Company Updates From Management – Sat 22 Sep, 2018

By Cory댊 Novo Resources – More Information On The Egina Property Acquisitions

I have received a lot of questions and requests for an update from Novo Resources (TSX-V: NVO & OTCQX: NSRPF). Thankfully Quinton Hennigh, Novo’s President and Chairman joined me this weekend to provide some more color on the recent property acquisitions in the Egina region of Western Australia. We are still waiting for some more trenching results but on Monday at the Denver Gold Forum we should get those answers. Click the link below on Monday to watch the live stream.

Download audio file (2018-09-22-Weekend-Special-Quinton-Henigh.mp3)

Click here to watch the Novo presentation on Monday September 24th at 9:15am MT (11:15am ET).

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From:: The Korelin Economic Report

KER Politics – Sat 22 Sep, 2018

By Big Al

Mises Institute

Jeff Deist discusses what he calls The Kavanaugh Debacle

Published on Mises Institute (

Big Al feels that these are serious “words of wisdom” How about you?

Three Lessons from the Kavanaugh Debacle

You might not particularly care if the Senate confirms Brett Kavanaugh to the Supreme Court or not, but we should care very much about the spectacle playing out in the press and social media. The overall effect is to remind us of Washington DC’s status as the center of the universe, how Supreme Court justices necessarily and justifiably wield tremendous power over our lives, and why we should feverishly vote this fall to make sure the bad guys don’t win and inflict their judges on us for the next fifty years.

It’s hysterical, and demeaning. But people understandably feel forced into treating the Supreme Court makeup as a life and death political struggle.

All of this diverts attention from what should be a key issue, if not the key issue, in Kavanaugh’s nomination: the 4th Amendment. Judge Andrew Napolitano, who knows and likes the nominee, makes the damning case [1] that his views regarding the misnamed Patriot Act, FISA courts, search warrants, and domestic surveillance are deeply illiberal and dismissive to constitutionalism.

Kavanaugh’s legal opinions are nothing short of terrible when it comes to an individual’s basic right to live free of government searches, snooping, or seizures of property without specific proof that rises to the level of reasonable suspicion. His record is not one of “originalism,” but rather undue deference to the wishes of a rapacious executive branch.

His nomination will not turn on this, however.

Instead it appears we will be subject to lurid testimony before the Judiciary Committee about the nominee’s alleged high school groping, delivered by his accuser, in a dramatic turn that can only result in two segments of the country adamantly believing and disbelieving her. Are Senators on that committee prepared to act as would-be judges in what amounts to an accusation of criminal conduct? Are they competent triers of fact in a he said/she said scenario from 30 years ago?

These hearings showcase several particularly American phenomena. They’re televised, which turns every Senator into a grandstanding showman intent on bolstering a national image. They’re voyeuristic, taking us inside the presumably boring personal lives of federal judges: Mr. Kavanaugh apparently drinks beer, uses credit cards, holds season tickets to the Washington Nationals, and is either a sexual assaulter or unassailable soup kitchen volunteer. Above all, they inject the phoniest of politics into what should be a simple inquiry into the nominee’s basic fitness as a judge. Even when that nominee is a native of DC, a true company man who has been around the federal government all his life (Kavanaugh worked a stint in the Bush I administration), his Senate interrogators have to make a big show of some imagined clash of worldviews.

Three clear lessons emerge from the Kavanaugh fiasco:

First: the politicization of the Supreme Court is total and cannot be undone. You’d be hard pressed to find an American who views the Court as anything other than an unelected super-legislature that issues sweeping “laws” governing everything from abortion to guns to healthcare mandates to government surveillance and spying. There’s a reason people say any given court decision is “the law of the land.” Justices are black-robed tenured monarchs, selected by presidents as a form of political spoils to carry out a political agenda. They are Republicans and Democrats, liberals and conservatives, and rule accordingly– starting with their intended political result in any given case, and working backward to fashion a legal argument justifying that result. Judicial activism is triumphant, and no pretense of impartiality remains regardless of the shifting “philosophies” offered for statutory interpretation.

Second: judicial overreach has not limited executive or legislative overreach. The doctrine of judicial review is specious at best, with no support in Article III of the Constitution. Our understanding of Marbury v. Madison is deeply flawed [2]. Yet millions of American kids escape high school believing the Supreme Court is supreme not only over lower federal courts, but also over the other branches of government.

Has this extra-constitutional power assumed by the Court served to limit the unconstitutional actions of those branches? Hardly. Congress runs roughshod over Article 1, section 8, while cravenly refusing to declare war; the General Welfare Clause and Commerce Clause are interpreted laughably; economic substantive due process–read “property rights”– hasn’t been recognized for nearly a century; the 9th and 10th Amendments are dead letters, the 4th Amendment is on life support; and the entire 20th century serves as stark evidence of the Court’s willingness to rubber stamp [3]unchecked executive power.

Judicial review serves as legal cover for government power, not a check on it.

