Male 1: It’s time for another episode of Stansberry Radio, the show that’s too loud for radio. Here are your hosts, Porter Stansberry and Aaron Brabham.
Aaron Brabham: Welcome to another episode of Stansberry Radio. I’m Aaron Brabham. Porter, glad to have you in here but you missed another really good interview yesterday unfortunately.
Porter Stansberry: Big show today. Well, I missed it physically, but I – you got my questions.
Aaron Brabham: Oh, absolutely.
Porter Stansberry: Yeah. Well, this is a big show. This might be the biggest show we’ve ever had at Stansberry Radio. Buckle in, little truckers. It’s gonna be a wild ride.
Aaron Brabham: Yeah, so I had the opportunity to interview Dr. Leonardo Maugeri, and he’s a global oil expert at Harvard, but he also essentially at like 36 years old this guy was running Eni. Is that how you say it?
Porter Stansberry: I say Eni.
Aaron Brabham: Eni.
Porter Stansberry: But I’m not Italian. I couldn’t say or –
Aaron Brabham: Eni, which is one of the largest Italian oil companies –
Porter Stansberry: So this guy ran one of the big integrated oil companies in the world, huge operations, and what he did while he was running this company, running the development for this company, was he studied every single oil field in the world, and he’s built a huge proprietary database where he came up with what their actual reserves were, what the production was. I mean this guy knows more about the actual supply of oil, I’m gonna say, than anybody else in the world, and he’s even been able to study the Saudi fields, which no one else has, so he’s the guy, and one of our big ideas at Stansberry Research is that the shale oil production is gonna cause a global glut. Well, we’ve been working on this idea for several years, and in June, out of the blue, here comes Harvard with a huge study that says…?
Aaron Brabham: Shale is in the first inning and it’s gonna change the world.
Porter Stansberry: Yeah. So we’ve been wanting to meet this guy ever since we saw this report come out in June, and we finally got him on the show, and wouldn’t you know it, the one show all year long that I don’t wanna miss is the one day that my wife has to schedule some minor surgery that she had to have done, so I was out all day with my wife in the hospital, and I’m dying ’cause all I wanna do is talk to this guy about oil.
Aaron Brabham: He will definitely come back on in the future. Also, he’s updating his report right now ’cause he’s finding more things and he’s – it’s one of those things.
Porter Stansberry: Well, things are changing constantly.
Aaron Brabham: Yeah, constantly.
Porter Stansberry: And you said “the first inning,” and it’s very true. We’re in the infancy of understanding how these technologies work, how to optimize them, our ability to produce oil and gas through horizontal drilling. The fracking is gonna get much better, and of course that’s gonna make the supplies and the flows even larger, and if you want, the one chart, if you haven’t seen this yet, is go to our – we’ll have this on the blog or something. We’ll put up our report about shale, and you’ve gotta see the chart that shows you the history of oil supplies, so how much oil do we have in storage right now compared to how much oil we have in storage normally at this time of year, and it’s off the charts.
It’s like record amounts of storage for this time of year, and not only that, but record amounts of oil in storage period since like the mid-1980s when was the last time we had a big oil glut, and so, anyway, we’ll get to the interview, but I just wanted everyone to know how excited I am about this interview. I hope that you will listen to it, hope that you’ll mark it down, and hope you’ll take it seriously ’cause it’s gonna be the biggest economic event of the last 30 or 40 years.
Aaron Brabham: Yeah, and I don’t think we can stress enough that this is the biggest big dog out there when it comes to oil for the world. I mean he is –
Porter Stansberry: Dr. Maugeri.
Aaron Brabham: Yes.
Porter Stansberry: He’s the guy.
Aaron Brabham: He is the standard, so –
Porter Stansberry: Yeah. We gotta get him to come to the Alliance conference, not this year but –
Aaron Brabham: Man, he would do it in a second.
Porter Stansberry: Yeah.
Aaron Brabham: Yeah, this guy he loves it. He loves talking about it. He believes the whole revolution is happening and he’s excited about it.
Porter Stansberry: Well, you don’t have to believe it. It’s not like church.
Aaron Brabham: Well, that’s true. There’s –
Porter Stansberry: You can go look at those –
Aaron Brabham: You don’t need to have faith.
Porter Stansberry: No.
Aaron Brabham: The numbers are there.
Porter Stansberry: Yeah, just look at the pipelines. Look at the production rates. And we gotta – we should – maybe we – remember that guy we had on? Remember the peak oil guy, Chris?
Aaron Brabham: Oh, yes. It’s Martenson.
Porter Stansberry: Chris Martenson. Yeah, and I was like, “Well, what about all the soaring production? How about – wasn’t peak oil supposed to be a little decline?” Whatever.
Aaron Brabham: I’m pretty sure that after our interview he put something on his website that was like, “Yeah, maybe, yeah, this is real. Okay, I got it. I’m gonna have to change my tune here.”
Porter Stansberry: We blew him outta the water.
Aaron Brabham: Blew him outta the water.
Porter Stansberry: And it would be fun to have him back on with –
Aaron Brabham: And Dr. Maugeri.
Porter Stansberry: – Dr. Maugeri.
Aaron Brabham: Yes, that would be fun.
Porter Stansberry: All right, well, let’s move on to the show.
Aaron Brabham: All right. People enjoy the little education pieces we have and one of the greatest things about my job or what I feel like is the greatest thing about my job is I have the opportunity to spend a lotta time with you, so you’ve been working in finance for 20 years.
Porter Stansberry: You sure that’s not the worst part of your job?
Aaron Brabham: No, it’s the best part because we’ll go grab lunch and we usually don’t talk about work stuff, but we’ll talk about life stuff and the markets and whatever.
Porter Stansberry: We usually talk about your life as a single man –
Aaron Brabham: Well, that’s true.
Porter Stansberry: – and me living vicariously.
Aaron Brabham: Yeah, but I’m not really like – there’s not really any good stories ’cause I kinda been laying low on the single escapades for a while.
Porter Stansberry: Yeah. Well, you went out for happy hour last night and got banged up.
Aaron Brabham: Yeah.
Porter Stansberry: You know what I was doing?
Aaron Brabham: You were tending to your wife?
Porter Stansberry: I was playing nurse at home with two kids and a grumpy wife.
Aaron Brabham: How does that work out for you?
Porter Stansberry: Oh, it’s not as much fun as getting banged up at happy hour.
Aaron Brabham: No, definitely not, even though I feel horrible right now, but that’s okay. Well, that’s because I go from vodka to the sake to the – it’s too much mixing, man, to wine –
Porter Stansberry: And you’re a delicate flower. You can’t treat your gut like a blender like I can.
Aaron Brabham: I take a Pepcid before. I don’t want it burning. I don’t wanna wake up with that late-night red wine burn in your throat. It’s the worst, man.
Porter Stansberry: I wouldn’t know anything about it.
Aaron Brabham: So the other day we were sitting at lunch and I turned to you and I said, “Man, here I am working at one of the best financial advice – the best financial advice company in the world, in my opinion, and I have a ton of money in cash and I’m just – don’t know what to do with it.” And you just got a big grin on your face and you’re like, “Good. That’s a good thing.” And then I was like, “Well, what would you do?” And you gave me a good – a few good pieces of advice. One of them was nothing until you have an absolute advantage with knowing information that other people don’t have.
Porter Stansberry: Yeah. I think that’s one of the things that most people do wrong. They buy things or they make trades or they do strategies that they really don’t understand very well, and a good rule of thumb is if you can’t explain immediately in 30 seconds or so – the elevator pitch. If you can’t give the elevator pitch about every company in your portfolio then (a) you have too many investments and (b) you don’t have an edge. So my advantage is everything I have money in I can tell you very quickly why I have money in it and what my advantage is in that situation. What was it that I understood about the price or the yield or the prospects that the other competitors in the market don’t know?
Aaron Brabham: Yeah, and I was reading I think it was Daily Wealth yesterday where Doc wrote about, look, same thing as you. He said take a note card out every time you buy something or whatever you’re doing with the investment. Write down why you’re doing this, what you’re hoping to achieve out of it, and be disciplined for that. You have to know about this stuff, but I feel like – I don’t feel like; I know for a fact – investors hate sitting in cash. They hate having their money in cash. They feel like they need to be in the action all the time because if you watch CNBC and even if the market went up 100 points you feel like you missed out on lifetimes of opportunities.
Porter Stansberry: I completely disagree. I think that there are usually one to two critical moments every decade where you need to be prepared to take action, and if you’re a long-time reader of my newsletter you’ve seen me outline these periods of time in real time, so this isn’t rear-looking. This isn’t me looking back at the calendar and saying, “Oh, you should have bought stocks here.” If you read my letter in October of 2002 – which is up on the website; you can go read it for yourself – in October of 2002 I said, “Look, everyone else in the market is panicking. They’re all selling.” It was the end of the technology bust.
Everyone’s still selling and I’m telling you I don’t think things are that bad. I look around. I think earnings are good. I think at the time our currency was still pretty sound, and I knew the Fed would take actions. I knew they would prime the pump again, and so I figured it was time to buy, and I was exactly right. I had the timing exactly right, and one of the things that we bought – we went heavy into – were utilities which were – at the time were yielding six or seven percent. That’s safe. That’s easy. We made a killing. If you had taken action then you would have done very, very well.
Likewise, read the issue from February 2007, and I say very, very clearly, “We are at the top of the biggest bubble in equities that anyone’s ever seen. It makes the bubble of ’99-2000 look small in comparison, and I can’t tell you exactly when the top will be, but it’s time to get outta stocks. It’s time to hedge your portfolio. It’s time to make a move.” So if you did nothing but buy the S&P in October 2002 and sell the S&P in October of 2007 you would have done just fine. You would have done absolutely fine.
