MARTIN WEISS: Depression is Unavoidable
Investment publishing legend Martin Weiss says there are "dark clouds" hovering over the world's most powerful economies.
Martin Weiss of Weiss Research and Money & Markets explains why the U.S. economy continues to slump despite all the stimulus. He thinks the world will reject U.S. credit because of the Fed's actions and then talks about the deceptions brokers, banks, insurance companies and ratings agencies hide.
It’s time for another episode of Stansberry Radio, the show that’s too loud for radio.
Aaron Brabham: Welcome to another episode of Stansberry Radio. I’m Aaron Brabham. Porter’s in Germany with The Atlas 400 club this week at Oktoberfest, so sitting in with me today is our short-term trading expert, Jeff Clark. Jeff, thanks for sitting in for Porter.
Jeff Clark: Hey, thanks for having me. I love the show, so it’s fun to approach it from this side of the bench.
Aaron Brabham: Well, you’re on the hot seat, buddy, so we’ll find out what happens today. Today we’re interviewing the founder of Money and Markets and Weiss Research, Martin Weiss. We had a lot of our listeners request to have Martin Weiss on the show. I know that we’ve done some things with the Weiss group in the past. Jeff, are you – I’m sure you’ve met Dr. Weiss before.
Jeff Clark: I haven’t actually met him, but I’ve read, geez, volumes of stuff he’s written over the years. He’s got a tremendous track record of predicting economic trend.
Aaron Brabham: And we’ll get into that a little bit later. We’ve been receiving a lot of feedback from our listeners. Of course, we get people that send us feedback at stansberryradio.com for the e-mail address, as well as we have our hotline open 24/7/365. You can call it, go on a rant, tell us you love us, tell us you hate us. Doesn’t matter to us.
Just call us, 855-727-2346. That’s 855SARadio. I guess I need to get something set up like a regular number for our international callers, ‘cause we’ve had a lot of requests for that. Also, don’t forget to visit us online at stansberryradio.com where you can subscribe to our mailing list, send us direct messages, download our podcast and hit up the blog, which is one of our new features. We have a lot more new features coming out.
Keep sending us your suggestions. You can also hit us up on the YouTube channel. So, before we jump into this show, let me address last week’s show, an interview with Dr. Craig Roberts. We received a ton of e-mail both positive and negative, like this one from Peter. He’s one of our listeners.
Peter said, “Porter, I have just finished listening to your most recent interview, and I commend your excellent advice to young persons in your chat with Aaron during the first few minutes of the broadcast, spend less than you earn, stay out of debt, start a business of your own, invest your savings in commercial bonds and some rental real estate if you can. I shall be recording your words so that I can play them back to my grandson. I found your interview with Dr. Roberts most interesting, but it would have been more interesting if I could have heard all that was said. You over-talked him so much and so frequently that often I could not distinguish what either of you were saying. Don’t misunderstand me, I admire you greatly, and you have taught me much.
“I subscribe to several of your services, and I find your Friday essays to be gold mines of information. Just remember that when two people are speaking at once, it is difficult for a listener to hear either of their arguments.” All right, so Porter’s gonna be back next week. I’m saving a lot of your e-mails for Porter to answer. We had people saying, “Oh, Porter sounds schizophrenic. Now he’s saying the economy’s in great shape, but he calls his – for the end of America.”
We had people saying, “It was disrespectful. You should listen to your elders.” But, we also had a lot of people saying, “You know what, I totally side with Porter on this one, and I believe Dr. Craig Roberts is just a academic,” so I’ll let Porter address all those things next week. I just wanted you guys to know that I haven’t forgotten about you, and we appreciate the feedback. All right, Jeff, I wanna give our listeners some background on you.
You’re the former president and CEO of an independent brokerage house and the founder of an investment education firm. You focus on short-term trading as well as finding investing plays that deliver streams of high-income payments. You head the S&A Short Report as well as Advanced Income newsletters. If you don’t mind, will you briefly tell our listeners about your trading philosophy?
Jeff Clark: Well, sure. I think the easiest way to explain it is what I do, I try to profit off of short-term emotional extremes in the marketplace, so I look for conditions where a stock has either gotten way oversold or way overbought, usually as a condition of emotions, investors reacting emotionally, and where the rubber band is basically stretched as far as it can go, and then I make a bet in the other direction. It’s kind of a reversion to the mean philosophy, and oftentimes the best way to trade that sort of thing is using options. I do options a little different than a lot of traders do.
Most folks use options as a way to increase exposure or to increase leverage and get more bang for their buck. I use options as a tool to reduce risk, so my whole philosophy is using the extremes in the marketplace, looking for low-risk setups on stocks, and then I use options to reduce that risk even further.
Aaron Brabham: All right, so yeah, this is a little bit different than what usually Porter and I preach. We usually preach kind of real – yours is still a safe strategy, but we really are like, “Oh, don’t ever buy calls or buy puts. That’s a sucker’s game.” I know that you participate in that, but you have a fantastic track record. What do –
Jeff Clark: Well –
Aaron Brabham: What do you think is different –
Jeff Clark: – Aaron, let me interrupt –
Aaron Brabham: Yeah, go for it.
Jeff Clark: – just a second. It’s a sucker’s game if you do it the way most people do it, which, again, is almost like using Wall Street as a casino, which if you bet as a casino, you’re always gonna be – in the long term, you’re gonna be suffering. Anybody who has been in the markets a long time and anybody who’s been trading options a long time needs to look at them as tools to reduce risk. And that’s something that is difficult to get across to folks who are brand new as option trading, because they see it as a way to get huge returns. But, really, the best way to use them is as a way to control the risk, and if you look for low-risk setups in the stocks and in lower-risk setups trading the options off of it, you can do really well.
Aaron Brabham: You’ve made some bold calls in the past. I believe there’s a story floating out there that I probably have heard where you were down something like $1 million and you had to walk away from your computer for the rest of the day because you believed in your call, but you just couldn’t stand to look at it anymore. I think that was a – now, maybe it wasn’t $1 million, but I remember it was the gold short call you had when it was going straight up. And I think it might have been like last year sometime.
I don’t even know if you had money on it. Actually, you did if you wrote about it, but there are big swings, and there are certain indicators that you look at. Do you have any proprietary software, or is this all things that people – investors can do on their own?
Jeff Clark: Well, yeah. Investors can do it on their own, but there is something to be said about having done it for nearly three decades. You have a lot of experience, and you have a lot of – you mention the situation where I was down about $1 million. I don’t even wanna count what I was down. I know it was something significantly more than $1 million, and even talking about it now I’m getting a little bit nervous, and my palms are getting sweaty because it was such a traumatic event in my life.
And it turned out to be a phenomenally profitable trade, but it’s not something I would ever do again. I simply took on much too much risk, but yeah, I did pull the plug on the television screen. I turned off I think it was Financial News Network at the time, and I had to leave. I had to leave the office for a couple of hours. Came back and everything was, obviously, much, much better, but some other day, some other time when we’ve got a lot more time I can go into that story.
