saveyourassetsfirst3 |
- Marc Faber: Gold is very cheap in comparison to the money printed
- 13 Mid Caps With 2 or More Analyst Downgrades in Last Month
- Lesson from Japan
- Raid on silver and gold foiled again/silver still in backwardation/more updates from Japan
- Gold, silver coins now officially legal tender in Utah
- Interview With Helen Thomas
- When private money becomes a felony offense
- Utah doubles down on gold laws amid inflation fears, distrust of Fed
- Interview with Ben Davies
- The Myth of the Gold Supply Deficit
- April 2, 1792 : The US Coinage Act
- CFTCs Bart Chilton Admits "Fraudulent Efforts" in Silver Market
- Peak Gold, easier to model than Peak Oil ? Part II
- The US dollar has Cancer
- A Tale Of Two Currencies: Best of Times For Precious Metals, Worst of Times For U.S. Dollar
- Will Bolivias mining strike lead to a higher silver price?
- Historical gold production statistics in the United States
- Forgotten Anniversary Haunts the Nation
- Peter Schiff interviews Bernard von Nothaus
- With unemployment numbers down, why aren't PM prices dropping like a rock?
- All Government Experiments Come to an End… Eventually'
- audio interview w/james turk: gold 1800, silver 50, BY JUNE
- Fools day is over, those who sold were fooled like I said would happen
- Silver spot higher than the G/S ratio
- Beware the Demon of Inflation
| Marc Faber: Gold is very cheap in comparison to the money printed Posted: 02 Apr 2011 02:59 AM PDT Gold is very cheap in comparison to the money and credit that has been created, says Marc Faber Source: BI-ME , Author: BI-ME staff Posted: Sat April 2, 2011 12:46 pm Back Email Print RSS Feeds INTERNATIONAL. Marc Faber the Swiss fund manager and Gloom Boom & Doom editor says it is a big error to print money because it rarely flows into the assets central banks aim to boost. He says more people have already sold their gold than have increased their positions and he doesn't think gold is in a bubble. Speaking from Mexico City to Matt Miller and Carol Massar on Bloomberg Television's "Street Smart" on Wednesday ahead of a speech titled "When everything else fails, policy makers can always be sure of immortality by making spectacular errors" Faber said: "A big error is to print money. I think it doesn't help in the long run. It can give a temporary boost to economic activity but it doesn't lead to sustained economic growth." "In fact it creates a mispricing of assets and goods & services and has negative implications on the pricing mechanism," he added Printing money is the easy part of it, knowing where it will flow to is trickier he noted, adding that money printing in the US hasn't flown into the assets the Federal Reserve wants to boost, namely housing. Instead it created other bubbles overseas and in commodities. Does he expect further easing? "For sure there will be QE3, but not right away", Faber said, suggesting the Fed would like to see a correction of up to 20% in equities and then" to have an excuse for QE3". "My view is there will be QE3, QE4, QE5, QE6......until QE26, until the whole system breaks down," he said Faber, who turned bearish shortly before the 2007-2009 bear market, says QE2 is fully discounted in the markets. He expects some seasonal strength in April, perhaps a new high, but then we will have a more "significant setback in May, June". What would be the impact of the Fed stopping QE2 today on the market? The market will go down, however "the market is designed to go up and down. That is the purpose of having a market economy," he said. He went on noting that the marginal impact of printing money diminishes, "so every times you need to print more money to push the markets higher". Faber said the US economy is already out of control and he sees a need for every interest group in the US to make sacrifices. In the latest edition of the Gloom Boom & Doom report he writes: A level-headed, knowledgeable, and intelligent American friend of mine (she has been buying gold for years) recently observed that, "Only when the American people insist that sound business practices and moral standards be brought back will we be able to give the people of this country a future." Unfortunately, I believe that the ongoing moral decay among US politicians and the business elite, the irresponsible fiscal and monetary policies, the decline in educational standards and infrastructure, the trade and current account deficit, the weak US dollar, and the heavy- handed and ambiguous meddling in foreign affairs by US officials, are all pieces in a puzzle, which when assembled reads: Failed State. Where would he suggest investors put their money at this point? In general terms, Faber recommends real estate, equities, commodities and precious metals. "An investor should have at least 25%-30% in precious metals," he suggested as he doesn't think the Fed will increase rates to a positive real rate. Faber also warned precious metals could correct but remain poised to go much higher in the long run and suggested buying the