And then, of course, in November of 2008 I did the exact opposite. I’m pounding the table. “This is the best opportunity I’ve ever seen to buy stocks in my life. You gotta get invested now.” And of course if you had been buying from then through the spring in ’09, which is – I did personally – I bought massive amounts of stocks in late 2008 – you did very, very, very well. But the truth is that these critical turning points do not come very often and most of the time once you’ve missed an opportunity to buy stocks very cheaply I believe you’re gonna be much better off just adding to cash, and what I’ve been doing since 2010 only is buying real estate.
I haven’t bought any stocks. So it’s hard to get that through people’s heads, but I think that your biggest single advantage as an individual investor is deciding when to put your capital at work, not when – not what – not how much but when, and really truly you’ll – in my opinion it’s so easy to know when to buy stocks. It’s so easy. You buy stocks when everyone you know is terrified about stocks. That’s simple. When you turn on CNBC and you see red flashing and you see the commentators going, “What’s going on down there, Bob? Why is everyone selling? Oh, no. Oh, no.”
Aaron Brabham: And the doomsayers come out and they’re, “Dow – 2,000, here we come.”
Porter Stansberry: Yeah. When there’s a guy on CNBC whose accent’s so thick that you can’t understand him and he’s saying the world will end tomorrow, that’s the time to buy.
Aaron Brabham: That’s the time to really start putting your money to work.
Porter Stansberry: “____ _____ _____. Oh, sell, sell, sell.” Anyway, and I mean think about the fall of 2008. It was hysterical. You had Warren Buffett writing an open letter to The New York Times saying, “It’s time to buy stocks, folks,” something that he never says, and the day he wrote that letter you had the CNBC commentators come on and say, “I think it’s very irresponsible for Warren Buffett to say this because it’s very scary out there.”
Aaron Brabham: ’Cause they know better, right?
Porter Stansberry: Yeah. Gimme a break. If that wasn’t somebody ringing a bell for you, it doesn’t get any better than that.
Aaron Brabham: I was a broker in 2008.
Porter Stansberry: Oh, I’m sorry.
Aaron Brabham: And, man, let me tell you I had clients which I was – I couldn’t do anything about it ’cause I have to honor what they want. As a broker you can try to talk them off the ledge. Literally people closing all positions in their 401(k) at 50 to 60 percent losses right at the bottom, like in February of ’09 or something like that, and I was like, “Man, this is the worst thing and guess who’s gonna get the blame? Me.” And that’s why I’m not a broker anymore. That’s one of the many reasons, but, man, I saw that panic set in and people still got paralyzed. They still were paralyzed watching the market go up. They still didn’t do anything. They just couldn’t bring themselves to buy.
Porter Stansberry: Well, so that’s one of the – that’s all – that’s – that kinda stuff just shows you why most people shouldn’t be buying stocks period – period. But, yeah, those were fantastic times. I mean I can remember looking at – literally looking at – I was buying businesses for 40 cents on the dollar of net assets after all debts, good businesses, good businesses. I remember recommending Tiffany at – I remember recommending Starbucks at $10.00, $12.00, $14.00, recommending eBay at $7.00, $8.00, recommending Chipotle at $40.00, Amazon at $50.00. I remember buying Tiffany at $22.00 when they had $24.00 of net inventory.
Aaron Brabham: That’s insane.
Porter Stansberry: I mean that was just the greatest time of my entire life, and of course to everyone else it was the worst time of their entire life, right?
Aaron Brabham: All their money’s locked up. They’re watching it evaporate in front of their eyes there.
Porter Stansberry: It was so wonderful because how hard is it to explain my advantage to you why I’m buying Tiffany? Well, let’s see. If you sold off all of their debts – sorry – if you sold off all of their inventory and you paid off all of their debts you’d end up with $24.00 a share and I’m buying the stock at $22.00. I’m assigning no value at all to their ongoing earnings. I’m assuming – assigning no value at all to their global distribution.
I’m assigning no value at all to the diamond mines they own. I’m assigning no value at all to their trademark, which is one of the strongest in the world. It was just silly. It was absolutely silly, and there were those opportunities everywhere I looked. Meanwhile, everyone else I know is terrified and selling their 401(k). I’m telling you it was the greatest moment ever, and I don’t think I’ll ever see that again. I really don’t.
Aaron Brabham: Well, who knows?
Porter Stansberry: No, there’s never say never.
Aaron Brabham: Yeah.
Porter Stansberry: But it was probably the best time since the Great Depression to buy stocks, and I bet you that most of our readers completely missed it.
Aaron Brabham: I can pretty much guarantee it, even though you wrote about it and you warned them.
Porter Stansberry: Even though it was right there in black and white.
Aaron Brabham: People don’t care about that sometimes. They sit there and stare and they don’t care.
Porter Stansberry: So listen. Just go today, go to your portfolio, look at all your positions, and ask yourself, “What’s my advantage? What is the knowledge I have about this situation that the other guys in the market don’t understand?” So let me give you a real quick just 10 seconds about my real estate stuff. What I’ve mostly been buying are really cheap apartments, so apartments that are one step ahead of the trailer park. Basically if you don’t live in these places you gotta live in a trailer. That’s how cheap they are.
And I’m buying them in two situations. I’m buying them in – No. 1 in small units, so 10- to 12-unit buildings where the owners were carrying the mortgage through Fannie and Freddie, and Fannie and Freddie got outta that business. They will not make those kinds of mortgages anymore, and there isn’t another private mortgage-maker for that kind of thing, and so the guys have to sell ’cause they do not have financing, so they are distressed sellers.
The other thing I’m doing is very, very large apartment complexes, so 400- to 800-unit complexes where the guy has a commercial mortgage and he can’t get new financing even though the apartment complex is performing to pro forma. So it’s got 90 percent plus occupancy. It’s got cash flow. It’s doing the same thing it always did, but he made this deal in 2004 or 2005 and the mortgage – the seven-year commercial mortgage is rolling over and the asset value has gone down so far because of the real estate crash that he doesn’t have any equity in the deal, so he can’t get refinancing ’cause he doesn’t have any equity.
In both those situations I’m having – I’m able to do essentially – I’m fixing up the small units. The big units don’t even require any fixing up. They’re just transactions, just financial transactions. In both cases I’m getting gross cap rates over 20 percent a year.
Aaron Brabham: That’s amazing.
Porter Stansberry: It’s amazing.
Aaron Brabham: It’s amazing.
Porter Stansberry: So even after taxes and fees I’m walking away with 14 to 16 percent annually –
Aaron Brabham: Yeah, it’s unbelievable.
Porter Stansberry: – and I’m taking zero risk – zero risk – ’cause I’m talking about performing apartments that I could easily sell for far more than the note.
Aaron Brabham: And most people are sitting there scratching their head right now listening going, “Man, I wish I could do that.” Well, guess what? We’re gonna be launching our Stansberry Radio premium model next month, and you are gonna have the guys for an entire podcast for our premium subscribers tell them – tell our listeners exactly how it’s done.
Porter Stansberry: Yeah, exactly, step-by-step, and if you want, if you’ve got money like me, you can contact them and you can get into the same deals. It’s up to you. I mean I’m not advertising for them, but, yeah, no, we were gonna do a great job with a premium show, so for me the knowledge – the advantage I have is very simple. The advantage I have is that these guys are distressed – period.
Aaron Brabham: They have to get out of this and you’re able to get in.
Porter Stansberry: And because they’re distressed I’m able to get a higher yield. Then I have a couple of other advantages. One, I have – all of my due diligence is performed professionally by lawyers, so I know every single thing there is to know about the note. I know everything there is to know about the note. And then my margin of safety is that I’m only doing financing that’s about 50 percent, so I’m providing 50 percent of what the actual asset value is, so there’s no way I can lose money even if they decide to default, which they don’t have to ’cause it’s performing, but even if they default I can still get all my money outta the deal with no problem.
So I bet you if you look at your portfolio you have a much – let’s be generous. You might not know as much about your investments as I do. You might not have as big of a margin of safety, and if that’s the case, I’m gonna encourage you just to get the cash. Just it’s okay. We’re not – it’s not – this is not the best time ever to buy stocks.
It’s not the best time ever to buy bonds, and it’s becoming not the best time ever to buy real estate, although there are still some good deals out there, so we’re getting close to a point where it’ll be time to start selling. I don’t think we’re there yet, but we’re getting close to that point, so if you don’t – if you have a lotta cash or you don’t have a big edge in the markets right now, that’s fine. Just go to cash. There’s nothing wrong with that.
Aaron Brabham: No, and once we had that talk I was like, all right, this is – makes me sleep better at night because I don’t feel like putting any of my capital to work right now because I wouldn’t have an advantage at all. I’d be doing it just to do it and that’s not the right reason.
Porter Stansberry: That’s exactly the wrong reason. So what did I tell you to do?
Aaron Brabham: You told me sit on the side until I have a clear advantage and look at buying some gold.
Porter Stansberry: Yeah. I think one great value in the market still is Saint Gaudens coins. I mean lotta people don’t like gold. They don’t – and they really don’t like collectible gold. They don’t understand it. I’m certainly far from an expert, but when I can buy a collectible coin for a very, very small premium to spot it’s a no-brainer for me.
Aaron Brabham: Yeah, and you don’t look at it as an investment. You’re not looking to make money on it, and I think that’s the key mentality.
Porter Stansberry: No, I do not buy gold to make a profit. In fact, I’ve never sold a single ounce of gold that I’ve ever purchased, not once.
Aaron Brabham: And every year you add to it no matter what.
Porter Stansberry: And every year I add to it, yeah.
Aaron Brabham: Another part of our premium show, we’re gonna do the seven secrets of gold coins and buying gold, and we’ll have the experts – the biggest experts in the world to come on and tell people exactly what to do.
