Byron’s Mailbag: Copper and Kamala

Byron King answers your mailbag questions about copper and Kamala. September 25, 2024 [WEBSITE]( | [UNSUBSCRIBE]( Byron’s Mail Bag: Copper and Kamala BYRON KING Dear Reader, Between your notes to Sean and other feedback from readers, I’ve received a collection of comments on my recent articles in the Rude Awakening. I appreciate that people take the time to reply and value your feedback. Absolutely, it helps me clarify my thinking. Here are a couple of notes: one regarding my recent discussion of copper mining and the other concerning my views on presidential wannabe Kamala Harris: Re: [Grow Your Wealth with Copper]( Aug. 28, 2024: Gary & Jean, from Bisbee, Arizona, wrote: “Byron, thank you for the beautifully written plug for historic old Bisbee. Our tourist bureau appreciates the free media! We love how you tie together all the history, from cowboys and U.S. Army cavalry looking for outcrops to modern geophysics. This is an old mining town where the pits are long closed, and now we live off the legacy. But it’s good to be reminded, in an article like yours, of how ‘real’ wealth is created by mining ore and valuable metals from the ground. Farming (obvious reasons) and mining are the foundations of wealth and human improvement.” Thank you, Gary and Jean. What a wonderful town, old Bisbee. Hint to readers: If you have an opportunity to go there, take it! You’ll enjoy it greatly, especially the underground mine tour. Yes, you really can ride down into the original copper mine workings. BWK photo. My first visit to Bisbee was in 1978, over a long summer weekend. I was working as a geologist for Gulf Oil Company, one of the original “Seven Sisters” of oil and now part of Chevron. I had heard about Bisbee's immense copper deposits and drove from Midland to Odessa in West Texas. This was just a couple of years after Phelps Dodge closed the main Bisbee works in the mid-1970s. The town was hard up with layoffs and business shutdowns. The mines closed not because the Bisbee mineral district ran out of ore; not at all. Then, as now, there was and still is beaucoups copper in the rocks. However, the price of that red metal was way down in the 1970s, which led to mine closures in Arizona and elsewhere. This reflects the general cyclicality of business, certainly the boom-bust aspect of the mining side. Beyond the enjoyable drive and geology-focused site visit, Bisbee back then offered a ringside seat at the scale and impact of deindustrialization yet to come to America. That is, in the late 1970s and into the 1980s, much of the old, long-established U.S. industrial legacy went terminal. At root, the cause of industrial death was a mix of both tough economics and vicious government policy. Inflation and global competition tightened the screws on most U.S. businesses. While the government delivered kill-shots via uncaring globalists and gratuitous regulators in far-off Washington, D.C. By the mid-1980s, basic industries were closing the factory gates all across the country. Consider the 1980s-era decline of the American steel industry, or autos, electrical and electronic equipment, textiles, and much more at a larger scale than just one copper-mining district. To borrow a line from Ernest Hemingway, it happened “gradually and then suddenly.” Mines, mills and factories closed by the tens of thousands, with millions of jobs just plain gone… poof! Did the U.S. government care about Americans losing out? I recall much lip service, yes; but not much else. Displaced workers received standard welfare payments, and handouts of government cheese. Meanwhile, for those federal policymakers in Washington, the paychecks came on time, right? Here’s one key to the problem: Beltway think tanks and policymakers have long been enamored with the tenets of their Free Trade cult, which is based on an abysmal misunderstanding of the fundamental nature of wealth and wealth creation. Somehow, goes the thinking, the ideal world offers cheap television sets and T-shirts at Walmart, while entire regions and segments of the population are economic and social write-offs. To illustrate this last point, recall how, by the early 1980s, corporate dismantlers and chainsaw business slashers came into cultural vogue. At the top of the list was the late Jack Welch at General Electric, aka “Neutron Jack,” celebrated for his ruthless approach to tearing the guts out of an iconic, old-line manufacturing company. During Welch’s first three years at GE, he laid off well over 100,000 employees, meaning about a hundred per day, every day. Per his magic touch, if not his kiss of death, entire towns and even regions were devastated by the loss of industry, jobs, and tax base. But heck, Welch beat earnings “by a penny per share” for years at a time. What a titan of business, right? So yes, my recent visit to Bisbee had more meaning to me than just seeing an early 20th-century main street lined with a collection of lovely old buildings, now restored and converted to a tourist-style economy. To me, Bisbee was a time machine, a way to travel back to a lost world. [URGENT: Regarding Your 2024 Strategic Intelligence Membership Dues!]