While contemplating a subject to write about this morning I considered lumping the economy and standard of living together. I thought about writing on the situation in Ferguson Mo. because it’s pretty clear to me it’s not what we are being told. We are being led to believe that a black vs. white situation exists which very well may be true, however, the reality in my opinion is one of “economics.” Let me clarify this, rather than “economics,” let’s call it a “standard of living” problem. It has been reported that people from neighborhoods far and wide have descended on the area to “protest” but what is happening is looting …for “free stuff.”
Jesse Jackson has even said, “There is a Ferguson near you.” This may be one of the few things Mr. /Reverend Jackson has said publicly which is actually true! If you live in a high density, high population area I believe he is correct. I fully believe we will see mass protesting, rioting and demonstrations over a variety of topics which will ultimately lead to looting and far worse. Rather than broach the subject of “unrest,” I will segue from a “rare truth” spoken by Jesse Jackson to a comment one our readers sent in. His “comment” is first then followed by my comment back to him:
“You gold and silver people have led us this far. I sure hope all your professing is not just to sell more coins. I do not think it is. If it is you know it. And to me if your talk is just about Bill Holter making a living selling coins I would be very sad. As much as GATA we trust you! I’m sure it is not! Remember every word you and Andy speak holds the financial lives of many. This is getting very very serious.”
I started building positions in gold, silver and mining shares as a retail stockbroker in 1997, I assure you the following 3 years were tougher than the last 2 have been. I retired in late 2006 and wrote for GATA for the next 5 years and was not paid a single dime ever for my writings. David and Andy Schectman liked my writings and asked me to write for Miles Franklin so yes, I “do get a paycheck” now for what I write. I challenge you to read anything I wrote for GATA that even slightly differs from what I am writing today. I have the exact same opinions today that I have always had, stronger now however because we have gone further off the rails in every fashion.
I write exactly what I believe and no amount of money from anyone could entice me to write anything which I don’t believe. Does this mean that Bill Holter is always right or correct? No, I am as human as you and can be as wrong as anyone else. Actually for 5 of the 7 years I’ve been writing was for free. Speaking of “free,” I assume that you read my material because it makes sense to you. If this is the case then you are receiving something of value (to you) for FREE. You are entirely free to either not read my missives or to question and debate in the comments section where you believe my logic is flawed. No one forces you to read or to follow or to believe me or anything I say or write, this you decide to do or not to do on your own.
I will leave you with this; you are born into this world with only one thing, your good word. It is up to you and only you whether you exit the world with your good word still intact.
As you might have detected, the “comment” raised my blood pressure and I am offended because he “hoped” I was not writing what I write for a “paycheck.” First off, why shouldn’t Bill Holter receive a paycheck? Does “Joe” go to work each morning for free? Would he ever “give” his work away without any compensation? As I mentioned in the reply and as many of you already know, I wrote from 2007-2011 and my work was published by Bill Murphy and Chris Powell at GATA and Le Metropole Cafe. Yes, I did “give” my work away. Some of it very correct, some of it not but it was “my opinion” which I didn’t even get “2 cents” for contributing my two cents and didn’t ask for it.
I would first ask if he has ever read opinions or literature from Merrill Lynch, Bank of America or any other financial institution. Does he ever question what he reads there or is it assumed that they could never be wrong or Gosh forbid “steer you wrong” for their own benefit? I do want to point out that David and Andy Schectman, Andy H. and I all have huge percentages of our net worth’s tied up in precious metals in one form or another. We are believers! Are we correct? I surely think so otherwise I/we would have liquidated our positions long ago. Do we believe in our own product? Yes we do and this alone should tell you we are at least telling you the truth “as we see it.” Being truthful about our opinion of course does not mean we will be correct, this is where “logic” and common sense comes in. Hopefully you read us because our “arguments” make sense based on logic, common sense and connecting dots. We did not make the current situation or scenario up, we only report on where we think things currently are and what we believe you can or should do about it.