Porter Stansberry: Gold’s been very good to me. I have to tell you I started buying at $400.00 an ounce and I’ve bought every year and it’s been a bull market every year, so gold’s been good, but I didn’t buy it to make money. I didn’t. I bought it to save money and you know what? I don’t know if we have time for this now but did you see that letter that I wrote to the young subscriber, the guy – I don’t think you saw this yet. I don’t think you –
Aaron Brabham: I don’t know if you’ve shared it with me.
Porter Stansberry: Yeah, so a father wrote in to me about “The Two Secrets Every 20-Year-Old Should Know About Money,” and the two secrets every 20-year-old should know about money is that investment returns have nothing to do with it. What you need to do is work hard and save. That’s all. If you do those two things you’ll different than everybody else and you’ll be rich by the time you’re 40.
Anyway, his son heard that or read that thing that I wrote and we talked about on the radio, and he wrote in to his dad and said, “Oh, this guy’s all gobbledygook. This is all nonsense.” And he said, “This guy used to be a salesman so therefore he doesn’t have any character and he’s a charlatan,” which is silly. I mean that guy knows – it’s so funny. He was saying that his college degree is worth more than knowledge of sales.
Aaron Brabham: No. No way.
Porter Stansberry: No. Not to any actual business.
Aaron Brabham: Zero chance.
Porter Stansberry: No way. So I did a little analysis for him on the value of the college degree, and it’s kind of interesting. Turns out that smart people make a lotta money –
Aaron Brabham: That makes sense.
Porter Stansberry: – in our economy, and also smart people tend to go to college, which is –
Aaron Brabham: Makes sense, too.
Porter Stansberry: – also true, so therefore a lotta people think that college is responsible for making you a lotta money. No, it’s not. It’s just a coincidence because in fact when you do the studies and you – and I would refer you to the book called The Bell Curve – when you study people who have a high IQ who didn’t go to college they make just as much money as the people who did go to college – just as much. So it’s not college that’s responsible for their success.
Aaron Brabham: It’s driven smart people.
Porter Stansberry: Yeah, look at Bill Gates and Steve Jobs, for example. The other funny thing I saw was if you look at the median income of people who were smart enough to get into college but didn’t graduate versus the people who did graduate that tells you actually what the value of the degree is, and it turns out that people who were smart enough to get into college but didn’t graduate make about $40,000.00 a year, and the people who were smart enough to get into college and did graduate on average make about $50,000.00 a year.
Aaron Brabham: Ten thousand dollar difference.
Porter Stansberry: Well, two things jump out at me, which is first that’s no different really than the median income in the United States period.
Aaron Brabham: Right. Right. That’s true.
Porter Stansberry: Second of all, the difference amounts to – the difference between no degree smart and degree smart equals about what I pay my yard man every year. Congratulations.
Aaron Brabham: Wow. That’s pretty unbelievable.
Porter Stansberry: So I went through that with him and then the thing I got to was about – I did the – I did a spreadsheet for him that showed if you’re – if you start work when you’re 15 years old and you make minimum wage or thereabouts, so $9.50 an hour – I don’t know exactly what minimum wage is.
Aaron Brabham: Yeah, it’s a lot these days. I wasn’t making that back in the day.
Porter Stansberry: But I mean it’s not hard for a 15-year-old to make $9.50 an hour.
Aaron Brabham: No, you can make $9.50.
Porter Stansberry: It’s not hard, okay? If you did that and you worked 40 hours a week now that would be hard to do, but I know people who did it and I probably worked 30 hours a week in high school. I know Ray Rivera worked 40 hours a week. Anyway, I know it’s possible. If you did that and you saved half your gross income – now saving half your gross income is extraordinary. People don’t do that, but you could. You’re living at home. You can put the money away.
Aaron Brabham: You easily can.
Porter Stansberry: So you make – you start out at 15 years old making $9.50 an hour and you get a 10 percent raise every year. Is that hard to do?
Aaron Brabham: No.
Porter Stansberry: No, not when you’re starting at $9.50 an hour.
Aaron Brabham: Ninety-five cents and then – yeah, no.
Porter Stansberry: Yeah. Okay, so you do that and you do that for ten years. If you do that for 10 years you end up with about $150,000.00 saved and you don’t have to go to college. You have to work hard. You have to save. That’s it. All right? Now if you do that, you continue that same path, until you’re 40 you’ll end up with a million bucks saved.
Aaron Brabham: Millionaire.
Porter Stansberry: Yeah, and guess what? Your investment returns make almost no difference – make almost no difference. I’m assuming a five percent after-tax return on your investments for that scenario, which is just buying diversified corporate short-term bonds.
Aaron Brabham: Yeah, that’s fair.
Porter Stansberry: Easy, okay? If you ramp up that return to 15 percent a year, which would be extraordinary world class, makes a grand total of $25,000.00 difference.
Aaron Brabham: That’s it?
Porter Stansberry: That’s it.
Aaron Brabham: That’s crazy.
Porter Stansberry: Makes no difference because what people don’t understand is investment returns are not important at all to building wealth. They are not. They are critical to managing wealth, but if you don’t have any money then what you’re earning on that money is meaningless. So let’s say you got $100,000.00 portfolio and you’re a great investor and you make 15 percent on it. Great. You make 15 grand. That’s tiddlywinks.
Aaron Brabham: Yeah, it’s not gonna mean anything if your income stopped. It would be gone instantly.
Porter Stansberry: Right. So what matters to young people is hard work and savings. Now, listen, so you – if you start at minimum wage, if you get a 10 percent raise every year, and you save half your gross income you’ll be a millionaire by the time you’re 40. No question. You don’t have to go to college. You don’t have to have any special knowledge. You don’t have to have any special skills. You have to work hard and improve yourself and your job continuously. That’s my advice to 20-year-olds.
The interesting thing is what if you’re not a rigorous saver. What if you feel like you gotta have the cable TV and the iPhone and the Izod shirts, which is what this guy said he had to have? In fact, he said that his spending was critical to his success because when he spent money he felt better about himself and by feeling better about himself he had confidence and with confidence he could do better.
Aaron Brabham: Sounds like a guy lying to himself.
Porter Stansberry: Completely. Right? If you wanna do better, here’s my advice. Don’t watch TV. Read books. Go to bed early. Be ready to work the next day. And you can read books for free. It’s called a library.
If you want to save money and you make that your No. 1 decision then everything else in your life gets easy. No, not gonna go do that ’cause I can’t afford it. No, not gonna go do that ’cause I can’t afford it. Nope, not gonna have that, not gonna buy that, not gonna do that. He also said there was no way he could get a decent car for less than $25,000.00 or find a decent –
Aaron Brabham: What?
Porter Stansberry: – or find a decent place to live for less than $100,000.00, so I showed him, look, you can buy a 2005 BMW with less than 60,000.00 – 2005 – for under 10 grand.
Aaron Brabham: God, that sounds like a pretty good deal.
Porter Stansberry: That’s a luxury car and guess what? You don’t have to have a lease. You don’t have to have payments. You can just go buy it.
Aaron Brabham: And then he could feel good about himself in a BMW.
Porter Stansberry: Absolutely. That’s a nice car. You could buy –
Aaron Brabham: It’s a great car.
Porter Stansberry: You could buy the equivalent American car for half that much, but I’m just saying it’s not – that is not unaffordable.
Aaron Brabham: His mentality is screwed up.
Porter Stansberry: It’s not unaffordable even for a guy who’s working hard and only making money on an hourly basis. Then I found a condo where his father lived in Lakeland, Florida, a nice condo, two bedrooms, 1,000 square feet, in a complex with a pool on a lake, buy the whole condo for 28 grand.
Aaron Brabham: And that’s a great area.
Porter Stansberry: The whole condo.
Aaron Brabham: The whole condo.
Porter Stansberry: You could work in Tampa. You can work in Orlando. It’s affordable to anyone. You don’t need a mortgage. You need to work hard and save money, folks. That’s the secret. So let’s say that you’re just not quite that good of a saver. Instead of saving half of your gross wages you only end up saving 20 percent. Well, then you know what? By the time you’re 40 you can only have about 300 grand.
Aaron Brabham: Three hundred grand’s way more than most people have.
Porter Stansberry: It’s still good but you’re not a millionaire.
Aaron Brabham: No, you’re not a millionaire.
Porter Stansberry: So if you want to have money, you want to really be rich, you have to save. There’s just no question. That’s the single biggest variable. The other big variable of course is how much you work. What if you only work 40 weeks a year instead of 50? That’s not a big change, but you want to enjoy your life. You want to go to Europe, right? You wanna do some backpacking. You want to go see the National Parks. You want to take some time off. You want to find yourself. Right?
Well, if you do that then you’re all – then you go – and you’re only a regular saver, well, then you end up with only about 200 grand saved. It’s how much you work and how much you save. That is what will determine whether or not you’re wealthy by the time you’re 40. Investment returns have almost nothing to do with it.
Aaron Brabham: Yeah, you always talked about it. You’re like, man, when you lose your income that –
Porter Stansberry: You’re done.
Aaron Brabham: – you’re done. I mean you’re shocked at how much money bleeds instantly.
Porter Stansberry: That’s why I think the whole idea of retirement is nutso. Your goal – the goal should – for you as an individual – look, by the way, the first thing I said in my letter was there’s a lot more things than money. If you don’t care about being rich, you just want to be okay, you could have plenty of time to travel. You got plenty of time to jerk around with your friends. You got plenty of time to fall in love. You got plenty of time to raise your pets.
There’s all kinds of things that are more important to most people than money. I’m talking to people who only care about money, and if you only care about money anyone can get rich. I know; I did it. And believe me, I gave up everything else. When’s the last time I hung out with my brother? Twenty years.
Aaron Brabham: Yeah, don’t know.
Porter Stansberry: Yeah. I don’t do any – for many years I did not do anything unless it made me money – period.
