of that. AND a bull market the likes of which you have never seen. Not one built upon debt or QE — one built on honest to God growth.

    • On February 24, 2014 at 10:03 pm,
      HEAVYHITTER says:

      The only thing thats going to get ….reset….is the USD.

      We are all going to hyperinflation heaven.


      • On February 25, 2014 at 3:51 am,
        Bobby says:

        heavy, do a bit more dd on hyperinflation and you just might change your mind.

        • On February 25, 2014 at 3:55 am,
          Bird Man says:

          Maybe a lot more investigation. Talk about blowing your credibility man.

        • On February 25, 2014 at 6:39 am,
          HEAVYHITTER says:

          As the saying goes…..we’ll see.

          Time always brings truth as events unfold.

          Not talking about one of those deflation scares.

          The trend will be big inflation at the least.

    • On February 25, 2014 at 7:51 am,
      Big Al says:

      thanks Eric,

      That was exactly my point.

  6. On February 24, 2014 at 9:52 pm,
    Eric says:

    one after-thought…
    when you have organic growth return to the economy, the tax revenues will explode. Not from increasing tax rates, but through exponential growth of the economy itself.

    With that tax revenue, re-build the infrastructure (instead of fighting wars that nobody wants and which nobody wins). Do that and I won’t have to own gold or be frightened about the future of my children and grandchildren.

    • On February 25, 2014 at 3:50 am,
      Bobby says:

      what a pleasant dream, eric

      • On February 25, 2014 at 3:54 am,
        Bobby says:

        btw, isnt that what china is doing?

        • On February 25, 2014 at 7:32 am,
          Eric says:

          yes, in part, they are. When looking at China’s growth track (and the infrastructure build), it reminds one of the US in the early to mid 1900s in some respects. The problem is that they are accumulating massive amounts of debt in the private sector and they have some gigantic environmental and water issues.

          note too, that even with the growth the US experienced during the 20th Century, it did not prevent the Great Depression and several nasty recessions. Some people talk about China’s growth as if it will never suffer set backs, but I think that is short sighted.

      • On February 25, 2014 at 7:33 am,
        Eric says:

        I know! I am actually a closet optimist!

        • On February 25, 2014 at 7:54 am,
          Big Al says:

          You gotta be, man, you gotta be!

      • On February 25, 2014 at 7:54 am,
        Big Al says:

        Of course Bobby,

        But haven’t you had pleasant dreams come true?

    • On February 25, 2014 at 3:57 am,
      Bird Man says:

      We can all start right after World War III has concluded, Eric. You don’t really think a massive debt reset is going to go off without a big war I hope. The single biggest source of conflict is always related to declining economic fortunes. Think the last depression that led to a great war was just an anomaly?

      • On February 25, 2014 at 4:56 am,
        nyc says:
        hey Bird, i just started to tune into Martin Armstrong i think may be on the ball? what do you think?

        • On February 25, 2014 at 5:10 am,
          Bird Man says:

          Martin brings a historical perpsective to markets that I usually appreciate and he has a no nonsense style of barking back at the “gold to the moon” fools who only view precious metals from a narrow perspective of fundamentals that keep failing to satisfy.

          • On February 25, 2014 at 5:11 am,
            nyc says:


          • On February 25, 2014 at 5:13 am,
            Bird Man says:

            Anytime NYC. I will add that what I appreciate most about Martin is his discussions of capital flows and how those lead to conclusions that are often contrary to popular market thinking.

          • On February 25, 2014 at 7:57 am,
            Big Al says:

            Gonna work on getting Martin on the Show today. (I mean start working on it today)

          • On February 25, 2014 at 8:24 am,
            Bird Man says:

            I will be really impressed if you can get him Al. He seems to keep a busy schedule.

      • On February 25, 2014 at 7:56 am,
        Big Al says:

        I don’t know man, maybe people have miraculously gotten smarter. And then again, maybe not!

    • On February 25, 2014 at 7:53 am,
      Big Al says:

      And again Sir Eric,

      That is exactly what I was trying to say.

