GOLD is the money of the KINGS, SILVER is the money of the GENTLEMEN, BARTER is the money of the PEASANTS, but DEBT is the money of the SLAVES!!!

Saturday, March 21, 2015

David McAlvany: Emerging Markets Are the New Sub Prime?

Jason Burack and John Manfreda of Wall St for Main St had on returning guest David McAlvany of McAlvany Financial and the famous McAlvany Weekly Commentary David is a 2nd generation money manager and David's father, Don, was the first American to start selling precious metals when the ban was lifted in 1974 during the last major gold bull market. During this 40+ minute interview/discussion, Jason and John ask David about the real economy and if the US retail investor even has any money to buy stocks? David thinks the US middle class retail investor doesn't have much to invest and is debating starting to pay the penalty and withdrawing from their IRA/401(k) to pay bills. Next, Jason asks David if he thinks the Federal Reserve is trapped and if they can ever meaningfully raise interest rates again? David thinks the Fed is trapped and can only raise rates a token amount before the Fed panics and then probably tries to lower interest rates further. Jason, John and David discuss the US, UK, Europe and Japan being fully committed to a financial repression policy and what this means for investors and markets. Next, John asks David about the gold market and the new LBMA fix. David is not optimistic about the new fix improving the manipulation in the gold and silver markets but he's optimistic that the real demand for physical gold out of China, India, Russia, Asia, Middle East, etc will put a bottom in the gold market soon. Jason and David discuss if the gold price does not start rising soon how many gold miners could go bust in the near future. John transitions to the oil market and to US shale oil producers who are in the same boat. David says oil companies offering a very interesting value proposition and how he's now actively looking for oil investments. Jason then asks David if a strong US Dollar combined with a low oil price is bad for the global economy? David thinks it's hurting mostly the emerging markets who have large US Dollar denominated debt and he expects major defaults in the near future if the Dollar continues to strengthen. To wrap up the interview, Jason, John and David discuss the US declaring economic war on Vladimir Putin and Russia and why the US would do this? Jason asks David about the SDR and if China will willingly go along with the SDR for at least a little while or if China wants to transition to WRC faster?

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