-- Posted Wednesday, 9 July 2008 | Digg This Article
| Source: GoldSeek.com
If you want to know the reason why history shows that people always turn to gold when government/central bank mismanagement ruins everything, and the currency and the economy "circle the bowl" down the old crapper, it is revealed in the statement by Jacqueline Doherty in her "Streetwise" column in Barron's. She writes, "There are fewer places to hide." And she also notes that "For a while, stocks in the energy, basic-material, consumer-non-cyclical and utility sectors kept rising. But even those have begun to stumble."
And that is the reason that people eventually go into gold; it will be the last place to hide, as everything else goes into the aforementioned crapper, which is the second time I mentioned the word "crapper", which is a literary device I use to convey a feeling of filth and disgust, which is so appropriate to an abused fiat currency used to maintain a creaky, corrupt megalith government desperate for tax revenue, which eventually resorts to confiscation, police-state control and economic re-distribution, such as the report that the twin idiots in Congress, Christopher Dodd and Barney Frank, are actually proposing a tax credit for buyers of particular houses to prevent foreclosure! I am stunned!
This is not some puny tax deduction, where you don't have to pay income taxes on part of the money you spent, but an actual Tax Credit, where you get back a part, or all, of the money you spent! Hahahaha! You spend it, the government gives it back to you, and you spend it again! This is the government's plan! This is end-stage insane!
This is actually beyond insane, even for lunatic liberal Leftist morons like Dodd and Frank! I can't believe what I am reading: The government is giving taxpayer money to people, with which to buy houses that are too expensive for them to buy, because the banks lent them too much money compared to their income, and now the busted homeowners need to be bailed out so that the banks don't foreclose, thus saving the banks!
And don't hand me any of that crap about "helping people own their own home as part of the hallowed American Dream", because if the Congress actually wanted to do that, they would simply pass some laws preventing the banks from pursuing these walk-away-from-the-mortgage people, and then enact some more laws to prevent future lenders from even considering the fact that these deadbeats walked away the last time they bought a house, and they stuck the banks (and eventually the taxpayers, after the inevitable bailouts) with huge losses.
And this is not to mention that Senator Dodd was the go-along-to-get-along, see-no-evil chairman of the Banking Committee for the last couple of years that the banks were doing this crap, and a Senator the whole time the banks were doing this! And more! And without complaint from Dodd! Hahaha! And now this! Hahaha! This is beyond lunacy! This is freaking surreal!
I go to the window and I shout, "I'm as mad as hell, and I am not going to take this anymore, and the people of Connecticut owe me, our children and the United States a huge, huge, HUGE apology for electing the egregious Christopher Dodd!"
I know that this loud tirade is not going to do any good, because it never does. Making myself feel suddenly better, I happily find that I can disparage whole countries full of people by making cruel fun of them, by which I mean that I laughed out loud to find that the people of India are turning stupid, too, as the Barron's Commodities Corner column reports that "Gold's star is on the wane in India, the world's biggest consumer of the precious metal, as record prices finally take their toll on demand." Hahaha!
So, if I understand this correctly, demand for gold is so high that it has driven the price up, so Indians are not buying gold every freaking day of their lives as part of some elaborate rupee-cost-averaging scheme, even though the can pick up a freaking newspaper any freaking day of the week to see that money supplies of the world are rising every freaking day of their lives, now at somewhere around 20% or more a freaking year, which means that inflation is going to freaking roar every day of their lives for decades? Hahaha! Morons!
Sure enough, the figures from May 2007 to May 2008 show that "Indian gold imports were down 52%", while local prices are up a by a third in the same time! Hahaha! Demand went down so much that prices went up? Hahaha! Morons!
The Economist magazine shows that India has 7.8% inflation in consumer prices, and rising fast, and so Indians are choosing now, of all times, to stop buying gold? Hahahaha! Morons!
Of course, there are no morons like American morons, who own so little gold per capita that it makes me laugh in Rude Mogambo Scorn (RMS), and say, "Hahahaha! Morons!", which probably does not make the Indians feel better about being morons, but it makes Americans feel worse about finding that they are morons, I hope. Morons!
Perhaps I can rub a little salt in the wound by pointing out that the Lipper Mutual Fund Performance Averages and Fund Performance Indexes show that almost category of financial asset that can be made into a mutual fund is down big-time since the beginning of the year, except gold (up 4.8%), natural resources and (bizarrely) Latin American funds.
And for the entire last 12 months, gold mutual funds are up 29.12%, trailing only Natural Resources at 34.32%, while stocks were down about (on average) about 12%, although the S&P 500 is down about 14% in the last year.
Even bonds are down, although it is hard getting any real idea of the loss. I think it's a plot by extra-terrestrial beings or, possibly, cannibals. Or bankers, who are both at once.
But since oil is included in this Natural Resource category, then anyone investing 100% in gold, silver and oil, as so stridently recommended by the Mogambo Monetary Paranoia Portfolio (MMPP), is making out Like A Freaking Champ (LAFC), and all others are, to use the classically correct and precise economic term, "biting the big one."
I bring this up for two reasons. For one, I like being rude and sarcastic when I am making a lot of money while all others are losing their stupid butts, and I get to laugh at them and be rude, saying things like, "Hahahaha! Morons! I told you to buy gold when your stupid government let the corrupt Federal Reserve start creating all that money and credit, which means that inflation in prices will soar in direct relation to the excess of money created, which is freaking massive! Hahaha! But did you? No! You called the police and had them come over here to make me shut up just because it was 2:00 AM and you wanted to sleep like a stupid little baby through the catastrophe that IS the damned economy! Hahaha! I loathe you all!"
As fun as that is, the other minor reason is that because we have reached the halfway point of the year, and that means that account statements are going to be mailed out pretty soon. When people who do NOT own gold and gold-oriented investments open those envelopes, they are going to be angry as hell because they have lost a lot of money. A LOT of money!
Unless they owned only gold and oil, which they, unfortunately, do not, since only a plucky, lucky lunatic would invest according to the strictures of the Mogambo Monetary Paranoia Portfolio (MMPP). Right? Hahahaha!
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Editor's Note: 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.
The Mogambo Guru is quoted frequently in Barron's, The Daily Reckoning and other fine publications. Click here to visit the Mogambo archive page.
-- Posted Wednesday, 9 July 2008 | Digg This Article | Source: GoldSeek.com