  7. On February 25, 2014 at 7:00 am,
    bj says:

    FYI: Interesting that the mainstream media is staring to call the dollar the ‘primary’ reserve currency. They used to call it ‘the’ reserve currency.

    Re: Shovel ready politics and the big surprise to Obama. Remember when NBS and its affiliates were campaigning for Obama 24/7? Of course, their parent company, GE, stood to make lots of money in the renewable energy arena building wind turbines. So, ……. Obama gets elected, GE was shovel ready and so were its cronies in government. Problem is that GE didn’t create jobs in the US building those turbines, but instead saw greater tax free profits in building them outside the country–and so they did! Thus the primary benefit the stimulus went overseas and to a few corporate cronies that weren’t about to let much of it trickle down, save a few crumbs in the construction industry (where a good portion of the onsite assemblers may very have been illegal aliens working as subcontractors).

    Also, I remember traveling the full length of Illinois at a reduced speed because the entire N/S interstate was a construction zone lined with comes and stimulus signs but no workers, much less heavy equipment! Not sure what country manufactured the cones or printed the signs, only know they there and not much else. What a mess.

    Indeed, it is an imperfect world. Ina perfect world, we would have honest governments that spend responsibly. But we get this instead:

    • On February 25, 2014 at 7:01 am,
      bj says:

      2nd paragraph: Change NBS to read NBC

    • On February 25, 2014 at 7:59 am,
      Big Al says:

      Great point, bj! Thank you

  8. On February 25, 2014 at 7:12 am,
    Dick Tracy says:


  9. On February 25, 2014 at 7:17 am,
    CFS says:

    i know I should not be surprised, but…..
    Is it not funny how rational people can discuss the economics of Von Mises and Keynes in the abstract and agree that in every example where it has been used Keynes has failed as a permanent solution, and yet when it comes to any specific problem the first choice is always to throw money at the problem.
    I think it must be built into the psyche of citizens of a wealthy country.
    Americans! What part of “We are bankrupt”, do you not understand? Clearly that news has been slow in spreading, but it has not changed in the past 5 years.

    • On February 25, 2014 at 8:04 am,
      Big Al says:


      I have all the respect in the world for you and for your intellect.

      We have a choice here. Tear down the house and rebuild it (which I have been advocating for quite some time) or just let the gov’t go on taking us down the road to ruin where it (and it is defined as a very few people) will possibly be a winner at all of our expenses.

      I would love to do an interview with you where you can succinctly give your thoughts on this.

      Please think about it as I can call you anywhere in the world.

      • On February 25, 2014 at 11:13 am,
        CFS says:

        My thoughts are expressed in this blog, as well as I can.

        I appreciate the fact that I get to post here.

  10. On February 25, 2014 at 7:26 am,
    Dick Tracy says:

    I think some people allow their egos to overrule common sense when it is almost always the case that common sense is what got them where they are in the first place. DT

  11. On February 25, 2014 at 8:53 am,
    stevie says:

    You will have to check with go-go Gomez on the weather Al.But,I can say you are right!At least until all the facts change and prove you something else.I do know that all I hear and read on your alternative site gives me the WAY to know more then I ever have before.I have some things in the works that will help me to get through the eye of the needle.(So to speak)The things you have contributed to in your purpose in life have helped me redefine where I go in mine.And that All has been and will be one of the biggest blessings of God I have ever known.I thank you for all you do and all you coordinate.And all of the intellects you bring here to your blogs.Just needed to say it.Thank You again!And all you attract!And allow.
    God Bless You my friend!Beyond what you can even imagine!

    • On February 25, 2014 at 11:37 am,
      Bird Man says:

      Very cool, Stevie. Al is a great guy.

  12. On February 25, 2014 at 8:54 am,
    Silverbug Dave says:

    If the world were a perfect place, we wouldn’t need any money at all!

    • On February 25, 2014 at 9:12 am,
      HEAVYHITTER says:

      Amen…it will always be the land of the wicked.

      More disinformation that you can lay your eyes on
      as well.

      The Godless who claim we can have it our way.

      Making sure you keep them company in…..HELL

      Like here …losing opportunities. ?.misery loves company
      with the disinformation. Some deliberate too.