Turning Hard Times Into Good Times

Dr. Quinton Hennigh and Michael Oliver return. Looks like Michael Oliver “nailed it” once again in his latest call to aggressively go long gold and gold shares as soon as gold were to register a weekly close above $1,825 anytime this quarter. As a technical analyst, Michael leaves the complex causes of why markets behave as they do to fundamentalists like Alasdair. Alasdair has explained that after Basel III banks will effectively no longer be able to hold derivatives like futures contracts and options without allocating additional capital to their balance sheet, which over time should lead to more accurate price discovery. This should be massively bullish for gold and silver because approximately 15,000 times more paper gold than physical gold is traded on the LBMA, and those contracts on balance have a very strong anti-gold bias. So as of January 3, 2022, those “anti- gold” derivatives will no longer be able to obscure price discovery for gold & silver bullion. That factor combined with a runaway i

Alasdair Macleod and Roger Moss return. Central banks now face a dilemma. Either they allow interest rates to rise to sufficient levels to tackle price inflation and lend support to their currencies, or they take one last gamble on yet more stimulus in the hope that recessions can be avoided. Politics and neo-Keynesian economics strongly favor monetary inflation and continued interest rate suppression. But following that course leads to the destruction of currencies. Alasdair will help us to identify the milestones as we pass them toward the ultimate destruction of fiat money and massive price inflation. He will also explain why, in the end, cryptocurrencies will not replace state-issued currencies, but rather are likely to become just another imploding fiat-denominated bubble. Alasdair will explain why the only form of protection against the increasingly likely collapse of fiat money will be real money—physical gold and silver—not currency or derivatives thereof. Roger will update us on exploration progress

Lyn Alden, Dr. Quinton Hennigh and Michael Oliver return. Gold and Silver miners are the only non-financial sector in the S&P 500 that has been generating real positive free cash flows. Yet the value orientated gold shares are not performing anything like growth stock sectors, including IT. Lyn believes the tables may now be turning in favor of value stocks over growth stocks, in which case gold and silver miners should be nearing the time for their next major breakout. Lyn will explain the drivers for value stocks as well as those for growth stocks. It will also be interesting to get her latest views on Bitcoin and crypto currency in general, and how she views those “growth” stocks relative to precious metals and energy stocks in general. The major gold and silver miners that are producing strong profits are however running out of ore so they will need to find new large scale deposits. One company that is showing early signs of a major gold and silver discovery is Eskay Mining. Dr. Hennigh will provide a

John Rubino, Gwen Preston and Eric Coffin return. You might be surprised to learn that according to Bloomberg, the only S&P 500 sector (excluding Financials) that is enjoying positive free cash flows after factoring out consumer price inflation is the gold and silver mining sector. Gold & silver miners are enjoying a positive inflation adjusted free cash flow of ~+1.0%. Other sectors cash flows? Materials ~-0.5%, Consumer discretionary ~-1.0%, Energy ~-1.25%, Consumer Staples ~-1.3%, Industrials ~-2.0%, Communications services ~-2.1%, Health Care ~-2.9%, Information Technology ~-3.1%, Real Estate ~-4.75% & Utilities ~-8.5%. Meantime, for the first time since the 1970s, wage inflation is just beginning to spiral upward as labor shortage puts common workers in the driver’s seat. Workers are starting to go on strike more aggressively than any time since the 1970s leading to rising wages that lead to higher inflation, that result in still more demands from workers for still higher wages in the form of

Alasdair Macleod, Patrick Highsmith and Michael Oliver return. The U.S. has three categories of buyers for U.S. Federal debt: the financial and non-financial private sector, foreigners, and the Fed. The banks in the financial sector have limited capacity to expand bank credit and American consumers are being encouraged to spend, not save. Except for a few governments, foreigners are already reducing their proportion of outstanding federal debt and there is every reason to believe that trend will likely accelerate as they suffer losses from plunging bond prices in an inflation-driven, rising-yield environment. With that, dollar hegemony will be threatened. That leaves the Fed. But the Fed recently committed to taper quantitative easing and it cannot be seen to directly monetize government debt. Meantime, the Biden Administration is pushing as hard as they can to spend endless trillions of more dollars in power-grabbing, give-away schemes, The Fed will be faced with a bad choice: protect financial asset values