dips. "I think they [Precious Metals] could also correct," because the breakout in gold above the November-January high is not convincing, "but in the long run with Bernanke at the Fed and Mr. Obama maybe another six years at the White House, gold will go substantially higher," he said. The price of spot gold for immediate delivery ended March at a new monthly-close record of US$1,439 per ounce at the London Fix. Thursday saw the Spot Gold Price in Dollars complete its 9th quarterly gain in succession – the longest run since 1979 according to Bloomberg data. Faber said the number of people owning gold is much lower than many believe. "Calm down about everybody being long precious metals" he told the Bloomberg anchors. More people have already sold their gold than have increased their position. "I don't think gold is in a bubble," he stressed. In fact, "gold is very cheap in comparison to the money and the credit that has been created and in comparison to the size of financial assets in the world," Faber added. The price of gold slumped 1.4% lunchtime Friday in London, falling back from its highest-ever monthly close as the Dollar jumped on news of stronger-than-expected US jobs hiring in March. "What we have to see now is how gold fares in an environment of rising interest rates, where holding a non-yielding asset goes against you," reckons RBS commodity strategist Nick Moore, speaking to Reuters. Note: Dr Marc Faber was born in Zurich, Switzerland. He went to school in Geneva and Zurich and finished high school with the Matura. He studied Economics at the University of Zurich and, at the age of 24, obtained a PhD in Economics. Between 1970 and 1978, Dr Faber worked for White Weld & Co in New York, Zurich and Hong Kong. Since 1973, he has lived in Asia. From 1978 to February 1990, he was the Managing Director of Drexel Burnham Lambert (HK). In June 1990, he set up his own business which acts as an investment advisor and fund manager. In 2000 Faber decided to spend more time writing his newsletters as well as growing his advisory business. He moved back to his home in Chiang Mai, Thailand, maintaining only a small administrative office in Hong Kong. Dr Faber publishes a widely read monthly investment newsletter 'The Gloom Boom & Doom Report' which highlights unusual investment opportunities, and is the author of several books. http://www.bi-me.com/main.php?id=51976&t=1&cg=4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 13 Mid Caps With 2 or More Analyst Downgrades in Last Month Posted: 02 Apr 2011 12:45 AM PDT Rash Menaria submits: Following are the 13 mid cap companies which have seen a negative shift in analyst sentiments in last 1 month and have received 2 or more analyst downgrades:
Here are some of the specifics about these companies, including brief description of their business, growth rates (topline and bottomline) and valuation: Aeropostale, Inc . is a mall-based specialty retailer of casual apparel and accessories. The company designs, markets and sells Complete Story » | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 02 Apr 2011 12:31 AM PDT Zero hedge: http://www.zerohedge.com/article/gue...n-pm-investors Quote: The lesson is this: When disaster strikes, it's almost certainly too late to buy. Not only will you pay a higher premium, you may have difficulty getting your hands on bullion. You have to purchase your insurance before adversity hits. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Raid on silver and gold foiled again/silver still in backwardation/more updates from Japan Posted: 02 Apr 2011 12:06 AM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold, silver coins now officially legal tender in Utah Posted: 01 Apr 2011 11:40 PM PDT  I have two stories on this issue that surfaced in the last twenty-four hours. The first was sent to my by George Findlay...and is posted over at the mineweb.com. The link to that story is here. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 01 Apr 2011 11:40 PM PDT  My last story is certainly not gold-related...but it's your long read of the day that was sent to me by reader 'Greg R' earlier this week. For more than half a century, Helen Thomas owned the most valuable piece of real estate in the White House briefing room. Her front-row seat at presidential press conferences and its attendant benefits—she was often called on first and usually ended the gatherings with a signature "Thank you, Mr. President"—made her the unofficial dean of the White House press corps. Her bold, irksome questions were like hot pokers to 10 U.S. presidents, and her fearless approach rattled press secretaries and set a tone for generations of straight-shooting, badgering reporters. