TFMR Podcast #31 - Jeff Nielson of BullionBullsCanada


On Thursday, I spoke again with Jeff Nielson of BullionBullsCanada. Jeff has recently written a terrific series entitled "The Road To Bullion Default" and I thought you'd find it interesting.

There are two parts in the series. Here is the first:

And here is Part II:

I'm confident you'll enjoy reading Jeff's work and listening to this podcast.



Nov 6, 2012 - 6:49am

Hoarding is Capitalism !

Thanks Brother John F .... and it doesn't matter if you invest your hoard or sit on it .... you are participating positively in the economy ! If you choose not to vote .... you still are participating in the election ! "You can't not participate !".... Monedas 1929 Comedy Jihad Weed Picking, Nose Pickin' Capitalist World Tour

Nov 5, 2012 - 6:54am

Baling Hay

Several posters above made me recall a few memories. I grew up in a small town in Kansas, and baling hay was one of our main money making opportunities as kids. It was called "putting up hay" where I came from. We also mowed lawns, hoed weeds out of crop fields, etc.

Farm work usually paid $1.25 an hour, if I remember correctly. We always got a great noon meal. I remember one old farmer we always hated to work for, not because he was a bad fellow, but because he had an old A-C round baler. That thing made 90 lb. bales, when your normal square bales were 50-60 lb.

Our football practices were only one a day, but August afternoons were plenty tough. Of course most of our free time all summer, we were playing touch football, pick-up baseball, and walking or riding our bikes several miles round trip to go fishing or swimming.

I drank water from a well and raw milk. Our chickens were cage free. A lot of folks had big gardens which were pretty much organic, just not called that in those days. Most people still had close connections to the farms.

We all got mumps, measles, chicken pox and other diseases because they didn't have vaccines for all that stuff then. I think my generation was the last to grow up with a toughness that has been mostly lacking since.

I know in the late 70s, 10 or 12 years after I was out of high school, local farmers couldn't get help to bale hay for $5.00 per hour. People will learn to work again. It's just sad it's going to take a total collapse for it to happen.

I think the lifestyle and diet I had, and the immunities acquired when I was young, have a lot to do with the fact that I have hardly been to a doctor in my life. In my 63 years, the only time I've ever really needed medical attention was when I cut the back of my hand about 30 years ago. It wasn't really that severe, but cut a couple of tendons to my fingers. Had to get that repaired.

Just old memories from an old man. Best wishes to all.

Nov 4, 2012 - 2:02pm

@ Katie Rose

That is what has been happening, through only a couple generations the dependency grows!

Maybe we can get some more farm land for you, (some for) me and the Turdville community(?) with some old bailing equipment on the cheap keep me in mind!!!

@El Gordo

A old friend of mine is from Oregon, he tells me the same thing and how they trained for football as kids!!!

El Gordo
Nov 4, 2012 - 9:10am

High school football

I grew up in rural Texas and played high school football, which always began with 2 a day practices in the hot days of late August. If you were not "in shape" when you showed up the first day, you would most likely fall out. Hauling hay was the mainstay summer job for staying in shape, building strength and endurance (we would contest each other to try to toss those heavy bales onto the truck with one hand, see who could toss them the highest, etc.) and make a little pocket change at the same time. A dollar's worth of gas and another dollar at the drive-in movie for a car load would provide entertainment, and the rest of the weekend pay would last all week for girlfriend gifts and personal needs. And needless to stay, we got as strong at oxen. I eventually translated that experience into a college football scholarship, a diploma, and a career (in something other than football). A few others that I knew did the same. Just to make sure that someone does not complain about this tale being off topic, I stack silver as a result of what I learned in the hayfields of west Texas, or in the college dorm room, or in the business world, or somewhere. Thanks Katie for the reminder.

Katie Rose
Nov 4, 2012 - 7:21am

@ Southern Cross ~ Thoughts about weeding...

Here's a quote from your post:

My 13 year old son is not old enough to work and I really did not want him to pull weeds or some such work.

I come onto this board and yammer about farming as it is something I am learning about. It makes a whole lot more sense to me than the manipulated metals market. I began buying silver when it was $10.70, so I have been at it a little while. What this former city girl is learning is horrifying when it comes to future food costs and production.

In the past, junior and senior high school students, living in and out of the small USA towns, made their money during the summer bucking hay, weeding, etc. Nobody thought anything about it. They were paid a small daily rate ($3-$5.00) and given a huge lunch at mid day. All the kids did it, and the farmers could count on there being help from the local youth when they needed it. It was part of the social structure of small farming communities. The kids worked. Period. They all worked.