Third: centralized judicial power is as damaging to liberty as centralized executive and legislative power. Having a single court run by nine humans make top-down decisions for 320 million people is a recipe for disaster. Common law is inherently decentralized; it evolves locally and slowly creates universal precepts (i.e. prohibitions on murder) only when there is near unanimity of agreement across time and geography. The gradual imposition of positive civil law in America, along with the federalization of vast areas of law that once were determined locally, created a federal judiciary that is unworkable and unresponsive to millions of Americans. For the vast majority of us, recourse against the federal government for its lawless acts is an illusion– we don’t have 10 years and millions of dollars for lawyers.


The divisive nature of Supreme Court nominations is a feature and not a bug of our federal politics and government.. Truth, justice, and fairness, the hallmarks (or at least goals) of a decent legal system, must give way to tribal war and endless “whataboutism” in any culture where politics predominates. This is what politics does to all of us, and to a judiciary that is supposed to constrain the politicians.

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From:: The Korelin Economic Report

KER Politics – Sat 22 Sep, 2018

By Big Al


An important follow-up to yesterday’s discussion with Professor Antony Mueller

3 Ways Marxists Get Capitalism Wrong

Only for a short while did the collapse of the Soviet Union silence Marxism. The fatal attraction of the thoughts of Karl Marx has returned — not because they are right but because they are wrong. Marxism serves to convert resentment into a social problem. Marxism is attractive because this ideology offers a huge arsenal of bile to fire up personal ire and to transform wrath into a political agenda. Here we shall address just a few of the wrong ideas of Marxism: the role of the capitalist and of inequality in a market economy and the function of profit and loss.

One: The Role of the Capitalist

The capitalist is the dark bogeyman of the market economy for the Marxists. He is the incarnation of all the evils of the capitalist system. Karl Marx fully misunderstood the role played by the capitalist. He identified the capitalist as someone who, like it was the case with his collaborator Friedrich Engels, owns a fortune and receives dividends and interest payments a rentier without an accomplishment of his own.

Biographers of the communist labor movement leader claim that Marx never saw a factory from within. Friedrich Engels, the financial sponsor of the Marxist project to conquer the world, was the heir of a fortune that his father had accumulated, and that the son would spend not only as a supporter of Karl Marx and the socialist movement but also as a playboy. Engels kept Karl Marx financially above water, particularly in the period after the socialist author had squandered the inheritance from his father and then of his wife.

Marx and his successors ignore that the capitalists pre-finance and preserve the capital structure of the economy. Capital formation requires, before everything else, abstention from using one’s full potential of consumption. The capitalists are those who do this by financing the production processes until the commodity reaches the consumer as the finished product ready for use.

In order to understand the role of the capitalists in the market economy, one must consider that each product runs through a lengthy production process until it reaches the consumers. This production process extends from the planning process onward through the different processing stages until the goods get to the warehouses and the exhibition and sales rooms up to the marketing to sell the goods. The receipts come only with the sale of the final good.

[RELATED: “What are Capitalists Good For?” by Antony P. Mueller]

By the time when the capitalist receives income from the consumer, time passes, and the entire process is subject to risk and uncertainty. The capitalists receive their reward because of waiting and of bearing risks and uncertainties while the wage earners receive their remuneration regularly long before the product reaches the final consumer.

Two: Inequality

The inequality of income and wealth in capitalism as an injustice is a constant point of accusation of the socialists. Marx misunderstood the essence of inequality in a market economy and put the capitalist property into the same category as wealth holds under feudalism. Marx did not recognize that the market process creates inequality because the failed projects vanish.

The socialists see those who have accumulated a fortune. They lament the inequality and ignore the fact that the capitalist process is an elimination process that roots out the losers of the game. In a competitive market economy, the expression ‘successful entrepreneur’ represents a pleonasm because businessmen who have no success are forced to leave and must make room for those entrepreneurs who better serve their customers.

The market competition works as a continuous process of correcting errors. Under market competition, only the successful entrepreneurs, those who master the challenges of satisfying the wants of the customers, will remain in business. Failed businesses must disappear. Bankruptcies make capitalism productive and are a sign that the markets function. In the reality of the market economy, the Marxist construct of a ‘capitalist class’ does not exist because each member must struggle for his membership every day and under free capitalism, both the entry and the exit doors are wide open.

The inequality in capitalism is the result of an elimination process. The failed entrepreneurs disappear from the market together with their projects and their associated firms.

Three: Profit and Loss

Socialists denounce capitalism as a “profit economy.” They indict making profits as the prime secular sin. By ignoring loss as the counterpart of profit, the socialist misjudge the role of profit in a market economy. Profit and loss, which arise from the difference between sales and costs, inform the business owner about the profitability of the company. If profit and loss disappear, the indicator of how well production serves the consumers vanishes with it. Without such signals, production takes place by happenstance and production may cost more than the goods are worth. Therefore, the production in socialist economies absorbs more material and human resources than the result will generate in utility. The lamented ‘exploitation’ of human labor, which socialist blame to exist in capitalism, is the systematic reality under socialism.

