Moving Forward with Marin Katusa

59

Late Friday, I had the opportunity to visit again with Marin Katusa, founder of Katusa Research and author of the best-selling book, "The Colder War". After the sharp correction in both the metals and miners, I think you'll find this podcast to be of great value.

With the HUI index down more than 30% from its August highs and the metals falling sharply last week, I jumped at the opportunity to visit with Marin again. Over the course of this call, we discuss:

  • the reasons and forces behind this recent correction
  • Marin's feelings about the mining sector as a whole after the pullback
  • why he still considers Brazil Resources to be his top pick in the sector
  • the current, dangerous status of The New Cold War between the US and Russia

As we await the re-opening of the "markets" in a few hours, I think you'll find this podcast to be an excellent use of your time.

TF

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lakedweller2
Oct 10, 2016 - 9:59am

Smack Down

Just around the corner.

ChaCha Mars
Oct 10, 2016 - 9:06am

@Joseph Warren - Robt. Burns

Thank you, Joseph Warren! The wide variety of posts -- mostly smart, always thought-provoking -- is why I'm here, too, and you're one of the names I look for.

About posters here: Dr. P. Metals posted something late last night about China & gold/SGE that confirmed my then-tentative query several weeks ago about the circular nature of the SDR with the addition of China given their commitment to derivatives. Until then I'd followed a doom-'n-gloom podcaster who told us for months the SGE was going to make the price of gold real as the Chinese were going to insist on delivery of physical gold. Which a quick look at the SGE's own website showed was not true. April was six months ago. Since then Rob Kirby has told us all about the ESF and I for one began to understand the circular nature of the SDR basket and that the addition of China just makes it even more circular -- meaning this can will continue to be kicked a bit longer. Some of the stackers here may be disappointed in that, but I'm glad because of the human suffering that will result from the can's demolishment.

To paraphrase Bill Still, still here, still reading all the posts. Blessings, y'all!

Joseph Warren
Oct 10, 2016 - 8:32am

@tedc and ChaCha Mars

Thank you for posting the Syria situation summary and the ballard written by Scot Robert Burns.

One of the main reasons I come to TFMR is for the wonderful sharing of thoughts and links by this freedom loving community. It's great to have many people out there scanning many information sources with different perspectives. That would be impossible for one person to do on their own. I applaud you and all the Turdites.

Rakka
Oct 10, 2016 - 8:10am

AE - Dollars

worth every penny, IMO

check it out

Dewey
Oct 10, 2016 - 4:30am

DB already down 3.5 % in

DB already down 3.5 % in early trading on the DAX

canary
Oct 10, 2016 - 3:20am

@Dr. P. Metals...Your best post. (@ 10.41PM)

Number of lawsuits as well......Personally, I'm more reserve now, than I used to be....But I strongly believe that the "economic principles" will work against them...and all I can do is wait and try not to get overexcited.

tyberious
Oct 10, 2016 - 2:32am

I'm ready

$31 trillion in extra debt,,,,, Thermodynamic oil collapse

Kunstler is reliably pessimistic about the future of techno-society; "Now it’s up to natural forces — and their galloping horsemen — to get the job done. "
Sizing Up the Endgame - KUNSTLER

" He says that, Forex markets (and many other markets - too) are going to be volatile until a "New World Order" is implemented. Or to quote him
verbatim "Price discovery will be an issue as we move to a New World Order." The "NWO" he is referring to, is some sort of market panacea, where price discovery is so efficient, well - that's not a market! "
"Fast forward, it's 10-8-2016, and leading FX strategists are telling us that markets are waiting for a "New World Order"
" It seems that over the past 100 years really, not much has really changed, it is the same group of banks pulling our nose (historically speaking), whether they're funding Hitler or Clinton, whoever wins, nothing seems to change. In war there are no winners, only victims. "
Hitler's New World Order alive in the markets - FX History Lesson 28 | Zero Hedge

"Well, let's say by a staggering $31 trillion in the past six years. According to the wonderful folks at the Federal Reserve, U.S. net worth increased from $57.9 trillion Q2 2010, to a stunning $89 trillion Q2 2016:"
"I would imagine a lot of wealthy Americans believe they are living life "High On The Hog" today. However, that $31 trillion in additional wealth is a nothing more than a "Digital Mirage." For wealth to grow, more energy must be burned and positive economic activity must be generated. This is the foundation of all economic principles.

Unfortunately, Americans did not burn more energy to create this additional $31 trillion in U.S. net worth. Matter-a-fact, total U.S. energy consumption in 2016 will likely turn out to be less than it was in 2010:"
"Moreover, total U.S. energy consumption will likely be lower in 2016 (96.5 quad Btu's) compared to 2010 (97.4 quad Btu's). On the other hand, total U.S. net worth has climbed to $89 trillion versus $57.9 trillion in 2010. So, the real question is... where did this extra $31 trillion in U.S. net worth come from if total energy consumption was flat?"

"Last week, I spoke with Bedford Hill of the Hills Group about their "Thermodynamic Oil Collapse" model. What an interesting conversation it was. Bedford Hill was the project manager of a group of engineers that put over 10,000 hours in designing their Thermodynamic Oil Collapse model.

