I spend a lot of time worrying about how "We're freaking doomed!" and thus I
spend a lot of time crying in fear and occasionally screaming in outrage, a
fact that has gotten me thrown out of a lot of bars, and which has not made me
any new friends, either, which Suits Me Fine (SMF), actually, since everybody I
meet seems to be a moron who cannot see the wisdom of buying gold, silver and
oil to protect themselves against the ruinous inflation in prices that will
follow the Federal Reserve's creating So Freaking Much Money (SFMM) and all the
rest of the world's banks creating SFMM and all of the world's governments
(except Norway, Saudi Arabia and Hong Kong) deficit-spending their little
pea-brains out.
As to how this is insane, I agree that it is insane, and as to what becomes of
all this money, I scratch my head, as there are not
that many places where one can constantly invest tens of billions of new
dollars at a crack.
Perhaps this is what caused Rick Ackerman of Rick's Picks newsletter to say
that he is "looking for an approximately 1,400-point rally in the Dow
Industrials this summer", which sounds about right to me since I have no idea
one way or the other, but I understand how avalanches of new money pouring into
the economy have to go somewhere, and it will drive up prices, regardless of
value.
So, I guess he thought I was going to disagree with him, probably since I seem
to be one of the most disagreeable and pessimistic of paranoid cynics, who is
Absolutely Freaking Sure (AFS) that the unholy duo of the deficit-spending
congress and the money-creating by the Federal Reserve will destroy the buying
power of the dollar and, by extension, the stock market and, by further
extension, us.
So why are we both agreeing that a nice rally might happen this summer? Perhaps
he was talking for both of us when he explained, "Regarding our bullish call on
the stock market, let us say up front that it goes sharply against our
instincts and every shred of logic that we possess. Permabears do not come
easily to the notion that stocks could rally so powerfully amidst a patently
fraudulent economic recovery - a recovery that has touched almost no one we
know and which, even at a very low level, cannot conceivably be sustained. Even
so, putting our opinions and instincts aside, we've learned to simply trust the
charts whenever there are doubts."
Doubts? Well, I'm a guy who trusts almost nothing and thinks my own wife and
kids are out to get me, along with being the target of the FBI, probably the
CIA, whoever sends those invisible helicopters to hover over my house, and
almost certainly foreign governments whom I have insulted many, many times for
not having a gold-standard money and which, by their deplorable actions on this
one subject alone, shows a real stupidity on the part of whatever lowlife loser
scumbags are in charge there, just like the lowlife loser scumbags in charge
here in America.
Naturally, then, I have doubts about everything. Everything, that is, except
about investing in gold and silver over the long-term, because the last 4,500
years of history shows that these metals are a lead-pipe cinch when so much
fiat money is being created.
And with oil being so necessary today, in so many ways, that's why I say, "How
can I go wrong?"
Well, having spent a lifetime pigeonholed as a "not a very smart" guy, I find
that I never know all the ways how things can "go wrong", but they usually do,
and not in the way I expect, it always seems.
But even I, a paranoid, suspicious little rat who sees calamity around every
turn and assassins in every bush, cannot imagine how anything could possibly
"go wrong" for gold, silver and oil.
Especially - especially! - when so much new money is being created that even
the birds singing to me through the window chirp, "So amazingly much new money
is being created! So insanely suicidal much new money is being created!" in
their little bird voices that, apparently, only I can hear.
Given that, for gold, silver and oil not to go up would be what we economists
call "a result from Beyond The Bizarre Barrier (BTBB)", in that such a
ridiculous result has never happened in 4,500 years, or came close to happening
in 4,500 years, which means the risk of it happening now must be close to zero,
which is the exact, precise degree of risk that I want in an investment.
And better yet, investing in gold, silver and oil, when the government is
spending so much new money that the Federal Reserve is creating, makes
investing so easy that you happily shout, "Gold, silver and oil! Whee! This
investing stuff is easy!"
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.
Republished with permission from
The Daily Reckoning. Copyright 2010, The Daily Reckoning.
Head
Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
Central, Hong Kong Thailand Bureau:
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