Aaron Brabham: You’re literally just now starting to enjoy things like taking a little bit of time off, but you’re still always working.
Porter Stansberry: Literally for five years when I started my –
Aaron Brabham: You did nothing but work.
Porter Stansberry: For five years when I started my company, for five years I didn’t take a single day off, not even a Sunday. People don’t understand that. People do not understand that, and that’s fine. I’m not saying that’s what you should do. I’m saying that’s what I chose to do, but people of course want both. They wanna get rich and they don’t wanna work and save. Well, it doesn’t work that way. I’m just – that’s just a wakeup call.
Aaron Brabham: Good advice and I’ll tell you what, I’ve been that guy that wanted all the shiny objects and felt like that was a status thing at some point in my life, and now I’ve become a minimalist and saving makes me sleep like a baby because I know I’m going to bed at night not worried about a thing in my life.
Porter Stansberry: It’s great. There’s nothing better than being completely out of debt and having some money. It feels great.
Aaron Brabham: Totally agree. What’s funny, from a psychological point of view, too, is I don’t care to impress anymore. You really try to impress when you don’t have money and you’re trying to have a status thing ’cause that adds some kind of internal value to yourself, and then once you have the money you’re like, “Well, why was I doing that? That was ridiculous. I don’t even care anymore.”
Porter Stansberry: I’ll tell you the other thing that happens as you really begin to build wealth. All the things that you thought you wanted when you couldn’t afford them, as soon as you can walk in the store and pay cash for them, you don’t want them anymore.
Aaron Brabham: No desire anymore.
Porter Stansberry: No. I’m telling you there are all kinds of things like this, but the one thing that jumps out in my mind was when I was growing up the successful guy down the street, he was a commercial developer. His name was Jim Fant. He had the cool watch. It was the Rolex Submariner, and I lusted after it as a kid. I just thought it was the coolest watch I’d ever seen, and me and my buddies growing up we’d be like, “Hey, soon as we get the money we’re gonna go buy ourselves a Rolex like that.”
Aaron Brabham: That’s when you made it.
Porter Stansberry: Yeah, and so it was early 2000s. I was finally starting to make some money and I was living with Marco and Mark, two buddies of mine from high school.
Aaron Brabham: Mm-hmm, down in south Florida.
Porter Stansberry: Yeah, we had this nice penthouse apartment down on South Beach, and we’re all making a good living. We were probably making quarter million dollars a year at that time and living high on the hog down there, like going out.
Aaron Brabham: Sure. Yeah, South Beach can bleed your cash quick.
Porter Stansberry: Yeah, yeah. Spending on experiences not – I was still driving an old car, but I mean we were out having a good time being successful 20-year-olds, which was fine. No problem ’cause I was still saving about half my –
Aaron Brabham: Yeah, you had two roommates, too.
Porter Stansberry: I was still saving about half my money.
Aaron Brabham: Yeah, you weren’t living by yourself. You had two roommates.
Porter Stansberry: No. I was spending $800.00 a month on the rent. It was cheap compared to what we were getting. Anyways, and Mark and I were like, “Let’s go buy that watch that we used to all…” So we walk into Meyer’s Jewelers on Lincoln Road and we’re like, “Hey, where are the Submariners?” And she brings them out and at the time they were like $2,800.00, and I’m like – at the time I probably had ten times that amount of cash in my checking account, and I’m like, “Mark, I don’t want it anymore.”
Aaron Brabham: Really? You said that?
Porter Stansberry: Yeah. I was like, “I don’t really want it.”
Aaron Brabham: What’d he say?
Porter Stansberry: “I’m happy with my Swiss Army.”
Aaron Brabham: What did he say? Did he look –?
Porter Stansberry: No, he’s like, “You know what? I don’t either.”
Aaron Brabham: All right.
Porter Stansberry: So –
Aaron Brabham: And then you guys are like, “Well, you can put them away. We’re outta here.”
Porter Stansberry: Yeah. So, anyway, we didn’t even – it turns out we didn’t even – that’s just what happens. As soon as you can afford something you don’t even want it anymore. And the other funny thing that happens is – I have a good rule. This is a good rule for people to follow. I don’t ever buy something – I don’t ever buy anything – unless I can live happily without it.
Aaron Brabham: That is one of the rules you taught me. Don’t buy anything you can’t afford to lose.
Porter Stansberry: Yeah, and what’s so wonderful is that then – therefore you own all your things. They never own you. And people are – I’ve had things blow up around me, and people are like, “Oh, dude, that’s so – that’s terrible.” “I don’t care.” “What do you mean you don’t care?” “I don’t care.” “But you just lost that leather jacket. The guy just stole it off the coat rack in the restaurant.” “Yeah, it happens.” “Well, you’re not gonna…?” No. I’m not –
Aaron Brabham: It’s not gonna ruin your day; ruin your night’s sleep. It’s a thing.
Porter Stansberry: Yeah. Oh, well.
Aaron Brabham: When you paid for it – and that’s a good mentality. When you’re buying a big item and you start thinking, “God, I hope this doesn’t get scratched or I hope it –”
Porter Stansberry: You shouldn’t have bought it.
Aaron Brabham: Yeah. Don’t buy it then.
Porter Stansberry: Right. Yeah.
Aaron Brabham: If you feel that in your gut when you’re about to pull out that – your debit card and you’re like, “Man, I hope I don’t drop this in the parking lot,” go put it back on the shelf.
Porter Stansberry: Yeah, you can’t afford it.
Aaron Brabham: Yeah, if you can’t afford to lose it or have it broken.
Porter Stansberry: If you can’t afford to lose it don’t buy it. Good rule of thumb. All right, let’s get on to something a little more valuable.
Aaron Brabham: On the hotline we have our guest, Dr. Leonardo Maugeri. Leonardo is a global oil expert at Harvard and author of the breakthrough report, “Oil: The Next Revolution.” Leonardo, welcome to Stansberry Radio.
Leonardo Maugeri: Thank you very much for calling me and having me here today.
Aaron Brabham: Oh, it’s my pleasure. We’re really excited about this interview. Now Dr. Maugeri, to describe you as an oil expert is an understatement. You’ve published four books on energy, one of which was translated into 11 different languages. You are among the few who warned about a probable crash of oil prices after the sky-high levels achieved in 2008, and your report on “Oil: The Next Revolution,” is probably the most comprehensive report both myself and Porter have read. I need to ask a question though. You have so much data in that report. How long has it taken you to compile the data and where have you gathered the data from?
Leonardo Maugeri: Well, there are two different sets of data. The one regarding the global oil production and oil production capacity is part of the database that I developed over my career in order to understand better than usual forecast allow to any in the oil sector. The revolution of oil production all right, so this database concerning all the countries in the world is something that I developed over my career, so it was ready when I prepared to study and only to update it.
And as far as the shale revolution is concerned here in the United States I have to rely of many information from many different companies on the field and on a few official publications, but really it was a very difficult task. It took me around eight months to be completed because the information about what’s happening in the shale and tight oil arena are very, very, very fragmented just because of the vast huge number of small- and medium-sized company involved in the process, so you have also to try to put in a framework of the data coming from the field in order to have some good assessment of what’s really happening. So basically these are the two sources I had in my hands, and as a rule to complete the report I had no assistance helping me, so it took eight months.
Aaron Brabham: I can completely understand that. There’s been data that shows shale fields’ decline flows are rapid. Will this limit the economic impact of these fields?
Leonardo Maugeri: Well, the world of shale and tight oil is very different from the world of conventional oil. It’s true that declining rate of the shale and tight oil fields left is much, much faster, but it’s true also that the shale and tight oil activity is a drilling-intensive activity, which means that you have to drill well after well after well, and so this is a big difference with respect to the conventional oil activity, and what’s happening here in the United States is that company are actually drilling a lot of wells in order to increase the overall production from their assets, so the decline in production is like – in a way is like the economic ______.
You have to move continuously one place to another in order to sell and increase your production. This implies a higher cost, a higher general cost of production but not in the range that many think. The cost of production even in the shale and tight oil arena is less high than most people think, but of course in order to preserve and increase production companies have to deploy very intense drilling activity which is not the same that’s used in the conventional oil arena.
Aaron Brabham: Yeah. In your report you have most of U.S. shale and tight oil are profitable at a price of WTI ranging from $50.00 to $65.00 per barrel, and since we’re in the very beginning of these stages of production and we’ve seen production ramp up extremely quickly – I believe the last report I saw North Dakota is right on Qatar’s production range; they’re about to take them over – and seeing that WTI roughly right now is around $90.00 how far do you think prices can fall once all the production is ramped up?
Leonardo Maugeri: Well, I think that first of all that production cost in the shale tight oil arena in my view are bound to decrease in particular the ______ cost because the more the knowledge about how to do the job is consolidated and increased, the more cost decreases, and then there are problems like, for example, the lack of transportation pipelines and many other things that affect the ______ cost of oil both in North Dakota and, to a lesser stance, in Eagle Ford in Texas, and – but for sure in the coming years the price – the breaking in the price of oil in these two areas will decrease and it’s about the cost the price of oil which is necessary to make this production profitable. I think that even if the cost of – the price of WTI will decrease in the future by 30 percent those production will still be economic and profitable, and probably even at the 40 percent _____ with respect to today’s price. This production will be profitable due to the decrease in cost of our time of the same production.
Aaron Brabham: Since we’re talking about WTI, let’s talk a little bit about the WTI and Brent delinking from each other and how it ties in kinda to the rest of the world because I know there are some huge shale regions in other continents, but given – and you wrote about this in your report as well – given that we have private mineral rights in the United States whereas you don’t in other countries as well as probably a decade with better understanding of horizontal drilling and fracking in the natural gas industry, do you see a continued disparity between Brent worldwide and WTI locally?
