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 - 4:24pm



Take the hit on the taxes. The $$ may not be in that bank much longer, anyway. But, if the economy and your financials fail how the hell are you going to pay back $100K? In my area I know most of the people that lost their homes lost their jobs first. If you were my son (his home is paid off), and he asked me the same question, I would smack him. Consider this a virtual smack to the side of your head. That money isn't really earning 2.5% when you take inflation into account. I don't have an IRA, but I think you have to pay taxes on it when you reach the government-approved age, because you deferred the taxes on your income when you put the money in the account. Who the hell knows how much the tax rate will be when it's time to make the retirement withdrawal? Don't you remember the suggestion by someone in front of a government committee about moving the $$ in private retirement accounts to government securities???? You can't have been here too long if you think it's a good idea to leave a big chunk of wealth in a bank. Remember, segregated funds aren't anymore.

Aug 26, 2012 - 4:02pm

Question for all you deep thinkers here.

I would like to purchase a fairly large quantity of ASEs, while "the price is right", but the only free fiat I have is presently tied up in an IRA account in the bank. It's in a 5 year CD drawing around 2.5% presently. We own a home that is free and clear. I am thinking that we could take out a loan for oh, let's say $100,000, to keep it in round numbers, as a ten year loan, at probably less than 3%. Then we could use that money to make the purchase, and thereby avoid the income tax we would have to pay if we drew the money out of the IRA. The interest on the accounts would nearly cancel. Anyone have any ideas or cautions on that kind of an arrangement?

wannabeQE to infinity
Aug 26, 2012 - 3:13pm

QE to infinity

Don't think it was harsh at all. I am just trying to get a sense of what has been discussed and talk to others who know more than me (not hard to do) on the subject. You make some good points and I appreciate the input and would appreciate any and all others

Aug 26, 2012 - 2:47pm

Plastic and checks

whats a check-its a piece of paper and if you take it you trust that there is money at the other end so your account gets to keep the electronic cash it was credited with. We have ETF for social sec, payrolls, a whole heck of a lot.

But a check is not much different, perhaps less real than FRNS. Neither one of course holds up to an ASE or AGE. But we do not use silver or gold in the economy--yet.

we did once upon a time.

I have given up fighting "city hall"-I'll just do what I can do.

Aug 26, 2012 - 2:41pm

strong side

I think you misread/interpreted what I have stated. I was addressing the use of cash in retail establishments and why cash on hand is minimized (maybe concerns about theft is one more reason) . What I said about cash to not leave a trail is true and a different subject. I do not have a cash business (and yes, I have run small, medium and large businesses (if you count having 3500 full time employees big-and I guess I did not create it-and I ran the large business when the incremental corp rate was 48% and felt blessed when it dropped to 34% because it made it easier to expand-and add jobs- if I did not have a silent partner (uncle sam) pissing my money away) so if we do go into that subject I hope you don't mind if I rag on people who are avoiding paying tax by not reporting it--thats a true fairness issue. While we are at it why not rag on companies like Apple which pay little taxes and also have most of work outsourced to other countries. Or GE, or Google, or IBM or CAT or....rag on the govt for misappropriation of funds in a multitude of ways.

you get the idea--the system is all screwed up

Aug 26, 2012 - 2:35pm

a little parable/story/analogy

About 30 years ago a Junior auditor from the CPA firm wanted to take me out for lunch. We went, nice kid who was well intending and helpful to make sure I was being protected business, audit, accounting and tax wise.

when the bill for lunch came I picked it up, explaining to the young man:

If you buy me lunch you turn in a receipt for reimbursement and this $30 lunch will cost me $40. Its cheaper to me if I just pay the $30 and he understood, no hard feelings cause in life you teach and learn regularly.

Our governments: Federal, State and Local are much the same--they tax us to do more than they should and they are grossly inefficient at the spending. We need defense but look at the bidding/spending waste in defense spending. The story about expensive wrenches are true. I know because we sold to DOD. Our first check was higher than we quoted/bid--quite a bit higher. when we confronted the subsection they told us thats how it works--we finally gave up.

Another side story--we were (in my large co) required to submit monthly info on PPI. I told the acctg staff to stop that sort of stuff since it in the aggregate required another staff person (which equals more labor and benefits)-we were trying to be efficient and productive. Well, the govt came back and told us we had to file and if we did not we would be fined and possibly be subject to criminal charges. I actually spoke with a person at I think the BLS then on that since I remember asking her how this info was used--she replied it was used to make economic decisions and back then I had a hearty laugh--and then told my staff to just make up numbers and send it in.

It would be a hoot to think around the country the few hundred establishments responding to PPI data just made up the numbers. The guesses were probably reasonably correct anyway. and regardless probably changed somewhere in govt to arrive at a desired result anyway.

Amazing what this brings up in my mind from 25-40 years ago.

Who else remembers when "Bankamericard" initially came out for the masses. Or Wage and price controls (and attendant rules and regulations) in the 70's? I recall having to deal with that during the high inflation years.

