Financial Sense Newshour for Storm Watch
Rick Santelli: Hold Onto Your Wallet - The Entitlement Society Now Being Adopted as US Economic Policy
Austerity is the worst word in the English language for politicians
Jim welcomes back Rick Santelli, On-Air Editor at CNBC and veteran trader and financial executive. Rick refers to current central bank policies as a world-wide “money fest”, given by the Central Banking Country Club. Rick sees the US adopting the “entitlement society” as current economic policy, which he asserts has never worked globally. He advises taxpayers to hold onto their wallets. Taxes will be going higher to pay for ever increasing government spending.
Martin Armstrong: Washington Is Broke and Looking at More Ways to Tax Americans
The European Union is a basket-case and can’t survive long-term
Jim welcomes back Martin Armstrong of Armstrong Economics. Martin and Jim cover many important topics, including Washington’s need for more revenue, the future of the European Union, the current outlook for gold, the Cyprus banking situation, the pension system in the US, and how Congress is working hard to exempt itself from Obamacare. Martin also touches on economic trouble brewing in Europe, Japan and Argentina. As to the banking system, Martin advises to avoid large banks involved in proprietary trading and stay with the regional banks.
Neil Irwin – The Alchemists: Three Central Bankers and a World on Fire
The extraordinary power of central bankers and how they used it during the great financial crisis
Jim welcomes author and Washington Post columnist Neil Irwin to discuss his new book, “The Alchemists: Three Central Bankers and a World on Fire”. The book focuses on the world’s most powerful men never elected to public office; Ben Bernanke of the Federal Reserve, Mervyn King of the Bank of England, and Jean-Claude Trichet of the European Central Bank. Mr. Irwin initially looks at the origins of central banking and then takes the reader into the Great Financial Crisis and its aftermath with the story of these three men and the extraordinary power they have over our collective fate, and that of the global economy.
Simon Mikhailovich: It’s 12 O’clock, Do You Know Where Your Gold Is?
How Safe Is Your Bank Account?
Jim welcomes Simon Mikhailovich, Co-Founder of Eidesis Capital LLC in New York City. Jim and Simon cover a number of topics, including gold, why people should own it, and the difference between paper and physical gold. Simon also discusses the safety of your bank accounts in the future as governments look at the “Cyprus Model”, including the US. Simon talks about the coming “wealth taxes” in Europe, as governments desperately search for revenue amidst weakening economies. Simon calls gold “the most under-owned asset class in the world” and believes the real bull market in gold has not yet begun.
Barry Ritholtz: Most Economic Crises Are Overblown- Driven by the Media and Washington
Long-term secular trend signals higher corporate productivity but less jobs in the future
Jim welcomes back Barry Ritholtz, CEO and Director of Equity Research at Fusion IQ, an online quantitative research firm. Barry discusses how the many economic “crises” today are overblown and essentially driven by the media and Washington. Barry sees the vast majority of “news” today as simply gossip. As to stocks, Barry believes they are not as cheap as 3 years ago, but still reasonably priced. He much prefers the dividend theme to stock buy-backs by corporations. Barry also discussed a long term secular trend in demographic changes that will be a negative for employment longer term, as increasingly more productive companies need fewer workers to stay profitable.
Jim Puplava’s Big Picture: Wash, Rinse and Repeat- That Was Then, This Is Now
Also, “Has The Glitter Faded? Why Gold Prices Can Still Go Higher”
In this week’s first Big Picture topic “Wash, Rinse and Repeat – that was then, this is now” Jim looks at a repeat of the Petro Business Cycle pattern for the fourth year in a row. The familiar economic scenario features a strong start to the year, then the LEI’s roll over and the economy starts to slow, which is followed by more Federal Reserve stimulus, which leads to a strong finish to the year. Wash, rinse and repeat. The next topic, “Has the glitter faded? Why gold prices can go higher” is in response to the weak precious metals market. Jim continues his thesis that you don’t need a Doomsday scenario to see rising gold prices in the future. This topic also leads into Jim’s in-depth conversation with John Kaiser on gold in the next segment of the program. Jim also answers some of your Q-calls in this segment.