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| When private money becomes a felony offense Posted: 01 Apr 2011 11:40 PM PDT  Here's another GATA release of a story that appeared in Thursday's edition of The Wall Street Journal. The next chapter in the struggle over sound money may be the case of a newly minted felon named Bernard von NotHaus. Mr. von NotHaus was convicted this month of counterfeiting money by issuing silver coins called Liberty Dollars. His company's website says it's been taken down by court order, and absent a successful appeal he could spend years in jail. This is definitely worth the read...and the link is here. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Utah doubles down on gold laws amid inflation fears, distrust of Fed Posted: 01 Apr 2011 11:40 PM PDT  Here's the second one...and it's a GATA release of a story that was posted over at The Wall Street Journal yesterday. The story is subscriber protected...and the link to the GATA release is here. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 01 Apr 2011 11:40 PM PDT  The second offering from King World News is this clip with Ben Davies, Co-Founder and CEO of Hinde Capital. I'm sure that gold and silver play a prominent roll in the conversation...and the link is here. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Myth of the Gold Supply Deficit Posted: 01 Apr 2011 10:30 PM PDT 24hgold | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| April 2, 1792 : The US Coinage Act Posted: 01 Apr 2011 10:00 PM PDT History of Gold | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CFTCs Bart Chilton Admits "Fraudulent Efforts" in Silver Market Posted: 01 Apr 2011 07:50 PM PDT
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| Peak Gold, easier to model than Peak Oil ? Part II Posted: 01 Apr 2011 07:30 PM PDT The Oil Drum | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 01 Apr 2011 07:29 PM PDT
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| A Tale Of Two Currencies: Best of Times For Precious Metals, Worst of Times For U.S. Dollar Posted: 01 Apr 2011 07:23 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Will Bolivias mining strike lead to a higher silver price? Posted: 01 Apr 2011 07:18 PM PDT Goldmoney | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Historical gold production statistics in the United States Posted: 01 Apr 2011 06:30 PM PDT Usgs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Forgotten Anniversary Haunts the Nation Posted: 01 Apr 2011 04:00 PM PDT Gold University | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Peter Schiff interviews Bernard von Nothaus Posted: 01 Apr 2011 03:02 PM PDT Hurry, they only keep the interview in the free archive for a day or two..Otherwise $$$$$ Friday's guest Bernard von NotHaus, founder of NORFED & the Liberty Dollar, on how he came to be known as a "special kind of terrorist" who faces up to 15 years in jail for attempting to create value-based barter. Peter is also looking forward to your calls on politics, finance, and the economy. http://www.schiffradio.com/ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| With unemployment numbers down, why aren't PM prices dropping like a rock? Posted: 01 Apr 2011 02:01 PM PDT With the unemployment numbers dropping, and with the MSM and the Administration hyping the news that the Recession is ancient history, why aren't PM prices dropping like a rock? While I do believe unemployment numbers are seriously under reported, and that many have just plain given up, there are signs of green shoots, at least in my area of the country. Not sure if it is evidence of a larger turn around, but this week, for the first time in three years, I feel upbeat about the prospects for the economy. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All Government Experiments Come to an End… Eventually' Posted: 01 Apr 2011 11:58 AM PDT 'I just don't get how someone can see it as a viable solution' your editor's girlfriend told no one in particular. But nobody taking part in the massive trade union protest in London seemed to care about what was viable or not. They were too busy stimulating the economy by throwing objects into glass windows. Further proof of the broken window fallacy, not that it's needed, was exposed during the riots. Having paid lip service to the government's stimulus efforts, bankers decided to arm their branches with reinforced glass to hold off any Keynesians looking to stimulate the window business. How hypocritical. But a politically correct correction is in order. The protest was peaceful until 'anarchists' got violent. Dan Denning grumbled that the vandals 'give anarchists a bad name'. But what on Earth were anarchists doing amongst trade union members in the first place? Aren't they diametrically opposed? One group wants more government and the other wants less - or none. Those who ignored the protesters did so at their peril. Some tourists were reportedly threatened because they kept eating salmon sandwiches without acknowledging the chaos around them. Anyway, protesting against public sector budget cuts really isn't based on a viable aim. If the money isn't there, it isn't there. Borrowing more increases the risk of a complete funding crisis. And government has to be the most spendthrift institution ever... so it must be cutting