Last year, when I made the gold call, you know, gold had gone to extremes. Gold was trading near $1,900.00 an ounce. Everybody in the world seemed bullish on gold. It had gone parabolic. It had gone basically straight up, and we had a similar situation with silver a couple of months before.
Now, I chickened out on the silver call. Silver had gone parabolic, and I look at it, and I knew it was gonna end badly, but I just – I couldn’t pull the trigger on that trade. I was getting caught up in the whole silver’s going to $100.00 an ounce type of calls that a lot of folks were making. I did not wanna make that same mistake with gold, ‘cause had I bet short on silver at the time, it would have been a phenomenal trade. So, yeah, I recommended to Short Report subscribers a short gold transaction, and I took a lot of heat for it when I first put it out, because everybody was bullish. It was a really contrarian trade.
But, again, this is a situation where emotions, investors’ emotions had gotten the best of them, and we had reached this extreme level in the gold market to where the rubber band truly was stretched as far as it could possibly go. So, betting on the reversal made a lot of sense, and it was a tough call, and I think the first two days of the trade we were down on it, but then things reversed very quickly. Gold came back to a more neutral situation, and, if I remember, we made something like 200 percent in a couple of weeks on that trade, so it was a really good trade, but you take a lot of heat for those sorts of calls. And those are the types of trades I’m looking for, the ones that are difficult emotionally to make because everybody else seems to be on the other side, and most of the time, if everybody’s running in one direction in the stock market, the smartest thing to do is to go the other way. It’s also the toughest thing to do, but those are the kind of trades that work out.
Aaron Brabham: Are you seeing any sectors right now or any commodities that you feel are overextended or overbought or oversold?
Jeff Clark: Well, it’s tough right now because everything is kind of in a – in sort of a neutral situation. We had a situation with gold not too long ago, gold stocks in particular, that were just remarkably oversold. And if you can go back to April of this year, you had gold stocks trading at valuations we hadn’t seen in a decade, and it was – it seemed to me a no-brainer to be betting big on gold at that time. And in both of my newsletters, both Advanced Income and Short Report, I actually wrote, you know, “This is a shout-from-the-rooftop moment. You have to own these stocks.”
That’s a tough call to make when everybody else in the world is talking about selling those stocks. That condition doesn’t exist right now only because we’ve had such a tremendous move. Both stocks are up like 20 percent, 25 percent in the last two weeks – tough to climb into that. In fact, if anything, they’re probably due for a little bit of a pullback here. Most of the rest of the market, you know, there’s very few things that look incredibly cheap.
Dare I say it, I think coal stocks are setting up for that. You can look at something like Peabody coal or Arch Coal, and everybody hates those names, and rightly so. They’ve underperformed for all of the year, but we’re getting to the point where we’re seeing emotional extremes on that side. I prefer trading the precious metals, because longer term I believe gold and silver and all the rest of the metals are in bull market, and I believe gold stocks will do quite well.
I think just think in the very short term that we’re probably due for a little bit of a pullback there because things have gotten maybe a little bit too confident in that arena.
Aaron Brabham: Do you follow the U.S. dollar, because with this QE Infinity, is that something that might be on your radar if it extends too much or drops too much?
Jeff Clark: Oh, absolutely. I’m sorry, I should’ve mentioned, the U.S. dollar is – nobody likes it. It’s –
Aaron Brabham: Yeah, nobody does.
Jeff Clark: It’s reviled. I think something like 97 percent of investor sentiment is un-bearish on the U.S. dollar, so, obviously, I’m kind of bullish, which also leads me to believe that we might be due for a little bit of pullback in precious metals, ‘cause I think the dollar is probably due for at least an oversold bounce just to get out of that extreme oversold condition.
Aaron Brabham: And what is the difference between your Short Report and your Advanced Income, if you could kind of sum it up for our listeners out there that are – that might be interested in subscribing to one?
Jeff Clark: Well, the philosophies are similar in that we’re looking for low-risk trading setups, but in Advanced Income what we do is we look for low-risk stocks, and then we either buy them and sell covered calls against them to generate income or we sell uncovered puts, which is basically the same philosophy, so it’s an income-oriented newsletter. Most of the positions are three to six months in duration, and we shoot to make 15 to 20 percent a year in income off of it, and, obviously, we’re doing much better than that. In the Short Report, that’s a more speculative service. That’s a trading philosophy. What we’re doing is we’re looking for the same extended condition, but this time, instead of selling options, we’re looking to buy options on it, and, again, we try to use a low-risk approach to it so that we’re buying options to limit our exposure, limit the amount of capital we put at risk.
Lot of folks make mistakes when they buy options. If they can buy 1,000 shares of stock, the proper thing to do is to buy 10 call options. Unfortunately, what folks do is instead of buying 1,000 shares of stock, they take all of that money and they buy 100 call options, and then, of course, the trade doesn’t work out and they get wiped out. That’s where people lose money in the options market. We try to do something a little bit more conservative than that.
Aaron Brabham: And what percentage of investors’ portfolios for each position do you recommend for your Short Report or even for your Advanced Income?
Jeff Clark: Well, as a portfolio strategy, I think what we do in Advanced Income I think is probably appropriate for about 80 percent of the portfolio, because we’re doing low-risk situations and we’re generating income, so you’re creating return, 80 to 90 percent. I think if you’re going to trade in the options market, the best way to use options is a way to add a little bit of juice to an otherwise conservatively structured portfolio. So, you use options to boost the returns of the rest of your portfolio. You don’t use options to swing for the fences and try to make 300, 400, 500 percent a year off of it. You use options to take a small percentage of that portfolio.
A percentage of that, if you were to lose it, it doesn’t wipe you out, so the idea is, if you’re doing covered call trades and you make ten percent off of it, then you can make ten percent – take ten percent and lose it completely, trade the options and be break-even for the year so it doesn’t wipe you out. And that’s what we try to do, and if you can double or triple your money on the speculative side of your portfolio, then you’re adding 5, 10, 15 percent a year to the returns of your overall portfolio.
Aaron Brabham: All right, now one of the criticisms of short-term trading strategies is I have to sit in front of my computer all day and watch the markets constantly because there’s fluctuation like crazy, and as we know the option markets move differently than the equities do, ‘cause on a percent basis it’s far greater for leverage. Do you have anything coming out, or you kinda mentioned something to me about a software program possibly that you wouldn’t have to sit in front of your computer. I didn’t really get that much information from you.
Jeff Clark: Well, yeah, it’s a trading strategy, really. Something happened a few months ago. I’d recommended call options on Seabridge Gold, and the call options in Short Report, we did well on the trade. I think we did better than 100 percent in just a couple of weeks, but the day after I made that recommendation, I also sent out a report showing subscribers how I would make this trade with my own money. You see, as a professional trader, not only do we look for ways to reduce risk, but we also want to look for ways to increase the probability of success on a trade.