Richard Maybury and Dr. Roger Moss return. When President Eisenhower was leaving the Presidency, he warned Americans of the emerging “military industrial complex” (MIC) that would destroy our democratic form of government. Sadly, it seems the President was right as a massive bureaucracy now makes rules that have nothing to do with the will of the electorate. A move away from power by the people to power of the government over the electorate to dictate every area of life has provoked growing anger from conservatives. Conservatives crave retention of the Constitution that guarantees the rights of Americans to be free of government tyranny. Much of the current lack of agreement is related to social issues, with economic issues taking a back seat. But, increasingly, as Federal Reserve’s counterfeiting actions result in hyperinflation and Americans realize this money printing scam is the reason for their poverty and the massive wealth of the top 1%, Richard believes a setting very similar to Cuba in 1958 may leav

John Rubino, Michael Oliver and Dr. Quinton Hennigh return. David Stockman had a last minute conflict with the timing of his interview with us, so John Rubino will be replacing him on today’s program, but we will ask for John’s comments on David Stockman’s article. Don’t believe your eyes! The U.S. border is closed. America’s exit from Afghanistan has made America safer. The $3.5 trillion stimulus program will cost nothing. The Federal Reserve can simply create dollars from computer keystrokes! David recently wrote an article titled “Washington Idiots at Work.” He suggested low IQs of elected officials in Washington are to blame for America’s obviously economic decline. There is reason to believe that policies put into effect like those at the border, or the Afghanistan withdrawal, or the $5+ trillion zero cost “social infrastructure” bill proposed by the Biden Administration, are a scam no less than a game of Three Card Monte on the streets of New York City. Regardless of whether policies leading to the so

Frank Holmes, Michael Hudson and Chen Lin return. Last time we talked with Frank he suggested that China is leading the world toward a cryptocurrency that would be backed by gold. But does a gold-backed cryptocurrency make sense if the Chinese virtual currency is engineered to remove all freedoms and liberties from every human being by governing where you go, what you buy, and what you are allowed to believe? By contrast, gold has served as the most fair, egalitarian and pro free- market money ever used by humankind. While gold systems have in the past helped to slow down government theft by way of inflation, is there any reason to think the Chinese Communist Party would allow a gold-backed monetary system to lead to a free market capitalist system? What would be the purpose then of China backing a digital Yuan by gold? Those and other questions regarding money and other market matters will be asked of Frank who is the chairman of HIVE Blockchain Technologies a company that mines Ethereum. We will get Chen Li

John Rubino, John Watson & Michael Oliver return. As the Biden administration invites the world’s poor to come to America to receive free college, free medical care, free housing, etc., and vote Democrat, how will all those services be paid for? No problem, say Nancy Pelosi, Chuck Schumer & AOC. A money tree at the Federal Reserve is the gift that just keeps on giving. Why worry? Money created by the Fed's keystroke costs nothing! Moreover, the Fed's money tree has resulted in more stock market prosperity than ever, thus proving the Fed’s omnipotence. Yet history reveals that this Keynesian monetary theory is a big lie. John Law tried it in 1719-1720, when his French national bank created so much debt-manufactured money that the financial system completely collapsed, leading to national despair and John Law’s escape from France to save his life! John Rubino will explain why open borders and other vote-buying gimmicks are leading to massive inflation that will ultimately collapse the system and how we

Alasdair Macleod, Dr. Quinton Hennigh and Chen Lin return. Including bonds and other financial issues emanating from the U.S. Government, the individual states, the private sector and the broad money supply, dollar debt totals roughly $100 trillion, to which we can add shadow banking liabilities realistically estimated at a further $30 trillion. This gives us an idea of the scale of the threat to asset values and banking posed by higher interest rates, which are now all but certain. The prospect of contracting financial asset values is potentially far worse than in any post-war financial crisis, because the valuation base for them starts at zero and even negative interest rates in the case of Europe and Japan. Many argue that if the existing fiat monetary system self destructs, the dollar will be the last currency standing. But Alasdair will explain why the dollar is likely to be the first to fold taking down the entire dollar-centric system with it. Of course, in trying to save the dollar, the Fed will acce

