Monthly Archives: January 2017

[KR1026] Keiser Report: Trump’s Divide & Conquer Strategy

In this episode of the Keiser Report, Max and Stacy discuss Trump’s divide and conquer strategy as Canada says “you’re on your own to Mexico” for Nafta renegotiations and Hillary supporting union leaders say their meetings with Trump were “nothing short of incredible.” In the second half, Max interviews former head of the North Carolina Democratic Party, Randy Voller, to discuss the post-Trump strategy and what the party is doing right . . . and wrong.

The Fix-Nothing Farce of Symbolic Politics

Much of what passes for politics these days is symbolic. Anyone who studies the issue of illegal immigration concludes that the solution lies not in building $10 billion walls but in changing the incentive structure of citizenship, legal and illegal immigration. As long as successfully crossing the border enables access to free healthcare, education and sanctuary and the potential for cash work–the equivalent of winning the lottery for those with none of these benefits–walls will be tunneled under, overflown or bypassed by sea.

The Trump Administration’s proposed policies on tariffs, walls to stop illegal immigration, etc. are defended as symbolic gestures–in other words, their value is in communicating “things have changed”, not actually solving the problems facing the nation.

On the other side of the spectrum, protests in defense of a corrupt, failed status quo are also symbolic. No thinking person can claim that the status-quo policies on illegal immigration are fair, just or functional; how is letting illegal immigrants “jump the queue” ahead of the hundreds of thousands of legal immigrants who have labored patiently for years, paying all the outrageous costs of navigating the Kafkaesque complexities of legal immigration fair or just?

Protesting in defense of a racket-based status quo fixes nothing and solves nothing.

(more…)

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Silver Prices Set For Historic Rally Under Trump? | Greg Mannarino

silver-eagleIs Silver Bullion the Best Investment in History?
Greg Mannarino Explains Why the Answer Just Might Be Yes:

 

Click Here For Full Coverage at SD:

 

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Silver, Platinum and Palladium Bullion As Safe Havens – Reassessing Their Role

Precious Metals As Safe Havens – Reassessing Their Role

New research confirms that not just gold but also the other precious metals –  silver, platinum and palladium bullion – act as safe havens, especially from ‘Economic Policy Uncertainty.’ This is something that is particularly prevalent today due to the ‘Hard Brexit’ impact on the UK and the Eurozone, risk of trade wars and heightened financial and geopolitical risk under the Trump Presidency.

In their just released paper, Reassessing the Role of Precious Metals As Safe Havens – What Colour Is Your Haven and Why?, Dr Brian Lucey and Sile Li, of Trinity College Dublin and Trinity Business School, examine the “safe haven properties versus equities and bonds of four precious metals (gold, silver, platinum and palladium) across eleven countries.”

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The research suggests that each of the precious metals “play safe haven roles” and that “there are times when one metal is not while another may be a safe haven against an asset.”

“Stock volatility, exchange rates, interest rate and credit spreads are also found to be significant” and the results are found to be “quite mixed for different markets and are fragile of model specification.” This is to be expected somewhat, given the broad range of the study of four precious metals performance versus a range of assets in 11 different countries.

precious-metals-safe-havens

Dr Brian Lucey and Sile Li attempt to “identify robust economic and political determinants of precious metals’ safe haven properties.”  Of note is that they find that ‘Economic Policy Uncertainty’ is found to be a “positive and robust determinant of a precious metal being a safe haven” and that this “holds across countries”.

Read full story here…

[KR1025] Keiser Report: US Hegemony Facing New Challenges

We discuss Jack Ma’s statements at Davos about the U.S. wasting trillions on wars and asking where all the money went that U.S. multinationals made from outsourcing manufacturing. In the second half Max continues his interview with crypto entrepreneur Charlie Shrem about bitcoin, blockchain and crypto.

Why Our System Is Broken: Cheap Credit Is King

Cheap credit–newly issued money that can be borrowed at low rates of interest–is presented as the savior of our economic system, but in reality, it’s why our system is broken. The conventional economic pitch goes like this: cheap credit enables consumers to buy more goods and services (and since the system needs growth or it implodes, that’s good).

Cheap credit also enables companies to invest in new productive assets (capital).

Last but not least, low rates of interest enables the government at all levels to borrow money at relatively low cost.

That all sounds good in theory, but let’s see how cheap credit works in the real world.

The first thing we observe is those closest to the central bank credit spigot get the lowest rates and nearly unlimited lines of credit.

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Will The Euro Collapse In 2017?

2017 could be the year that the euro collapses according to Joseph Stiglitz writing in Fortune magazine and these concerns were echoed over the weekend by former Bundesbank vice-president and senior European Central Bank official, Jürgen Stark, when he said that the ‘destruction’ of the Eurozone may be necessary if countries are to thrive again.

Stark and Stiglitz are too of many respected commentators, from both the so called right and the so called left, who are warning that the common currency and the Eurozone itself will not survive the financial and political turmoil already besetting the European monetary union and set to deepen in the coming months and years.