See, anytime you trade stocks or trade options, the stock can go three ways. It can go up, it can go down, or it can stay the same, so if you’re buying call options, betting that the stock’s gonna go up, you can be wrong two-thirds of the time. So, from a professional point of view, we have to look for ways to increase that probability, and usually that means what you do is you take your primary trade – let’s say it’s to buy calls, so you’re looking for the stock to go up. And then, you look for other ways where you can use options to increase the probability of still making a profit on the trade even if you’re wrong, so if the stock goes down or if it stays the same. And it’s possible in the options market to do that pretty constantly, and so I showed subscribers in that special report.
I titled it “How I trade with my own money,” and I’ve made these sorts of recommendations before in Short Report a couple years ago, and the feedback was always fairly modest. A lot of folks would write in and say, “You know, this is a little bit complicated. It’s a little bit too elaborate. Just stick to buying calls or buying put.” And this time, though, the feedback was tremendously different.
Everybody seemed to love it. It was something folks hadn’t thought about before. It was a way where people were looking at their own trading and going, “Gosh, I could have made money on this particular trade had I done this strategy rather than losing money.” And so, the feedback was really positive, so we decided what we would do is start a new service, I think tentatively called Pro Trade, and it’s due out sometime by the end of the year, and it’s designed to really create a situation where you don’t have the risk – you don’t have the downside risk to the options position. In other words, you can set up a trade where your primary idea is to make money if the stock goes up, but you’ve also increase the probability of making money if the stock stays the same or even if it falls a bit.
I think in the Seabridge example we had a condition where you could have made money on this trade no matter what happened to the stock as long as it didn’t fall more than 30 percent from its already-depressed level, so the probability of success was tremendously high on that particular trade, and it worked out quite well. And the biggest benefit to this is, obviously, as I’m getting older. I don’t like to sit at my computer all day, and I’d like to take a nap once in a while. I like to go play golf, go fishing. You don’t have to sit at the computer day in and day out for fear of missing a possible move in the market, because these tend to be a little bit longer term-oriented positions, and so it’s something that I’m very excited about, very jazzed about the possibility of showing folks how I actually trade with my own money.
Aaron Brabham: Sounds intriguing. I look forward to seeing the service, and, of course, we’ll let our listeners know when it comes out. On the hotline, we have our guest of the hour, Dr. Martin Weiss. Dr. Weiss is the founder of Money and Markets and Weiss Research. Dr. Weiss, welcome to Stansberry Radio.
Martin Weiss: Thanks for inviting me.
Aaron Brabham: Our pleasure. All right, Jeff, you – I think you have a question. You wanna fire away?
Jeff Clark: Yeah. I got a whole bunch of questions for you, doctor. Martin, let me ask you something, and I know over the years you have a tremendous track record of forecasting important changes in the economic trends, and I wanna ask you about this. A few years ago, you spoke about how America – the American economy was headed into a depression, I mean, not a contraction, not a slowdown, not a recession, but a depression. And I wanted to ask you if there’s anything that happened over the past couple of years that maybe changed your opinion of that or if you still believe the same thing?
Martin Weiss: The only thing that’s changed in a big way is the tremendous outpouring of money printing not only by the Federal Reserve, but the QE1, QE2 and QE Infinity, but also the Bank of Japan, the Bank of England, the ECB and other central banks around the world. That money-printing, asset-inflating program, which has become ubiquitous all around the world, has been a game changer, at least in the near term. We’ve seen how the great recession did not morph into a great depression. Instead, it kind of went into a holding pattern with what they call a recovery, but we all know is not really a recovery. And, at the same time, we saw assets being inflated, and here we go again, so the – instead of a deflationary depression, we’re getting a getting a kind of stagflation emerging, and then the depression that we thought would happen a few years ago has been pushed out into the future.
Jeff Clark: So, you still see it happening. Do you have kind of a timeframe as you think that might happen with the Fed doing QE till eternity? That’s a hard prediction to make.
Martin Weiss: It’s hard, and the – but, we all know that the economy is on life support, and the life support measures are becoming more and more extreme and running into the law of diminishing returns. So, the – do not be overwhelmed, do not be overly persuaded by the aggressive nature of the Fed’s actions. Quite to the contrary, that denotes desperation, and it denotes that we’re coming closer to the endgame, and what is that endgame is probably where we should focus our attention.
Jeff Clark: Okay, what is the endgame? [Laughter]
Martin Weiss: You ask my question, and I asked it again, okay. The endgame is a major rejection of United States credit, and Porter has expressed this in his video very clearly as a rejection of the U.S. dollar as a world reserve or a global reserve currency. But, it’s also a rejection of the U.S. credit, the credit of the U.S. government’s debt. Now, we have our own rating agency, Weiss Ratings, and Weiss Ratings was the very first among all rating agencies in the world to downgrade the rating of the U.S. government debt. Then, S&P followed.
Of course, their downgrade was a very minimal one, and then Egan-Jones, which is another independent agency, has followed. But, those other rating agencies are still grossly over-grading the U.S. debt given the objective facts on the ground with respect to the debt itself, the burden of the debt, the amount of reserves the United States has in terms of its debt obligations to other countries and in terms of the overall stability of the U.S. economy. On all three of those, the United States ranks near the bottom of the list of the 50 major sovereign nations that we cover, and yet these other rating agencies are still giving it a grade that’s very near the top or at the top, so there’s a huge –
Jeff Clark: Well, you don’t think that they might be – they might – their opinions might be sweighted by some other sort of conflict?
Martin Weiss: Yes. There is a serious conflict in terms of the political impact or the impact of government on the rating agencies. You know that when S&P downgraded the U.S. government by one small notch it got hell from the Treasury Department and was put under especially close scrutiny. In addition, the bigger conflict is that all of these rating agencies, that is Moody’s, S&P and Fitch, have a business model that’s based exclusively on collecting big fees from the same institutions they rate. That includes insurance companies, banks and other kinds of financial institutions, so if those – if they downgrade the credit of the United States, it automatically would impact the credit rating of all their best clients.
Jeff Clark: Oh –
Martin Weiss: And it would force them to issue mass – kind of mass downgrades on all those companies that are paying them these huge fees, and that’s a big conflict.
Jeff Clark: _____.
Aaron Brabham: Dr. Weiss –
Jeff Clark: And they’re _____ in their pocketbook.
Aaron Brabham: That’s right.
Martin Weiss: Yes.
Aaron Brabham: So, yeah, there’s a huge conflict, and you started this in 1989, so you’ve been at it quite a while. I guess you cover over 19,000 U.S. banks, credit unions and insurance companies, and like you said, you have no conflict of interest. Do you feel that if Wall Street had used your agency to grade the mortgage-backed securities they pedaled to investors pre-2008 we could have avoided the housing collapse and a major recession?
Martin Weiss: No.
Aaron Brabham: It would have happened anyways?
Martin Weiss: I think that if we had – if they were accurate and honest ratings of the mortgage-backed securities it would have helped avoid one aspect of the 2008 crisis and the great recession, but it would not – that was only one part of the picture. I mean, you had other major imbalances in the economy and the housing market that caused that collapse.
