Thoughts from Myron—Year-End Reflections on Economic Realities

by xiexgp@gmail.com | December 23, 2013 10:39 am


Ed. note: Here the latest installment from longtime reader Myron Martin. As always, he has agreed to our trading restrictions, we have not reviewed, approved or screened his stocks or ideas, and the opinions he expresses are solely his own. Many of the stocks Myron covers are microcap “penny stocks” that can move dramatically with or without fundamental reasons, so please be cautious. Myron’s past commentaries can be seen here.[1]

This year-end article will be different than most, as it is more of a reflection on what we have accomplished together in the past nine months of my columns and the potential for the new year. Because of staff holidays, I am writing this several weeks ahead of its actual publishing date, so I will not be able to offer as much up-to-date information. But, because of information that may accumulate during the holidays, I will post at least one year-end stock pick in the “comments section,” once this is published, as well as whatever pertinent press releases may come out between December 17th and the end of the year, and probably the first week of January. So, check back often for updates.

I am hoping you will have some time over the holidays to check out the links I have provided to essays and videos that I think will lead to even better investment decisions in 2014. Without understanding what is happening on the political level and how it affects the markets, or how the markets are likely to react to explosive political situations, it will be difficult to make sound investment decisions for the new year.

Here is an example of important press release[2] about IBC Advanced Alloys (IB.V IAALF).

I post the press release because it shows how quickly a junior stock, in particular, can react to news that can not be known in advance. However, it is very relevant to the quote from legendary investor Benjamin Graham, which is of great encouragement to me, because it reflects exactly how I think and act based on my research. I have confidence in my convictions and always believed that IBC Advanced Alloys would be a long-term winner.

“If you have formed a conclusion from the facts, and if you know your judgement is sound, act on it – even though others may hesitate or differ. You are neither right nor wrong because the crowd disagrees with you. You are right because your data and your reasoning are right.”

–Benjamin Graham, The Intelligent Investor

I did my homework early on IBC Advanced Alloys and with this latest news I will be happy to add to my holdings under $0.15, starting with a stink bid at $0.12. No pressure, build a share position on down days.

Congratulations to Nick Barisheff on compiling the prima facie evidence that our fractional reserve Central Banking system is a fraud of the first magnitude[3]. While the article is lengthy, it is a nearly complete education on the actual results since the inception of this banker monopoly in 1913. The abundant charts show very graphically and mathematically why a breakdown is now imminent, and we can not trust our political leaders to deal fairly with the problem on behalf of their constituents! “We the people” are essentially on our own in taking action to protect our “purchasing power” from the general wipeout that is on the horizon. The politicians we think we have elected to protect our interests are actually serving their masters, the banking cabal.

Barisheff’s article will give you all the ammunition you need to prove mathematically that the crunch could at least start (if it hasn’t already), as soon as the 100th birthday of the Federal Reserve on December 23rd. By various devious means, the Fed, under new Director Janet Yellen, may manage to drag out the breakdown by continuing to print currency until hyperinflation takes a solution out of their hands. In short, we are on the cusp of an eventual change of the system. The unbacked currency printing can not continue forever. Change is definitely on the horizon!

To whet your appetite, here are just a couple of paragraphs that neatly sums up the historical facts, but the visual depiction is even more striking in the full article[4]…a must read!

From the introduction:

“On December 23, 2013, the Federal Reserve will celebrate its 100th birthday. Undoubtedly, there will be many articles forthcoming about the Fed between now and that infamous date, and I expect most, like this presentation, will be highly critical.

Today I will be speaking about the effects central banking and the Federal Reserve have had on our lives, our society and, most important, on the way we think and act. I know many feel overwhelmed by the economic forces that have essentially taken full control of our markets since 2008, but I am here to remind you that the light shines much brighter today than it did when I first began seriously exploring this subject several decades ago.

During what I believe are the final years of the U.S. dollar’s rule as the world’s de facto reserve currency, desperation is confirming what only a few years ago would have been dismissed as conspiracy theories of the lunatic fringe. Desperate acts, like the bailouts of 2008 and the attempts at crushing the gold market in 2013, have opened a window into the dark world of central banking and the most ubiquitous propaganda campaign in history against sound money practices.”

Here is a key conclusion:

“Gold climbed from $35 an ounce to $195 in 1974, then declined until the autumn of 1976.