Aug 26, 2012 - 2:29pm

More bad economic news

WASHINGTON -- The U.S. economic recovery hasn't felt much like one even for people who managed to find new jobs after being laid off. Most of them have had to settle for less pay.

Only 56 percent of Americans laid off from January 2009 through December 2011 had found jobs by the start of this year, the Labor Department said Friday. More than half of them took jobs with lower pay. One-third took pay cuts of 20 percent or more.

The figures would be even lower if people who could find only part-time jobs were included in the total.

Read more:

Aug 26, 2012 - 1:21pm


Yes, that was some serious research (see posting above). I just got an update from another friend who found the same thing happened to him at Bank of America. BofA needs to stop screwing around with the small and medium sized business men in town. BofA is getting screwed up in this area because BofA inherited a bunch of the Countrywide bank/loan officers. The Countrywide staff was infiltrated by people who were defrauding their neighbors and creating the documentation problems that has dominoed into MERS (see the story put together by California Lawyer).

This problem of bank balance sheets is a critical issue because when the FRB districts are unable to move cash appropriately, they screw the economies of the towns up. You can not transact the whole town's economy on Visa and Mastercard, despite the perspective of the Keynesian's who want to suck bucks out of every purchase.

Sometimes the duck has lips. It can still quack like a duck, but that darn duck thinks it's as good as money. Well, it's not. It's a damn piece of plastic with a magnetic strip. How in the heck the Home Depot thinks that's money is beyond me. So, I'll still use it, but the cash flow through that pipe is real meager.

California coastal towns are in deep trouble. The municipal governments are broke and some are finally acknowledging. Jim Puplava had a few recent episodes talking about the California municipal bond challenges, but the worse thing is seeing Eric Sprott take the public pensions to the cleaners for their paper hanging fraud.

Just ask the public employees of Stockton, San Bernardino, and Mammoth Lakes how their pension and healthcare is doing.

When the doctor needs to help you, how will you be paying sir?

Aug 26, 2012 - 1:15pm

DHS study

There is no way to know for certain how humans react when faced with disaster. But making the unthinkable thinkable—understanding the ramifications of a disaster and methods that can help in preparing for its consequences—is a focal point of the research at USC’s Center for Risk and Economic Analysis of Terrorism Events (CREATE).

A team of researchers recently completed a Department of Homeland Security-funded study that assesses the regional economic impacts of a hypothetical catastrophic event like a radiological dispersal device (RDD) attack or a “dirty bomb” attack on Los Angeles’ financial district compared to a natural disaster like an earthquake.


Ultimately, public perception of an event, such as a terror attack or natural disaster, directly influences economic impact and long-term societal impact. Carefully crafting messages to both advise the public and alleviate fears not only helps to prevent panic, but also helps to prevent long-term economic harm.

“Anything we can do from a policy standpoint that can reduce excessive public concern about an event has huge economic benefits,” said Burns.

Aug 26, 2012 - 1:13pm

@Mickey - regarding use of cash


In the post above, you made a comment to which I would like to respond:

"The only time I see cash used is 1) when the purchase is small, 2) if business surcharges the use of plastic, and 3) if its someone I know who has a cash business (meaning they do not report all their income) and thus do not want to leave a spending trail for IRS)"

This comment is precisely the reason that I have been posting my concerns about the current banking fiasco.

You are equating the individual's use of a Federal Reserve Note to tax evasion and not "wanting to leave a spending trail".

This is outrageous!

You are arguing that the very use of the FRN symbolizes the problem of tax evasion and intentional financial misconduct.

Your opinion is clearly shaped by the need to comply with IRS. However, most of the planet's citizens have no need to report anything to the IRS. Therefore, if the USD-FRN wants to retain world reserve status, the USD-FRN must be held as the symbol of legitimacy in financial transaction.

If you and I are agreeing that the USD FRN is the symbol of exposure to IRS audit and to non-reporting of income, then the USD-FRN is a lost cause!

Just this morning, I spoke to another gentleman at church who states that Bank of America gave him the same lip about cash withdrawal limits. So, this issue is not about the citizen being guilty by association. The issue is BofA's cash withdrawal limits being triggered by nearly every small or medium sized business person in the area!

Your comment suggests to me that you have either never run a business or that you are unfamiliar with typical monthly cash flows running in small businesses. I am not aware of ANY small business person who could not stabilize cash flow by holding more cash in their hand versus leaving it tied up in the bank running on plastic.

The reality is that the plastic digital form of USD currency could disappear faster than the cash in hand. More importantly, based upon the monopoly power of Visa and Mastercard internationally, the cash flow disappears to Visa and Mastercard faster than it appears for the businesses participating. The reason is obvious! The credit card company gets the digital money first. This reality is the very reason that PayPal showed up (just ask Elon Musk!).

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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

Key Economic Events Week of 8/17

8/17 8:30 ET Empire State Manu Idx
8/17 Noon ET Goon Bostic
8/18 8:30 ET Housing Starts
8/19 2:00 pm ET July FOMC minutes
8/20 8:30 ET Jobless claims
8/20 8:30 ET Philly Fed
8/20 10:00 ET LEIII
8/21 9:45 ET Markit flash PMIs July

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