In the Soviet efforts to industrialize Russia, this negative-sum economy of socialism cost a colossal toll in human lives and labor. In the second decade of the new millennium, this exploration of the masses continuous in Cuba, North Korea, and Venezuela. Karl Marx accused the market economy of the anarchy of production, yet it is, in fact, the socialist economic system, which suffers from chaos.

Planners can provide schemes to produce consumers goods based on surveys of the conditions among the population. For example, planners could try to determine how many pairs of shoes the population needs. Yet the planners cannot achieve these goals because they have no reliable and detailed knowledge about what consumers want but also do not have the guidelines as to the costs that producing the shoes would absorb in relation to satisfy urgent consumer wants, such as …read more

From:: The Korelin Economic Report

Weekend Show Politics – Sat 22 Sep, 2018

By Cory댊 Hour 2 – Politics – Topics Included Kavanaugh and Socialism

Download audio file (0922-KER-Hour-2-Politics.mp3)

  • Segment 1 & 2: Big Al and Lowell Ponte begin a summary of the ludicrous Kavanaugh situation.
  • Segment 3: We introduce Professor Antony Mueller contributor to the Mises Institute in the US, Germany, and Brazil who discusses the reasons why Socialism fails.
  • Segment 4: We continue our discussion about the falacy of socialism with Professor Antony Mueller.

Segment 1

Download audio file (0922-2-1-1.mp3)

Segment 2

Download audio file (0922-2-2-1.mp3)

Segment 3

Download audio file (0922-2-3-1.mp3)

Segment 4

Download audio file (0922-2-4-1.mp3)

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From:: The Korelin Economic Report

Weekend Show – Sat 22 Sep, 2018

By Cory댊 Central Bank Policy, Worrisome US Market Signs, and Precious Metals Thoughts

Download audio file (0922-KER-Hour-1.mp3)

On this weekends show I spend the first hour chatting with Peter Boockvar and Jesse Felder. We touch on a number of topics including central bank policy, the overall rate environment around the world, and how the metals have been beat down. It was very interesting to chat with both of these very successful generalist investors and see how they have slightly differing opinions on the wide range of topics. They both arrive at similar conclusions however I think we all agree the central banks around the world have gotten us into a tough situation.

Instead of splitting up my conversations with both Peter and Jesse I have kept them in the full conversation form. I hope you all enjoy!

Please keep in touch by emailing me at!

Exclusive Company Interviews and Insights

Segment 1 & 2

Download audio file (0922-1-1and2.mp3)

Segment 3 & 4

Download audio file (0922-1-3and4.mp3)

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From:: The Korelin Economic Report

Richard Postma – The Doctor Is In – Fri 21 Sep, 2018

By Cory댊 The Uptrend In Rates Could Pick Up Some Steam

Doc joins me today to focus on the bond market and address the uptrend in yields. With the 2 year at a 10 year high and the 10 year at a 4 month high with is a good change that these continue heading higher. Doc points out the major factors at play and why he thinks there is still some legs left to this rally.

Download audio file (2018-09-21-Doc.mp3)

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From:: The Korelin Economic Report

Chris Temple from The National Investor – Fri 21 Sep, 2018

By Cory댊 Base Metals vs Precious Metals – One Is Bouncing The Other Is Not

Base metals are having another good day today. After dropping 25% in 3 months copper has rebounded nicely and might have further to go. Chris Temple and I discuss what is behind this rebound and if it is sustainable. We also compare copper to gold as gold is giving up all of its gains from the week.

Download audio file (2018-09-21-Chris-Temple.mp3)

Click here to visit Chris’s site and read over some of his special reports.

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From:: The Korelin Economic Report

Company Updates From Management – Fri 21 Sep, 2018

By Cory댊 Fireweed Zinc – The Big Picture For The Large Land Package Encompassing Recent High Grade Results

Yesterday Fireweed Zinc released some of the highest grade results to date. The result was from a step-out hole at the Tom East Zone and included 21.1% Zinc, 13.5% Lead and 243 g/t Silver over 16.41 m. Brandon McDonald, Fireweed CEO joins me today to recap the drill result and more importantly recap the overall exploration strategy. With a focus on growing the resource in the current drill program Brandon also outlines how they are navigating a tough market while still producing results.

Download audio file (2018-09-21-Brandon-McDoanld-Fireweed-Zinc.mp3)

Click here to visit the Fireweed website and read over the full news release.

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From:: The Korelin Economic Report

Craig Hemke from TF Metals Report – Fri 21 Sep, 2018

By Cory댊 Looking Ahead To The Mid-Term Elections and How Markets Could Be Impacted

Switching away from our usual metals focus with Craig Hemke we look ahead to the upcoming Mid-Term Elections. There has been so many other stories that have dominated the markets this whole year. However as the Mid-Terms approach we need to look past the election and determine the potential impacts to the economy and trade policies.

Download audio file (2018-09-21-Craig-Hemke.mp3)

Click here to visit the TF Metals Report website.

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From:: The Korelin Economic Report