-- Posted Thursday, 12 February 2009 | Digg This Article
| Source: GoldSeek.com
SilverForecaster.com announces that “silver has done well” recently, as far as its price is concerned, which is almost certainly explained by the old demand-versus-supply market-clearing pricing mechanism, which means that since the price went up, then demand must be up, too, and more than supply is up; or it means that supply is down more than demand is down; or it means something else entirely, maybe, since I have seemingly confused myself.
But since the recent moves in price are not that spectacular, my attention wavered and I casually looked around the press room, and I noticed that there was a pretty new reporter who was young and cute, which is such a depressingly stark contrast with my being, you know, old and ugly.
I sighed and began to daydream when I suddenly realized the cosmic universality that demand and supply applied even to pretty girls! We testosterone-besotted males of the species ensure a constant high demand for them, yet with a low supply of the little cuties, the price is high! Hahaha!
And, to balance things out, I realized that pretty young girls constantly demonstrate that there is no demand for creepy old men, but yet since we exist in such huge supply, we have zero value, or perhaps even negative value, considering the phrase, “I would rather eat poison and die a horrible painful death rather than even feel your bad breath touching my skin, or even acknowledge your foul existence, Old Mogambo Creep (OMC)!”
But, as with silver and pretty girls, it is this selfsame mechanism of balancing supply with demand that determines the prices of everything else in the Whole Freaking Universe (WFU), so why not this, too?
So, I was about to interrupt to lecture GoldForecaster.com about my little revelation, perhaps to garner a little of the attention that I so desperately crave, when I realized that they had anticipated my observation that silver going up in price meant that demand is greater than supply when they verified it by saying, “Investment demand for silver leapt a huge 309 tonnes last week, a tonnage we have never seen before in such a short time!”
I notice the phrase “never before!” which includes an exclamation point to indicate special emphasis, as seems befitting of “never before”, not only because of this sudden huge demand for silver, but the cute little reporter had just coincidentally used that very phrase when she said to me, “Begone, Mogambo! Never before have I felt such revulsion! I feel soiled and sickened just from being in the same room with you!” which, alas, also contains an exclamation point.
Mr. Phillips and Mr. Spina both pretend that they did not hear me get insulted, and go on to suggest that despite being completely humiliated by this conceited girl, if I buy silver now, I will soon be rich as hell and I will have beautiful ladies hanging all over me all the time, every one of them so beautiful that they will make this little bit of fluff look like a pig, as they conclude from the data that “heavy investment demand is flowing into silver [and gold] in quantities sufficient to ensure this trend is long-term.”
And I agree with them, as inflation in prices is going to be roaring soon, and for the long-term, as the laughable Obama administration is firmly united in announcing grand plans for years and years of huge amounts of new spending and huge amounts of new debt that is supposed to save us (pardon me for laughing right in your face “hahahaha!”) from the collapse caused by the preceding “too much new debt, too much new money and too much new spending” over the last few decades that produced the inflationary booms in the prices of stocks, bonds, houses and size of government that are now going, predictably, bust and causing all the headaches
That is why it is so alarming that Total Fed Credit last week actually went down by a gigantic $149.1 billion in ONE FREAKING WEEK (OFW), instead of increasing in the same OFW, which it must do if all of this deficit-spending is going to be accomplished!
And as if this $149 billion in OFW was not enough to make your heart start fibrillating and make you start puking your bloody guts out in fear, this is, I remind you, Total Fed Credit, which is that magical, out-of-thin-air money that appears, thanks to the Fed arbitrarily creating it in the accounts of the banks, ready for lending to somebody at huge multiples of the amount of additional credit originally deposited in the banks.
In short, we’re talking HUGE amounts of money! HUGE! Huger than huge! FREAKING HUGE!
And what makes it all the scarier is that this TFC is, even with this $149.1 billion drawdown, still totals a hefty $1.84 trillion, which is DOUBLE what it was last year, which demonstrates a huge, huge, HUGE increase in the monetary base, which is now at $1.7 trillion, which is ALSO double what it was last year! Yikes! We’re freaking doomed!
If you buy gold, silver and oil, then you will not personally be doomed, understand, but everyone else soon will be. Bummer for them, huh?
-- Posted Thursday, 12 February 2009 | Digg This Article | Source: GoldSeek.com