Jim's Big Picture: Mad Max Beyond Thunderdome: Why We Do't Need Armageddon for Gold Prices to Head Higher
Also on the Big Picture: On the Record with Jim Puplava and John Loeffler
In this segment Jim gives his reasoning why gold prices can head higher without a crisis situation, or economic Armageddon. Jim sees many fundamental economic factors that could push gold and commodities higher, without the need for an “end of the world” scenario. The next topic is “On The Record”, as Jim is interviewed by John on a wide range of topics, including his macro views, investment topics and the content of the program. Jim also answers more of your Q-Calls in this segment of the program.
Puru Saxena: China's Real Estate Bubble on the Verge of a Bust
As Long As Central Banks Are Printing Money, You Have to Be in Stocks
Jim welcomes Puru Saxena, Editor and Founder of Money Matters and Puru Saxena Limited in Hong Kong. Puru believes that the Chinese real estate bubble is on the verge of a major bust, which will not bode well for China, or Asia. He believes the thirteen year bear market in stocks is over, and a multiple year bull market in equities has begun, especially in the US. Puru sees the dollar as the most liquid and secure currency in the world and does not foresee a dollar crisis. Due to supply and demand factors, he does not favor commodities, as prices will be under pressure in the near to medium term.
Jeffrey Brown on Global Net Oil Exports: Is It Midnight on the Titanic?
Available Global Net Oil Exports Continue to Decline, Outpacing Gains in US Oil Production
Jim welcomes Jeffrey Brown, Independent Petroleum Geologist, creator of the Export Land Model, and ASPO-USA Board Member. Jeffrey explains his Export Land Model, and reviews the major trends regarding availability of oil exports on the world market. Jeffrey also looks at the growing tension between oil production and the rising internal demand of oil-producing nations as well as China, India, and other emerging economies. His overall thesis is that the US oil industry continues to make a serious mistake by providing, in his opinion, wildly unrealistic scenarios for future US and global crude oil production.
The Big Picture: The Significance of Cyprus – Is the US Dollar on the Cusp of a Surprise?
Also on the Big Picture: “Triple Top or New Secular Bull Market?” and “Still Waiting For Armageddon?”
In this week’s edition of the Big Picture, Erik Townsend and Ryan Puplava sit in for Jim and discuss three different topics. The first, “The Significance of Cyprus- US Dollar on the cusp of a surprise?” deals with the events in Cyprus in the context of helping to stregthen the US dollar. Combining this banking fiasco with central banking printing around the globe, the US dollar looks primed to stregthen, which most do not expect. They discuss the implications for stocks, gold and commodities if this were to happen. In the next Big Picture topic, “Triple Top or New Secular Bull Market?”, Erik and Ryan discuss the issue, and make distinctions between economic recovery and stock market strength. In the last topic, “Still Waiting for Armageddon?” Erik and Ryan look at those still waiting for a disaster in their “bunker”, and stress that no matter when, or if, the calamity arrives, investors need to have a financial plan in place and not be paralyzed by fear. They also discuss the possibility that there could be a bond market melt-down, but that stocks might benefit.
Doug Noland on the Granddaddy of All Super Bubbles, the Global Sovereign Bond Market
Global QE Makes the Dollar Look Relatively More Attractive
Jim welcomes back Douglas Noland, Senior Portfolio Manager at Federated Investors Inc. Doug sees the global government finance bubble as the next crisis epicenter. He believes the US has exported the finance bubble and today QE by central banks around the world make the dollar more attractive by comparison. Doug also sees the German people taking a harder line against bailouts in Europe, leaving their government in a bind. He believes that US bank depositors are also at risk of confiscation, by inflation.
Jim Puplava’s Big Picture: Dying of Money- This Time It’s Global
Good inflation vs. Bad Inflation
In this week’s first Big Picture topic, Jim discusses the implications from the book “Dying of Money: Lessons of the Great German and American Inflations” by Gens O. Parsson. Jim looks at the lessons from prior inflationary episodes in Germany and America, and sees similarities to today, only now it’s on a global basis. Jim also answers your Q-Calls in this segment.
Dr. Patrick Abbott on Earthquakes: When “The Big One” Hits, Know What To Do
Preparedness Is Key- No Early Warning System Yet to Protect You From A Major Earthquake
Jim welcomes back Dr. Patrick Abbott, Professor Emeritus, Department of Geological Sciences at San Diego State University. Dr. Abbott is an expert on earthquakes and is a veteran of many media appearances in California after significant quakes. He talks with Jim about the probability of “The Big One”; how to prepare yourself and know what to do if a major earthquake should strike. California is known for its tremors, but the potential exists for earthquakes in many other states as well. Dr. Abbott also notes that there are many earthquake faults that scientists have only recently discovered, and there are likely many more yet to be discovered.