( Hi, I’m Matt Insley. I’m the Publisher at Paradigm Press. Just moments ago, I just got off the phone with Jim and we agreed: it’s time we start charging more money for access to his newsletter. That’s why we may implement a massive price hike for all subscribers in the coming days. But if you [click here now]( you can lock in your current subscription price at 80% off – and never have to pay the potential new price of $500. Don’t waste any time. [Just click here now to claim this special offer.]( [Click Here To Learn More]( Re: [Kamala Is Unfit for C-in-C]( Sept. 18, 2024: Reader Rick wrote: “Thank you, Byron King, for mentioning those deployed on ‘at-war’ footing. This is particularly true of Navy vessels in harm's way. I served proudly on the USS Dwight D. Eisenhower CVN-69, down in the steam plants using nuclear power to generate electricity for the ship. Thanks for the mention of the ship's crew. Non Sibi, Sed Patriae.” [“Not for Self, but for Country” – BWK.] Here’s a note from Reader Matt: “Thank you, thank you, thank you, thank you, thank you, and thank you once again Byron for today’s missive. Finally, I can say that someone has laid it flat on (the table) regarding K.H.” There’s this from reader Bruce: “I greatly appreciate your righteous indignation regarding K.H.’s false statement about U.S. troops not being in war zones. I’m sure her consultants parsed every word before feeding it to her to memorize, but that doesn’t change the fact that it was a blatant and contemptible lie. Thank you for pointing it out.” And Reader Yogesh sent these kind words: “Dear Mr. King, Thank you to your son and to your family for his service to our country. May God watch over him and his brothers and sisters in arms. Grateful for all of them.” Thank you as well, Rick, Matt, Bruce, and Yogesh; thank you especially, Yogesh, for your sincere prayers. I’ve written newsletter articles for over twenty years. Long ago, I learned to write from the head. But I must admit that the K.H. article came from the heart, if not the gut. As I wrote, I felt like I was back in the Navy, in the North Arabian Sea. I smelled saltwater and jet exhaust, felt the vibe of power flowing through the beams and structures of a massive Navy ship, sensed the roar of aircraft being launched, and the sound of missiles away. In my days as a flight officer, I flew Navy S-3A “Viking” aircraft from the armored deck of the long-gone ex-USS Constellation (CV-64). And I came away with the deepest respect for every hand on that mighty ship, the engine gang below the waterline, making steam and keeping the lights on. Your editor’s old airplane, the Lockheed/Navy S-3A “Viking.” U.S. Navy photo (although your editor actually took this photo). Now in this phase of life, I’m back to my geological roots. Usually, in my articles, I focus on the basics of energy, mines, minerals, metals, industry, history, etc. If you read my articles, you know where I’m coming from. When I color outside those industrial and investment-themed lines, such as with military commentary, I think I’m still in the proper wheelhouse based on my own 30 years of active and reserve service in the Navy. As in, I attended officer candidate school under the watchful eye of a Marine Corps gunnery sergeant drill instructor; I flew a real, combat-coded jet; I know what’s inside those green bomb casings; and I even have a degree from the U.S. Naval War College, so I can cite Clausewitz and stuff. Yeah, I know a few things. Generally, in my editorial role, if I mention politics, I try to keep it informed by the reality of how the country must drill for oil and gas, mine metals, have basic industry, and have trained workers who can actually do serious tasks, which requires a good education system. And then along came K.H. during that so-called debate on ABC News, with her ridiculous line about “no U.S. troops on active duty in war zones.” To me, that was just over-the-top dumb, compounded by how those two comically biased, talking-head moderators failed to fact-check this obviously and outrageously wrong point. As for K.H., what an idiot; what kinds of calculating, dumbsh!t idiots does she have advising her? Morons to the nth degree. In fairness, though, what if K.H. is not an idiot? What if she’s not nearly as plainly stupid and ill-informed as she comes across? Perhaps she’s just a committed, power-hungry specimen of the Modern American Marxist. Perhaps, deep down, her idea of morality encompasses bald-faced lying to achieve political dominance. Hey, it worked for Lenin. Okay, whether K.H. is just a little bit intelligent, or maybe-sort-of smart, or just plain dumb-as-a-rock stupid, how much does it matter? Because, as president, she’ll be a nice little puppet and under total control. (“Just sign here, please, Madame President. And no, you don’t have to read it.”) Meanwhile, humor me and hundreds of thousands of other parents like me, with a kid in the U.S. military. Consider the thoughts of someone with a son or daughter on active duty, if not reserve of Guard. Our offspring wear full Army-grade battle-rattle that range from ballistic helmets to a bullet-proof vest because they’re in a place that takes incoming rounds on a routine basis. All because some U.S. President