for good reason. On that note, back of the envelope calculations put the updated cost of Melbourne public transport's new ticketing system at over $1000 per user. That's the set-up cost. Combine this type of public transport efficiency with a new EU plan that calls for 'Cars [to] be banned from London and all other cities across Europe ... to cut CO2 emissions by 60 per cent over the next 40 years,' and you have complete mayhem. Lucky we don't have Australian politicians who aspire to such policies... But back to the withdrawal symptoms of past Keynesian stimulus; austerity, riots and currency crashes. Central bankers are the trump card in the debt game. The US and UK have aces up their sleeves in Mervyn King and Ben Bernanke. The Euro nations have a little less room to counterfeit their way out of debt. But, ironically, it seems the EU is having trouble with inflation. Remember all that discussion of central banks working together to an unprecedented extent to ward off the financial crisis? Well can you guess when central banks began the habit of colluding to inflate the money supply? The 1920s - in the lead up to the Great Depression. Back then the UK was trying to inflate its way to prosperity and monetary dominance in Europe. But it needed the backing of a strongman. That strongman was Benjamin Strong of the Federal Reserve, who agreed to join in the inflation to make the UK's policies look less ridiculous. But two wrongs didn't make a right. So German and French central bankers didn't go along with the inflationary policies, secret meetings or no. This led to gold flows between the countries that made the global financial system an awkward place. In the end, the inflationary policies led to the Great Depression. Federal Reserve policy makers don't seem worried about repeating past mistakes. But that's changing. The US dollar's role as a dominant currency and safe haven can now genuinely be questioned. Just as the UK Pound's was in the 1920s. After crises in Japan, northern Africa and Europe, the dollar continues to fall. It's supposed to be where the safe haven investors flee to in times of uncertainty - times like these. Just to be clear, the US dollar isn't safe. We're talking about a public perception here... and whether a flight to safety is still synonymous with a flight to the dollar. Here is a prediction for what the trigger for the end of dollar dominance will look like. When the term 'petrodollar' loses the 'dollar', you will know the tide has turned on the world's reserve currency. OPEC will be the determining factor. Why OPEC? There's a long list of reasons. Politically, oil rich nations don't like the US much. But the US has been their main client and the US dollar the currency of their dealings. As they find markets elsewhere, the importance of the 'forced marriage with benefits' will be reduced and OPEC's political clout will increase. No doubt that in the mind of many OPEC members, they have some payback to dish out for America's past (and current) behaviour. There are more reasons why OPEC will herald the dollar decline. Like the effect of Bernanke's printing presses on OPEC members. While the price of oil is rising, the purchasing power of the dollar is falling. And the more money Bernanke prints the less all that accumulated revenue is worth... no matter how many extra dollars are tacked on to the oil price. Even massive gold holdings can't inflation proof revenue streams the size of the OPEC members' petrodollar fund (1 trillion this year). But take note that the personal accounts of dictators who siphon off petrodollar revenue for themselves happen to feature much gold and similar assets. This is one way to think about the effects of a rapidly falling US dollar: Did the US economy grow in terms of Australian dollars? Let's look at the fourth quarter of 2010. US GDP grew at almost 3% annualised, but the US dollar fell about 5% against the Aussie in that time. To an Australian, in Australian dollars, the US economy shrunk about 4.25%! Of course, it's all just paper in the end. So what about in real money? Any guesses how US GDP stacks up in terms of gold? You get pretty much the same result... Surprise! If the economy is shrinking in terms of foreign currencies and real assets, that belies some real weakness. With Utah and other state governments legislating to encourage gold and silver as legal tender, you'd think this actually matters. But don't think that will stop Bernanke. Tweets and Twits According to the reputable sounding website 'Social Times,' Twitter can be used to predict stock market moves with 87% accuracy. The race is on to implement the trading system that feeds off the analysis. One willing investor is forking out 25 million pounds. But what do economists make of all this? Keynesians will argue for stimulus by mass positive tweeting (not outsourced of course). Classical economists will argue expectations will soon render the system useless as it becomes widely practiced. Econometricians will change the model