Aaron Brabham: But, you did have much lower ratings than S&P and Moody’s and Fitch did for insurance companies and the big banks, correct?
Martin Weiss: We did, but we were not, at that time, rating mortgage-backed securities.
Aaron Brabham: I gotcha.
Martin Weiss: Remember, one of the reasons why the big rating agencies went ahead with those ratings is because they were earning big consulting fees for helping to create and structure those securities, so there was a double conflict of interest in that instance.
Aaron Brabham: All right, do you personally believe that the U.S. dollar will lose its world reserve currency status, and if so, what would replace it?
Martin Weiss: I believe that it’s already happening, but it’s not happening all at once. It’s happening over a period of time. What I believe is the focal – could be the focal event in the years ahead, which would make that difference we were talking about earlier between inflation and deflation or inflating assets in a depression, what I believe will be the focal point is the treasury’s debt, because we’ve seen it happen before. In 1980, February and March of 1980, the market for U.S. government securities broke down, and I don’t mean just that the prices of government securities fell sharply.
The market mechanism itself collapsed, and it became almost impossible for the U.S. government to borrow the money it needed to refund its debt and keep its operations running. That was February of 1980. Check it very carefully, because it was a pivotal event in history, and that’s the kind of event I see in the future. That’s the kind of rejection of U.S. debt that I think will be the critical event, while the loss of the U.S. – the U.S. currency as a global reserve currency, I believe, will happen gradually over time.
Jeff Clark: Okay, so if we take that as an investment thesis and we go back to February 1980 and we look at what happened in the financial markets, we were a couple years away from a historic – the start of an historic bull market, do you see a recovery similar to that, or do you think this might be maybe more blown out, more – maybe a longer-term downtrend?
Martin Weiss: Well, the – what I was referring to for February of 1980 was not as a prelude to a subsequent recovery, but it was as –
Jeff Clark: Well, right, but what I mean –
Martin Weiss: – current Armageddon – it was kind of a Armageddon for the U.S. government debt. And the only solution that they had at that time was to bring Paul Volcker in and crunch down the economy, and then later, subsequently, once the inflation and the – was licked and the bond markets recovered, we saw a really nice recovery in the economy. This time around, yes, you could see a similar pattern, but the decline would be far deeper, because the debt and the debt problems are far greater today.
Jeff Clark: Sure, and there also seems to be this inherent resistance to try to crunch down the economy. In fact, if anything, they continually try to profit out.
Martin Weiss: Of course, so there’s big resistance to that, and it’s not gonna happen right away, but if you look at what’s happening in Europe today, you’ll see that ultimately the endgame has to be austerity. It could be austerity with a lot of money printing at first, or it could be austerity without the money printing, but either way, austerity is the endgame. There’s just no other choice, ultimately.
Aaron Brabham: Dr. Weiss –
Jeff Clark: In that case –
Aaron Brabham: Sorry, go ahead, Jeff.
Jeff Clark: Sorry to interrupt, Aaron. In that case, how do investors – what do they do? I mean, how do they protect themselves?
Martin Weiss: Well, the first thing is to focus on keeping your money safe, and when I say safe, I don’t mean with any bank or any insurance company or even any sovereign government. I mean with the very highest rated and the truly strongest institutions that have the wherewithal to survive even the worst of times, and they do exist. You know, a lot of people talk about a banking collapse. A lot of people talk about a financial collapse, and that’s fine, and there’s a lot of merit to that, but let’s never forget that even in the worst scenario there are always survivors. And one thing that our ratings do in addition to identifying the ones that are more likely to collapse, we also identify the few that are likely to survive even in the worst of times.
And we provide lists of the strongest insurance companies, the strongest banks in the world and the strongest sovereign governments, so your first step would be to focus on keeping – getting your money to safety by investing or saving with those countries and institutions. If you would like, I would be glad to share with you and Porter our lists of the very safest countries and institutions in the world so that you can make them available to your listeners and your readers and they can use that as a guide to find the safest havens for their money.
Aaron Brabham: That’d be great, Dr. Weiss.
Jeff Clark: That would be huge.
Aaron Brabham: That’d be great.
Jeff Clark: And now, is that something that you also have – I think your website is – is it www.weissratings.com?
Martin Weiss: Yes, but a lot of that information is not available to the general public, so I would provide it to you as a special consideration for –
Jeff Clark: That would be –
Martin Weiss: – for your friendship with Weiss Research and Weiss Ratings.
Aaron Brabham: That’d be great. A few minutes ago you mentioned austerity as the only measure to really riding the ship. Is it gonna make any difference if somehow Romney wins? Do you think there will be a little bit more austerity, or is it both pretty much on the end to collapse?
Martin Weiss: I don’t think either of those two candidates are likely to volunteer to – and take the bull by the horns to bring about austerity. I think in both cases, whether it be Romney or Obama, if the market conditions, and especially bond investors around the world who are gonna force them to – into austerity, much as bond investors have forced Spain and Greece and Italy and probably France and later Germany into a pattern of greater austerity.
Aaron Brabham: Jeff?
Jeff Clark: Well, just one other note. I know you also focus a little bit in the international economies. I was wondering, do you see any unique opportunities out there?
Martin Weiss: Yes. In fact, going back to our sovereign debt ratings, it’s interesting that while we give much lower grades than S&P and Moody’s and Fitch to some of the most advanced countries, we actually give higher grades to some of the countries which are not on their top – top of their list. For example, China, Singapore, Thailand, Chile are countries that are fiscally strong, economically stable, and, sure, their markets will suffer in kind of a kneejerk reaction to any major decline in the advanced countries, but long term you’ll see that the declines they suffer are more moderate, and the recoveries will come sooner and more dramatically.
Jeff Clark: Well, mostly because they’re not as in hock as we happen to be.
Martin Weiss: Exactly. That’s what our ratings show, and in the – we also look at kind of a long-term economic stability, and face it, I mean, the United States and some of the major western European countries have suffered through two or even three major boom-bust cycles just in the last 12 years. That is not exactly a sign of stability.
Aaron Brabham: No, not at all. Any more questions, Jeff, or I know Dr. Weiss is busy and we appreciate his time.
Jeff Clark: No, I definitely appreciate your time, Dr. Weiss.
Aaron Brabham: Well, Dr. Weiss, thank you very much for joining Stansberry Radio. We appreciate our partnership that we have with you guys, and if you have time to send us that report, we’d certainly put it up for our listeners and send it out. I’m sure they’d be very interested.
Jeff Clark: Yeah, that would be _____ –
Martin Weiss: I would be glad to have our team send you the list of each one. We have a separate analyst for each major sector.
Aaron Brabham: Sounds fantastic. Thank you so much, Dr. Weiss, and we’ll talk to you soon.
Martin Weiss: Thank you, bye.
Aaron Brabham: All right, Jeff, you’ve probably heard of our National Scumbag Registry, right?
Jeff Clark: Yes, love it, absolutely love it.