Michael Oliver and Quinton Hennigh return. Kevin Smith and Otavio “Tavi” Costa visit for the first time. At a time in Western culture when individuals are told to stop thinking and simply follow orders, Kevin and Tavi have demonstrated that if you want to avoid following the lemmings into the sea, using your God given intelligence can allow you to rise far above the norm. Starting with Kevin and his wife Carleu Smith in 1992, the legacy of a highly profitable Crescat Capital began. In 2013 Tavi, another individual thinker, joined Crescat where he has built the company’s macro-economic model. Kevin and Tavi will explain the company’s investment philosophy and why their macroeconomic model demands investing in gold exploration companies. Not surprisingly, the independent thinking of Crescat’s team was attracted to the skills of another exceptionally talented and perhaps the most out-of-the box thinking geologist in the world, Dr. Quinton Hennigh, who has recently joined Crescat as the company’s geologic & t

Frank Homes & Chen Lin return. Walter (Jay) Buckley visits for the first time. If anyone can help us make sense of a world that seems to rely more on miracles of technology and on concepts of equality rather than on merit, it’s Frank Holmes. From his years of experience managing precious metals and natural resource mutual funds to starting an airline ETF, to now serving as Executive Chairman of HIVE Blockchain Technologies, Frank can bridge the gap of understanding between a traditional investment mentality and the mysteries of cryptocurrencies. We will look to Frank for some portfolio guidance in this rapidly changing world. Chen Lin who specializes in biotech stocks as well as energy and precious metals miners will join me to talk about his views on those market sectors as well as his thoughts about China and the U.S. markets. Jay Buckley will inject a bit of joy into our lives by sharing stories of how the Guide Dog Foundation and America’s VetDogs are saving the lives of veterans and other people with

David McAlvany, Michael Oliver and Dr. Roger Moss return. The Fed has been hinting at reducing QE. But how seriously should we take Fed tapering talk when its credibility isn’t any better than the credibility of Dr. Fauci’s mask wearing advice? The Fed assured us just before the dot com crisis, as well as just prior to the 2008 financial crisis, that the financial markets were soundly under control. Why then do we take their taper talk seriously when even the slightest rise in interest rates will predictably toss the economy over a deflationary the cliff? Is it simply a matter of cognitive dissonance that keeps us believing in Fed happy talk when The Fed has no politically palatable choice but to hyperinflate the dollar into oblivion in order to pay off debt that cannot be paid in current dollars? With the handwriting on the wall pointing to an eventual hyperinflation of the dollar, but with annoying disinformation from the Fed along the way, we will ask David for help in forming an investment strategy to hel

Lyn Alden, Chen Lin and Dr. Quinton Hennigh return. Lyn will explain why rates of inflation may be transitory but prices levels will continue to rise, and possibly dramatically so. Her outlook for oil and gas is very bullish because she doesn’t believe alternative sources of energy can come on stream nearly as rapidly as assumed by many investors. She also favors alternative forms of money like gold and silver and remains open to owning Bitcoin and other crypto currencies. She will explain those key investment views, which are largely shaped by a Federal Reserve Bank that is a prisoner of a debt trap of its own doing. The only way out is massive money creation from thin air that will force the price of goods and services much higher as measured in an increasingly debased dollar. One way to protect your wealth against dollar debasement is not only to own gold and silver but to own companies that discover and produce those metals. Eskay Mining’s VMS project that is geologically related to and next door to one

John Rubino, Patrick Highsmith and Michael Oliver return. In 2004, John Rubino and James Turk wrote “The Coming Collapse of the Dollar and How to Profit from it.” John Maynard Keynes stated, “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million can diagnose.” Rubino and Turk wrote about the upcoming dollar collapse 17 years ago but the dollar is still the world’s reserve currency. Were they wrong? Or is America’s current move into fascism under President Biden evidence that an ongoing destruction of the dollar since 1971 is leading to the destruction of American society starting with the most basic America right, The First Amendment? With the destruction of the American Republic well underway, what will happen to American society when the dollar finally does enter the dustbin of history as all fiat currencies thr