That said, I am thankful to be working with David and his son Andy Schectman. I believed them to be and now after two years know for a fact, they are straight shooters and the type of people I want to be associated with. I am thankful to have the greatest of jobs where I can spout my opinion, help people protect themselves from what is coming financially …and put beans and tortillas on the table. Who couldn’t love what I do? I get to play “My Cousin Vinny” and point out where, how and why you are being misled by the mainstream press …and what you can do to protect yourself from it!
Before finishing, I’d like to tell you where I think we are on “the clock.” The old saying, “First they ignore you, then they laugh at you, then they fight you, then you win” was spoken by Mahatma Gandhi many years ago. Personally, this was true in my business career. I was ignored for the most part in the late 90’s as I began to build precious metals positions (and turned all NASDAQ business away to competitors from mid-1998 on). I was then laughed at in the early 2000’s as gold and silver began to rise. By 2004 or ’05, I would hear from the compliance department once every couple of weeks asking me, “What the heck are you doing buying all of this gold ‘stuff’?”. Compliance even told me I had to liquidate a gold position which became 70% of an elderly person’s portfolio which started at under 10%. I told them, “No, YOU call the client and YOU explain the capital gains involved and that the position is oversized because it did so well relative to the 90% which was and followed THE FIRM’s recommendations.” The client was never contacted by the way. Following these “fights,” I “won.” I was able to retire, take my foot off the gas, relax and finally enjoy life.
As for the precious metals “clock,” gold and silver have been fought tooth and nail since late 2011 mid 2012. If you have been in the precious metals for the last 20 years then you know you were first ignored and then laughed at. Now, people have been in a “dog fight” for over two years and they don’t like it. I would ask you this, “Did you really believe the U.S. government would lay down and admit, and yes the whole thing is a Ponzi scheme and then say sorry?” Did you not think losing the ability to create unlimited amounts of currency and thus power would be fought over? The only thing left is for “us” to “win.” This may be closer than you think. I just read the latest by Koos Jansen, the spot price of silver on the Shanghai exchange is now trading at a 7.8% premium over the Dec. contract, and this is backwardation. Before you say “it doesn’t matter,” please know that the physical inventory of silver has dropped from 1,200 tons last May, 2013 to 138 tons now …an almost 90% drop. Whether there is gold or silver available does matter, it will matter. There will be some very definite winners and losers before this is over! That said, I unfortunately believe the winners will also be losers as society will break down for a time, spending your winnings might prove to be a difficult task.
he who laughs last, laughs best. can’t get no more truth than that. people will always go down fighting,thats human nature.i think you are spot on in your writings. i don’t even tell folks anymore,and i just say to myself,that these will be the very same people looking for a crust of bread when the time comes.thats when i want to see them eat their 60″ tee vee .people can’t seem to understand when you tell them to buy that extra bag of flour,etc.etc.deaf ears i guess. thanks bill!!!!!
yes, thanks Chris.
Good article, Bill. At the same time the ponzi is getting top heavy, we are living Atlas Shrugged.
thanks, yes it is.
“spending your winnings might prove to be a difficult task.”
The above statement is what I worry about. I believe what all of you write, my problem is how to pay off any debt or purchases if and when the economy does hit bottom. From the looks of the world situation bottom could happen at any time.
yes it is a quandary but if you have PM’s, they should be worth much more in whatever new system arises. Even if the debt is readjusted, your PM’s should grow versus your debt and make it easier to pay off.
Bill, I never thought for one second, in all the years that I have been reading your articles (long before your present retention by Miles Franklin), that you were ever ‘talking your book’. I would express exactly that sentiment for ‘Ranting Andy’ also.
thanks Moe, I have and am “talking my book” because my book is PM’s in every form and fashion, it is “my book” because I believe my own logic and story. I must say, the late 1990’s through 2001 was a very “cold and lonely” time!
I used to read your commentaries on Harvey’s site. I can no longer wait for Harvey to post on his blog, so I decided to get it straight from the horses mouth.
It’s most difficult to understand what that person wrote. Not sure he/she understands what is going on, as most don’t.