or senior policymaker put them there, far away on the other side of the planet and not on the border with, say, Mexico. Along with this comes K.H., who is running for president, and before an audience of tens of millions, she dismisses it all. Worse, she delivers her Big Lie with that trademark smug, cavalier, snotty, know-it-all smile on her face. She says, in essence, that what’s really happening isn’t happening. Nope, no U.S. troops are getting shot at, none have been wounded, and none are dead (not that she would even attend the funerals). Wow… K.H. is a mendacious whack-job and a danger to us all. She and her demented ideologue handlers will get the country into a real war, and then get a lot of us killed. With that, I hope I haven’t made too many readers angry. I’ll stop here, except to thank you again, as always, for subscribing and reading, and for your kind and thoughtful notes. Best wishes… Byron W. King P.S. – Speaking of presidential politics, copper and much else, be sure to check out the annual [New Orleans Investment Conference]( this coming November 20 – 23. Yes, it’s scheduled two weeks after the looming elections, so we might even know who the next U.S. president will be! This Mississippi River get-together is the new incarnation of the old Jim Blanchard Gold Conference, updated to current events and issues. And this year marks the 50th annual gathering, so you can expect an outstanding and deeply informative event, with superb speakers and exhibits, all in the main hall of the Riverside Hilton. You can attend in person (recommended!) or just log in and see it all virtually. But one way or another, please sign up. I’ll be there, for sure; [and for more details, go here](. Many thanks, and I’ll see you in NOLA! Rate this email Like Dislike Thanks for rating this content! Looks like something went wrong. Please try to rate again. In Case You Missed It… UK Left Lunacy Is a Preview of Kamala’s Policies SEAN RING We don’t always follow the exact footsteps of our mother country, but we eerily mimic her moves on occasion. The last time was in 2016, after the Brexit vote. Though, as a British citizen, I voted “out” myself, I didn’t think we would win. But I had hope once Sunderland’s overwhelming “out” vote flashed across my screen. Then, the rest of the North voted out. Then, Wales. Finally, we had won. From that moment on, I knew - yes, I knew - Donald Trump would win the election. No red-blooded American would dare allow the skinny, aquiline-faced Brit to out-rebel him. And so it was. Brexit and Trump had won their days. The problem with revolutionaries is that they’re utterly crap at administration, the actual job of government. We see that from the left every time they somehow get into office. Unfortunately, the right-wing Brexiteers and Trumpians were also appalling on the governing front. The UK’s Tories, who had fought for decades to break “The Northern Wall” of Labour voters, finally did in 2019. And what was the reward for these humble, blue collar workers? Higher taxes and green policies that would turn you red with fury. As for Trump, we all know the story. His great foreign and tax policies were undermined by the treasonous losers Trump allowed to stay in the administration. He neither built the wall nor drained the swamp, and it cost him the 2020 election. The Yanks elected the dementia patient, Joke Biden, as their leader. It’s not been the best of times, has it? And America may yet elect Cacklin’ Kamala Harris, a person so bereft of ideas her people keep her off the interview circuit as much as they can get away with. Her running mate, Tim Walz, declared, [“We can’t afford four more years of this.”]( Somehow, the Biden years didn’t include his Vice President. But if you think America is in a precarious position, you should see the UK, whose voters have already made their bed. Now, they’re not so much lying in it as dying in it. Who’s Leading the UK? A rather loathsome man named Keir Starmer is the Prime Minister of the United Kingdom of Great Britain and Northern Ireland. He has all the charisma of a stray hair on a toilet seat. England, in her desperation, didn’t think her vote through. England was so intent on axing the Tories she sliced right through her foot. If you ever heard of the Rotherham grooming cases, the Head of the Crown Prosecution Service at that time was one Keir Starmer. Like any candidate running for the top spot in a democracy, he promised voters the world. Once he got into office, he told them he needed to raise taxes. From [Bloomberg]( Starmer won this summer’s election with promises to redistribute wealth and repair public services, following 14 years of Conservative rule. Chancellor Rachel Reeves has argued that a £22 billion black hole in the budget needs to be filled, while the Labour faithful at this week’s party conference are more likely to talk about taxing the rich as a revenue-raiser than the trigger for an exodus. While the impact and likelihood of such departures are up for debate, the hazard lights are flashing. H.L. Mencken comes to mind: "Democracy is the theory that the common people know what they want, and deserve to get it good and hard." [Man Who Predicted Biden's Drop Out In October Issues Shocking New Election Prediction]( After calling Biden's withdraw, former White House advisor Jim Rickards issues an even more shocking election warning... [Watch this Video to learn moree]( What Are His Policies? Starmer’s policies are as idiotic as any economically-illiterate politician. According to Bloomberg, the UK’s most contentious plans include a 40% inheritance tax on offshore wealth and having carried interest (private equity’s “performance fee”) taxed at a rate as high as 45% rather than the current 28%. Let’s just tear apart those two. Why Are They So Dangerous? I’ve already called the inheritance tax (IHT) [“the most immoral of taxes.”]