Aaron Brabham: You know, we get a lot of people that are like, “Oh, so sick of hearing about negative stuff about politicians. Why don’t you find the positive ones and bring them on the show?” Well –
Jeff Clark: Well, yeah, that would make your life probably a little bit easier if you took the politicians and did the – kind of the anti-scumbag report, you know, found the ones who are actually doing good. It’s probably only a handful of them anyway.
Aaron Brabham: Exactly. That’s the problem. So, if you guys know out there any positive politicians, please write to us, because we’re pretty sure that most of them are scumbags. Anyways, I had to fill out the like March Madness brackets of 64 scumbags, and then we’re gonna present an award to that scumbag. It’s gonna be like a real nice trophy. We’re thinking maybe the Woodrow Wilson award or something like that where they’ll proudly display behind them in their office and not know that we’re totally making fun of them.
Jeff Clark: Yeah, I can’t believe you can only throw 64 up there.
Aaron Brabham: Yeah, well, that’s just – that’s my limits, man, ‘cause it does kind of wear me out, too. So, we’re gonna add another name to the list this week, Representative Chaka Fattah. In Philadelphia, Fattah represents the worst parties of the city’s – Pennsylvania’s second congressional district. The second district is the fifth most democratic congressional district out of the 435 in Congress and the most Democrat outside of New York. So, basically this guy has repeatedly tried to beat the drum on implementing a one percent surcharge on all financial transactions and transfers in lieu –
Jeff Clark: Oh, that’s a brilliant idea, brilliant.
Aaron Brabham: – yeah, in lieu of all other forms of taxes. Now –
Jeff Clark: Great.
Aaron Brabham: – I will say this, thank goodness no other representative has bothered to back this ridiculous bill, so –
Jeff Clark: Really, well, that’s a good sign. That’s something to talk positive about.
Aaron Brabham: I totally agree. That is a very positive sign. Also, Representative Fattah, his other notable political position in his – was his support for convicted cop killer Mumia Abu-Jamal. Mumia’s case has been a – it’s been a big deal, basically. The details of his endless appeals are tedious, and the Fraternal Order of Police has consistently campaigned against Fattah’s reelection over support of Mumia, which I don’t understand why politicians are backing well-known criminals. So, of course, the police are gonna be beside themselves, and guess what, this guy’s district is a disaster. There’s –
Jeff Clark: Well, yeah, there’s _____ _____.
Aaron Brabham: – crime everywhere.
Jeff Clark: You know, I don’t know what to say about this. It’s remarkable the quality of the individual that we choose to send to Congress. It baffles me.
Aaron Brabham: Yes, it does. All right, “you just can’t make this stuff up,” a recent poll showed that 55 percent of small business owners would not start a company today largely because of President Obama’s policies. Stansberry Radio is coming out with a video that dissects this topic a little bit more, and actually Porter’s the narrator of it. We’ll let you know when it’s out. You won’t wanna miss it.
I’ll make sure to share it with our e-mail list, and if you’re not on our e-mail list, please go to stansberryradio.com. We have a box up there. Add your name to it. Unlike the government, we’re not gonna sell it. We’re not gonna bombard you with a bunch of things.
We’re not gonna spam you. We’re not gonna oversee you, but yeah, we’ll give you some good, pertinent information like when Jeff’s new service is out. Jeff, what is your take on 55 percent of business owners saying, “There’s no way I would start my business today because of these policies”?
Jeff Clark: I don’t believe it. I don’t believe it. Anybody who is courageous enough and has the entrepreneurial spirit to start their own business, I think regardless of what goes on in Washington they’re gonna find a way to do it. I mean, that’s the American spirit. That’s what we do, so regardless of the roadblocks that are put up, I think most people who have thriving, successful businesses, even though they might argue that there’s no way we would do this, I think truth of the matter is they would find a way to do it.
If somebody asked me in a poll if they implemented a one percent transaction tax, like this Fattah character wants to do, would I still trade? I mean, obviously, I’m gonna say, “No, there’s no way in the world I would trade,” but frankly, it’s in my blood. It’s something that I do constantly, and there’s no way I would not do it. I’d find a way around, and I think most people who start businesses have the same sort of mindset.
Aaron Brabham: I think my only concern about this is it kind of reeks of like people – you know, we’ve been browbeat by the government to be our – it’s a nanny state. They’re gonna take care of us and all that. It’s a big concern for me to see people saying this only because I feel like people are kind of giving up on the American dream, and that’s sad. I do agree with you that entrepreneurs are entrepreneurs and they’re gonna do whatever they can to be successful, but, man, when you’ve got the government just overregulating and taxing small businesses, it does make it pretty difficult to have the courage to go out and – with your own capital and build a business.
Jeff Clark: Oh, sure. I mean, no doubt it’d be a lot easier and definitely more constructive if the government would just get the heck out of the way, but that doesn’t dissuade my argument that entrepreneurial – entrepreneurship is – it’s inborn. It’s something that we have in this society, and it’s something that I think we would find a way around no matter what.
Aaron Brabham: All right, and another topic we’ve been getting beat up on at Stansberry Radio, tons of e-mail about our discussions on Monsanto. Russia recently banned imports of genetically modified corn. Russian officials said their test subjects grew cancer tumors after eating Monsanto’s products over their lifetimes. I imagine they’re talking about like rats or something like that.
Jeff Clark: Wait, wait, wait, wait, wait, Russian officials?
Aaron Brabham: Yes.
Jeff Clark: Russian government officials are saying that –
Aaron Brabham: Yeah, I mean, you can trust them, right?
Jeff Clark: Well, yeah, because they’re the ones who said don’t worry about when Chernobyl melted down, what, 20 years ago?
Aaron Brabham: Right. And they’re also –
Jeff Clark: Right, yeah, don’t –
Aaron Brabham: Yeah, don’t worry about that.
Jeff Clark: – don’t worry about the nuclear cloud over your head, but, my goodness, stay away from the corn. Yeah, that makes a lot of sense.
Aaron Brabham: Sounds to me like there’s some kind of a government contract kickback thing involved in this. Well, now France is asking the EU to ban Monsanto throughout Europe. If Proposition 37 wins in California, producers will be required to label GMO on foods. You’re a California guy. What’s your take?
Jeff Clark: Well, that’s what we do here in California. We put labels on pretty much everything. It doesn’t matter. I mean, a lot of our population doesn’t read, so I don’t think that it has too much of an effect. I think where it would really create a concern is if they have to print the labels in all of the different languages that we have to put the election ballots.
That would create a label that’s probably bigger than the tomato, so I don’t know. It just – goof grief. Aaron, does it bother you, a lot of folks who get upset about genetically modified vegetables, saying they refuse to eat it because it’s somehow unnatural, but yet they have no problem at all scarfing down a Costco-sized bag of cheese puffs? I mean, it doesn’t make a whole lot of sense. I’m almost speechless, almost speechless.
