TFMR Podcast #26 - David McAlvany of McAlvany Financial Group


I met David McAlvany last month at FreedomFest in Las Vegas. I asked him to come on for a podcast and he happily obliged. I'm glad he did.

At FreedomFest, I showed up the first morning to hear presentations from John Browne and Peter Schiff, both of EuroPacific Capital. They were terrific but so was this other guy who I'd never heard of before. His name is David McAlvany and I was immediately struck by the feeling that here was someone who "gets it".

Since I'm often asked if I "know any good financial advisors", I thought that David would be a good person to introduce to Turdville. He seems to see the world as we do and he is doing his level best to warn the masses of the coming disasters. His firm is producing a three-part video series that promises to be educational and informative. The first video came out a few months ago and is linked below. I strongly encourage you to take some time to watch the video once you've finished listening to the podcast.

If you suspect that David and his company can help you in any way, more information can be found at

The Fuse is Lit | European Perils | Part 1


Aug 26, 2012 - 8:03pm

Santa's Angel $1674 breached


Is this the 3rd time now?

El Gordo
Aug 26, 2012 - 7:50pm


If you ever run across Chuck Roast or Ferris Wheeler, you'll know that it's me.

Aug 26, 2012 - 7:37pm

#Magpie - Snick - Puck

Thanks Guys! Since I asked your opinions I shouldn't debate the answers, but I will anyway. :)

In a hurry when I wrote that post and didn't take time to give you all the info. I am retired and approaching 80 years. Even if I withdrew the money I'd still have enough to get by for at least five years. And yes, I've been around this forum since soon after it began, just very seldom post. But I think I've learned a thing or two.

My reasoning is that if I withdrew the money it would probably cost me something like $25,000 in taxes, leaving only $75,000 for the stack. But by going the mortgage way the whole enchilada goes into the stack. Plus, as I said, the interest from the money still being in the IRA will nearly pay the interest on the loan. I would attempt to make the loan with a five year payoff and a no principal, interest only payment yearly.

Look at it this way guys, if what has been discussed here over the past year and a half is actually going to take place, then surely within five years I would have enough profit in the stash that I could sell part and pay off the loan, leaving the rest to run. There's risk in anything we do. There is risk that the PMs won't run in five years. There is also risk that they confiscate the IRA. There's risk that the dollar will collapse. Hell, there's an even higher risk that I'll be dead before five years.

If I pull the money out of the account to make the purchase and the stack don't run then I've lost the tax payment and still don't have anything to show for it. It just makes sense to me to take the loan and pay it back with inflated dollars from the PM. There's a risk either way. Does any of that make it sound any different?

Aug 26, 2012 - 7:14pm

I am with Magpie and Puck....

Cash out the 401K! I was able to cash out 50% last year and 50% this year. Yes I bought at over $40 silver but it eased the tax pain. Don't worry if you have to do 100% right now because personally I think the rise this year will offset the tax hit for a full year versus waiting to do a 50% this year and a 50% next year. Of course, every ones situation is different but JMHO.

If you think the price of Ag & Au is going to accelerate now, then perhaps the HEL or home equity line of credit might be quicker. If you think that will take too long, I might even try a cash advance for 0% on a credit card but pay it off immediately when the 401K money comes in. If you think there will be a pull back then don't sweat it and just wait for the 401K money.

I used to be a registered Investment Advisor (my Series 7 credentials just expired) and got out of the the business because there was too much that seemed wrong to me. I wish I would have done what I just did a few years ago, but wish in one hand and shit in the other and see which one fills up first.

I was drawn to this sight because I could not make sense of what I was being told versus what I was seeing in the market. Nothing was making sense. At this time I TRUST Turd and his expectations. But it can get volatile. I can't give you a better answer than I sleep well at night knowing I have very little money in the system and most of my wealth in hard assets. Hell, I'd rather have cash than a 401K at this point.

In the end, do what will make you sleep better. And put the proper weight on my advice based on the price you paid for it. Free on the internet. Hope that helps.


Aug 26, 2012 - 6:40pm

In other news...

Gold and silver opened in Globex strongly. Up to $1672.50 gold and $30.84 silver.

Waiting for the smack-down, but hoping it doesn't come!

Aug 26, 2012 - 6:36pm


it's worth while to have a bogus personna ready in advance. when asked for personal info, i always tell them i'm kilgore trout, with an address (in another city) two blocks off the end of the old city pier. if they want my phone number, i give them one that was mine years ago in another city.

google "kilgore trout" just for laughs. i once used kilgore's name when buying shiney at a coin/bullion store. the clerk looked at me with a smile and a twinkle in her eye. bingo! a vonnegut fan.

i think it would be a splendid idea if there were several people using kilgore's name, scattered across the country. there's no better sport than messing with their little minds!

