The wife and kids are all in an hysterical
uproar because I keep buying gold and silver and
not wasting it on them and their incessant demands
for food, medical care and things that prove "a
father's love", like any of that crap does me or
our financial status any good at all.
But
they are always whining about how things are
costing more and more, and I tell them that if I
am not going to buy these things for them, why in
the hell do they care what they cost? And that,
for some unexplained reason, sets them off again,
whining, whining, whining.
But I guess it
was to be expected, as Agora Financial's 5-Minute
Forecast reported on a CNN/Opinion Research poll
"showing that
'the
rising rate of inflation' is Americans' No 1
economic concern". In fact, it is almost
everyone's No 1 concern, as "Ninety-one percent of
all folks polled by CNN listed the dollar's
devaluation as their primary fiscal worry. Worry
over the value of the bucks in their wallets beat
our job growth, the stock market or housing
concerns in the poll."
And now that gold
and silver were caught in the downdraft last week,
the kids are even MORE unreasonable about my
latest Family Financial Re-Structuring Plan
(FFRSP), which involves no work or investment on
their part, and it only involves them giving up
one lousy meal per day so that I could use that
freed-up money to buy more gold and silver! It's a
great idea!
After a while, I got tired of
explaining, "Shut up! Shut up! Shut up!", so I
looked around for additional evidence that I am
correct and they are just a bunch of ignorant,
whining, Earthling millstones around our familial
necks that are dragging my plans and dreams into
the ol' crapper and giving it a flush.
Then I see Bob Moriarty at 321Gold, and I
say, "Listen to this and learn!" Mr Moriarty said,
"After a short and brutal correction, gold will
resume its climb. Gold and silver have not peaked.
They are money and when all currencies fail, they
will be the last man standing."
That's it!
That's it exactly! That is why gold and silver
always prevail; there is nothing else in which to
invest that has all the wonderful properties it
has!
I was hoping that he would continue
on in this vein until I caught a glimpse of sudden
comprehension from one of the kids, but he said,
"Anyone mumbling about subprime mortgages or even
prime mortgages just doesn't get it. Those are a
tiny part of the issue. The issue is $516 trillion
worth of Monopoly money floating around the giant
crap game we call the world's financial system."
Immediately, I knew that I could turn this
to advantage, and I immediately jumped up and
interrupted "How in the hell can the global glut
of derivatives be 37 times as big as total, global
GDP? Hell, just a yield of 0.1%, a tenth of a
percent, would mean that $516 billion would be
needed just to annually service the debt of that
$516 trillion! Hahahaha! We're freaking doomed!"
As usual, nobody was impressed with my
economic analysis nor my nifty summation there at
the end, but I thought I saw a glimmer of
understanding in my daughter's eyes when Mr
Moriarty explained, "I don't care how many $200
billion Band-Aids Helo Ben patches on the system,
it isn't going to work. The entire banking system
is underwater. The system is going to fail totally
and globally."
Encouraged, I leapt up and
said, "And this is exactly what Ludwig von Mises
of the Austrian School of economics said would
happen if you don't voluntarily abandon profligate
creation of money and credit; complete collapse of
the monetary system!"
I quickly looked
over at my daughter, hoping that she would leap to
her feet and exclaim, "I get it now! Oh, daddy! I
was so, so wrong about you, and now I see that you
are the smartest, handsomest, most wonderful
economist and father in the whole world! I love
you, daddy!"
Alas, her eyes were again as
blank as usual. So, to hell with them all, because
it is not just Bob and me that are bullish on
gold, as the Economist magazine reported that
"Hussein Allidina, an analyst at Morgan Stanley,
reckons ETFs own more than 915 tonnes of gold -
more than the European Central Bank."
Not
only that, but much more buying is to be
anticipated because, "Funds are steadily being
launched in new countries, such as Dubai. This
boost to demand is not being matched by a rise in
supply. Gold production peaked in 2001, according
to Black Rock, and is expected to decline in each
of the next three years."
So let me get
this right; demand for gold has been going up
dramatically and, seemingly, is going to rise a
lot more thanks to the simplicity of
Exchange-Traded Funds, while the supply of new
gold is declining, while the central bank is now
reduced not only to creating a bazillion new
dollars in money and credit, but also to buying up
assets of such poor quality that literally nobody
wanted to buy them, and while, astonishingly,
letting private companies actually borrow from the
Federal Reserve by utilizing a never-before-used
law that has been on the books since 1932!!!!
Careful Mogambo Scholars (CMS) will
instantly note the use of the rare quadruple
exclamation point, which denotes such emphasis
that it commands your complete attention and total
obedience. And having commanded attention, it
tells you that The End Is Nigh (TEIN) if they are
that desperate, and commands that you start moving
supplies into your bunker in the backyard (if
available), or huddled up like the whimpering
little coward that I am in the closet under the
stairs, angry, with bitter tears of disappointment
and fear dripping down my face, down to my chin,
whereupon to drop ("plop!") onto my lap so it
looks like I peed in my pants, and so now I am
angry about that, too!
I feel a little
better that Junior Mogambo Ranger (JMR) Ron R sent
an excerpt from Howard J Ruff's e-newsletter; "So
bet on rising gold and silver; the fundamentals
will not change. In fact, it's beyond repair
because the only thing that will end [inflation]
will be to stop pouring money into the economy,
which means taking a stand on Social Security,
Medicare and Medicaid. If you think government
will do that, I'll cover all bets."
And
Stephen Leeb, of The Complete Investor newsletter,
says the same thing; "The factors that have pushed
gold higher since the turn of the century did not
evaporate last week."
So they all agree
with me that gold is headed higher, although if
you ask them, they will say, "Who? What did he
say? I never heard of him or his ideas, which he
stole from me, the Thieving Little Bastard (TLB)!"
Regardless of what they or their smarmy
lawyers can prove, the fact remains; gold and
silver are going up. And by a lot.
Richard Daughty
is general partner and COO for Smith Consultant
Group, serving the financial and medical
communities, and the editor of The Mogambo Guru
economic newsletter - an avocational exercise to
heap disrespect on those who desperately deserve
it.
(Republished with permission from
The Daily
Reckoning .
Copyright 2008, The Daily
Reckoning.)
Head
Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
Central, Hong Kong Thailand Bureau:
11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110