I am experiencing first hand Mr. Gandi’s saying, hoping for the “then you win” part,,, re chickens on the tree lawn.
I am so very concerned about the last statement in this article that I have been attempting to pursue a locavore lifestyle.
And finally Bill, if you want your blood pressure to boil over, watch my youtube video chickens on the tree lawn – the movie. It contains actual unaltered court transcripts sound bytes showing the abusive, unethical, illegal behavior of government today.
PS. Thanks for getting paid for the writing that you do. It’s not an easy job writing, been there, done that,,,
Very well said Bill. I look forward everyday to reading your exceedingly rare “common Sense” advice to your readers. I wish you wrote 2 articles everyday. I don’t know if I could have endured the late 1997-2000 if it was worse than 2011 – 2014. Keep up the Great Writing and Words of Wisdom for us true believers. Have a great week and weekend.
Thanks Leslie, U2
I think Bill Holter or anyone else should get paid what they think they are worth for the work they do.
I think it is a very good idea to have a decent percentage of one’s overall portfolio invested in PM’s.
I think everyone should get out of debt ASAP
I think everyone should get their $$$ out of the ‘system’ ASAP.
I think that small denominations of gold will come into their own and will be essential for day to day living.
I think that Junk Silver will be very handy to own.
I think it is best to make as small a target of yourself as you can.
The same folks questioning your “paycheck” probably also don’t mind paying for a copy of the NY Times and reading Paul Krugman’s demented commentary on gold being nothing more than a rock. But I am sure there is no “motive” to this “insight” other than his desire to share his unbiased economic brilliance in the full spirit of objective journalism.
thanks Jeremy, yes Krugman is trying to “help” the masses.
Hey Bill, people will always question the truth. It is part of the error in man when they are living a LIE. If someone is not open to receiving something they will always have a rebuttal to it. There are many institutions out there selling gold and silver and don’t own one ounce for themselves or employees. Now who is questioning that when they buy from these said same places? Many have gone to school and cannot find a job today on 4yrs of time and money wasted, where is the questioning on that? I saw gold and silver smashed today on no news, only for gold to rebound above 1300 again. Where is the questioning on that manipulation? Let the ones who have nothing to offer keep on talking, for it is said empty vessels make the most noise.
I appreciate the fact that you write articles for us to read for free and get paid to do your work. Why? Because it goes to show that who you work for not only care about you, but also your audience, whether they become customers or not! Besides, you said it is a “paycheck”,and it is only because of perception what you receive is worth anything at all. If confidence is lost today, what will that “paycheck” be worth? You will be again writing for free!
BTW I saw you in the background of this video
Thanks Marco, it’s a credit to David and Andy Schectman for building a business model that includes good (and free) information for the public and their clients. Who was that handsome horseman in the background?
Lol Bill, I wonder who that horseman was myself!
I am in the laughter stages with my friends. Others dismiss that the doomer writers are simply trying to peddle gold, their trade. It’s bizarre how little effort / desire the average person expends towards learning how the financial system works. I chalk that up to the smooth talking bankers. Following all these related blogs about financial destruction and resource decline provides incredible insight into the world that was never remotely possible for the average person before the internet age. I guess people are content with the blue pill … until SHTF.
It’s obvious you write what you feel, I would respond to those wondering if you’re peddling your product that maybe you are in this business because you believe in it and want to do something good for your country and countrymen.
However, I am not as stimulated by common sense logic anymore. While it’s always great to have it and sometimes / often common sense wins out, it can lead to group think where groups of people with similar thinking can reinforce each others’ beliefs and not notice problems or other ways of thinking. The comments in Zerohedge are a perfect example of this, or any other political blog. The greatest growth I have experienced intellectually is when I opened myself up to investigating that uncomfortable feeling that comes when someone says things that run contrary to a commonly held view. Then you are forced to change your world view and become stronger as a result of it. Thankfully, this happens less and less now, so I must be on to something! If something seems perfectly logical and you think you fully understand it, there’s a good chance you don’t and it’s time to question your understanding.
Or… you are a sane person in an insane world?