Welcome to your Friday opportunity to ask anything you wish of TDV's staff. How was your week? Here in the USSA, Barack O'Bomber backed out of a summit with Russian President Vladimir Putin because the Russians are giving asylum to Edward Snowden, whose crime against Amerika was wanting to protect the freedoms of Americans. The world has gone sideways, dear TDVers.
Want to join in the discourse? Send your questions, comments, queries, and concerns to tdv@dollarvigilante.com, comment on a post, or get on the forums.
On to the feedback…
NEWPORT MINING
Ed,
What do you think of Newmont Mining today? I know it use to be on the list not sure when you removed it. I understand they pay a dividend.
Kirk
Ed's Response:
Hi Kirk,
Thanks for your interest.
I had to let Newmont go because I didn't like the geotechnical risks at its major projects in Nevada, Peru and Indonesia. Nor did I like the political target it has on its back (same with Barrick) because of its size. Last reason I had to let it go is because after watching it for ten years I have come to lose confidence in management -I see Newmont as a sleeping giant.
I am currently recommending a portfolio of mid to large cap producers that pay a somewhat smaller dividend today, but which I think are solid and may pay a higher dividend going forward: Agnico (AEM), Yamana (AUY), IAMGOLD (IAG), and maybe even Goldcorp (GG) -although it has become big now too.
Not all these names are currently in the TDV lineup, but they will be if they don't run away before I'm done my next few reports.
If I had to pick a behemoth, I suppose NEM would be the least of evils, and it is very nicely priced.
But I'm trying to beef up the portfolio with companies that are well managed, and which have more capital gain and growth potential at the moment. I do believe that dividends are going to be tomorrow's story in this sector, but not until we get the rebound and a new leg is well underway.
I think that the best dividend opportunities of tomorrow are not easy to spot today, but I think the above names as well as a few others that I have my eye on may become contenders in that area.
All the best!
Ed Bugos
[Editor's Note: You can get all Ed's best ideas and actionable recommendations every week when you subscribe to the TDV paid newsletter.]
STUDENT LOANS IN A DOLLAR COLLAPSE
Have listened to most of your youtube.com posted interviews, very insightful. Read a lot of high quality information on a daily basis.
My question: I do not have any student loans, but I hate people who do. They run up their debts to 200K traveling around on breaks, buying nice clothes, stealing a free University education, living in frat, sororoties, dorms, apartment, then do not pay back the money! What happens when the US dollar collapses, to all those people I hate with their student loan debts? Will they have to pay it back?
Thanks,
Dorn
Jeff's Response:
Hi Dorn,
Let me start off philosophically on this question.
It is a very dangerous mindset to get into to "hate" other people who you see as making different decisions than you have. That sort of mindset runs rampant amongst socialists and communists. It's actually much healthier to pay attention to what they do and think, "It's their choice and their life."
On the specific topic on student loans from government I wouldn't even necessarily call what they are doing "theft". The money they received was stolen money so that changes the dynamics. If they received money that was legitimate with the intent to not pay it back, that is a different thing. And, for that matter, I'm happy to see as many people as possible take back the stolen money from government. it'll just speed up the demise of this monster of a system.
Further, though, forgetting the point on it being stolen money, you can take heart that the kind of people who receive money in this fashion and mostly blow it on non-productive things like vacations and nice clothes and, on top of that, probably wasted four years of their life getting a useless piece of paper in something like a Bachelor of Arts or a degree in Religious Studies surely do not have the necessary skills to succeed in life once the gravy train runs out. If they are the kind of people who borrow lots of money and blow it on unproductive things and just spend four years of their life partying, they will almost surely be unsuccessful in life, so take some joy in knowing that.
Now, on the question of what happens to them when the US dollar collapses. That is an interesting question. In the past, when other countries currency collapsed some governments actually just created a new currency and then said the loans had to be paid back in the new currency. So, that is possible. Or, the dollar collapse could take longer than expected and they'd have a very tarnished reputation for any loans of any sort in the future. Not to mention, I expect the US government will soon make those who do not pay back their loans join the military or O'Bomber's new Homeland Insecurity army that he has stated wants to make just as big in size as the military. So, many of them will likely end up as cannon fodder somewhere or find themselves given the option of working at the FEMA camps or being interned there.
You, on the other hand, know that borrowing money for anything unproductive is a very bad way of living and you also pay attention to things like TDV and are aware of the massive economic, financial and monetary problems coming so you should hopefully be prepared for it in one way or another. And, hopefully whatever you are taking in college is actually worthwhile and useful so that when you are done you can get to producing wealth and follow some of the things that we recommend here like internationalizing your assets, precious metals, getting a foreign passport in a less oppressive country and, even better, just get out of the US and go to a place like Chile where many of us will be sitting around the clubhouse watching the coming trainwreck in the US on a flat screen TV while sipping our locally grown organic wine.
A lot of people aren't aware that the "good times" in the US are already over and aren't prepared at all. Those kids now partying and blowing cash on useless things and wasting four more years doing nothing productive (after having previously wasted 12 years doing the same) and likely coming out of college to a job market that will be all but decimated will soon look back at their decisions and regret it. So, don't hate them too much. In fact, you should feel sorry for them. A lot of them will soon get rounded up for their mandatory military duties and end up getting irradiated, blown up or commit suicide.
HOW DO YOU RESIST SUCH A HIGH TECH GOVERNMENT?
In the surveillance state, the Government has the power to snuff out rebellion before it ignites to critical mass. None of our forefathers have ever faced this technology. It is very doubtful they would have succeeded if King George would have had this technology. This is where revolutions end.
In the end – The only government that will exist will be the totalitarian state.
When it fully emerges, it will be heartless, cruel and rival any dream of comrade Stalin. Sadly, its emergence is not that far away.
–M Pittman
Gary's Response:
Yep, resistance is futile. That's why I'm so excited about my upcoming relocation to Galt's Gulch, Chile to help out with the project. Technology in a free market is very exciting, constantly bringing upgrades in standards of living. Technology with a government present just means more frightening and efficient ways for the government to monitor its citizens and kill people.
Liberty types often argue with each other about wether or not US troops and cops will pull the trigger on non-criminal American citizens when things get really bad and their political masters order them to do so. Ha! Thanks to DARPA in the very near future the troops and cops will probably be replaced by very emotionally unconflicted robot soldiers. Meanwhile thanks to PRISM and drone technology, the US government's ability to surveil its tax cows will be so utterly complete that no "revolution" will get past the stage of private consideration.
So, yeah. It's probably time to give up on the pipe dream that a few brave liberty-lovers will violently overthrow the masters whom the rest of the sheep love with all their little mutton hearts. It's time to look for greener pastures.