Richard Maybury and Dr. Quinton Hennigh return. The title of this week’s show is the main topic featured in Richard’s August 2021 monthly letter. Richard says he is 90% sure that the “Great Eruption” has begun. It will yield many bankruptcies, but also new fortunes among those who understand it. Richard says the three components of the “Great Eruption” are: 1) The “rebellion against the swamp,” 2) The new era of inflation, and 3) Cyberwar. Explanations of each component and the instability that comes with them will be explored with a focus on the new era of inflation. How bad will it get? Is hyper inflation a possibility? Will a currency reset coincide with the “Great Eruption?” Most importantly, how does Richard think those who are able to clearly envision the future direction of America can turn hard times into good times? One possibility is to own companies that produce gold and silver, which the markets will eventually demand as money. Quinton will update us on one of your host’s favorite new gold produc

Alasdair Macleod, Quinton Hennigh and Michael Oliver return. On July 22, Alasdair wrote: “The problem fast approaching all major central banks is that a rise in interest rates will be brought forward by their misjudgment on price inflation, a development which will directly challenge the policy of deploying QE to support financial markets and sustain confidence in the economy. And with the end of zero official interest rates, to continue support for financial assets requires an increase in quantitative easing to compensate. In other words, the money being fed to investing institutions will have to be supplemented to prevent risk assets falling in value.” Alasdair believes we are on the eve of a massive currency destruction that mirrors that of the French Livre’s demise when the Mississippi Bubble collapsed in the early 1700s. One investor named Cantillon who saw the destruction inevitably ahead provided clues as to how to avoid destruction from the dilemma we all face now. Alasdair will explain. Quinton will

Dr. Roger Moss and Daby Carreras are first time guests. Peter Boockvar returns. As CIO of a $3.5 billion fund, Peter closely watches macro economic conditions. Are the June 5.2% CPI & 7.3% PPI readings hinting at the start of a significant 1970s stagflation ahead of us? With the Fed painting itself into a corner so that it’s impossible to raise interest rates without triggering a financial market collapse, how will that impact our investment decisions? Peter will address those issues. Meantime, Daby who is running for controller of NYC is focused on issues that impact the economics of American cities. He will explain why America is being destroyed from inside out and what he hopes to accomplish as NYC’s next controller. Of direct interest to those of you who invest in gold exploration companies that can generate huge percentage gains, Roger will explain the geological similarities of Labrador Gold’s Kingway project with the amazing next door discovery of the Queensway project.

John Rubino and Michael Oliver return. John Watson visits first the first time. As our global fiat monetary system is obviously facing destruction and the international banking system is facing seismic changes, monetary deposits not denominated in fiat money but in grams of gold and silver are popping up around the world. Crypto currencies have partly distracted investors from gold, the only currency that has stood the test of time, but they have also distracted investors from arguably the most undervalued small cap equity sector, gold and silver exploration stocks. Major miners are making record profits but they are quickly running out of ore. Meantime, junior explorers some of which are sponsors to this show are developing enormous gold deposits. Rick Rule believes those successful companies will become takeover targets in 2022 at share prices far in excess of current levels. John will discuss factors that make junior gold exploration companies perhaps the most undervalued equity sector in the world right

Alasdair Macleod, Patrick Highsmith & Quinton Hennigh return. With foreigners no longer buying U.S. Treasuries, the Fed finds itself between a rock and a hard place; either it keeps on inflating or the whole confidence-based valuation of financial assets will collapse, either it raises interest rates or the dollar collapses. Predictably the Fed will kick the can down the road leading to a prospect for hyperinflation. How will stock, commodity and housing prices respond? Those and many more questions will be asked of Alasdair. Patrick will update us on Firefox Gold’s very exciting gold exploration program in Finland and Dr. Hennigh will update us on Lion One Metals and on what appears to be a very rare but large scale, high-grade alkaline gold project in Fiji.