Gold fell 14 percent below its 55-month moving average, just as it did recently. At that time, the New York Times announced, with complete, unabashed confidence, ‘the end of the gold bull.’ Investors had given up on gold, many vowing never to return to it again.”

Again, similar comments are being put out by the establishment media in recent weeks.

“However, just as today, investors who understood the fundamental long-term trends that were causing gold to rise waited patiently. Once the weak hands were out of the market, gold changed direction and began climbing for three years, rising to $850 an ounce. A similar 800 percent rise in price from its current levels would take gold to $10,000 an ounce. Of course, if John Williams is right and the United States does see hyperinflation, we can add several zeros to this estimate.

Self-education and moving cash out of banks into the only money that stands beyond the grasp of bankers and politicians is the best plan I can advise to prepare for the coming transition.

The Mises Institute has provided an invaluable service in providing resources for those who wish to regain their financial and conscious sovereignty, and to step outside of the banking matrix. For this service I would like to offer my sincere congratulations.

Corruption and moral hazard can only be fought with truth, and that highest human truth has always been represented by gold in the spiritual world, in the secular world, and in the financial world. Again, to quote Dr. Paul:

‘Moral hazard, from whatever source, is detrimental because it removes the sense of responsibility for one’s own actions. The more socialized the society, the less the sense of personal responsibility for one’s own behaviour; responsibility becomes collective.'”

Very well put. It is a theme I have been focused on for years. Our society, via socialistic trends, has put too much emphasis on rights instead of personal responsibility for health and wealth, where it rightfully belongs, but requires a moral and responsible lifestyle few are willing to embrace.

The next lengthy but vital message comes from the Sovereign Society[5], on the 100th anniversary of the passing of the Federal Reserve Act that has put America $17 trillion in debt, with no hope of ever paying it off, and which has to be “inflated away” or defaulted on. This is one of the best videos I have found that states the practical results of the Federal Reserve’s policies of the past 100 years. While I am not prepared to take the drastic actions they advocate personally, there may be some on the Gumshoe subscriber list who are. My judgement is that, for anyone with less than $100,000 in assets, like myself, it is not practical, but the first half of the video has vital information you would do well to watch to prepare you for what lies ahead. This is information I have been largely privy to for nigh on 60 years.

This is so simple a 12-year-old child can explain it[6].

If you have time left in the holidays, or before my first column in the new year, here is a list of essays to read and videos to watch that are valuable for their honest appraisal of America’s economic situation. Not that I suggest you should actually subscribe to the newsletters they are touting, but sometimes these “teasers” do offer valuable information you should be aware of before making investment decisions as the new year unfolds.

This statement from Robert Fitzwilson[7] of the Portola group neatly sums up the situation we face: “Nothing is new except the history you haven’t read”.

Porter Stansberry tells us that bankruptcy looms on the horizon[8]. 

Two takes on the unrelenting attack on gold by the entrenched establishment are here[9] and here[10].

Regulatory authorities are complicit, as shown in this article from Bloomberg[11].

Here is some useful commentary on the coming spike in silver prices[12]. 

Watch what China is doing with its reserves, here[13].

Bypassing the dollar is gaining momentum. Read about it in this article from The Examiner.[14]

Can you trust the establishment’s estimates and statistics? Find out here.[15]

Quoting Mitchell Clark in Lombardi Publishing’s November 20th Profit Confidential:

“Recently, I revisited J. Anthony Boeckh’s book The Great Reflation, which was published in 2010 and is a thorough, well-written analysis of the long-run cycles experienced by the U.S. economy and the affects of financial crises and monetary policy on the stock market.

Back in June, I presented a summary of Boeckh’s conclusions in this column. Many of his points, based on a non-political historical analysis of business and stock market cycles, have come to fruition.

Here are Boeckh’s key top-10 conclusions:

1. The global financial system will always remain flawed and subject to price inflation and bubbles, so long as it is based on fiat paper money. All anchorless fiat money systems are destined to suffer inflation and instability.” (My emphasis).

Here is the full article[16] if you are interested in reading the other nine points.

