Most people have never heard of "the invisible hand" of the market, which is
the surprising result of everyone working to get money with which to satisfy
their own selfish interests, and it ends up benefiting everybody, a result that
is so glorious that it seems that things are being guided by some "invisible
hand".
On the other hand, most people have heard the conundrum, "What is the sound of
one hand clapping?" (Answer: a kind of "whoosh"), and they have heard the
oxymoron "Hi. We're from the government and we're here to help you."
Against those timeless phenomena, we have James A Dorn of the Cato Institute
writing about the "grabbing hand", which is entirely familiar if you have kids
who are always whining that they are always hungry because you spend all your
income on gold, silver and oil in your fearful, panicky response to the Federal
Reserve
creating So Freaking Much Money (SFMM) and the Obama administration
deficit-spending So Freaking Much Money (SFMM).
So you already know about how these ungrateful kids get "grabby" around the
dinner table, and fight over any scraps that fall from your lips as you eat to
complete satiety in order to keep your strength up.
Just as you would expect, then, Mr Dorn says, "As the state's ‘grabbing hand'
interferes with economic freedom, the 'invisible hand' of the market will
suffer."
And for perhaps a good example of the "invisible hand", Bill Bonner here at The
Daily Reckoning notes that the Chinese leader Deng Xiaoping is alleged to have
said, "To get rich is glorious," which could be the ultimate in selfishness,
and thousands and millions and billions of Chinese people working to do that
exact thing has resulted in the fact that "They got richer, faster than any
people ever had. The economy is now 10 times larger than it was then; it grew
300% just in the last 10 years," and, "Incomes rose every year!"
I am sitting here, stunned that a third of the world's population has an
economy that is tripling in ten years! Ten years!
As a result, "There are now more millionaires in China than in France. Three
times as many as in Britain. And more people are becoming millionaires there
than anywhere else on earth."
And what does any of this have to do with anything useful to a greedy, grubby
little weasel of a guy like me, who just wants to make a lot of money in a
short period of time without working? I'm glad you asked!
In a word, silver. Silver is already so laughably under-priced, due to the
slimy manipulations and illegal price-suppression short-selling scams and
schemes exposed by Gold Anti-Trust Action committee, Ted Butler and others,
that it comes at the Perfect Storm moment that a third of the world's
population is going to need more and more silver to supply all those electronic
and electrical goods they are going to demand, and all the other industrial and
health applications that consume silver, only to discover that there isn't any!
Hahaha! Surprise!
The industrialization of Europe and the United States into mature, developed
nations consumed all the silver that there was above ground, including the 9
billion ounces gradually dis-hoarded from strategic stockpiles since the 1960s,
which makes you say to yourself, "Wow! That's a lot of silver!"
Keep that fact in mind when you remember that a Chinese population, as big as
Europe and the United States put together, is going to want just as much
silver, to have just as much stuff that requires silver, but there isn't any
silver!
Without going into unnecessary details, that is just one reason why, among
dozens of other reasons why, I am happily accumulating silver like a man
possessed, driven by the certain knowledge of a Can't Miss Thing (CMT), which
is the best kind of thing! Whee!
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.)
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