Mike – Below is the outline for the show, we can segway as necessary. It is not rigid but it keeps us on topic. If you have any questions you would love to answer send them to me and I will work them in.

I also know you do a lot on Radio and most shows have time slots, breaks, etc. Having done them myself I know you often have to abbreviate things, etc. THAT IS NOT THE CASE ON TSP. We are a podcast, the show runs on average 45-60 minutes, if it runs 80 minutes no big deal, there are no commercials; I do the sponsor stuff in the introduction as you will see below. The intro takes about 4-5 minutes and that is that, the rest of the show is yours.

On your answers definitely use a lot of metaphors and examples, some of my audience is CFAs, traders and the like, many are just blue collar folks though that want to understand these things. Take all the time you need and bring that wonderful gift you have to make the complex simple.

I also want you to know you have an open invitation to come back so note anything you want to expand on after this show, let me know about it etc.

Episode – 471- Interview with Mike Gasior

Will record 7-6-10 at 1PM Eastern, 12PM Central

Will air the morning of 7-8-10

Mikes Number (860)345-2303

House Keeping Segment

Sponsors of the Day – Common Sense Prep and Western Botanicals

Social Connections – YouTube, FB, Twitter

MSB

Guest Introduction – Mike Gasior is with us today, Mike is a consummate expert, he has authored ten textbooks on investments and the investment markets, and over 700,000 people worldwide read his monthly newsletter. His breakthrough radio program "Big Money with Mike Gasior", which aired worldwide on the VoiceAmerica Radio Network, was one the first shows ever to focus on the needs, concerns and issues faced by the world's largest investors and Mike is a regular guest on the “Naked Short Club” show in London.

He is also the founder of AFS Seminarsin 1989 after spending time with several Wall Street firms and a major European bank. In his teaching he uses anecdotes and lessons drawn from his lifetime of experience with economics, investments and the financial markets to deliver knowledge with a dynamic, interactive teaching style that I find to be among the best in the industry.

And we are fortunate to have him here with us today on The Survival Podcast. Mike thanks for joining us.

Questions

  1. I just gave the audience a bit about your background but can you tell us a bit more. How long have you been in the financial industry and who have you worked with? What unique insights does that allow you to see that others might miss?
  2. When I first discovered you it was for your article and video both titled “a wonderful fiction”, honestly I thought right away this guy is switched on, than I realize it was from Oct of 2009; that is when I really decided to find out more about what you were saying. Let’s discuss something from that video that I was discussing in June of 2008 and that is FAS 157. I was telling folks before the current collapse “get the hell out of the market” and FAS 157 was a big reason why. Can you tell folks, 1. How FAS 157 made the crisis worse? and 2. How it was manipulated to create the illusion that things are getting better?
  3. Another point you brought up in that video was the incest between the banks and the Federal Reserve. Basically that the fed cut interest rates to next to nothing, turns around and loans money to the banks for like a quarter of a point, the banks take that money and buy Treasuries for about 6 points they make the spread in interest and the whole thing is a circle that just grows the debt of the nation and bails out the banks. I was blown away by that and frankly jealous that I didn’t figure it out on my own. Now a few of my listeners say the problem is this can’t be done, they say the treasuries are long term debt and the discount loans are short term, can you explain how the banks are able to pull this off?
  4. In another one of your videos from 2008 before the last election you stated that from 2000-2006 the nation took on an total of 1.3 Trillion in new debt and it was mostly foreign and the problems that would create. Today we are in 2010 and the government is running a deficit of 1.6 Trillion! Bigger than the debt increase over the six years from 2000-2006, what does that tell you about the direction we are heading in.
  5. You also stated at the beginning of the crisis that everything that the administration of the time (Bush) and the Federal Reserve was doing was “wrong” I agree, let me ask you has anything changed, are they doing anything right today, is so what, if not, tell us what you think they are still doing wrong.
  6. Mike you consult with a lot of big money types, people with a lot of money to invest, protect and grow. Many of my listeners are just hard working blue collar people, they are worried about a IRA or 401k with say 50-500K in it, they are trying to pay off debt, etc. What advice would you give to Middle America right now about protecting and growing their investments?
  7. You have railed on the “tax cuts”, in fact in one video you talked about how a single mom that worked at Starbucks was going to blow her “rebate” which I call a gift from tax payers by the way since she probably effectively pays no taxes, on a trip to Jamaica. The government tells us as long as the pump money into our economy it will stimulate it, can you discuss why nonsense like this won’t fix things.
  8. Mike I have been forecasting a false recovery, honestly before the crash even happened. This is what I have been saying, all this money these idiots are borrowing and pumping into the economy will sooner or later sort of kick in, cause what looks like recovery for a while. Let me be clear I am not talking about the current bounce, I mean two or more consecutive years of real gains, the media buys in, the average person buys in, etc. Unemployment drops by say 2 points, where it still sucks but looks a lot better etc. I think at that point we are on course for a bigger crash than ever before. What do you think of my assessment? Am I right or wrong, why or why not, and be brutally honest with your opinion.
  9. I recently took a question from my audience on Treasuries, the Chinese and others are again buying Treasuries and the listener wanted to know why. I called it a chess game, first they diversify, they buy up land and holdings in Africa, they hedge into gold like mad, buy up exclusive contracts for the importation of food, etc. Than they print more of their own phony money, put it into treasuries. Short term this strengthens the dollar but long term it will weaken it as the debt continues to hockey stick. Eventually it helps the Chinese restore their trade imbalance with Europe. I am right, wrong, nuts, what I am missing in this interaction?
  10. Mike the big reason I wanted you on the show is I really appreciate people that give a shit about others. You are not hurting for money, you could just consult with the big money types and float around on that big ass boat of yours, but you take time to do these great videos on YouTube and make the complex understandable by the average person, why? Why is it important to you that the Joe Sixpack in West Virginia understand these things?
  11. One of my favorite people and by that I mean favorite people to loathe is Jim Cramer. You said in one of your videos, “what Cramer doesn’t have a clue about is what is good for the long term improvement of the economy”, I agree with that, but if I put you in charge of the U.S. Economy, what 5 things would you do first, why and some may be painful so explain why they are necessary.
  12. Long term, can the current U.S. economy be fixed, more importantly do you think it will happen?
  13. Can you tell people a bit about AFS Seminars and how they can learn more about you and your seminars?

I will wrap up here; you can get in any additional plugs or thoughts you want in. Don’t try to force anything into the interview because I will give you all the time you could ever want at the end for plugs of any books, sites, events, you name it here at the end. I find the audience is way more receptive when we hold the promotions until the end of the show. By than they really sort of know you and are wondering how they can learn more.