05/21/10 Tampa, Florida – I waited until I had sobered up to re-read Agora Financial’s 5-Minute Forecast, where it reported that “Bill Clinton shocked us the other day when he came out and suggested the financial crisis would never have happened if the dollar was still tethered to gold.”
Notice that they used the word “shocked”, because that was when I realized that I was too blotto to be likewise “shocked” at such an admission, but was obviously too plastered to feel shock, much less have any sensation left in my lips or even feel myself drooling into my lap.
And speaking of shocking, Jim Willie CB of GoldenJackass.com wrote an essay titled “Shock Events & Gold Breakout” in a thorough, connected way, but without screaming his guts out in anger and fear, perhaps because his lips are also numb from trying to drown his outrage and fear with alcoholic excess, although he doesn’t admit it, he does admit that “public disgust and anger is growing fast” a fact to which he ascribes the notion that “The Tea Party movement has gained acceptance and vigor at the grassroots level” which is certainly true enough about me!
But this is not to talk about how “we, the People” referred to in the Constitution, are in the Tea Party, or how “we, the People” referred to in the Constitution who are in the Tea Party have the smarts to say we have had it Up To Here (UTH) with the Republican and the Democrat scumbags exceeding the 17 enumerated duties in the Constitution, allowed a fiat currency even though the Constitution requires money to be gold, and how, as a result, We’re Freaking Doomed (WFD).
But, wait! Perhaps it IS about that, as Mr. Willie says, “We are witnessing the end convulsions of the fiat paper monetary system. The currencies are all dying.”
As a result, he says, “Gold will rise until given proper recognition, then it will rise even more” a taste of which will be when gold reaches “$2000 in price within the next two years time” which comes out to a tidy 30% gain per year.
And it looks like other people have also come to the same conclusion, as a gold-buying fever is reported to be sweeping the world. Agora Financial’s 5-Minute Forecast reports that “The Austrian Mint has sold more Philharmonic coins in the last two weeks than it did in the entire first quarter of 2010” which seems entirely apropos for Austria, since the only true economic theory is called the Austrian school of economics!
Coincidence? Maybe. Gold going up in price, in a dead-bang certainty, for years and years to come? You betcha!
Perhaps Atimes.com put it best when summarizing one of my columns: “…when the idiots at the European Central Bank and the US Federal Reserve can press a button and produce a trillion dollars from thin air, who needs math? All you need is gold, and lots of it.”
And since nothing could be easier than buying gold, silver and oil when they are so absurdly cheap in an era of continual, catastrophic, crazy creation of more and more money, what can you say except, “Whee! This investing stuff is easy!”?
The Mogambo Guru
for The Daily Reckoning
The Mogambo Guru
Richard Daughty (Mogambo Guru) is general partner and COO for Smith Consultant Group, serving the financial and medical communities, and the writer/publisher of the Mogambo Guru economic newsletter, an avocational exercise to better heap disrespect on those who desperately deserve it. The Mogambo Guru is quoted frequently in Barron's, The Daily Reckoning , and other fine publications. For podcasts featuring the Mogambo, click here.
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Mighty Mogambo (M&M),
Bubba Clinton is an OK guy. I think he once proposed to link the dollar to delicious bacon cheese burgers, but gold and silver are also a good links.
Keep up the great work.
9 Months to prosperity.
A Baby boom. That’s right . MORE consumers within 9 months or less. An immediate fix . Create consumers that for the next decade will consume goods . Made at home ! There is a lot of time and space before we reach 1.3 billion.
NOW IS THE TIME.
A
ever thought that gold might be the next bubble? It shows all of the behaviors of every other bubble. Gold has no more intrinsic worth than paper money. It along with money only has value for as long as everyone believes it has value. Its intrinsic worth – its value in use is minimal beyond the realms of electronics. lead is scarcer and has greater economic utility.
Strange times to try to get it all right.
Omaui – maybe it doesn’t have more worth, but at least you can’t create gold out of thin air indefinately
“allowed a fiat currency even though the Constitution requires money to be gold”
Does it? I do not believe it contains such verbage regarding money issued by the Federal government. In the case of state issued currencies, they must be backed by gold.
You’re right Omaui; 10 years from now you’ll be rich with your pile of lead and those suckers with an equivalent stash of gold and silver will just be a bunch of losers!
More wishful thinking from the world’s greatest gold salesman.
Like .99 cents is so much lower than $1.00. Pathetic
Omaui…please refer to Murray Rothbard’s brilliant pamphlet called “What has government done to our money?”, available for free on http://www.mises.org. It will enlighten you as to why gold and silver have always emerged, without government fiat as money in the past. Once you have understood, you will blush at your comment.
Hi cathy – Gold “value” is inflating faster than paper money right now. It is following the classic bubble pathway. Three years ago it was selling for half of it current price.
Gold and paper money are subject to the same rules. Gold silver and notes are tokens of exchange which become corrupted when the agreed value changes between transactions. The old gold based systems were prone to the same problems the conquistadors proved that by flooding spain and portugal with stolen gold from America – exactly the same effect as flooding the economy with freshly printed notes or debt.
As for libertarian thinking – it is just another self-indulgent belief system. The problem is not too much government or fiat money it is dishonest and unintelligent government. Any government that filters decisions through the filter of a dogma or vested interest will inevitably end up with a biased result determined by the polarity of the filter.
A gold-buying fever is reported to be sweeping the world? Muahahahahaha.
“The problem is not too much government or fiat money it is dishonest and unintelligent government.”
When has there ever been a government honest and intelligent? Please show me that Utopia!
Omaui, it may be a little known fact, but you are absolutely correct on the conquistador’s flooding Spain (and eventually the rest of Europe) with gold. But if gold has no intrinsic value over lead I’ve got a proposition for you. I have about 200 pounds of lead in my garage. I’d be more than willing to trade it for an equal amount of gold.
Any takers??????
Heck I’d even trade for silver!
“In 1914, the [German] mark traded against the U.S. dollar at a rate of 4:1, at the end of the [First World] war at 9:1, in January 1922 at 191:1, in January 1923 at 18,000:1, and by November 1923 at 4,200,000,000,000:1.” (The First World War Peace Settlements 1919-1925)
omaui says: the polarity of the filter. what balderdash.
Lead is scarcer than gold? Somewhere other than planet Earth, maybe.
World lead production in 2008 was 3.84 million metric tons. Gold production for the same year was 2,356 metric tons.
The English would expand themselves to death, the Germans would arm themselves to death, and the Americans would loan themselves to death.
Author unknown, but claims are its from the early 1900′s.
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