Aaron Brabham: All right, man, I totally agree. I mean, look no further than the pink slime that goes in as filler in a lot of these meats and things like that. It’s very, very difficult to find really good organic food. I do lean towards more healthy options personally myself. I will lean towards the organic stuff, so I’m definitely not trying to devour a bunch of genetically modified things just –
Jeff Clark: Well, yeah, but understand the whole point of a genetically modified vegetable is to improve it, to make it less harmful. It increases the food crops. It increases the resistance to disease of the vegetable. It’s hard to – I don’t know, I mean, I’m not a scientist, and I don’t study this stuff intricately, but to me I think any way that you can go about improving things is a net positive.
Aaron Brabham: We do repeatedly have farmers write to us and say, “Look, man, I think it’s one of the greatest things that’s happened to our business,” but we do have a few out there that are like, “Man, this is a disaster.” I did find an old digest –
Jeff Clark: Grow your own tomatoes.
Aaron Brabham: I like that. I did find an old digest where Porter addressed this issue in detail, ‘cause remember, he recommended Monsanto for his portfolio –
Jeff Clark: Yeah, _____.
Aaron Brabham: – and those that chose, they made – they did substantially well. I think it was like 35 plus percent or whatever over a pretty short-term period. But, it’s a great article, because he addresses all the hate, and he also has some farmers in there that stood up for it. I’m trying to get that posted to the Stansberry Radio website, because this is one of those things where it was like our atheist religion podcast, man, I don’t even know if I even wanna get into GMOs anymore. This is becoming like a massive hotbed for our listeners.
Jeff Clark: That’s funny.
Aaron Brabham: All right, we’re gonna take a quick break to hear from one of our sponsors.
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Aaron Brabham: All right, Jeff, “stupid business models” is another segment we have. The U.S. Postal Service has defaulted on a second $5 billion dollar plus benefits payment, its second default in as many months, so basically $11 billion in two months.
Jeff Clark: Another shocking news item.
Aaron Brabham: Yeah, I know. The postmaster general blames Congress, saying, quote, “Absolutely, we would be profitable right now if Congress would be allowed to move to a five-day mail delivery schedule,” so essentially they’re talking about eliminating Saturdays. He also said, “We can’t have a postal service where customers are constantly worried about our ability to make payments. That’s no way to run a business.” Did the government build this? I’m pretty sure the government kinda built this business.
Jeff Clark: The post office isn’t a business. It’s a government-sponsored enterprise. Hey, if knocking it down to five days a week stops the bleeding, I’m all for it. I mean, knock it down to four. Knock it down to three days. I mean, nobody sends anything really important by mail anymore anyway, right? So –
Aaron Brabham: Yeah, the only thing that – the only little blurb I saw was, “But, how are the old people gonna get their medicine?” Well, it looks like you should order quantities that are greater than one day’s worth or whatever you need if you needed that one-day delivery.
Jeff Clark: Yeah, I don’t know anybody who – you know, really, are we down to the last pill? Is that it? We have to – I don’t see any reason to have to go to my mailbox more than once every couple of days. I mean, I think a brilliant idea, you know what, I think we ought to have the Jehovah’s Witness deliver the mail. They’re by my house every couple of days anyway, so let’s have them take over the mail delivery service, be something like, “Here, sir, would you please accept this pamphlet from the church of Jehovah Witness, and –”
Aaron Brabham: Here’s your package.
Jeff Clark: “– by the way, here’s your Macy’s catalog.”
Aaron Brabham: I’m okay with that. I have no problem with that. It’s funny, too, since I moved to Baltimore, everything seems to be just not as customer service oriented as it was when I was in Texas or Florida, and whenever I order something online, I have it sent here during the weekday where we have 80 employees that answer the door no matter what when somebody buzzes. And somehow the postal service constantly just says, “We tried. It was 10:00 –”
Jeff Clark: Not deliverable.
Aaron Brabham: “– on a Monday, and I don’t know what to tell you. If you want your package, either come down here and stand in line for an hour or go through this arduous process of entering in all the codes and getting it redelivered.” It’s atrocious, man. It’s absolutely atrocious.
Jeff Clark: Yeah, you know, like I said, I don’t think anybody ships important stuff by mail anymore anyway, and it’s been a long time since I’ve gotten letters from distant friends and family. I mean, you got the Web. You got e-mail. You got all this other sort of stuff, so whatever it takes to stop the bleeding. What’s Porter say? Just stop it.
Aaron Brabham: Just stop it.
Jeff Clark: Just stop it.
Aaron Brabham: All right, it’s time for our voicemails. Tim, fire them up.
Voicemail: Dr. Roberts, Dr. Roberts, Dr. Roberts, Bueller, seriously, that was the funniest [word beeped out] thing I’ve heard all week, and I was having a terrible day. And then, I heard you say that, Porter, and I – it was [word beeped out] hilarious, and I loved it. Keep doing what you’re doing. You guys are great. Thanks.
Aaron Brabham: There’s one fan of the show from last week, which is very odd, because a lot of people just sent immediate hate to us, so we appreciate that. It was pretty funny on my end, but I can also see how people could construe that as being rude, but, hey, I’ll let Porter tackle those things. Next call.
Voicemail: I’m a podcaster, so I cannot help with your Arbitron numbers. Sorry about that. You talked about the 20 somethings, how you need to increase savings and whatnot. Just want you to know because of your guys’ newsletter, been able to buy gold, silver, increase my savings. I’ve been buying real estate. However, I wouldn’t have been able to do any of those things had I not bought a newsletter.
Only because I’ve been reading your newsletters have I been able to change my financial future, so I think that’s important for all these 20 somethings. Get the Stansberry advisory newsletters. About Romney and Obama, Romney’s talked about lowering corporate tax rates to bring jobs back to the U.S. Also, he wants to incorporate some of the Bowles-Simpson recommendations, which Obama has completely discredited. Paul Ryan, I know he follows Austrian economics, so would he be able to kind of make the budget a little bit less wasteful? Do you think Romney would attack our civil liberties in the same way that Obama has?
Jeff Clark: I don’t know where to start with this. I don’t – you know what, I honestly don’t think it’s one person or one president that can make that sort of a difference. I think you have a – gosh, how do I say this? I think you have something systemically wrong, and it goes deeper than just the presidency, and I think that’s – you know, when Porter talks about how there’s no difference between Obama and Romney, that’s what he means – or I believe that’s what he means is that there’s no difference in what they’re able to do. I think we’re facing a situation that is beyond their abilities to do anything about.
It’s systemic in nature, so I gotta side with Porter on this. I don’t think there is much difference between who we elect president.
Aaron Brabham: Yeah, and, I mean, the executive order thing is way out of control, but I think Congress enjoys executive orders to a certain degree, because it doesn’t affect them when it comes to voting. They can say, “Well, I didn’t put that bill forward,” or, “I didn’t have to vote on that bill.” It’s like our balance of powers are way off now, and it’s a very disturbing problem that’s going on.
Jeff Clark: Yeah, and it serves to eliminate the double check –
Aaron Brabham: It sure does.
Jeff Clark: – the double check that we’re supposed to have.