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Gold in Euros – 5 Years

According to Stiglitz:

Greece remains in a severe depression. Growth for the Eurozone over the past year has been an anemic 1.6%, and that number is twice the average growth rate from 2005 to 2015. Historians are already speaking of the Eurozone’s lost decade, and it’s possible they’ll soon be writing about its last decade, too.

The euro was introduced in 2002, but the cracks in the single currency arrangement, which began in 1999, became evident with the 2008 global financial crisis.

Indeed, Greece and many periphery nations remain borderline or actually insolvent and this inconvenient truth has been largely ignored in recent months as it would clash with the cosy, and complacent, Eurozone “recovery” narrative.

Read full story here…

Fund Manager Shocker: “This Is the Most Gold I’ve EVER SEEN Move Into China”

With Silver Prices Surging Friday, PM Fund Manager Dave Kranzler Joined the Show, Discussing:

  • Short Capitulation?  You Can Smell That Gold Wants to Go Higher
  • Why the Fund Manager Believes 2017 Will Be Better for Gold & Silver Than 2016
  • THIS Is When the Fireworks Are Really Going to Start in Gold and Silver
  • Something Just Changed: “This Is the Most Gold I’ve EVER SEEN Move Into China…”

A Must Listen Metals & Markets Begins Now:

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How to Cut Infrastructure Costs in Half

Americans could save $1 trillion over 10 years by financing infrastructure through publicly-owned banks like the one that has long been operating in North Dakota.

President Donald Trump has promised to rebuild America’s airports, bridges, tunnels, roads and other infrastructure, something both Democrats and Republicans agree should be done. The country needs a full $3 trillion in infrastructure over the next decade. The $1 trillion plan revealed by Trump’s economic advisers relies heavily on public-private partnerships, and private equity firms are lining up for these plumbing investments. In the typical private equity water deal, for example, higher user rates help the firms earn annual returns of anywhere from 8 to 18 percent – more even than a regular for-profit water company might expect. But the price tag can come as a rude surprise for local ratepayers. (more…)

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What Would a Labor-Centered Economy Look Like?

Let’s spend a moment deconstructing the word “capitalism.” Note it contains the word Capital. So far so good. Obviously the key concept here is capital.

So what is “capital”? It turns out there are multiple kinds of capital. The most familiar kinds are tangible: cash, orchards, factories, water rights, tools, and so on.

Then there’s credit. If you have unlimited credit at very low rates of interest, you can buy all the tangible capital you want, as long as it produces enough income to cover the costs of production and the interest you owe on the borrowed money you used to buy the factories, orchards, etc.

Some types of capital are intangible but essential to the productive use of tangible capital. You can have the credit, land and pile of lumber needed to build a house, but if you don’t have the knowledge, experience and skills needed to turn the pile of wood into a productive form of tangible capital, you have nothing but an unproductive pile of lumber.

We call this form of capital human capital (also called knowledge-based capital, intellectual capital, etc.).

If you hire a person with some of these skills, that’s a good start, but you need specialists who can complete all the trades needed to build a fully functional house that can be rented or sold, i.e. earn a return on the capital invested.

If the person you hire knows a lot of other trustworthy tradespeople, that’s what we call social capital.

If we dig deeper, we find even more forms of capital.

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Dow 20K … US Debt $20 Trillion … Trump and $15,000 Gold

by Jan Skoyles, Editor Mark O’Byrne

In case you’ve been hiding under a rock, the Dow Jones Industrial Average reached 20,000 earlier this week for the first time in its 132 year history to much media fanfare.


Bigcharts via Financial Sense

Since Trump’s election US market indicators, including the Dow have been ticking up – it has been labelled the Trump rally. This latest milestone is something that the new President is happy to take credit for. In fact, he tweeted ‘Great! #Dow20K’ in response.

He told ABC News that

“We just hit a record, and a number that’s never been hit before. So I was very honored by that … Now we have to go up, up, up …”

Trump’s senior advisor (and fellow advocate for a weaker dollar) Anthony Scaramucci took to Twitter to thank President Trump for bringing about the best stock-market performance after a presidential election win since 1900. UKIP Leader Nigel Farage agreed that this was thanks to the Donald and saw it has a ‘huge vote of confidence in @POTUS.’

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Few commentators pointed out that this latest ‘bubblelicious’ Dow milestone of 20K comes at a time when the U.S. is drowning in a sea of red debt as debt levels continue to surge and will reach the even more important milestone of $20,000,000,000,000 (trillion) in the coming weeks. The digit two is in both and both have a lot of zeros but the latter is actually much more important than the former.

Read full story here…

[KR1024] Keiser Report: ‘Healthcare’ Debate

From Miami, Max and Stacy discuss the elephants in the room of the so-called ‘healthcare’ debate. Obamacare should be called ‘bankcare’, they suggest. In the second half Max interviews crypto entrepreneur Charlie Shrem about bitcoin, blockchain, crypto and… buying up Michigan’s waste industry.