Key Economic Events Week of 10/26

10/27 8:30 ET Durable Goods
10/27 10:00 ET Case-Shiller home prices
10/27 10:00 ET Consumer Confidence
10/27 10:00 ET Richmond Fed
10/28 8:30 ET Advance Trade in Goods
10/28 8:30 ET Wholesale Inventories
10/29 8:00 ET ECB monetary policy stmt
10/29 8:30 ET Q3 GDP first guess
10/30 8:30 ET Personal Income and Spending
10/30 8:30 ET Core Inflation
10/30 10:00 ET UMich Consmer Sentiment

Aug 26, 2012 - 6:02pm

RE: Cash

I had an experience at my bank several months ago as well, I was just trying to withdrawal a few thousand dollars, not unusual for me. The teller asks me what it's for. At the time, I was just annoyed that she would ask me, what business is it of theirs? I simply replied "I like to use cash." I told my mother about this when she was visiting and she was surprised they had asked me. She once worked as a bank teller and said asking questions like that was frowned upon at best. That was back in the day, though.

I don't like people tracking my every purchase. I bought a car battery a few weeks ago and they wanted my full name, address and phone number. I asked them why and they said it was for warranty purposes. I asked why my receipt wouldn't be sufficient for warranty and they fumbled around before finally saying that the receipt would degrade quickly. I noted that I have a computer and a scanner and scan such receipts in just for such occasions.

Driving away down the road, I realized they had given me a core charge for the battery of $12, but I had already brought in the original battery. So I went back and pointed this out. Again, to refund the core charge, they want my full name, address and phone number (different guy in the same store). I told him I had a receipt and he didn't need that information. He claimed they could not give me a refund without the information, and that I wouldn't be able to claim a warranty if they didn't have me on file. He said this with a straight face.

By this time I was quite frustrated and laid into him a bit. "You're tellling me if it's a bum battery and I come back in here with a reciept you won't honor the warranty?" I said rather loudly, "If that's the case, let me go out to the car and get the battery to return it now for a full refund, I'll buy it somewhere else!" The guy next to him said "Of course we will honor the receipt." He looked rather bewildered by what was going on. The checker finally agreed and then asked my name and phone number AGAIN in order to give me the refund of the core charge.

Having calmed down a bit, I gave him a bogus first name and said my phone number was "555-1212", while I gave him a dead-pan stare. I got my $12 back, but I'll never shop there again.

Had nearly an identical experience at the Honda dealer when I bought a generator last week.

What the hell is wrong with companies these days??? If you don't tell them all your personal data, I guess you must be a terrorist?

Aug 26, 2012 - 5:43pm

@Terabyte: IRA

I'm not a deep thinker.

I can't advise you to do anything, I can only tell you what I did. I cashed out of my 401(k) last year and bought mostly gold, but I also rounded out my silver a bit. I took the hit. I'm currently underwater on silver while just above the surface on gold thanks to last week's moves (I bought just before last year's run up to $1,900/oz). I'm still buying a fix dollar amount of silver on a monthly basis, regardless of price. People who don't know any better think I'm crazy. I still think I made the right move.

Aug 26, 2012 - 5:13pm

@Terabyte - I'm actually in a

@Terabyte - I'm actually in a similar position and have been thinking along the same lines. I have a life insurance policy that will mature in a few years, and I have been thinking about taking out a loan of that amount on my home to buy PMs. The payment would be small enough so that if I were to lose my job, I could make payments for the necessary length of time from my savings. However, I would have a problem if my insurance company were to go belly-up, or if my savings disappeared due to bank failure ... but even then, I would have the PMs. If the PM prices develop as I think they will, all would be well ...

I have been thinking about this for quite a while now, but haven't been able to pull the trigger ... can't quite get myself to take on the risk.

Aug 26, 2012 - 4:27pm


I ain't no deep thinker! Just someone who thinks the government/banking system is corrupt and FUBAR.

