Naturally, I started having pleasant daydreams about being rich, rich, rich
after the Chinese government surprised me by announcing that it would finance
the buying of foreign gold mines, and ordered their banks to set up big
distributed systems for buying and selling gold at the retail and whole levels
and all kinds of stuff like that. Wow!
Dan Denning, writing for The 5-Minute Forecast, is probably not surprised in
the least, as he saw in The Financial Times that "Chinese investors bought 73
tons of gold last year", which doesn't seem like all that much, perhaps, except
that the 73 tons of gold was "up from 18 the year before", which calculates out
to "a 315% increase in demand from retail Chinese investors" in One Freaking
Year (OFY)!
Now I don't know the Chinese translation of One Freaking Year
(OFY), but it probably sounds like all the rest of Chinese translations of
everything, ranging from the similar-sounding "one order of pork-fried rice to
go" to "two number-8 combos with extra egg rolls to go" which sound, like
everything else Chinese, indistinguishable to me.
Suddenly, I found that I was craving Chinese food for some reason or another,
and so I am not sure if he was talking about any sudden interest in Chinese
food or the price of gold, but Mr Denning noted that "Maybe this is the
domestic demand being unleashed that everyone's been waiting for!"
This is particularly good news for those who have been feverishly buying gold
thanks to the ugly fact that We're Freaking Doomed (WFD) because of Alan
Greenspan and Ben Bernanke abusing the running of the Federal Reserve to create
more and more money to cause inflation and ridiculous booms to rise up and
destroy us, which they are.
Now, I am inside the Mogambo Bunker Of Golden Repose (MBOGR), eating the last
of some fried rice and a fortune cookie, whistling a happy tune while going
through my files, shredding everything so as to leave no evidence behind after
I sneak out of town in the middle of the night, saying, "Sayonara, suckers!" to
the depressing drudgery of duty and responsibility, motoring merrily across
state lines in the powerful Mogambo-Mobile (MM), with gold in the trunk, the
stereo blasting and eight throbbing cylinders thundering under the hood.
In the boredom of my labors with the paperwork, I got to wondering how high the
dollar-price of gold will go, as then I could perhaps more precisely pinpoint
the Exact Freaking Moment (EFM) when I could leave all my worries behind me,
sneaking out of town in the middle of the night like the little coward that I
am, disappearing to start life afresh in a new city, with a new name, a
terrific apartment, a new set of great-looking clothes and a snazzy new car. A
red one!
Perhaps this is why Larry Edelson, writing at uncommonwisdomdaily.com, got my
attention when he said that he can easily see gold going to US$2,000 an ounce,
or maybe more, and gold might even go to (be still, my beating heart!) "$46,167
an ounce, which is what gold would have to be priced at if the Fed monetized
the country's 287 million ounces of gold reserves and geared it to the current
national debt of $13.25 trillion."
And this, I hasten to add, is only if the national debt stays at $13.25
trillion, which it won't by a long shot! Wow!
Now, as the typical husband and father who has successfully managed to put away
a little gold despite everyone's insistence that I am a hateful, stingy little
creep because I don't spend my every dime of income on extravagant trifles, and
costly gimcracks, and food, and some kind of medical care for one or more of
them, I am here to tell you that gold going for $46,167 an ounce would go a
long way towards solving my financial troubles! Hahaha!
And when it does, and interest rates have hit new highs, listen for me, late at
night when you can't sleep, when off in the distance you hear the echo of the
throaty roar of an expensive sports car's engine winding up through the gears,
the stereo blasting and combining with the maniacal laughter of a man
exclaiming, "Whee! This investing stuff is easy!" as indeed it will have been!
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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Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
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