Leonardo Maugeri: Well, I’ve seen the disparity to go on in the near future at least because the problem of the disparity is mainly due to the – let me say to the problems existing here in United States, which are essentially three. First of all the transportation system in the United States is really bizarre and weird, and you cannot move the oil freely in the United States. The transportation lines are mainly north to south and in the central area of the United States, so you cannot move the oil, for example, from North Dakota to California and even to move – you cannot move the oil from North Dakota to the East Coast, and this in a way create a land-lock panorama which entails effect, which is every important, that the oil coming from North Dakota, for example, follows the same transportation line of the oil coming from Canada.
And there is so huge accumulation of oil particularly in Cushing, Oklahoma, and in the Midwest, and the refineries in the United States at this time prefer – still prefer to process foreign oil, oil imported, because they made huge investments in the past years in order to get the complexity of the refinery, which is necessary to process foreign oil, which has a discount. So the price of WTI does not follow the price of Brent because it confronts now with price of let me say heavier and worse oil coming from Venezuela, Mexico, and so on, but the refinery – the U.S. refineries now prefer those kind of oils because of the investment made in the last few years.
And so the price of WTI compete with the price of that oil, and this situation will last probably because it’s impossible – it’s virtually impossible to export the U.S. oil abroad, and this means that those who are producing now oil in Bakken in North Dakota or in Eagle Ford will then compete in the future with oil from Venezuela and Mexico, and this make the United States like a sort of island with respect to the world, and that’s what – that’s the main reason for this lack of alignment between WTI and Brent, which in my view will continue for at least three years.
Aaron Brabham: Is it possible that we might see one of these wells come in that would dwarf, say, Spindletop or the East Texas conventional discovery?
Leonardo Maugeri: Huh. It’s very difficult to say, very difficult to say right now. I don’t have an answer for this question. In theory it’s possible. In theory it’s possible.
Aaron Brabham: Okay, fair enough. What’s the reaction from the oil and gas industry to your work? Do oilmen like hearing there’s a new glut after many in the industry preached peak oil for a decade?
Leonardo Maugeri: Huh. Well, the reactions in the industry are mixed because on the one side the industry has an interest in creating the impression that the price of oil is bound to remain high in the near future as well because the oil industry confronts every day with international markets and if the market would see that the oil industry is about to face a decline of oil prices, the shares of many oil companies will decline, but of course many companies are convinced that peak oil is not an issue, and so there are mixed sentiments about my report. In general terms one may think that my report is something that the oil industry may praise and love, but it’s not like this. It’s not like this because of what I’ve said right now, and but for sure no one in the oil industry really believes in the oil – in the peak oil mantra.
Aaron Brabham: I know in the report you have it somewhere, and I apologize for not having this in front of me, but you see production in the United States reaching I believe around 11 million barrels per day by – I think it was maybe 2020. Is that correct?
Leonardo Maugeri: Yes, more than 11, 11.6 million barrels per day by 2020 excluding biofuels because many statistics, many forecasts, includes now – include now biofuels in their figures, but in my figures, 11.6 million barrels per days by 2020, biofuels are not considered, so you must add them to the overall number and that’s correct.
Aaron Brabham: And with the natural gas boom that we’ve had and the oil boom that we’re starting to see, there’s a lot of natural gas liquids which are bringing a lot of major manufacturing companies to come back home, like Dow Chemical’s building a huge facility now, so they’re moving back from Asia back to the United States. Do you see this trend continuing and will that give the United States an advantage over its trade partners?
Leonardo Maugeri: Yes, of course. This will be a continuous trend in the near future because both the shale gas boom and the shale oil boom entail plenty of production of natural gas liquids, and the United States is in an incredible competitive position with respect to the rest of the world, maybe with the exception of the Persian Gulf countries which in particular make their petrochemical production based on natural gas, but the United States and Persian Gulf in the near future will have a huge incredible competitive position in the _____ sector. The United States per se will have a competitive advantage also in many other sectors that use the natural gas liquids. That’s on the contrary; the Persian Gulf countries do not have in such abundance like the United States has.
Aaron Brabham: Well, Dr. Maugeri, I know that you have to run. We certainly appreciate your time. We’d love to have you back in the future because this is something that’s unfolding in front of our eyes and it’s gonna change the landscape of the United States, and we’re very excited about this, and we wanna thank you for joining us on Stansberry Radio.
Leonardo Maugeri: Yeah. If I may add one other thing, that –
Aaron Brabham: Absolutely.
Leonardo Maugeri: Let me say one thing. The reason today I see – I’m preparing and updating – a short updating of my study and what I’m seeing right now is that the price of oil continues to be the price of fear not of supply and demand, and even the latest data I have confirm that global production is growing dramatically much more than recognized by the International Energy Agency, and the Energy Information Administration. I think that by the end of this year the overproduction capacity of oil will outpace 95 million barrels per day, and while demands continue to feel like that’s a factor, and so I think the gap between production capacity and demand would increase dramatically over the next few months, so this may create a downward spiral on the other side – a downward spiral for the price of oil.
But on the other side the Iranian issue in particular continues to be the main supporting factor as far as oil price is concerned, and so you have these two concluding forces, and that’s why I say that the price of oil continues to be the price of fear, the price of fear of the Iranian situation, the price of fear because of the fear of disruptions from countries like Libya and many others, but people tend to think in negative terms to what will happen in the oil sectors. Negative doesn’t mean disruption prices, political instability, but if those negative factors do not materialize the reality of supply and demand is that the gap between supply and demand is increasing dramatically, and you may expect also a drastic downturn of oil prices much sooner than I expected in my paper for Harvard.
Aaron Brabham: Well, thank you for that information and myself and Porter both agree with you. Even looking at the chart of these supplies of oil in the United States it’s like 30-year highs right now and climbing every day, so we couldn’t agree more with you and that’s our theory, and again thank you so much for your time. We’d love to have you back on in the future.
Leonardo Maugeri: Of course. Thank you. Thank you.
Aaron Brabham: My pleasure. Take care.
Leonardo Maugeri: Take care. Bye-bye.
Aaron Brabham: Bye. According to a new report in The Washington Post the median net worth of the current Congress rose 5 percent during the recession while it fell 39 percent for average Americans. These are not the people that should be representing us. This is a ridiculous statistic. Another –
Porter Stansberry: Yeah. I wonder what that means.
Aaron Brabham: It means that these guys have insider information like crazy.
Porter Stansberry: Yeah, I know that everyone says that, but I don’t think that’s the big reason for most of them. I think that the – actually I think the answer’s a little more complex. I think the recession that we had wiped out all the posers and made people who are actually rich much wealthier and that’s because of the nature of the paper money system. When you rely on the printing press to solve all your financial problems all you’re doing is enriching the folks who already have assets and impoverishing the folks who don’t, and I think that’s what it speaks to.
Aaron Brabham: Well, it would make sense.
Porter Stansberry: That’s why I tell people all the time, “Go ahead and increase my taxes. Go ahead. I’m not gonna change anything.”
Aaron Brabham: It’s not gonna change anything.
Porter Stansberry: No, because you increase my taxes. The government’s gonna spend even more. The deficit’s gonna get any bigger. The inflation’s gonna get even worse and it’s gonna become easier and easier and easier for me because I know finance to make money on the side. My gold’s gonna go up and your wages are gonna go down, so go ahead. Vote for more taxes. Help yourself.
Aaron Brabham: National Geographic just released an article that confirms Antarctic Sea ice is at an all-time high.
Porter Stansberry: Yes, yes. I saw all that.
Aaron Brabham: Porter, what’s going on? Where’s global warming?
Porter Stansberry: Oh, global warming is going to destroy us. I remember about five years ago I bought some property on the beach in Nicaragua and was building a house down there, and I got a letter from a guy who’s like, “You shouldn’t build – don’t build that beach house in Nicaragua ’cause the oceans are gonna rise and you’re gonna get wiped out.”
Aaron Brabham: Which is the most ridiculous saying because ice is already floating. It’s part of the water. If it melted it’d be the same level. It doesn’t rise. It’s not like a bathtub that it overflows. You can’t –
Porter Stansberry: That’s what I was gonna tell him. I was about to say, “Don’t put any ice cubes in your glass because when they melt –
Aaron Brabham: Yeah, when they melt it overflows.
Porter Stansberry: – that drink’s gonna go right in your lap.”
Aaron Brabham: It’s so ridiculous that people think – what’s even more ridiculous is people love going to the movies watching it melt and the whole city floods, things like that. It’s ridiculous.
Porter Stansberry: Oh, God.
Aaron Brabham: Yeah, but try telling that to somebody that really believes that. They won’t believe you.
Porter Stansberry: Well, it’s like talking to people about religion, which we do not do on the show.
Aaron Brabham: No, we’re done with that.
Porter Stansberry: But everyone’s – look, everyone’s child is beautiful and gifted, and everyone’s religion is the true religion, and global warming is the big threat to our country. Mm-hmm.
Aaron Brabham: Mm-hmm.
Porter Stansberry: Yeah.
Aaron Brabham: It could become illegal to resell pretty much anything if it was made overseas. Did you see this? The Supreme Court has a big case that they’re hearing on or they’re gonna be looking at that essentially says if an item was made overseas they might have the copyrights to it and you don’t have a right to resell that.
Porter Stansberry: Weird.
Aaron Brabham: That would be bad. That would be a ridiculous thing. Can you imagine how many lawyers would get their hands in this if they go that way? I can’t imagine that they would rule that you can’t resell things.
Porter Stansberry: That just sounds like a giant protectionist racket.
Aaron Brabham: Absolutely does.
