Byron King – Fri 26 Aug, 2016

Thoughts on the Fed and precious metal stocks

Byron King joins us on the show today to first discuss his thoughts on the Fed and the recent Jackson Hole meeting. After stating that the Fed is backed into a corner we address what he is doing with his portfolio. Now being heavily invested in precious metals stocks he shares the stocks that he thinks will be winners moving forward.

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Byron KingAl KorelinCory Fleck

  1. On August 26, 2016 at 10:51 am,
    OOTB Jerry says:

    Thanks for having Byron….great comments.

    • On August 26, 2016 at 11:12 am,
      CFS says:

      The solution to the economic situation in which the world finds itself is well known.
      (Decrease the drag on economies caused by government inefficiencies…..regulations, excess taxation, waste, corruption, etc.)
      The solution is not within the purview of the Fed or other central banks, but of governments themselves. Governments, however, do not wish to yield power. They always want more power, more money.
      The revolution will not be pretty.

      • On August 26, 2016 at 12:36 pm,
        DC says:

        +1 CFS

    • On August 26, 2016 at 12:41 pm,
      Archdeacon (!) Andrew says:

      + 1

    • On August 26, 2016 at 3:35 pm,
      OOTB Jerry says:

      Gold going higher…..How do we know. Because ,every time Uncle Owl calls for diversification, gold soars. 😉

      • On August 26, 2016 at 5:07 pm,
        LPG says:

        Funny, Jerry.
        Hope all’s good.
        Best to you,

        • On August 26, 2016 at 6:28 pm,
          OOTB Jerry says:

          LPG…all is well,hoping all is well with you and THANKS for asking.

  2. On August 26, 2016 at 11:00 am,
    CFS says:

    Mark Dice shows what HC should have said:

  3. On August 26, 2016 at 11:24 am,
    Jason says:

    I can’t wait to get off work so I can listen to the show! Even more excited about the weekend show!!

  4. On August 26, 2016 at 12:44 pm,
    CFS says:

    I believe I am going to get a short the general market signal in 10 minutes or so.
    Certainly CEOs and other insiders are selling!
    (look at 5th column)

    • On August 26, 2016 at 1:12 pm,
      CFS says:

      Too much buying in the last 5 minutes killed a short signal……C’est la vie.

  5. On August 26, 2016 at 1:08 pm,
    Birdman says:

    Well it seems to be pretty much everyone who is now saying the Fed screwed up. I can hardly think of a single fan outside of Hilsenrath and a few Nobel Economists and even they seems to be leaning towards deflating expectations.

    But has anyone ever considered that all of this was deliberate?

    Its not as though we could not see the current troubles coming or anything. We have charts on interest rates going back 5000 years for crying out loud so EVERYONE worth his salt knew that we would eventually see those rates go negative.

    The Federal Reserve of all places was more in tune with those facts than anybody else. Is it even plausible that they could not have known the consequences of not normalizing?

    Would we believe it if we heard they were just flying on a wing and a prayer all this time? That makes no sense to me. If they knew all along rates would eventually fall to zero and threaten to go negative then they would have to have devised a plan to go with the flow.

    It means they are already well aware that the wheels will come off the wagon in good time and all this talk from them is just a way of stalling and holding off what is inevitable anyway.

    It probably also means that global monetary reform cannot be avoided, that pensions really will go bust, that no economic recovery is ever possible with the existing debt overhang and demographic profile and therefore we will indeed see a debt jubilee sooner rather than later.

    In other words….they are just stalling for time to get the best advantage.

    The thing about a debt jubilee though is that I suspect its not going to be what some people imagine. They will guess their mortgage gets wiped away or the car payments and student loans are suddenly discharged or something like that but I think they are wrong.

    To me a debt jubilee is where public debt is bankrupted on and that can mean only one thing…..that a lot of prior obligations of most governments will never be paid in full if they are ever paid at all.

    And that would include social benefits, welfare, pensions, food handouts, subsidized housing, free medical care, public services, library funding, a host of tax deductions on dental, eye-wear and hearing aids and on and on and on.

    I mean the debt jubilee will free government to allow it to reset, not free individuals to scamper off without a care in the world as their house is suddenly free. And I doubt banks will be in that pardoning game voluntarily because they are private institutions.

    So that only leaves the publicly funded debt to be erased. And that’s really going to hurt.

    • On August 26, 2016 at 1:11 pm,
      CFS says:

      I believe the Fed has been doing its best.

      They just don’t have the tools.

      • On August 26, 2016 at 1:33 pm,
        Birdman says:

        That’s essentially my point CFS. If what is happening to all of us today was preordained on the long term interest rate charts then we should never have expected them to be able to fix it anyway.

        I mean, what the hell could they do against something so big that its worldwide in scope. The Central Banks in aggregate are shooting peas at something that is much bigger than they are. Debt markets are in the trillions……interest rate derivatives are in the quadrillions.

        And there are not enough people being born to take up the slack while so many more are planning on dropping out of the workforce for good. Against that backdrop we see productivity just not responding anymore and robotics eviscerating the workforce. Is it really any wonder European Governments are so desperate to bring immigrants inside the EU?

        So yes, the Fed has been helpless all along. Same as the rest of us. They just cannot tell us the truth or there would be a God damned panic in the streets.

