Ellen Kelleher, writing for The Financial Times, opens her article with how
Baird & Co, in its warehouses in London, purify gold by heating it to
molten form to make "medallions, bars, and rings", which sounds like a lot of
heavy, hot, back-breaking, dangerous work to me, as if the word "work" was not
bad enough by itself with the terrifying adjectives.
As you may have guessed, heavy, hot, back-creaking dangerous work is of
absolutely no interest to me, or guys like me, who just want to make a lot of
money without working when gold shoots to the moon like it always has in
history when some lowlife, corrupt dirtbag government abuses a fiat currency by
creating Too Freaking Much (TFM) of it, and which is then obligated to continue
creating Too Freaking Much (TFM) more fiat money by
virtue of having created Too Freaking Much (TFM) money in the First Freaking
Place (FFP)!
And why is more money hanging around a bad thing? Because it makes consumer
prices rise, you moron! Where else do you think the extra money was going to go
if not into prices?
So, prices rise and rise, always rising and rising, month after month, year
after year, faster and faster, always higher and higher, rising along with
rising anger in the population, a problem with which the government tries to
cope by deficit-spending even more money! That the Federal Reserve will again
dutifully create! Making it all predictably worse and worse! Gaaahhhh!
And what do I mean by "worse and worse"? Finally, prices rise so high that the
society dissolves in a bloodbath of food riots and post-apocalyptic mob-rule
lawlessness born of desperation and panic, which is sugarcoating it just as
much as I possibly can.
I notice that I cause a groan in the audience when I mention, for the
thousandth time, how the Founding Fathers gave us a requirement for
gold-as-money in the Constitution of the United States expressly to prevent
this, and thus prevent our being destroyed by inflation in prices that an
inflation in the money supply always produces.
And I notice that people usually start getting up to actually leave in disgust,
muttering "Same Old Stupid Mogambo Crap (SOSMC)" when I start to rave, as I
predictably do, about how the horrid, traitorous Supreme Court ruled, in the
'30s, that a "fiat money" was the same as a "gold money", when it obviously is
not, and when I become outraged that every other despicable Supreme Court since
then has upheld this outrageous legal treachery, but I stop in mid-rant
shouting, "Stop! Don't leave! This is not about that! This is about how Tony
Baird, the managing director who runs the gold refinery, and thus probably
knows a lot about gold, says the immortal truism that the price of 'Gold is
stable. It's the value of money that goes up and down.'"
I see the look of confusion on their faces as they halt in their retreat, so I
continue, "So don't you see? This means that the Federal Reserve will
constantly create trillions of dollars in new fiat money so that the
frightening Obama administration can deficit-spend - this year alone! - over
US$1.6 trillion, and then deficit-spend trillions more, too, year after year!"
Again they start heading to the door, and I see that they need a more concrete
example, so I yell out, "This means that betting that the value of the dollar
falls, as per Mr Baird's saying that the value of money goes up and down, is
the Ultimate Mogambo No-Brainer Investment (UMNBI) that we have been looking
for: We will be quickly rich without working by merely buying 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.)
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