Porter Stansberry: Yeah. I don’t know anything about that, but speaking of the Supreme Court, they’ve got a case they’re – I think they’re arguing this week about Affirmative Action at University of Texas, and Affirmative Action has been going on in our country for a long time, which to me is just absolutely insane on many levels, but let’s just talk about one level of it. What’s the 14th Amendment say? The equal protection clause says that every American citizen is entitled to the equal protection of the laws. Now, if you read just the plain language of that that says that the state, i.e. Texas, cannot have rules in place that favor one citizen –
Aaron Brabham: Anyone else.
Porter Stansberry: – over another on the basis of race and, by the way, people probably don’t think much about this but the equal protection clause came into being following the Civil War. The Civil War – more Americans died in the Civil War than any other war, so more blood has been spilt over this principle of law than anything else in our history, and the Supreme Court acts like it’s not there. They say – oh, yeah, the equal protection clause should protect people from discrimination of any kind, whether it’s affirmative discrimination or pejorative discrimination. I don’t care. Right?
But they just say, “No, we’re gonna ignore it.” And that’s what drives me nuts. If you don’t want to follow the Constitution then change it. There is a process to enact new amendments. Fine. You want Affirmative Action? Then put it in the Constitution ’cause the Constitution says you can’t have it. Sorry. And here’s what really ripped my chain. Bunch of corporations filed amicus briefs in support of Affirmative Action – Microsoft, a bunch of big companies. You have to get the list.
Aaron Brabham: Why?
Porter Stansberry: Because they say they practice Affirmative Action in their corporations. Now listen, private companies they can do whatever they want.
Aaron Brabham: They can do whatever they want.
Porter Stansberry: Right? They don’t – you don’t have to – you can discriminate any way you want when it comes to hiring as far as I’m concerned. It’s a private company. It’s your business. Now the government is gonna come after you if you discriminate against the wrong people, but if you discriminate against the right people then they’re thrilled.
Aaron Brabham: They’re fine.
Porter Stansberry: Anyway, Microsoft says, “Yeah, we need an educated diverse college base because we practice Affirmative Action in our company.”
Aaron Brabham: Those are two independent variables _____ together.
Porter Stansberry: I’m gonna find out every company that filed and I’m not using any of their products ever again.
Aaron Brabham: Yeah. That seems like the most insane thing with regards –
Porter Stansberry: I despise Affirmative Action. I despise the whole idea of it and, by the way, it’s not because I’m white. It’s because what they’re doing panders to the worst parts of human lack of intelligence and it panders to the passions of politics. I hate it.
Aaron Brabham: On that note, I was reading an article after the debates or while the debates were going on. People were tweeting like crazy, I guess. I still don’t do Twitter even though we have it for Stansberry Radio. Well, there were multiple people that came out and said, “If Mitt Romney is elected, I will personally assassinate him.”
Porter Stansberry: Well, the Secret Service is gonna be all over those people.
Aaron Brabham: I hope so. And they were even – these people are so dumb. They’re like, “Come on, FBI. Come at me.” I hope they all get their doors kicked down.
Porter Stansberry: Well, I don’t hope they’ll get – well, I don’t know. It’s hard.
Aaron Brabham: Well, I don’t think you should be threatening people’s lives, but –
Porter Stansberry: No, and, by the way, the way that people act online in general is horrendous.
Aaron Brabham: Oh, anonymous e mails bring the worst hate in the world. They’re cowards, plain and simple, but my point is I actually didn’t think about this, which is the main reason why they’re threatening is because they feel that if Romney’s elected he’s going to decrease their welfare and their food stamps and SNAP programs. This might – if Romney actually did win there might be some rioting in the streets somewhere. I wouldn’t be surprised.
Porter Stansberry: No, me neither. My biggest fear for the last several years is that somebody would take a shot at Obama.
Aaron Brabham: That would be – especially if it was a white guy that did that, that would be real bad.
Porter Stansberry: Right. Remember what happened when Martin Luther King was assassinated?
Aaron Brabham: Real bad, riots –
Porter Stansberry: Yeah, well, multiply that by about 100.
Aaron Brabham: Yes, in the biggest cities.
Porter Stansberry: Yes.
Aaron Brabham: Well, I never thought –
Porter Stansberry: Hey, why don’t you go to downtown movie theaters, Aaron?
Aaron Brabham: I don’t feel safe there, man. That’s the bottom line.
Porter Stansberry: Have you ever gone to an urban movie theater?
Aaron Brabham: No, dude. No. That’s not me. I don’t feel safe.
Porter Stansberry: Let’s just say sometimes the crowds at urban movie theaters they’re – they don’t follow very much normal decorum.
Aaron Brabham: Very true.
Porter Stansberry: They throw things at the screen. They sometimes talk during the movie.
Aaron Brabham: All the time. Nice stereotype, but, yeah, it’s all the time actually.
Porter Stansberry: Hey, it’s just what happens. I’ve done it. It’s a show.
Aaron Brabham: I tell you what, we are –
Porter Stansberry: Those people – in my mind the people in the urban settings sometimes are more likely to violate public standards of normal behavior if they’re unhappy.
Aaron Brabham: Yes.
Porter Stansberry: And if they feel like the president that represented them was murdered then maybe they would suffer a lack of general decorum.
Aaron Brabham: And I get the murder part, but it never triggered anything inside me about just him losing reelection.
Porter Stansberry: Right. So especially – imagine if he lost the election – and, by the way, we think he’s gonna have a third term.
Aaron Brabham: Yeah, we do.
Porter Stansberry: Something that we’ll talk about later, but if he – imagine if he loses the election in a way that makes them feel cheated. So, for example, imagine how many of these urban constituents don’t understand the Electoral College.
Aaron Brabham: It’s hard to find an American that does understand the Electoral College.
Porter Stansberry: So imagine if Obama were to win the popular vote –
Aaron Brabham: Popular vote and lose.
Porter Stansberry: – but still lose.
Aaron Brabham: That would be really bad, and this is a right race. That –
Porter Stansberry: Imagine trying to explain that to the people who throw things at the movie theater screen and talk during movies.
Aaron Brabham: I’m not delivering that message. I am staying in my basement locked down if Obama loses.
Porter Stansberry: Might have to go to the mountain house for Election Day.
Aaron Brabham: Yeah. I am not venturing out of my little safe haven.
Porter Stansberry: May be time to take a cruise to Chubb.
Aaron Brabham: I’m all for that, man. If it starts getting down to the wire, and the Gallup Polls are learning towards Robama a little bit, Romney, yeah, I’m a little concerned living in Baltimore.
Porter Stansberry: Yeah. No, I think – I’m sure that Obama will win. Believe me, it’s not that I want him to win. I want both of them to lose. It’s not gonna happen, but I think it’s very hard to unseat a sitting president, and I think that the polls in Florida are – for me are indicative of Obama winning because of the coalition that he has. If you buy enough votes you win an election. But I’ll tell you something that I don’t think most people understand yet is that he will have a third term.
Aaron Brabham: And they’re like, “Huh?” Constitutionally – but, oh, there was an amendment passed said you can’t do that.
Porter Stansberry: He will have a third term, and I think we should have a special show about that at some point in the future.
Aaron Brabham: We should. We’re gonna put that as one of our black label shows, a premium show.
Porter Stansberry: All right. ’Cause there’s a secret to why he will have a third term.
Aaron Brabham: And I 100 percent believe it, too, and we’re not being conspiracy theorists here.
Porter Stansberry: No, no.
Aaron Brabham: There’s a – history has –
Porter Stansberry: A very sound logical reason.
Aaron Brabham: – history has proven.
Porter Stansberry: Yeah. By the way, anyone who knows me knows there’s no conspiracy in the things I talk about. I’m not that way. Things happen for sound, logical reasons, and they happen because they’re in someone’s interest. That’s all, and I can show you exactly how and why he’ll have a third term.
Aaron Brabham: Porter, speaking of, kinda like this is on the Affirmative Action front, the Florida State Board of Education just passed a plan that sets goals for math and reading based upon their race.
Porter Stansberry: Oh, my God.
Aaron Brabham: So their example was for Asians with math they want 90 percent pass rate, 88 percent for white, 81 percent for Hispanics and 74 percent for blacks.
Porter Stansberry: So their new goals for schools are based on racial composition, so, in other words, if your whole school is made up of Asians and you score – they score really low on the math it doesn’t help you ’cause they’re supposed to. Interesting.
Aaron Brabham: That’s great. And also just teaching young people that based on the color of your skin you’re really not as smart as the other people so don’t believe it.
Porter Stansberry: Well, what I wonder about all that is what do they do with mixed race children? And there’s more and more of them. There’s more and more of them out there. Right? I mean I know lots of people that are half Asian or half black.
Aaron Brabham: Would Tiger Woods have to go Asian or black –
Porter Stansberry: What kind of – what –
Aaron Brabham: – ’cause he was – he’s blasian.
Porter Stansberry: But you know what they would do? They’d see how good he is at math and then they’d categorize him.
Aaron Brabham: Then they’d – yeah. Oh, that’s the Asian side coming out in him. Oh, it’s ridiculous.
Porter Stansberry: What is happening to our country?
Aaron Brabham: It’s really falling apart, man. Couple more –
Porter Stansberry: What happened to if you – what happened to expecting children to be good at math by practicing and studying?
Aaron Brabham: That’s unfair. It’s unfair for the system. It just – that’s not good enough anymore. It’s like the French prime minister or whatever he is – president. He came out and said – one of the higher-ups said, “I don’t think that kids should have homework anymore because some parents help kids with homework and others don’t, so we’re not gonna do homework anymore.”
Porter Stansberry: Oh, yes, the socialist president in France. He is going to lead France to newer and greater heights just like Obama has done for America, bigger and stronger.
Aaron Brabham: Bigger and stronger.
Porter Stansberry: Better and faster.
Aaron Brabham: Porter, you sent me this article. I had seen it, too. The electric car battery manufacturer, A123 System, the recipient of nearly a quarter billion dollars in government grants, filed Chapter 11, so they make batteries for cars.