Bedford told me that after they ran the model, the results were so shocking, they sat on the damn thing for two years before publishing. I asked him did any of the engineers that worked on the model disagree with the results? His answer was, "Not a single one disagreed."
The Coming Collapse Of U.S. Net Worth Will Wipe Out Millions Of Americans | Zero Hedge

tyberious
Oct 10, 2016 - 2:32am

Danny B

Fallout from the rising dollar

It seemed like a quiet Sunday until I checked Martin Armstrong. I have a lot of excerpts. One thing to focus on now is the rise of the dollar. China moved 300 million+ peasants to the cities,,, the jobs ran out when they impoverished their main best clients. They have to print like mad to keep the peasants from revolution. Europe is sucked dry supporting enormous hordes of bureaucrats and socialists. America is still coasting along on the "fat" of the reserve currency. This has facilitated a flight to the dollar from the Euro and the Yuan.

The Russian stock market is the strongest but, most people aren't aware of this. The flight to the dollar is working the opposite of the desired result from the currency war. Also, dollar-bonds are the only ones that aren't yet negative.
As the U.S. dollar rises, it is more difficult to sell our exports. Our trade deficit grows faster.
Another item; We have a global price for commodities and labor. The Japanese CB ZIRP and NIRP has caused a global price for GOV bonds. Any State that has a higher interest rate than the Japanese attracts hot money,,, the currency rises and exports become too expensive. Any labor market that tries to pay higher wages sees the jobs outsourced to low-wage competitors. The same is true for taxes.; If Trump cut corporate taxes to 15%, then companies would bring their cash home. I testified on that before Congress and explained they had to match the best tax rates of 15% as in Hong Kong and the corporations would all return.
We are getting that pop in the dollar now against the Euro, Yen, and Sterling. This has been what the Fed is frightened about.

Unquestionably, there remains a risk that we could see a complete monetary reform as early as 2018 going into 2020 or the latest 2032 insofar as a change in the currency base system. This is likely to follow a Sovereign Debt Crisis which should begin to erupt by 2018.”
https://www.armstrongeconomics.com/i...ing-collapses/

"The central banks have been trying to keep the dollar down because a rising dollar will undermine Europe exposing the ECB total failure, and then there is the risk of major sovereign defaults among emerging markets who issued their debt in dollars. The IMF has lobbied hard with the Fed pleading not to raise rates for this fear of capital pouring into the dollar. They do not appear to be able to sustain this policy beyond January."
"Gold is not something to avoid. True, institutions cannot buy gold for they earn no income. Gold is really for the individual and it will eventually be the hedge against government and the change in the monetary system which could come as early as 2018 but by 2020 if on schedule."
https://www.armstrongeconomics.com/m...-dollar-bonds/

"The hunt for taxes is destroying the world economy and on January 1, 2017, all governments will begin sharing info on foreigners. The assumption is that anyone doing anything outside the USA is hiding money from taxes. With this attitude, world trade will continue to collapse into 2020."
https://www.armstrongeconomics.com/w...g-on-schedule/

"Does the FED actually also see these trends coming (strong US dollar, bond crash) ?
ANSWER: Yes. The Fed has sent people to the major banking houses and told them outright that their models are wrong. They have been telling them quietly that there may not be a rush to quality being bonds. Moreover, the selling of US Treasuries by some central banks has been an effort to try to prevent the dollar from rising. China’s holding of US Treasuries has declined to its lowest level in several years, but it is having little effect causing markets to simply coil." Is that, "coil",, like a cobra?
https://www.armstrongeconomics.com/m...ly-bond-crash/

Lowering corporate taxes is a "fascist" move in an economy where GOV is pushing socialist schemes to try to forestall revolution. The corporations pass on taxes to the consumer so, nothing is really improved. EVERYBODY is trying to stash their cash and now, there just isn't enough in circulation.
Finance just keeps creating more debt-bonds when there is nobody that can ever pay off a fraction of them.
All tangible wealth comes from Mother Earth. As the lower loop creates ever-less tangible wealth, the upper loop creates ever-more debt-wealth. We will come to a point where the upper loop realizes that they can't sell their paper to anybody.
Most of the paper-wealth is dependent on profits and taxes from the lower loop. China exported wage & price deflation that wiped out profit margins and the discretionary spending from wage earners.
Armstrong writes about a new monetary system. If it does not include debt-free money, it will fail very rapidly. GOV currently has $ 212 trillion in unfunded liabilities. No debt-money monetary system can absorb such a large shock. The alternative is to let many millions of baby-boom pensioners die.

We don't have a lot of time left; Stock & Bond Bubbles Much Worse Than 1929-David Stockman | Greg Hunter’s USAWatchdog
The dollar is falling but, other currencies are falling faster; "Since the mid 1970’s, Salinas-Price points out the peso exchange rate has plunged compared to the U.S. dollar. Salinas-Price says, “From 1976 to date, from 12.50 pesos (to $1 US) we are now at 15,100 pesos (to $1 US) and going further down. "
https://usawatchdog.com/apocalypse-an...salinas-price/

Things are slipping away fast and it is doubtful that our cretins in the district of Corruption will do anything in a timely manner. " in August, new vehicle sales (in units) fell 7.2% year-over-year, having plunged 20% year-to-date, with new car sales down a spine-chilling 28.6% year-to-date, and even truck and SUV sales down 13.9%. It takes a lot of headwinds for a Texan to give up on buying a new truck."
https://wolfstreet.com/2016/10/08/tex...economy-drops/

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lakedweller2
Oct 10, 2016 - 2:29am

Debate and Price of Gold

The price of gold increased about $2-3 during initial couple of minutes of Hillary comments then fell slowly back during Trumps and remained about where it started for the next hour and a half. I was watching investing.com.

edit: gold was up $10-11 when debate started and went to over $13 initially, then fell back to $11-12 range.

tyberious
Oct 10, 2016 - 1:28am

@JQuest

20T, but 12 is admitted!

I've only got one oz.

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