( Let me list the ways: - Property rights: Individuals can dispose of their property as they wish, including passing it on to their chosen heirs. Imposing a tax on inherited wealth is a flagrant violation of property rights, as it limits individuals' freedom to distribute their assets according to their wishes. - Double taxation: IHT is double taxation because the assets being transferred have already been subject to income tax or other forms of taxation during the deceased person's lifetime. Taxing those assets again when passed on to heirs is ridiculously unjust. - Generational fairness: IHT unfairly targets the wealth accumulated by one generation and transfers it to the government. That disrupts the intergenerational transfer of wealth and undermines the ability to provide for future generations. - Wealth preservation: IHT discourages wealth accumulation and capital investment. If individuals know that a significant portion of their wealth will be subject to taxation upon death, they’re less motivated to build and preserve wealth, stunting economic growth and investment. - Complexity and avoidance: IHT is complex, leading to loopholes and opportunities for wealthy individuals to use tax planning strategies to reduce or avoid the tax altogether. Indeed, this creates an unfair advantage for the rich. They can afford sophisticated legal and financial advice to minimize their tax liabilities. Each of these is a good reason to tear up IHT. But IHT on offshore wealth is a disgusting extraterritorial overreach reminiscent of the U.S.’s citizenship-based taxation. Let’s move on to the insane rates on “carried interest.” Here are three arguments why some might consider high taxes on carried interest to be immoral: Carried interest is the reward for taking significant financial risks in private equity, venture capital, and other investment fields. High taxes on carried interest punishes those who drive economic innovation, job creation, and business growth. Taxing carried interest at high rates disincentivizes entrepreneurship and investment, which are vital for economic progress. Investors who earn carried interest put their capital into the business or fund they manage, meaning they are already paying taxes on any profits at the corporate or capital gains level. Taxing carried interest at a high rate is double taxation, making it unfair to those whose financial gains result from both their labor and their capital investment. Carried interest reflects not just labor but the combination of intellectual capital, managerial skill, and financial risk. High taxes on carried interest undervalue the "sweat equity" in generating returns, where fund managers receive their portion of profits only after other investors are paid. Taxing it at higher rates dismisses the manager's role in value creation. There’s a case for limiting a central bank’s power to fund such ventures cheaply, but that’s another conversation entirely. The bottom line is that carried interest isn’t income and shouldn’t be taxed at the same rate. Quite frankly, taxation is theft anyway. Brain Drain Becomes Wealth Drain Moreover, the new UK government plans to impose an extra 20% value-added sales tax on wealthy families with children at elite schools, on top of education costs that can already reach more than £55,000 a year. Insane. So, they’re leaving. [According to Henley and Partners]( the UK is set to lose 9,500 millionaires this year. Their financial clout means that even a small number of the ultra-rich leaving rather than paying more tax can potentially upset the government’s revenue projections on their new policies. Think of England as New Jersey. Once a prominent hedge fund manager leaves, the budget is in disarray. Wrap Up You may read this thinking, “That’ll never happen here.” But it’s worth remembering that Rome’s population went from 1,000,000 to 50,000 after the empire fell. I’m not saying that will happen this time. History may not repeat, but it rhymes. Rich people have the means to move and will do so to protect their assets. If America follows England down Kamala’s “soak the rich” rabbit hole, it may not like the result. Far, far more people will move to places like the UAE and Monaco, where capital and privacy are valued. All the best, Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( ☰ ⊗ [UPDATE PREFERENCES]( [Contact Us]( © 2024 Paradigm Press, LLC. 1001 Cathedral Street, Baltimore, MD 21201. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. 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