Thursday Conversation - Alasdair Macleod


We kick off our new weekly series with an old friend, Alasdair Macleod of GoldMoney. Be sure to give this a listen.

Ove the course of this discussion, Alasdair and I discuss:

  • the deepening trade war between the US and China
  • the link of a rising dollar with higher US interest rates
  • the long-term impacts if a global bond market selloff
  • the gradual move away from a strictly dollar-reserve system

I think you'll enjoy this new, weekly format. And thanks to Alasdair for his time and support. He was A2A guest #1 back in 2013 so it was a treat to have him be guest #1 for this series, too.



Oct 5, 2018 - 9:37am

Mexico's gasoline prices directly affect U.S. consumption

I thought this was interesting. The people of Puebla are protesting law-enforcement actions against fuel thieves.

I wanted to also point out that gasoline prices are rising in Mexico. As of Sept gasoline is running around $3.97 a gallon. Here is a chart of average prices across Mexico in liters. As you can see gasoline prices have risen substantially over the last year. In 2017 PEMEX and the Mexican government were forced to end gasoline subsidies. PEMEX lost 17.8 Billion Dollars in 2017.

Why does this matter to us? First off your miners are paying higher fuel costs and contending with a working population that will demand higher wages to keep pace with inflation. Secondly, the cost of production increases as fuel costs rise. Mexico produces 25% of global silver supply and silver prices have not been rising in price relative to gasoline prices. This is creating a lot of pressure on silver miners. Here are some of the data points to keep in mind. As the cost of fuels rise so do the cost of U.S. imports from Mexico.

  • Mexico was the United States' 2nd largest supplier of goods imports in 2017.
  • U.S. goods imports from Mexico totaled $314.3 billion in 2017, up 6.9% ($20.3 billion) from 2016, and up 49.1% from 2007. U.S. imports from Mexico are up 687% from 1993 (pre-NAFTA). U.S. imports from Mexico account for 13.4% of overall U.S. imports in 2017.
  • The top import categories (2-digit HS) in 2017 were: vehicles ($84 billion), electrical machinery ($62 billion), machinery ($54 billion), optical and medical instruments ($14 billion), and mineral fuels ($11 billion).
  • U.S. total imports of agricultural products from Mexico totaled $25 billion in 2017, our largest supplier of agricultural imports. Leading categories include: other fresh fruit ($6.0 billion), fresh vegetables ($5.5 billion), wine and beer ($3.3 billion), snack foods ($2.1 billion), and processed fruit & vegetables ($1.5 billion).
  • U.S. imports of services from Mexico were an estimated $25.5 billion in 2017, 5.8% ($1.4 billion) more than 2016, and 66.2% greater than 2007 levels. It was up roughly 243% from 1993 (pre-NAFTA). Leading services imports from Mexico to the U.S. were in the travel, transport, and technical and other services sectors.
PJ Invest
Oct 5, 2018 - 9:39am

Shoe TP

Pretty sad when your "top news" is TP on the president's shoe. Can't find any news now a days?

Ben Stackin
Oct 5, 2018 - 9:54am

EXMGF... good news +20%

copper mine. Arizona.

Buy it later in the day when it comes down to earth.

Oct 5, 2018 - 10:14am

Something on Trump's shoe

Hillary's indictment unsealed

Trump's 1978 tax returns revealed

Oct 5, 2018 - 10:22am


Plan to Audit Fed.

Oct 5, 2018 - 10:24am

It's not even toilet paper...

it's a facial tissue."backup" air force one... Hun? I gotta get outta here... my finger hurts!

Best thing Alasdair said, right at the beginning, was that he doesn't believe MSM and that it's all fake. Yep, it's all fake alright but his personal inflation experience is butter? Okay, I best go mow the lawn now.

Oct 5, 2018 - 12:01pm

must be TP on his shoe...

...A dirty USD

Oct 5, 2018 - 12:31pm

New Conversation

Great interview by two pros. Thanks

Oct 5, 2018 - 3:43pm

Trumps shoe

I think that's part of Rosensteins shirt collar!!!!

Subscribe or login to read all comments.


Donate Shop

Get Your Subscriber Benefits

Exclusive discount for silver purchases, and a private iTunes feed for TF Metals Report podcasts!

Key Economic Events Week of 6/17

6/18 8:30 ET Housing Starts and Building Permits
6/19 2:00 ET FOMC Fedlines
6/19 2:30 ET CGP presser
6/20 8:30 ET Philly Fed
6/21 9:45 ET Markit flash June PMIs

Key Economic Events Week of 6/10

6/11 8:30 ET Producer Price Index
6/12 8:30 ET Consumer Price Index
6/13 8:30 ET Import Price Index
6/14 8:30 ET Retail Sales
6/14 9:15 ET Cap Ute and Ind Prod
6/14 10:00 ET Business Inventories

Key Economic Events Week of 6/3

6/4 All day Fed conference in Chicago
6/4 10:00 ET Factory Order
6/5 9:45 ET Markit Services PMI
6/5 10:00 ET ISM Services PMI
6/6 8:30 ET US Trace Deficit
6/7 8:30 ET BLSBS
6/7 10:00 ET Wholesale Inventories