Jim Puplava’s Big Picture: Are We In A Recession?
Also, “What if They Held a Bull Market and Nobody Came?”
In this segment, Jim’s first topic is “Are we in a Recession?” Jim discusses a recent ECRI report that says yes, but Jim and The PFS Group say no, at least not yet. Jim notes that 60% of the leading economic indicators are still positive. Jim’s next topic is “What if they held a Bull Market and nobody came?” Jim notes that this past week set a record for the lowest participation rate from individual investors. Jim looks at valuations and notes that the P/E ratios on stocks have come down substantially since 2000, although many blue chip stocks have not moved substantially in price. Jim also answers your Q-Calls in this segment.
James Koutoulas: The Government Will Not Prosecute “Well Connected” Criminals
The Bankruptcy System Is Broken and The Lawyers Are Making A Fortune
Jim is pleased to welcome James Koutoulas of Typhon Capital Management. James has been a leading advocate in fighting to recover $1 billion for customers from the MF Global bankruptcy. James tells Jim that the bankruptcy system is broken, and the regulators are outmanned, out-lobbied and afraid of large financial entities. Furthermore, the media is woefully ignorant on financial matters and lacks true investigative journalists. James notes that by its lack of action, the government has stated, loud and clear, that it will not prosecute “well-connected” criminals.
Bud Conrad: The US Government Has Distorted the Economy and Impoverished its Citizens
The Federal Reserve has enabled the Government’s runaway spending, wars and political favors
Jim welcomes back Bud Conrad, Chief Economist at Casey Research. Bud lays out his case that federal government policies have distorted the economy, impoverished the middle class and greatly expanded the size of the federal bureaucracy. Bud also discusses how much longer the government can continue these policies, and what is the most likely endgame for a country with way too much debt.
Brian Pretti: The Federal Reserve’s Confidence Game
The Sequester “Crisis” Is All Manufactured
Jim welcomes back Brian Pretti CFA, Managing Editor at ContraryInvestor.com. Brian and Jim discuss the Fed’s current policy of pumping trillions of dollars into the markets. There are legitimate reasons to be pessimistic, but Brian believes you can’t sit on the sidelines when the Fed is aggressively printing money. He sees stocks as not cheap, but not expensive either. They also discuss the Sequester “crisis” which is seen as a phony and manufactured political exercise.
Jim Puplava’s Big Picture: End Of Days – Crisis By Management
Also on the Big Picture: “The LEI’s and I”
In the first Big Picture topic this week, “End of Days- Crisis by Management” Jim looks at the current dysfunctional government in Washington, and wonders how long this can continue. In the next topic, “The LEI’s and I”, Jim looks at what the leading economic indicators are telling us in the first quarter of the year. There are pockets of strength, but mostly a mixed picture at this point.
Thomas Woods & Jimmy Morrison- Creators Of The New Documentary Film, “The Bubble”
Who Caused It – Who Called It – What’s Next
Jim welcomes the creators of the new documentary film, “The Bubble”. Thomas Woods and Jimmy Morrison discuss the causes of the financial crisis, look at past financial crises, and touch on governmental responses to the current situation. They also look at a future that must deal with unsustainable debt, unfunded liabilities and inflation. Among those interviewed for this film: James Grant, Dr. Ron Paul, Marc Faber, Joseph Salerno, Jim Rogers and Doug Casey. Jim also plays selected clips from “The Bubble”, which is scheduled to be released later this spring.
Jim Puplava’s Big Picture: The Next Crisis and Buying Opportunity
The Debate Over Sequestration In Washington DC: More Kabuki Theatre
In this week’s first Big Picture topic, Jim looks at the current “Kabuki Theatre” debate playing out in Washington DC over threats of sequestration and the resultant “dire” consequences for the nation. Jim sees this event as just more political posturing, which somehow always upsets the markets in the very short term. He sees any potential “crisis” as a potential buying opportunity if the markets take a tumble.
Market volatility and the breakdown of fundamental and technical indicators are only a few signs. There are others which are more subtle and not visible to the human eye—below the surface. They show up in bear-o-metric readings of the nation's money supply, credit expansion and the breakdown of corporate earnings. With all of these readings, we know that a storm is coming. The question is: "What kind will it be?"
—Jim Puplava, The Perfect Financial Storm Part 3