to factor in the increase in positive tweets of the Keynesians. And the Austrians will bemoan the efforts and predict the coming stock market crash. It's all rather comical, but quite representative of the different schools of thought. A question for the Keynesians among you: If the Federal Reserve creates inflation in an economy with high unemployment, isn't that a dampener on consumption - the very thing Chairman Bernanke is trying to stimulate? As prices rise, wages will not, as there are plenty of people bidding down the cost of labour. Add to this the nature of the inflation that is emerging, as Bill Bonner reported on Wednesday: 'The feds wanted inflation. Apparently, they've got it. The latest figures show consumer prices rising at 0.5% per month. Doesn't sound like much. But multiply by 12. It's over 6% per year. 'Producer prices are going up even faster - at a 20% annual rate, if you extrapolate from last month.' With PPI rising at 20% and CPI at 6%, there's one hell of a squeeze on corporate profits going on (as discussed last week) further discouraging hiring. Then there is this common inflation symptom, reported by the New York Times: 'Chips are disappearing from bags, candy from boxes and vegetables from cans.' You may be paying the same price, but there is less in the packet. Mother of nine Lisa Stauber reports her usual purchases are falling embarrassingly short at the dinner table and she has been investigating the widespread 'sneaky' practices ever since. But as long as Bloomberg spits out these headlines, you'd think there is no reason to worry: "U.S. Consumer Spending Increases More Than Forecast." Then again, if you read the article itself, much is revealed: 'More than half the gain in spending last month reflected higher prices, one reason it will be difficult for households to contribute as much to economic growth this quarter as last.' This article sums it up nicely: 'Consumers Spend More, Earn Less In February' Falling profits, low wages, unemployment, content cutting and inflation are a recipe for disaster. A big disaster when the government's funding is called into question as a result of the above. We know how this ends. Think Weimar Germany and Bolshevik Russia, which 'forgave' the amounts lent to the Tsarist government by foreigners. For a more recent indication of how the nearer future will look for nations around the world, Greek two-year bonds are yielding over 15%. And remember, that's above and beyond an ECB policy rate at a historically low 1%. The Fed Exposed Having lost the lawsuit to keep its 'secret lending' secret, news has emerged of the Federal Reserve's lending programs during the crisis. Here are the highlights, as your editor sees them:
In a similar vain to Goldman Sachs, JPMorgan, Bank of America and Wachovia claimed to have used the loans 'to display the effectiveness of the facility'. Bank of America had also claimed 'it used the program only to help stabilize the financial system.' These days it's not only central bankers colluding over money creation. Lufthansa flight attendants have been smuggling reassembled Euro coins into Europe after Chinese companies got their hands on the 'zerschreddert' remains. One got caught with one thousand Euros worth of coins in her bag! We're not sure whether to be more outraged by the banks or the Euro luggers. P.S. Thanks for the positive feedback on last week's article on PE ratios and corporate profits. Those of you who enjoyed it, you can find an interesting related discussion here. Nick Hubble | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| audio interview w/james turk: gold 1800, silver 50, BY JUNE Posted: 01 Apr 2011 11:16 AM PDT foreign language interview...turk speaks english looks like the interview has several parts part 1: http://www.youtube.com/watch?v=yp1giaya-Gs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fools day is over, those who sold were fooled like I said would happen Posted: 01 Apr 2011 10:24 AM PDT Check out the OI (open Interest) on the April 16 SLV contract. WOW. compare it to the puts side. Wow. I will be back Saturday for the metals update. I was again on the phone with TINKA management today. I will post an updated Tinka post on Monday. You better be fully loaded. Good day today, hope Blythe didnt scare anyone. I was sitting back all day watching this garbage...I feel big | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Silver spot higher than the G/S ratio Posted: 01 Apr 2011 10:01 AM PDT This has got to be a first. Mean anything? Who knows. HH Mark | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 01 Apr 2011 09:00 AM PDT The 5-Minute Forecast came to me in an email with the subject line reading "5-Minute Forecast – Everybody Panic." Naturally, as a guy who is always on the verge of panic because of the fact that all the monstrously excessive amounts of money that the Federal Reserve is creating will cause inflation in prices, this affected me greatly. I assume this recommendation to panic is because the