Late Breaking News: It is interesting to me that I profiled both Asanko Gold (AKG.TO AKG) and Brigus Gold (BRD) in the same column, “The ABC’s of Gold Investing,”[17] and now they are both involved in different, but key, company mergers that will result in mid-tier producers of enhanced merit. Primero (P.TO PPP), one of the acquiring companies, was next on my list of gold companies to profile, and I own the other company being bought out as well, PMI Gold Corporation (PMVGF), so I hold three winning tickets.

You can read about the Askanko/PMI merger here[18], and the Brigus/Primero merger here[19]. In my opinion, this makes any of the four even more worth buying, whichever stock you can get the best price on. Using stink bids on slow days from now through the end of the year you should allow you to pick up some shares on the cheap. Frequently, the acquiring company’s price drops on a takeover, and so may represent the best buy.

The stocks mentioned above that I own are IBC Advanced Alloys, Brigus Gold, Primero and PMI Gold Corporation, and per the Stock Gumshoe trading restrictions, I won’t trade them for at least three days after publication.

Stock profiling will resume with a mid-January column! Hopefully we will have a robust and better year in 2014!

Endnotes:
  1. Myron’s past commentaries can be seen here.: http://stockgumshoe.com/author/takeprofits/
  2. Here is an example of important press release: http://www.stockhouse.com/news/business-news/2013/12/05/ibc-advanced-alloys-taking-off-up-225-in-three-day
  3. the prima facie evidence that our fractional reserve Central Banking system is a fraud of the first magnitude: http://bmgbullionbars.com/the-federal-reserves-centennial-birthday-the-hundred-years-war-against-gold-and-economic-common-sense/
  4. full article: http://bmgbullionbars.com/the-federal-reserves-centennial-birthday-the-hundred-years-war-against-gold-and-economic-common-sense/
  5. lengthy but vital message comes from the Sovereign Society: http://pro.sovereignsociety.com/FINALUNWINDLF/MSVSPB07/?a=24&o=7886&s=8615&u=29811&l=148728&r=MC&g=0&h=true
  6. 12-year-old child can explain it: http://www.secretsofthefed.com/12-year-old-child-reveals-one-best-kept-secrets-world-video/
  7. statement from Robert Fitzwilson: http://kingworldnews.com/kingworldnews/Broadcast_Gold+/Entries/2013/8/25_Portola_Group_II_files/Portola%20Group%208%3A23%3A2013.mp3
  8. bankruptcy looms on the horizon: http://www.thedailycrux.com/Post/43485/porter-stansberry-the-bankruptcy-of-the-united-states-is-now-certain
  9. here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/11/23_Maguire_-_Fed,_BIS_%26_Criminal_Banks_Continue_Attack_On_Gold.html
  10. here: http://portphillippublishing.com.au/2013/11/gold-prices-manipulated-interview-chris-powell-dnd/
  11. this article from Bloomberg: http://www.bloomberg.com/news/2013-11-19/gold-benchmarks-said-to-be-under-review-by-u-k-as-probe-widens.html
  12. commentary on the coming spike in silver prices: http://www.angelnexus.com/o/web/52670?r=1
  13. China is doing with its reserves, here: http://rt.com/business/foreign-currency-china-reserves-075/
  14. Read about it in this article from The Examiner.: http://www.examiner.com/article/harbinger-23-countries-begin-setting-up-swap-lines-to-bypass-dollar
  15. Find out here.: http://www.financeandeconomics.org/chinese-gold-demand-and-the-world-gold-councils-estimates/
  16. Here is the full article: http://www.profitconfidential.com/stock-market/making-sense-of-the-u-s-economy-in-10-short-points/
  17. same column, “The ABC’s of Gold Investing,”: http://stockgumshoe.com/2013/11/microblog-thoughts-from-myron-the-abcs-of-gold-investing/
  18. Askanko/PMI merger here: http://www.marketwatch.com/story/asanko-gold-to-acquire-pmi-to-create-an-emerging-mid-tier-gold-producer-2013-12-17-61733118?reflink=MW_news_stmp
  19. Brigus/Primero merger here: http://www.newswire.ca/en/story/1280407/primero-to-acquire-brigus-gold-and-create-a-diversified-americas-based-mid-tier-gold-producer

Source URL: https://www.stockgumshoe.com/2013/12/microblog-thoughts-from-myron-year-end-reflections-on-economic-realities/


What These Icons Mean