        • On August 26, 2016 at 1:37 pm,
          Birdman says:

          By the way….did you see what happened to the Yen today? That is a precursor to golds next decline if you are curious. The Yen / Gold relationship is pretty solid and has been for some years now so buyers beware if Yen does not recover. It looks a little double toppy to me right now. But on the longer term charts (weekly) it looks distinctly like its about to embark on the handle portion of a cup and handle pattern. If that’s the case then gold will come back to life after a few months correction and we may indeed get a bull market after all.

          See…I might be adapting after all!

        • On August 26, 2016 at 2:39 pm,
          Birdman says:

          Naw……just kidding.

          Here, have a look at the monthly chart of gold.

          And just feast your eyes on how bearish that pattern looks. Gold (as I have mentioned many times before) has not been able to break out of its bear market channel going back to the peak in 2011. Gold has failed at its key juncture and there is no guarantee it will see the years highs again anytime soon.

          It just got killed bloody-red right before it achieved lift-off. That would be technical selling friends. The computers were in charge this time and they bailed out when no breakout came after weeks of trying.

          So August will finish in the red but the news gets worse. That channel projects all the way down to the low 800’s if it comes to pass. So you all might want to pay special attention to the Yen if it fails to come through with a weekly chart cup and handle and instead aims to retest the lows it saw in late 2015.

          Just saying…..maybe a little profit taking is in line unless you are sure this chart is wrong.

          Gold on a monthly chart…..futures at

          • On August 26, 2016 at 3:01 pm,
            Birdman says:

            For the Elliot Wave aficionados……according to that gold chart I posted above we are only on the second of three waves down. The B leg decline in other words if your count begins from the peak in 2012. So a third and final wave must still be coming and that one will devastate the gold-bugs who have been so certain this is already a new bull market.

            I am not really saying anything that should be a surprise to people who do charting. Everything is right there in front of you if you can bear to look at it with the rose tinted glasses taken off.

            So if we are not yet in a bull market….and if we have not finished a three wave decline according to Elliot Theory, then what is this if not a mere bear market rally? Open your minds folks. Don’t stop thinking just because the whole world insists gold is on its way to the moon and stars.

            The potential exists for a very substantial decline from where we now stand.

        • On August 26, 2016 at 2:43 pm,
          Birdman says:

          Here is the Yen on the weekly I was mentioning.

          Will it make a cup and handle? Or will it fall back and retest 2015 lows? You be the judge. Either way, it is not good for the near term.

          Weekly Yen…..trouble is brewing for gold. Its written all over this chart.

          • On August 26, 2016 at 3:14 pm,
            Birdman says:

            See those three candles on the monthly Yen chart in 2016? Those imply a drop of 10 to 20 cents Yen / Dollar if history is our guide. It could not be more bearish where gold is concerned and therefore miners should suffer substantial declines as that happens.

            Tom McLellan wrote about just this topic a few weeks back. Read his article about the Yen / Gold relationship for some real reasons to worry in case you don’t believe what I am saying here. His chart speak volumes.

            Gold is Bound To The Yen — McLellan Publications

    • On August 26, 2016 at 3:33 pm,
      Temple says:

      This is all the knowable end game of fractional reserve/usury banking

      • On August 26, 2016 at 4:42 pm,
        Birdman says:

        Just so Chris. It was known all along by those in the know. Man on the street got screwed though.

  6. On August 26, 2016 at 2:33 pm,
    B says:

    Seems logical to me Bird.
    Why wouldnt they have known all along?

    • On August 26, 2016 at 2:46 pm,
      Birdman says:

      Hi B……yes exactly. Would it not make sense that they would use the obvious opportunity to spread some cash around so the right people got it. When handed lemons, make lemonade. That’s all the delay is about. Not so the rest of us can prepare. Screw that….they are taking care of the banks and their friends before the SHTF.

    • On August 26, 2016 at 3:48 pm,
      Dick Tracy says:

      The TAG TEAM, B, and Bird!

      • On August 26, 2016 at 4:36 pm,
        Birdman says:

        And you too. Welcome to the conversation. I wondered where you were.

  7. On August 26, 2016 at 5:09 pm,
    B says:

    When your 1 step ahead in your thinking people think your smart, if your 2 steps ahead people think your nuts.

  8. On August 26, 2016 at 8:04 pm,
    Chartster says:

    What you are looking at ( Elliot wave and yen ) and what I’m looking at reach the same conclusion. Gold is going down. We had some good roll over fakes in the last few months, but this time, it’s headed south for at least 6 or 7 weeks. Mid Oct)

    I do believe the bull will start ( like moonshot ) after this big drop.

  9. On August 26, 2016 at 9:50 pm,
    B says:

    Im not looking at charts, but I noticed that right aftet this recent drop, one of the shares I like moved up 20% in 2 days. (had to come down first of course)
    Just from that kinda stuff, I can imagine a “moonshot” after a 6-7 week drop.

  10. On August 26, 2016 at 10:19 pm,
    Ebolan says:

    Byron’s got to speak up. Volume on full blast and I can hardly hear him!

    • On August 27, 2016 at 6:46 am,
      irishtony says:

      Ebolan…You got to get yourself one of those old fashioned ear trumpets…..

  11. On August 27, 2016 at 1:23 pm,
    B says:

    You could try connecting the pweter to a tv? radio? and listening that way.
    I use my tv for more sound at times.