World Energy Presents "Reality Check" with Jim Puplava of the Financial Sense News Hour

his time on Reality Check, Jim Puplava, host of the Financial Sense News Hour and Richard Loomis CEO of World Energy compare the numbers. Jim is looking at the IEA study and Richard has the most recent numbers from the EIA. The two of them examine the supply and demand numbers and the forecast for next year. Can we justify the wild price swings for oil and natural gas by looking at the numbers. Reality Check is an in-depth look into the financial side of the business and the politics of the day.

Category:

News & Politics

Tags:

• Economy
• crisis
• finance
• world
• money
• meltdown
• energy
• news
• president
• obama
• bush
• usa
• middle east

[nemnaisa]

So now that Canadian Oil Sand has cut its dividend as I have predicted a week ago, are you still a fan of Puplava?

[bib777]

in the present environment number one concern is wealth preservation, forget about making money right now I just want to keep it. the only certain way is holding it in gold offshore far away from Obama.

[nemnaisa]

One should be pragmatic in investment strategies. If the theory resulted in gaining wealth, then the theory is useful. If not it should be discarded. Puplava's hyperinflation first theory and his definition on inflation failed miserably in protecting one's wealth and as such it must be discarded and he must be discredited. If the theory does not help to protect one's wealth let alone making money, what good does it do? We are talking about making money not developing a scientific theory.

[nemnaisa]

The timing is my criticism of his strategy. He mentioned numerous times before the crash that gold would go above $1000 and skyrocket up from there. Many deflationists also suggested gold is best asset class too. Like you I used to have respect for the man. BTW, with oil stays at this low level, I doubt that can oilsand can remain solvent for long let alone paying you the dividend. By then, you will be as bitter as me about Puplava.

[bib777]

I wouldnt be so quick to judge, current deflation is a result of sudden implosion of the financial system. I dont see how with trillion dollar deficits and the Fed giving money away left right and center we could see the continuation of falling prices. Gold is still above $800 and oil has fallen but also right before the fall it spiked. He was not wrong on gold, gold has been the best asset class in last 10 years with above 10% returns.

[nemnaisa]

Yes but if banks are afraid to lend out credit (to avoid further damaging their balance sheets), there is no multiplying effects of the amount of "money" to the general economy to create inflation. So Puplava's hyperinflation is a wrong and false strategies to his listeners. In modern markets, the credit market acts as a sponge to absorb all excess liquidity hence no Wiemar Germany style hyperinflation. Zimbabwe does not have a credit market hence experiencing hyperinflation. JP is wrong.

[bib777]

isnt credit a subset of total money supply?

[nemnaisa]

Puplava is wrong on oil, gold, base metal, uranium, juniors, infrastructure, and the general market. He is wrong because the old fool is wrong on inflation. His dogmatic definition is increase in money supply. In reality, the world functions base on both money supply and more importantly credit. Economy runs primarily on credit not base money supply. The credit is contracting much faster than the FED can push money into the market hence this is deflation. Hence his strategy failed.

[nemnaisa]

I listen to him every week. I am not disputing his sources and ultimate outlook of the economy. But I criticize the timing of his investment strategies, which fail to protect the wealth of his clients. If he failed to get the macro timing right, he must be discredited. After all, as per many gold bugs, in capitalism the right the success is also the right to fail. And his investment strategies failure miserably.  He is no more different then the typical brainless Wall Street commentators.

[bib777]

puplava was wrong on oil but so was everyone else on price of banks which went to zero!!! My canadian oil sands is down by 50% back to the purchase price but it is still paying 20% yield and has massive cashflow.