Financial Sense Newshour
In this segment of the Big Picture, Jim first lays out the consensus view of the economy and stock market for 2013. Next, Jim looks at possible Wild Cards in 2013, and how they could change the consensus viewpoint.
In this segment of the Big Picture, Jim gives his predictions for 2013, which he titles, "Policy, Trouble, and a Silent Bubble". He then turns to his investment themes for...
Jim welcomes Ross Hansen, founder of the Northwest Territorial Mint, now the largest private mint in the US. Ross and Jim discuss the debt issues facing the US, and Ross notes that a debt crisis will arrive suddenly, as it did in Greece. Regrettably, he believes that there is no way out, and that the US has gone beyond the tipping point for fixing its debt and unfunded liability issues. Ross also believes people are worn out by government-driven crises, and are suffering from crisis-fatigue. As to the physical precious metals, Ross see the best value in silver rounds and junk silver at present.
Jim welcomes back geologist Keith Barron PhD. He thinks January could be a big month in the metals, and looks for a positive start to the year. Keith also notes that gold discoveries are becoming smaller in size, as “elephant” discoveries are now very rare. Mining CEO’s are now looking for quality ounces, not quantity ounces. Keith sees gold production declining dramatically in South Africa. Keith believes there will be a significant shift in acquisitions, as large cap miners focus on grade, infrastructure and low capital costs in the future, as well as geopolitical considerations.
Jim welcomes back Bud Conrad, Chief Economist with Casey Research. Bud sees the US passing the “tipping point” with US debt levels moving from 100% of GDP to 120% of GDP in President Obama’s second term. Bud believes that future inflation is now “baked in the cake” and this could possibly lead to hyperinflation. Bud’s investment thesis is to own resource stocks and real estate to mitigate the effects of future inflation.
In this special year-end edition of the Financial Sense Newshour, Jim looks back at the 2012 stock market and evaluates its performance. In the next topic, Jim looks at the recovering housing sector and the reasons behind it.
In this segment, Jim looks at the Petro Business Cycle and how it affects the economy in a significant way. In the next topic, Jim asseses the “new economy”. It will involve more taxing, inflating and spending, but likely little or no real reform.
Jim is pleased to welcome James Grant from Grant’s Interest Rate Observer this week. James discusses a variety of topics, including the return of a gold standard, deflation, how the central banks went astray, what he would do if appointed Chairman of the Federal Reserve, and why gold stocks are astoundingly cheap.
Jim welcomes back Bill Fleckenstein, president of Fleckenstein Capital in Seattle, and author of Contrarian Chronicles for MSN Money. Bill believes the deflation fears are fading as the country enters a period of stagflation. He also sees the bond market ultimately taking away the printing press from central bankers, as the US moves closer to a funding crisis. According to Bill, the big story in 2013 will be the long-awaited beginning of the bond bear market. He also believes that Fed policy and the accompanying asset bubbles are effectively destroying the middle class, and leading us down the road to serfdom. As to gold, the underperformance of the gold stocks offers investors real value in quality gold miners. Bill also favors dividend-paying blue chip stocks in this market environment.
Jim welcomes back legendary asset manager Felix Zulauf from Switzerland. In a very timely and powerful interview, Felix covers many important issues, foremost among them the European debt crisis. He believes politicians will not solve the crisis, leaving the European Central Bank (ECB) to begin massive money-printing and devaluing the Euro. Felix sees the ECB balance sheet expanding even more dramatically than the Fed’s next year.