Aaron Brabham: But, I love the young subscribers. I think that is a great thing.
Jeff Clark: Oh, it’s great to have a bunch of 20 somethings listening. They probably don’t add much to our bottom line as newsletter subscribers as our market’s a little bit older than that, but it’s a great way to indoctrinate folks to become lifetime subscribers later on.
Aaron Brabham: Plus, it’s the next youth movement for voters. I mean, Ron Paul, he really encompassed the younger voter, and as Stansberry Radio podcasters, we would love to have the younger listener to be able to decide their own fate without just going with a two-party system going forward. Hopefully, we can do something different one day.
Jeff Clark: Hope springs eternal.
Aaron Brabham: All right, let’s go the mailbag. Richard said, “Do you think natural gas prices in the United States will be significantly higher or lower in the next five to ten years?” Personally, having worked on this shale report with Porter for about 18 months, when Cheniere, which is a LNG export facility, gets up and running in 2015, I think you’ll see the price of natural gas rise. It’ll arbitrage itself and, yeah, so I think it’ll be higher. What do you think, Jeff?
Jeff Clark: Well, yeah, I think there’s a number of reasons. There’s a supply-and-demand equation at work there, and I think that’s what you’re referring to, but there’s also an inflationary aspect. The more money printing that goes on, the more valuable natural resources become, and you can go back 15, 20 years and oil is sharply more expensive today than it was 20 years ago. And I imagine 10, 15 years from now we’ll see the same thing in just about every commodity, but I think the more important question to ask is will natural gas be more expensive relative to oil, ‘cause there’s – there is a historic relationship between the prices of natural gas and the price of oil.
And what we had just as recently as April of this year when natural gas was trading down around two bucks in Mcf, I mean, that was way ridiculously cheap relative to the price of oil, and so now we’re almost double the price of natural gas while the price of oil is falling and that ratio is coming back into line. So, I think if you pay attention to the ratio, it’ll provide a better indication of what’s really going on in the energy markets.
Aaron Brabham: All right, Steven said, “I currently have only a small portfolio as the majority of my disposable income goes to paying down school debt. I only wish it was American debt, as it would soon be eroded away with hyperinflation levied by the Fed. As that is not as much the situation in Canada, I figure I should get these paid off ASAP. After that, I will have more money to invest in the stock market and some of your financial newsletters. Your idea for a fee-based podcast is a timely one.
“If you have a black-label show, it could potentially attract a younger audience, many of whom are most probably not yet paying subscribers.” It’s kind of an anomaly, Jeff. We have been attracting these like 20- to 25-year-old subscribers for our podcast, and, as you know, that’s not our targeted demographic, but I’m enjoying having like their fresh feedback for how they’re disgruntled about how their education went and how they really wanna change things and take accountability for their finances. It’s very refreshing.
Jeff Clark: Oh, sure. It’s a prime way to indoctrinate them in the laws of finance as well. A lot of schools don’t go into a whole lot of economics and finance, and oftentimes it’s really sort of a can thing and doesn’t have a whole lot to do with the real world, so the fact that we have a lot of younger listeners, I think that’s a huge thing.
Aaron Brabham: I –
Jeff Clark: Especially as they grow older, they become our primary audience.
Aaron Brabham: Subscribers for life, that’s what we’re looking for, people.
Jeff Clark: Exactly.
Aaron Brabham: And we have had a lot of people write to us that say, “Hey, look, my dad’s a subscriber. He passed on the Digest to me. That’s how I’ve really built my education. It’s way better than anything I learned in school.” And there are very few degrees in universities right now that you can do something with, you know, it’s anything in the medical field, engineering, computer sciences. But, outside of that, man, you’re not really getting your money’s worth on education these days, especially with the inflation.
Jeff Clark: No, that’s – you know, I was gonna say something. My kids actually like to listen to this show. My kids are 13 and 11 years old, and they listen to it when Porter’s on mostly because they like his laugh.
Aaron Brabham: Yes.
Jeff Clark: So, at least they’re getting a good financial education in the process.
Aaron Brabham: And speaking of the laugh, I do believe – this is gonna be a little ridiculous – we are going to come out with a Porter Stansberry laugh app that you could use as your ringtone.
Jeff Clark: Oh, I’d use it. I’d use it.
Aaron Brabham: I would, too, because it would just be so obnoxious that – man, I’d just love it. His horse laugh is fantastic. All right, Rob said, “People on welfare have the best standard of living. They don’t have to work, and the taxpayers pay for them – big-screen TVs, Cadillacs, iPhone 5. FDR, JFK, LBJ, MLK – how did this country get so effed up? What would George Washington say if he came back to life?”
Jeff Clark: Oh, good grief. He’d probably say, “Let me out of the coffin.” I don’t know where to start with this. It’s a common refrain that folks on welfare are deadbeats and all that sort of stuff. I mean, that’s the stuff you hear all the time, but I have a hard time believing that people actually enjoy being in that position.
Now, I’m not saying that it’s not – there are definitely those who take advantage of the situation. There are definitely those who don’t mind getting a free check every month and that way they can relax and watch their TVs and play their video games and do whatever else. But, boy, at the heart of things, I gotta believe that the human condition is a little bit more adventurous than that, a little bit more energetic than that, and I think people want to get off of that. Part of the problem, maybe the entire problem, is, once again, government gets in the way of this.
Government – if you’re earning a living and you’re paying taxes and you’re – so that the result of your net paycheck is less than what you would get from a welfare check, then, yeah, there is absolutely very little motivation to get off the welfare check. I mean, it doesn’t make financial sense, so if somehow we can find some way to get government out of the way and let the individual spirit thrive and take care of itself, I think we’d be in a much better position.
Aaron Brabham: All right, Trevor said, “I couldn’t resist listening to your show when I saw the hottest woman in journalism was going to be interviewed. Thankfully, she opened up a bit upon furthering questioning by you, and my journalist crush is still intact. Porter, I loved the discourse about the villagers on the left and the right, getting their collective granny panties in a wad. I appreciate your rational and objective reason-based breakdowns of both sides’ flawed thinking. Your show was a breath of fresh air.”
Thank you for writing that. We had a couple of tweets, one of them, @JervisCapital tweeted, “Great interview with @LaurenLyster, guys. Now it’s Porter’s turn to go on Capital Account.” He might make an appearance, although he doesn’t do many of those. YouTube, we had some feedback.
Onebasicfamily said, quote, “To say Obama and Romney –” see, I can’t even help myself. I always say “Obamney.” “To say Obama and Romney are the same is like saying George Washington and Benedict Arnold were no different. Your once-great country is being destroyed. Romney doesn’t want to bankrupt the U.S.A.
“Romney loves this country. Obama thinks no differently of the U.S.A. than he does of Israel. The difference is night and day. Romney has honor and integrity. All sins are not equal. Do the math.” I say just stop it. It’s not that big of a clear –
Jeff Clark: Just stop it.
Aaron Brabham: – difference, yeah.
Jeff Clark: That’s right, just stop it.
