07/09/10 Tampa, Florida – Last Monday I couldn’t believe my eyes when I saw that the price of gold had dropped $44.20, which was weird enough since Kitco was showing the “Gold Price Change due to Weakening dollar” was up by $23.00, meaning gold should be going up thanks to the weakening dollar, while the “Gold Price Change due to Predominant Selling” was down a whopping $67.20! Wow! Selling!
Since most of the problems with my medications regimen seem to be finally solved, what could I do but laugh, although weakly, in a kind of dull, sedated babble, “Hahahahahahaha!” at the sheer incongruity of it all, instead of going off on a Manic Mogambo Tangent (MMT) of some kind, probably either about how the Federal Reserve has destroyed the dollar by creating too many of them, or, on a more timely topic, about what idiots the sellers of gold are.
Apparently, these market-timing geniuses have failed to understand that that this is the Perfect Freaking Time (PFT) to buy gold, because here they are, selling! Hahaha!
Observant Junior Mogambo Rangers (JMRs) have taken note of the fact that my laugh is less than the usual Loud Mogambo Laugh Of Scorn (LMLOS) of story and song, and instead is a weak, nervous, “I wish I was dead!” titter of laughter, like the time when you came sneaking into the house or office early in the morning or late in the afternoon, respectively, stumbling drunk, trying to be quiet, wearing your own underwear like a weird hat for some reason that you can’t recall, and your mom, wife or boss was waiting for you.
And the reason for my lack of uproarious mirth is that something is, in a word, weird. I mean, selling gold right now is so devoid of reason that I want to laugh heartily at the idea and at the stupid people that got the idea to sell gold, but I can just sit here, dumbfounded, shaking my head in disbelief and tittering nervously.
Obviously, I am now of the “buy and hold” camp instead of the “trader” type of person, as I have “discovered” many important things about trading stocks, bonds, commodities and their derivatives, and by “discovered” I mean “scarred and bloodied by slimy insiders, with still-festering open wounds and tender scars, both emotional and financial.”
And all of it could have been completely avoided if I had read Nassim Taleb’s book The Black Swan and found that the bell-curve of normal probability is not how things really work over the long term, or if I had internalized the related discoveries of non-linear systems (“Chaos Theory”), or if I had a wife that had said, “Don’t be an idiot! You are too stupid, too ignorant and full of too much Bizarre Mogambo Crap (BMC) for you to ever – EVER! – succeed as a trader of anything! Get a job and go to work, work, work!”
Instead, I made the mistake of having a real-life wife who said “Whatever you do, I will support you and love you!” which, now that I am looking back, makes me scream at her, “That’s the most stupid thing you have ever said because you know what a whack-job, paranoid, worthless, lazy lunatic I am! So all my failures are your fault! Your fault! All your fault!”
However, buying gold, silver and oil in defense against the horrific inflations in prices that will destroy us, thanks to the horrid Federal Reserve creating too much money so that the despicable Obama administration can deficit-spend us into bankruptcy and utter destruction, is all my idea.
I got the idea from 4,500 years of historical precedents of one moronic country after another doing this same, stupid “spending oneself into bankruptcy” thing, all you can do is say, “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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I haven’t read the Black Swan, but it seems to me that the conventional wisdom about a diverse stock portfolio is a bunch of hooey. A diverse portfolio, spread out over many sectors should, by definition, regress to the mean,which as of late, is pretty ugly. It seems to me the money is made not in the means, but in the tails. Your writing style totally cracks me up-I won’t even try to write like a junior ranger-I can’t compete- but I may invest like one!
We seem to like barbaric relics.
Gold is a barbarous relic – a monetary artifact.
barbarous:
1. Primitive in culture and customs; uncivilized.
2. Lacking refinement or culture; coarse.
3. Characterized by savagery; very cruel. See synonyms at cruel.
4. Marked by the use or occurrence of barbarisms in spoken or written language.
Amazing that such folks like a shiny thing that holds its value.
sounds like a bit of pot calling the kettle black there, from people that can’t even balance their own books
Of course, Mogam Guru laughs freely daily.
My guess, he has at least 100 kg of hidden yellow stuff which will catapult him to the throne of billion dollar man as soon as possible. Just how soon? Can I guess, after tomorrow? Guru please let me know when you are firmly seated.
Certainly, gold is not a barbarian. It is the most sought after and it has won the highest respect from human beings since prehistoric time. Glittering shining gold may even shine away ghosts and devils with its spectacular most honourable radiance. Even modern zombies keep 10 fathoms away from the prized yellow metal.
Buy doomsday bunkers with your gold. Then you will have a place to hide from the world and and can keep your gold safe from all those pirates that will be roaming the country since it obvious that many are terrified of the future and want something to hold on to even if its use is limited to perhaps covering your bodies with it like the Incan leaders did just before the Spanish showed up and took all the gold from them. Thats where the pirates came in. They took the gold from the Spanish. What fun. History does repeat itself.
Yeah, yeah, but can you use gold as wallpaper?
Bwahahaha, I didn’t think so. See? Fiat paper does have it’s advantages.
The irrational selling of gold is called manipulation. Once the financial system collapses, we will see the true value of the shiny stuff, which we have hidden inside teddy bears and cinder-block walls.
>>…like the time when you came sneaking into the house or office early in the morning or late in the afternoon, respectively, stumbling drunk, trying to be quiet…>
Reminds me of the time I went out on payday and drank some “Sneaky Petes”. Yes, they did sneak up on me. This was pre-cell phone days, so my wife and mother were concerned and waiting for me when finally I came home. I (so wisely) decided that instead of stumbling up the stairs and flaunting my inebriation, I would CRAWL up the stairs in a very stable manor. Unfortunately, I did not fool them. The looks of pity and scorn stick in my brain to this day.
Honorable MG, are you sure you don’t have an IT opening at Smith Consultant Group? Contemplating economic collapse and drinking heavily seem to go hand in hand. I’m sure you would like to have someone on staff who appreciates your bunker more than your moronic wife and kids
When time comes, what can you do? Fiat monetary system is not going to serve you eternally for it has reached its limit and lifespan. None of a system on earth is totally proven and trustworthy. The time has come whereby human tendency is geared to issue more and more money and print up to your satisfaction. If you don’t print, others will and you stand as a pitifully net money loser. As time goes your fiat tends to shrink, erode or inflate away at an alarming accelerated rate. Do you have the magical power to reverse this tendency?
Unlikely bulky fiat, slimly crafted gold may find safe storage in a bank vault or be buried in ground. You may need a bionic eye to locate it.
If the Amish even know what everyone else is worried about they just quietly go back to farming. No worries. Their lives will not change.
Chad, you’re wrong; while the Amish will have an edge at the beginning of America’s collapse, they will ultimately experience almost the same horrors everyone will know–pestilence that will kill billions, and marauders invading their farms by the tens of millions looking to feed themselves and their families and even take the farms of these pacifist believers who will not take up arms to defend themselves. I pray God defends them.