Porter Stansberry: We gotta calculate how much money has been lost on government-backed energy nonsense. It’s gotta be into the tens of billions, hundreds of billions?
Aaron Brabham: Maybe a hundred.
Porter Stansberry: Oh, it’s unbelievable. Yeah, I remember reading that story, and the first thing that occurred to me is I wonder why it was that Johnson Controls – is that who makes all the batteries?
Aaron Brabham: Johnson Controls.
Porter Stansberry: Yeah, so Johnson Controls makes all the batteries – sorry, Johnson Controls makes –
Aaron Brabham: Auto parts.
Porter Stansberry: – auto parts. They’re one of the largest auto part makers in the world, so they make all the stuff that goes into your cars, all the little dials and switches and knobs and wires, and they ended up buying the remnants of A123 Systems for nothing. They get whatever was useful and the government ends up holding the bag, but the funny thing was is if electric cars were really – would really work and if A123 Systems’ technology is really valuable then Johnson Controls would have bought it before it went bankrupt. The people at A123 Systems were not good at car parts. That’s why they went outta business. What were they good at? Lobbying.
Aaron Brabham: Good at getting a handout.
Porter Stansberry: And I just wish that people in America would wake up and see that when you try to distribute scarce resources like research and development capital, when you try to do that through the government it’s always gonna get screwed up because it’s gonna get allocated politically instead of economically, and that’s what’s great about the free market. Free market doesn’t care whether the people at Johnson Controls are Democrats or Republicans. All the free market cares about is whether or not they can get the money back that they lended to Johnson Controls at a reasonable rate.
Aaron Brabham: A recent study conducted – this actually ties in to our education piece earlier. I had forgot I put this down, so we don’t need to comment on it ’cause we already did, but a recent survey conducted by Fidelity found out a surprising – it’s not surprising – number of young people will not have enough income to meet all their expected financial needs later in life. Forty-two percent of twenty-something working households are saving less than four percent income. Less than, so that – after you gave that speech, you talk about 50 percent growth. Now they’re less than four percent.
A Texas school district has issued new student I.D.s with an embedded radiofrequency I.D., RFID chip. It tracks the location of the student at all times. Without the badges students cannot access common areas like the cafeteria or library and can’t purchase tickets to extracurricular activities.
Porter Stansberry: Texas? Hmm.
Aaron Brabham: This is Texas. RFID chips on kids?
Porter Stansberry: I don’t know how I feel about that.
Aaron Brabham: I don’t feel very good about that. They’re doing it for truancy, of course, but knowing where your kid is at all times, a little shocking to think about.
Porter Stansberry: I don’t know. I don’t know. That’s a very tough one.
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, we got some voice mails. Tim, fire them up.
Male 3: Wanted to remind you of something. Whenever you’re dealing with someone who has a viewpoint different than yours and you disagree, try and pull the emotions back and stop interrupting. Let them talk. You’re given two ears and one mouth for a reason. Listen a little more. Let them finish stating what they say ____ ____ ____ with them.
Porter Stansberry: Do you believe this guy?
Male 3: Don’t open your mouth so quick.
Porter Stansberry: Can you stand it? Who is that?
Aaron Brabham: Man, thanks, Dad.
Porter Stansberry: I was just kidding. I was interrupting him.
Aaron Brabham: Yeah, we’re kidding. All right, next one.
Porter Stansberry: Out of irony.
Male 4: A few weeks ago or a month ago you went into a car dealership and purchased a car and you paid cash for it. Why didn’t you buy it on credit and try and reinvest the money to make more on it unless the purchase was so small? Keep up the good work. Thanks a lot.
Aaron Brabham: We already talked about this.
Porter Stansberry: Well, not exactly. The question is is why don’t I use credit for investing.
Aaron Brabham: Oh, credit for investing.
Porter Stansberry: Yeah. He was saying, “Why’d you pay cash for your car? Why didn’t you finance it and then use the capital to go buy another apartment or something?”
Aaron Brabham: Oh, I gotcha.
Porter Stansberry: And the answer is is I don’t wanna be in debt, and I – believe me, I understand very well how people use debt wisely to make money, especially in real estate. I understand that. I get it. I’m not – I’ll never be a party to it. Sorry. Why?
Because all the people I end up squeezing they all thought they were gonna make money with credit, too, but they didn’t. Instead they ended up losing their asses and mostly to me. I want to be on the side of people that get paid interest. I don’t ever want to be one of the people who pays it. If you think you can make money with credit, good luck. I’ll be there when you finally run outta capital and you need money.
Aaron Brabham: Sounds to me like a lotta sleepless nights. That goes back to the whole debt-free thing for me, man. I’m not interested in trying to out-hustle my small interest rate.
Porter Stansberry: I think that people who really understand how interest works they never pay it; they only collect it.
Aaron Brabham: They become the lender.
Porter Stansberry: Yeah.
Aaron Brabham: Anymore, Tim?
Female: You want female listeners? Well, you got them. Wouldn’t nickel be a better investment than gold or silver? Current melt rate value is over five cents. As an investment you would still benefit off inflation but not lose a penny on deflation because the nickel will always have a face value of five cents.
Porter Stansberry: She’s reading it off.
Female: Please state the pros and cons of this besides the obvious storage factor.
Porter Stansberry: She was reading.
Aaron Brabham: I feel like she has a microphone and she was just standing in front of us reading a queue card. I agree with that.
Porter Stansberry: She was reading something. I could tell.
Aaron Brabham: Please talk about the pros and cons.
Porter Stansberry: She’s probably reading – she probably read that somewhere in a newsletter or somewhere and wanted to know what we think about it.
Aaron Brabham: It does sound newsletter gimmicky, doesn’t it?
Porter Stansberry: Yeah, it does. Yeah. So I actually know some guys who bought several tractor-trailer loads’ worth of nickels.
Aaron Brabham: Millions of dollars’ worth.
Porter Stansberry: I do. Yeah, I do. And I wish them the best.
Aaron Brabham: Can you imagine? What do you – this is ridiculous. Come on.
Porter Stansberry: No, it’s not ridiculous. I just think that for – I think that for – I think to do that at any scale requires a lot of coordination and knowledge and I think it’s well beyond most people, so, no, I’m not gonna be investing in nickels.
Aaron Brabham: No. All right. Couple of e mails. I hid this one for – from you for a while, but I decided we haven’t had a controversial topic to really get people to hate us, and I feel like I needed to infuse it, and I’d literally hid it.
Porter Stansberry: Nothing’s better for radio than a little hate.
Aaron Brabham: The U.S. was attacked on 12/7/41 and 9/11 in the 20th and 21st century, for Porter’s information, and I have a question. Does he believe the U.S. should have entered World War II or is he too young to know what was going on?
Porter Stansberry: Oh, good grief.
Aaron Brabham: I guess he would be wondering why we would be speaking German today.
Porter Stansberry: Oh, my God.
Aaron Brabham: This is why I hid it from you.
Porter Stansberry: Oh, geez, so World War II is one of my favorite little pet historical projects because it’s just amazing the lack of knowledge people have about World War II and this whole thing, so let – couple of questions for you, Aaron, and I know the answers to these questions, and I’m just pointing this out. So who attacked – who exactly attacked us on December 7, 1941?
Aaron Brabham: Japanese.
Porter Stansberry: They did and they attacked us by bombing our boats and stuff like that at Pearl Harbor, and, no, listen, I’m not defending the Japanese. I’m just pointing out that they attacked legitimate military targets and they attacked targets that had been – these battleships were poised against them, right?
They’re attacking our offensive weapons. We’ve got a bunch of boats lined up at Pearl Harbor. They had a reason to feel threatened is what I’m saying, so, yes, I believe we should have attacked Japan, and I think it’s fine that we did. If you mess with the bull you’re gonna get the horns.
Aaron Brabham: And we gave the horns.
Porter Stansberry: And we absolutely did.
Aaron Brabham: Twice.
Porter Stansberry: We gave the horns, absolutely, and that’s fine. There’s nothing I can say about that except for don’t attack America.
Aaron Brabham: They woke the sleeping giant and they paid the price.
Porter Stansberry: Don’t attack America, you fools.
Aaron Brabham: Right.
Porter Stansberry: But when it comes to the war in Europe, I don’t think that there was ever any legitimate U.S. interest at stake, and I don’t think that we had anything to do with victory in Europe. Now people are going crazy.
Aaron Brabham: We’re getting the e mails right now.
Porter Stansberry: What? Duh, duh, duh. How about –?
Aaron Brabham: Firing away. My uncle, my dad, I was in.
Porter Stansberry: Right. What about the beaches of Anzio in Italy and what about the beaches of Normandy and what about the probably – I’m gonna say – 300,000 people that died in Europe? Well, I’m sorry they died. I would have never sent them there. How do I know that Hitler would have been defeated? How do I know that we had really nothing to do with it? Simple reason: how many Russians died in World War II?
Aaron Brabham: Let me guess five million.
Porter Stansberry: No. Something more on the order of 23 million.
Aaron Brabham: That’s unbelievable.
Porter Stansberry: Including ten million troops.
Aaron Brabham: Wow.
Porter Stansberry: The size of the war between Germany and Russia dwarfs the scope and size of the war between the Western Allies and Germany. The Western Front was an afterthought. It had no meaningful difference in the outcome of the war. The Russian meat grinder is what won World War II, and without Russia being in the war we would have never been able to defeat Hitler – no way, no chance. And, by the way, without us Russia still would have won, still would have won on the same time table, still would have lost just as many people.
We had nothing to do with the war. We were an afterthought in Europe. How do I know? Well, just look at the scope of the battles, the size of the munitions that were spent, the size of the losses on the Eastern Front. They’re all ten times larger than the Western Front – all of them. All of the various orders of battle just way off the scope of what happened on the Western Front. We had nothing to do with it.