monetary base shot up by a whopping $90 billion last week as the Federal Reserve continues its insane over-creation of money so that it can monetize, through the year, a couple of trillion dollars or so in government deficit-spending over the next year, so as to try, try, try to spend our way out of bankrupting debt by creating more debt, to create more money for the government to borrow and spend, all of which will cause prices to rise, rise, rise, which I interpret to mean, "We're Freaking Doomed (WFD)!" Well, I was half right in my original conclusions, in that they noted that "Easy money is already having its affect in the US Wholesale prices, which trotted upward in December and January, reached a full gallop in February," which is when "The producer price index (PPI) rose 1.6%." Gulp! This is the rise in prices in one month! And annualized, The 5 calculates it to be 19.2% inflation in prices! And the bad news is that a 19.2% annual inflation is "for finished goods. If you move further back in the production chain, prices for crude goods rose 3.4% last month." My heart was racing at such horrific inflation news, and forcing myself not to start screaming, I instead concentrate on the positives involved here: they did not annualize a compounding 3.4% inflation, and gold and silver will be guaranteed to rise along with the general, roaring inflation, and they will rise even more with a Big Fat Kicker (BFK) from the general sense of panic in the economic/financial world when all those fiat-money chumps will be flooding, in a panic, into the relatively tiny gold and silver markets, bidding the prices of gold and silver to insane levels. With a subsiding fear, I calmed down enough to read that they went on "And February was no fluke. PPI for crude goods has risen 20.7% over the last six months since February's gain," which is so easy to simplistically annualize by merely multiplying 20.7% inflation times 2 to get an annual inflation rate of 41.4% that I am, despite my best efforts, again in a full-fledged Mogambo State Of Panic (MSOP), feeling those familiar crushing pains in my chest and a racing, pounding heartbeat. Like the kind of stabbing pains and numbness in my left arm I got when the Bureau of Labor Statistics (BLS) announced that the US consumer price index (CPI) rose 0.5% last month – which works out to inflation running at a fast 6% annual clip, and rising. The Wall Street Journal reported it as, "Energy prices surged 3.4% during the month, while food prices jumped 0.6%." Without a soundtrack of kettledrums pounding "boom boom boom" and the sound of ravenous wolves howling close by to tip you off about the sense of terror here, you can still hardly repress a shudder when The Journal goes on, "Even though markets have cooled recently, the rise in commodity prices from recent months is expected to continue making its ways from producers to consumers." I love the next part, as it trots out some guy named Alan Levenson of T. Rowe Price saying, "If that holds, by summer this impulse toward higher monthly food-price gains should diminish somewhat," which appears to mean that prices will keep rising, but not quite as fast for some reason that I cannot imagine, and this makes it OK. And even with the prices of housing falling, the cost of home ownership ("measured as the cost of renting the home you own") increased 0.6% y/o/y, which I assume means that although the value of houses is going down, water heaters still need replacing, the television needs updating and there is a leak in the roof over the kid's head that she is whining about because the stain on the ceiling looks like a werewolf looking at her. I reassuringly told her that it kind of looks like a werewolf, alright, but it's better than resembling the horrible demon of inflation getting ready to eat us alive, gobbling the guts out of me, her, and everybody she loves, when prices rise so high because the evil Federal Reserve keeps creating more and more money to buy up government bonds so that the government can try to spend its way out of bankruptcy by going farther into bankruptcy. "And besides," I said, "Werewolves are mythical creatures, and don't really exist, while the devouring demon of inflation is very, very real." So she said, "So it is better that it resembles a werewolf?" I said, "Yes, it is! And even the horrible monster of inflation is easily defeated by merely buying gold and silver. So we are covered both ways, my little darling, so that neither werewolves nor the horrible Federal Reserve can harm us!" That's when I asked her, "Can you say 'Whee! This investing stuff is easy!'"? Reassured, she closed her eyes, her face radiant with a cute little smile as she said, in a voice almost a whisper, "Whee!" before she fell fast asleep. The Mogambo Guru Beware the Demon of Inflation originally appeared in the Daily Reckoning. Daily Reckoning founder Bill Bonner recently wrote articles on stagflation and the great correction. |
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