Today's youth won't do it. Today's parents don't want them to do it. And so the farmers have had to change their strategy.

Rather than weeding and getting help with the weeding from local youth, the farmers have switched to "Round-Up Ready Seed." This is GMO Seed. I won't go into my rant about GMO again, but it is deadly. It isn't that the farmers are bad guys, they simply have no choice due to the artificially low prices they receive for their produce and the fact that today's youth will not do this back breaking, hot physical labor.

The same goes for alfalfa, grass hay, and straw for over wintering animals. The bales used to weigh 50-75 pounds. At harvest time the fields were filled with youth bucking the hay onto trucks. The days were long, hot, and dirty, but no one cared. All the youth did it. This is how they earned their spending money.

Fast foreword to today. Farmers have spent tens of thousands of dollars on new equipment for baling hay and straw. The bales are huge (650-900 lbs.) Farmers can bale, then pick the bales up mechanically, and stack them with their new equipment. There are very, very few small bales being produced today. This is because they can not get help bucking the hay from today's youth.

Farming is no longer labor intensive, it is petro intensive. From fertilizers to expensive equipment, farming depends on cheap diesel. With our dollar imploding, cheap diesel is truly a thing of the past.

In my community it is now a rite of passage for the young men to visit the county social service office and sign up for food stamps at age eighteen. I kid you not! When talking to one of them the words, "I'm entitled" and "Everyone's doing it. My friends are all doing it." kept popping up.

So the male youths in this small town (in just two short generations) have gone from spending their Summer days working in the fields, weeding and bucking hay, to signing up for Food Stamps, playing video games, taking drugs, etc.

The ramifications are horrifying on so many levels....

S Roche
Nov 4, 2012 - 2:00am

Gold Manipulation by The Fed, Smoking Gun with source:

"I have one other issue I'd like to throw on the table. I hesitate to do it, but let me tell you some of the issues that are involved here. If we are dealing with psychology, then the thermometers one uses to measure it have an effect. I was raising the question on the side with Governor Mullins of what would happen if the Treasury sold a little gold in this market. There's an interesting question here because if the gold price broke in that context, the thermometer would not be just a measuring tool. It would basically affect the underlying psychology. Now, we don't have the legal right to sell gold but I'm just frankly curious about what people's views are on situations of this nature because something unusual is involved in policy here." Alan Greenspan, May 18 1993 p40 Dimitri Speck is very worthwhile for those interested:

S Roche
Nov 4, 2012 - 1:45am

@Galearis Yes He Is Too!

I think Jeff has made some whopping errors and I provided an example that shows he does not understand gold leasing. Now, we all make mistakes. But, my real beef with Jeff Nielson and people like him in precious metals is that they do not acknowledge and correct their mistakes. So, false information is perpetuated and people end up being misguided and/or confused.

Now, with the greatest respect to you and your brother, what you have provided us with here is opinion, not fact. Some of the causes and outcomes you mention may be correct. But, as an occasional poster on a blog run by a guy called Turd you are allowed to state your opinions, and they are interesting. A regular writer about precious metals, like Jeff Nielson, I hold to a higher standard and do not believe he has any right to be believed when states opinion as fact, as he does. Especially, given his track record on gold leasing.

I do not take anything he says at face value and all his links only go to other opinion pieces.

Nov 3, 2012 - 11:31pm

@Galearis . . .here, here!

Your brother wrote it succinctly. Accurately. Profoundly. If anyone in turdland doesn't understand this, they need remedial work in internalizing today's financial reality.

And yes, Jeff is correct--the paper price of gold and silver will approach zero. Default/decouple--take your pick.

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Prize Fighter
Nov 3, 2012 - 4:50pm

Random thought on mining

Great thoughts Galearis! I wholeheartily subscribe to that macro view of the global economic matrix. We export dollars and inflation in prices while controlling commodity prices for our poor. What works for us, crushes others. They hate us for our freedom because it's at their expense.

Random thought on mining companies....perhaps mining companies aren't allowed to realize real value because they are viewed by governments as subcontractors who mine national minerals and metals. I know mineral rights are another conversation but do govts consider all minerals theirs regardless of who "owns" the land?

Mining companies are allowed by markets to operate at just enough profit otherwise the govt would be forced to mine (at a loss of course) and in full purview of the public wondering why they are wasting losing money on tradition. After the metal is out of the ground and small profits taken, what do the mining companies have left? The govt meanwhile, gets the metal out of the ground at a price which is supportive of the dollar and taxed or criminalized out of our hands, all without lifting a finger.

Nov 3, 2012 - 3:42pm

Fantastic. I love their

Fantastic. I love their website. Good interview.

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