Aaron Brabham: I mean, come on, you’re totally vilifying one and putting the other one up on a pedestal. Let’s look at the facts for what they are. Walkingphilosopher said, quote, “I am a Dinesh fan, but I have to say that this interview was at best a tie for Dinesh. Stansberry was clearly bringing up some good points, probably one of the few interviews on this topic which successfully swayed Dinesh to some extent. I didn’t like the outcome that Dinesh lost, but, nevertheless, I like the good, heated discussion, and, hopefully, Dinesh comes back with a stronger argument. Looking forward to the rematch.”
I’d love to have Dinesh D’Souza back on in the future. It was a nice, spirited argument, and I think that Dinesh could make some better points out there. I don’t know if you had a chance to hear that podcast, or have you seen Obama 2016, Jeff?
Jeff Clark: I haven’t seen the movie, but I did listen to the podcast. In fact, I listen to every podcast you guys do. I’m a huge fan.
Aaron Brabham: Ah, thank you. I didn’t even know you were that loyal of a listener. I appreciate it.
Jeff Clark: I’m one of the –
Aaron Brabham: I’m gonna have to send you a tee shit.
Jeff Clark: – 15 or 16, right?
Aaron Brabham: Man, I’m gonna have to – yeah, you’re Arbitron Number 27. I’m gonna have to send you a tee shirt and some swag.
Jeff Clark: Oh, please, please?
Aaron Brabham: Most certainly.
Jeff Clark: You know what, I don’t now what to say about Dinesh. I mean, I enjoyed the interview because I love listening to Porter debate folks. I mean, it’s – what can you say? It’s just amusing as heck, and I think this listener is right. Porter brought up some good points, and Dinesh should have the opportunity to come on back and strengthen his arguments a bit, so I’d look forward to that.
Aaron Brabham: All right, on iTunes, ZeroSink said, “Dinesh calling Porter an ignoramus, priceless.”
Jeff Clark: That was.
Aaron Brabham: It was funny. “Podcast has improved vastly. Hang in there, Aaron. You’ll be interviewing guests Porter style eventually.” I’ll never do it Porter style, but – ‘cause he’s got his own flavor.
Jeff Clark: So few can.
Aaron Brabham: Yeah, exactly.
Jeff Clark: He’s the only one.
Aaron Brabham: “Go with Curzio for investing content. Go with Porter if you want to hear libertarian rants, but stay with Porter Stansberry. His show books all-star guests, and the content gets better by the month.” We appreciate the honest feedback, and the props, too.
Jeff Clark: _____ feedback.
Aaron Brabham: Jeff, I wanna thank you very much for sitting in the hot seat today. I hope you enjoyed your time filling the big shoes –
Jeff Clark: It has definitely been my pleasure, Aaron. I appreciate the invitation.
Aaron Brabham: Ah, man, I’m so happy to have you on board. The guest of next show will be the publisher of highly regarded Gold Stock Analyst newsletter, John Doody. I know you know John, don’t you?
Jeff Clark: Yeah, he’s great, and he’s absolutely brilliant when it comes to gold stocks, absolutely brilliant.
Aaron Brabham: Man, how good is that guy’s track record?
Jeff Clark: It’s phenomenal.
Aaron Brabham: It’s ridiculous, and the fact that this guy – you know, we’ll get into it next week, but the fact that this guy was like an economics professor, got a divorce and was basically broke and now he’s an eight-figure guy, that’s pretty impressive.
Jeff Clark: Yeah, he is the epitome of an economic recovery.
Aaron Brabham: He is. Well, we appreciate you listening to Stansberry Radio. A special thanks to Jeff Clark and to Dr. Martin Weiss for joining us on the show. Visit us online at stansberryradio.com, where you can subscribe to our mailing list and listen to podcasts. Follow us on Twitter, @StansberryRadio.
Like us on www.facebook.com/StansberryRadio, and subscribe to our YouTube channel, StansberryMedia. Don’t forget, if you ever need to talk, you can always call us at 855SARadio. [Music playing] If you enjoyed the show and learned something new today, please tell your friends about us. We look forward to seeing you next week.
Stansberry Radio is a purely public broadcast and is not intended to be personalized financial advice for any individual specific situation. Each individual’s financial situation is unique, and Stansberry Radio should not be relied upon and/or considered as personalized advice. Stansberry Radio is not licensed to render personalized advice and should be considered simply the public opinions of Stansberry Radio and its guests. Recommendations on specific financial securities are not intended to address any listener’s particular financial situation.
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This Episode's Guest
Martin D. Weiss is one of the nation’s leading providers of a wide range of investment information. He is chairman of The Weiss Group, Inc. which consists of four separate corporations, including Weiss Research, Inc., the publisher of the Safe Money. The Weiss companies have helped thousands of individuals make informed investment decisions and objectively discriminate between strong and weak stocks, insurance companies, HMOs, banks and S&Ls.
Dr. Weiss began his career in 1971 when he founded Weiss Research, dedicated to evaluating the safety of financial institutions and investments for consulting clients. After spending two years in Japan as a Fulbright Scholar studying management techniques at Japanese financial institutions, Dr. Weiss returned to the United States in 1980 to begin issuing formal safety ratings on banks and savings institutions. His firm issued the first independent insurance ratings in 1989, the first ratings of brokerage firms in 1992, and the first HMO ratings in 1994.
Acclaimed for his accurate, objective evaluations, Dr. Weiss has appeared on ABC, CBS, NBC, CNBC, and network news programs, including The Today Show. He has been quoted in hundreds of newspapers and magazines, including The Wall Street Journal, USA Today, The New York Times, The Chicago Tribune, The Los Angeles Times, Esquire Magazine, Money, Business Week, Fortune, and The Institutional Investor. Plus, books by Weiss have been published in Japanese and serialized in major Japanese business magazines and newspapers such as Economisto and the Japan Economic Journal. Articles have also appeared in the London Spectator and other European economic journals.
His Weiss Ratings, based largely on the Weiss proprietary computer model, has won acclaim by the U.S. General Accounting Office (GAO) for having beaten the competition by three to one in accuracy.
Dr. Weiss has testified before Congress and the National Conference of Insurance Legislators regarding insurance company stability, where he has proposed legislation requiring full financial disclosure to the consumer. He testified before the U.S. Senate Permanent Subcommittee on Investigations when it considered the financial difficulties befalling Blue Cross/Blue Shield member companies. He is also a frequent guest speaker and lecturer at major investment seminars in the U.S. and abroad. Most recently, Dr. Weiss presented to the National Press Club his solution for eliminating the conflicts of interest rampant in the brokerage industry.
Dr. Weiss is the publisher and contributing editor of the financial newsletter, Safe Money, known for its track record in picking major turns in interest rates. Dr. Weiss also serves as co-editor for a number of Premium Services. He is also the author of The Ultimate Safe Money Guide and The Ultimate Depression Survival Guide.
Martin Weiss holds a bachelor’s degree from New York University and a Ph.D. from Columbia University.
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