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Key Economic Events Week of 10/26

10/27 8:30 ET Durable Goods
10/27 10:00 ET Case-Shiller home prices
10/27 10:00 ET Consumer Confidence
10/27 10:00 ET Richmond Fed
10/28 8:30 ET Advance Trade in Goods
10/28 8:30 ET Wholesale Inventories
10/29 8:00 ET ECB monetary policy stmt
10/29 8:30 ET Q3 GDP first guess
10/30 8:30 ET Personal Income and Spending
10/30 8:30 ET Core Inflation
10/30 10:00 ET UMich Consmer Sentiment

Key Economic Events Week of 10/19

10/19 11:45 ET Goon Chlamydia
10/20 8:30 ET Housing Starts
10/20 1:00 pm ET Goon Evans
10/21 10:00 ET Goon Mester
10/21 2:00 pm ET Fed Beige Book
10/22 8:30 ET Initial Jobless Claims
10/23 9:45 ET Markit Oct flash PMIs

Key Economic Events Week of 10/12

10/13 8:30 ET CPI and Core CPI
10/14 8:30 ET PPI
10/14 9:00 ET Goon Chlamydia
10/15 8:30 ET Philly Fed
10/15 8:30 ET Empire State Idx
10/15 8:30 ET Import Price Idx
10/16 8:30 ET Retail Sales
10/16 9:15 ET Cap Ute & Ind Prod
10/16 10:00 ET Business Inv

Key Economic Events Week of 10/5

10/5 9:45 ET Markit Svc PMI
10/5 10:00 ET ISM Svc PMI
10/5 10:45 ET Goon Evans
10/6 8:30 ET Trade Deficit
10/6 10:00 ET JOLTS job openings
10/6 10:45 ET Chief Goon Powell
10/7 2:00 ET Sept FOMC minutes
10/7 3:00 ET Goon Williams
10/8 8:30 ET Initial jobless claims
10/9 10:00 ET Wholesale Inventories
10/9 12:10 ET Goon Rosengren

Key Economic Events Week of 9/28

9/29 8:30 ET Advance trade in goods
9/29 9:00 ET Case-Shiller home prices
9/29 10:00 ET Consumer Confidence
9/30 8:15 ET ADP employment report
9/30 9:45 ET Chicago PMI
10/1 8:30 ET Personal Income and Spending
10/1 8:30 ET Core Inflation
10/1 9:45 ET Markit Manu PMI
10/1 10:00 ET ISM Manu PMI
10/2 8:30 ET BLSBS
10/2 10:00 ET Factory Orders

Key Economic Events Week of 9/21

9/21 8:00 ET Goon Kaplan
9/21 10:00 ET Goon Evans
9/21 Noon ET Goon Brainard
9/21 6:00 pm ET Goon Williams & Goon Bostic
9/22 10:30 ET Chief Goon Powell on Capitol Hill
9/22 Noon ET Goon Barkin
9/22 3:00 pm ET Goon Bostic again
9/23 9:00 ET Goon Mester
9/23 9:45 ET Markit flash PMIs for September
9/23 10:00 ET Chief Goon Powell on Capitol Hill
9/23 11:00 ET Goon Evans again
9/23 Noon ET Goon Rosengren
9/24 1:00 pm ET Goon Bostic #3
9/24 2:00 pm ET Goon Quarles
9/24 10:00 ET Chief Goon Powell on Capitol Hill
9/24 Noon ET Goon Bullard
9/24 1:00 pm ET Goon Barkin again & Goon Evans #3
9/24 2:00 pm ET Goon Bostic #4
9/25 8:30 ET Durable Goods
9/25 11:00 ET Goon Evans #4
9/25 3:00 pm ET Goon Williams again

Key Economic Events Week of 9/14

9/15 8:30 ET Empire State and Import Price Idx
9/15 9:15 ET Cap Ute and Ind Prod
9/16 8:30 ET Retail Sales
9/16 10:00 ET Business Inventories
9/16 2:00 ET FOMC Fedlines
9/16 2:30 ET Powell Presser
9/17 8:30 ET Philly Fed
9/18 8:30 ET Current Acct Deficit

Key Economic Events Week of 9/7

9/9 10:00 ET JOLTS job openings
9/10 8:30 ET Initial jobless claims
9/10 8:30 ET PPI
9/10 10:00 ET Wholesale Inventories
9/11 8:30 ET CPI
9/11 9:45 ET Core CPI

Key Economic Events Week of 8/31

9/1 9:45 ET Markit Manu Index
9/1 10:00 ET ISM Manu Index
9/1 10:00 ET Construction Spending
9/2 8:15 ET ADP employment
9/2 10:00 ET Goon Williams
9/2 10:00 ET Factory Orders
9/3 8:30 ET Initial jobless claims
9/3 8:30 ET Trade Deficit
9/3 12:30 ET Goon Evans
9/4 8:30 ET BLSBS

Key Economic Events Week of 8/24

8/24 8:30 ET Chicago Fed Idx
8/25 10:00 ET Consumer Confidence
8/26 8:30 ET Durable Goods
8/27 8:30 ET Q2 GDP 2nd guess
8/27 9:10 ET Chief Goon Powell Jackson Hole
8/28 8:30 ET Pers Inc and Consumer Spend
8/28 8:30 ET Core Inflation
8/28 9:45 ET Chicago PMI

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