Now here’s the part that people forget. When did – when was – when did Hitler invade Russia? Uh, oh. That’s a toughy. He invaded Russia in June of 1941 and he progressed all the way to Stalingrad.
Aaron Brabham: I know the winter killed them.
Porter Stansberry: Yeah. When did the German retreat –
Aaron Brabham: Commence.
Porter Stansberry: – from Russia begin?
Aaron Brabham: Oh, probably two years later.
Porter Stansberry: The farthest extent of the German advance under Russia is December 1, 1941. Hitler had been losing the war for six days before we even entered it. The war had already been decided by the time we declared war against Hitler. Is that his thing? That we’d be all speaking German?
Aaron Brabham: Yes.
Porter Stansberry: It’s ridiculous. It’s ridiculous. The more likely outcome, if you believe that kinda nonsense, is that we’d all be speaking Russian, but there’s something between Europe and the United States – I don’t know if you’ve noticed on a map – it’s called the Atlantic Ocean.
Aaron Brabham: It’s pretty.
Porter Stansberry: It’s pretty big.
Aaron Brabham: Pretty vast.
Porter Stansberry: And there are – what? – 270 million legally registered firearms in the United States. Ain’t nobody going to invade the United States, folks, not the United States of Islam – thanks, Dinesh – not Russia, not Japan, not Canada, not Mexico.
Aaron Brabham: Nobody’s doing it.
Porter Stansberry: Nobody. This paranoia that so many conservatives have about the safety of our country is insane. We have nothing to fear from the rest of the world. We have the most powerful military by a factor of ten. In fact we spend more on military – on the military than every other nation in the world combined every single year and we have since the end of the Russian Empire in ’89. We have nothing to worry about. Stop worrying.
Aaron Brabham: Glad you set the record straight on that, and we’ve talked about it before, remember, the famous admiral after they wiped out our fleet in the Pacific. They could have walked into California, but they said, “There’s a gun behind every blade of grass in America. I’m not going there.”
Porter Stansberry: Is it Yashimoto? Something moto.
Aaron Brabham: I can’t remember, but he was like, “This is good enough.”
Porter Stansberry: Something moto.
Aaron Brabham: “I think we’ll start here – we’ll stop here.”
Porter Stansberry: Yamamoto. That’s it.
Aaron Brabham: Yamamoto. “We’ll stop here. We’re not gonna go over there. We’re good with this.”
Porter Stansberry: Yeah. No, the Japanese wanted to wipe out the Chinese. They didn’t really care about America. They attacked Pearl Harbor because they were worried because we were China’s ally. That was just us being involved in other people’s wars. I say –
Aaron Brabham: Always got our hands in it.
Porter Stansberry: – we stop it.
Aaron Brabham: I with you there. Just stop it.
Porter Stansberry: Just stop.
Aaron Brabham: You say – this is from Mark. You say you look to buy companies in which the CEO and board members own a large amount of shares.
Porter Stansberry: I do.
Aaron Brabham: You say they have, quote, unquote, “skin in the game.”
Porter Stansberry: They do.
Aaron Brabham: You say this leads them to make better decisions for the company because they will lose their own money if they don’t.
Porter Stansberry: That’s true.
Aaron Brabham: And he says, “By the way, I’m just a newbie.” On the other hand, you say you have a rule against any of your analysts owning any of the companies they write about in their newsletters.
Porter Stansberry: I do.
Aaron Brabham: Other than the pump-and-dump, why wouldn’t you want an analyst – he’s just talking about any analyst – why wouldn’t you want an analyst to own the stock he writes about? It seems to me that skin in the game might lead to analysts doing a better job.
Porter Stansberry: It clouds his judgment and the analyst isn’t a company manager. The analyst works for me not for the company. I want the guy who could control the company to have skin in the game. I don’t want the guy who’s analyzing the company to have skin in the game beyond his own reputation and track record because it clouds his judgment.
Aaron Brabham: Plus the SEC bars from any of that stuff.
Porter Stansberry: No, that’s not the real reason. The real reason is it absolutely clouds his judgment. If he has $50,000.00 in the stock and he’s worried about what will happen to the value of his stake if he puts – if he decides to tell people to sell, he’s gonna become very reluctant to tell people to sell. It’s gonna cloud his judgment.
Aaron Brabham: His emotions are gonna take over.
Porter Stansberry: It’s gonna make him falsely positive on the stock when he shouldn’t be. I want him to be objective and, by the way, I think one of the successes of our business is based on this policy. We do not allow our analysts to own shares in the companies that they write about. We want them to be objective, and there’s enormous difference between an analyst owning a stock and the management owning stock. If you can’t see that, I don’t even know what to tell you.
You want the management to own stock because you want them to control the company. You don’t want them to ever get out of it. You want them to make it right. You want the analyst to be objective. If things don’t go right you want the analyst to tell you. You don’t want him to be so invested in the company that he’s afraid to tell you the truth about it. That’s just simple. That’s just basic human nature.
Aaron Brabham: We had a couple of tweets. @paintedblue22, “Weaving in and out of traffic to get one car ahead makes you an asshole. Doing it while driving a Volt makes you a dumb asshole.”
Porter Stansberry: Yeah, but you can’t do that in a Volt.
Aaron Brabham: Yeah. Well, it’s gotta be really slow traffic. @craigobucks tweeted, “I have a request for another ringtone, Porter’s ‘Just stop it.’ ”
Porter Stansberry: Stop.
Aaron Brabham: And we are getting the ringtone.
Porter Stansberry: Stop it.
Aaron Brabham: Actually I think you, myself, and Naresh have a meeting today where we’re going to look at – we’re gonna listen to a bunch of your laughs and figure out which ones. God, what are we doing with our lives? It’s ridiculous.
Porter Stansberry: It’s pitiful. But, hey, you know what? We’ve got a grand total now of – what? – 39 listeners? So –
Aaron Brabham: We’re close.
Porter Stansberry: – big demand for the ringtones.
Aaron Brabham: All right. We have a Facebook one, an iTunes and we’re outta here. Steve wrote, “When manufacturing jobs are outsourced do the prices of the imported goods go down or do the corporations not pass on the savings and make a higher profit margin?”
Porter Stansberry: Stop it. Just please stop it. It has nothing to do with absolute advantage. It has to do with comparative advantage, and it really has nothing to do with corporate profits because there will be other competition that is also outsourced. The result is not necessarily higher profits at all. It is higher quality goods, a great variety of goods, and lower prices for the consumers in both nations. That’s why trade works.
Aaron Brabham: We had an iTunes comment. Civic Duty said, “It’s nice to hear contrarian points of view every now and then. To all those out there who are offended by rational thought and get your pussies hurt because Porter and Aaron tell it like it is then maybe you’re missing the point.” Thank you, Civic Duty.
Porter Stansberry: One of the fun things about human beings though is that everyone thinks that their position is the only rational one.
Aaron Brabham: Which is why we get anonymous hate mail all the time.
Porter Stansberry: I don’t try to – I hope I don’t defend my points of view by saying that they’re rational. I hope I can defend my points of view by looking at empirical evidence and saying that this is the way things were or this is the way things work best based on experimentation and evidence and, by the way, if nations could build wealth by inflation or by protectionism then the entire history of western civilization would look radically different.
Aaron Brabham: Radically different.
Porter Stansberry: Free trade and sound currency are the tickets to economic success throughout history. If they weren’t then Zimbabwe would be Switzerland.
Aaron Brabham: It’s very true. All right. Well, we wanna thank Dr. Leonardo Maugeri for coming on the show today. Porter, next time we’ll have you talk to him. I know that you guys can go a lot deeper than I did with the conversation, but he was an excellent guest, and I highly recommend people to go get his report. It’s free and it’s getting an update.
Porter Stansberry: It’s free. Yeah, we’ll have a link on the blog.
Aaron Brabham: Yeah, we’ll put a link up there.
Porter Stansberry: Are we gonna tweet it?
Aaron Brabham: I’ll have Naresh tweet at.
Porter Stansberry: Tweet at slash tag.
Aaron Brabham: Yeah, hashtag –
Porter Stansberry: What is it? Hashtag slash tag?
Aaron Brabham: – yeah, trending stuff, all that type stuff. The guest on the next show will be Joel Gilbert. Joel is the director of another hit anti-Obama documentary, “Dreams from My Real Father.” We appreciate you listening today. Visit us online at stansberryradio.com. Give us your e mail so we can send you all kinds of great pieces of information.
Porter Stansberry: Especially about the upcoming premium and black label shows.
Aaron Brabham: Yeah, so if we have your e mail you will be the first ones to be able to get access to that, 100 percent.
Porter Stansberry: Give us your e mail.
Aaron Brabham: And, man, these premium shows, I’m really looking forward to them. Also visit us at, yeah, Twitter, @stansberryradio; Facebook, Stansberry Radio. Call us, 855-SA-RADIO. That’s 855-727-2346. Go ahead and fire up your hate mail about Porter’s Germany thing and we can speak in German.
Porter Stansberry: Yes. Tell me everything I don’t know about World War II.
Aaron Brabham: Feedback@stansberryradio.com. By the way, yeah, Porter’s library of books – you have at least 50 of them on World War II.
Porter Stansberry: That’s okay. I know nothing about it though.
Aaron Brabham: No.
Porter Stansberry: ’Cause I can’t name all the battles that the Islamists have fought on the –
Aaron Brabham: For 2,000 years.
Porter Stansberry: – Saudi Arabian peninsula since 600 A.D.
Aaron Brabham: Which even Dr. Paul Craig Roberts was like, “Just stop it.” He was like, “Just stop it.”
Porter Stansberry: Stop.
Aaron Brabham: All right, guys, that’s it. Have a great week.
Porter Stansberry: Bye.
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