By John Galt
May 5, 2008
I mean it. Sell every holding you have. Mail your coins to me. Mail your silver bars to me. Heck, gold, platinum, palladium, I won’t cry. Liquidate all of your holdings now, please.
So I can look back and laugh at those of you who do not understand the difference between “real money” or insurance, and those who follow the sheeple bleating herd that goes “Baaaa, Baaaa, Baaabooyah!” To say that yours truly has not enjoyed the circus like atmosphere created by low volume rallies in the equity markets coinciding with the futures in the commodities getting a much needed major correction, would be an understatement. Yet there are people who are swayed by panics in all directions so human nature being what it is, I would not expect anything less. So why am I telling you to SELL ALL YOUR PRECIOUS METALS NOW!?!???
Because my friends and I want to buy them during this correction at much lower prices.
That’s right, I’m one of those evil, anti-PC, anti-“Can’t we all get along,” anti-“please hug the trees for freedom,” Y2K survivalist-get-me-a-missile-silo-to-live-in, anti-CNBC, bitter gun totin’ Bible clinging capitalist pigs. And as our society accelerates towards the inevitable correction for paper excess in a fiat fantasy land I want to hold as much real money as I can get my insurance grubbing little paws on. That’s right boys and girls, I am a (gasp) “HOARDER!!!!!!!!!”
I know, that shocks all of my readers and listeners, but it shouldn’t. I believe that in the times we are about to embark on , that would be the bottom of the second inning of this absolute decimation of a fiat currency right about now, and the implications not just for capital markets but for American society as a whole are terrifying at best, horrific when thought about. As most of my readers and listeners “get it” this next section is to address those that ask “get what?” Because what we are about to witness will keep your head spinning for decades, and your wallets either super fat or super thin, depending on your desire to accept what is ahead or if you like the government issued FEMA Visa card or the wheelbarrow currency of the day issued to your family.
An Un-BEARingly Stearn Hint
As anyone can see(well, maybe not a bubblevisionista) on March 16, 2008 gold took a rather drastic turn to the upside, topping $1030 in overnight trading in Asia. This was obviously due to the crisis where the American banksters on Wall Street decided to devour one of their own with the full faith and backing of the American taxpayer. The trashing, allegedly deliberate and obviously overt, of Bear Stearns was designed to send the Godfather like message of an “offer they couldn’t refuse” and how our capitalist system has devolved into a Mafia like movie event with Jamie Dimon playing the role Al Pacino lusts for. While the great con was being perpetuated on America and the world that Benron and the Boys were doing a great thing by bailing out the bankster system and preventing a complete meltdown, what few seem to want to acknowledge or accept is that they people who initiated the problem all profited from it. The SEC will never investigate what happened, nor will CONgress, nor will the FBI. It’s like Don Corleone who always had all those judges, Senators and law enforcement officers in his back pocket except this group of thugs has the financial “press” (it’s hard to type that one with a straight face) as part of their collection also. So with all that background noise, those of you may be asking, so what does this have to do with the ever increasing price of tea in China or gold for that matter? Everything. What it indicated was the ultimate vote in the confidence of the American financial system. Which was “none” to “very little” depending on what corner of the world you were in or if you were a broker hiding under your bed on Wall Street that night. Gold did not skyrocket because it suddenly became the fashionable investment of the day. Google’s stock wasn’t purchased and hidden in back yards or safes. Microsoft stock issues and options were not purchased as a “hedge” against further instability. Goldman Sach’s corporate bond issues were not the “hot commodity” that night either. That’s right, it was gold and other precious metals. Real money which is the ultimate backstop or insurance against a systemic or societal collapse. Yet so few remember that month, that evening, nor the impact that day on the world. We came close, once again to a meltdown. And this one was self-inflicted; what happens when the “Black Swan” flies in and creates the validation of the law of unintended consequences being implemented upon unsuspecting traders? That’s right, there’s not enough gold nor limits upon it to stop the price from shooting up. And that’s where the “insurance” issue comes into my thinking.
Don Bernanke Says INFLATE or Die
It’s an amazing sight to watch this entire story unfold. In the movies a Godfather or crime family head (the ‘don’) issues an edict and the family snaps to into action. With the crime family running our central banking system, it’s little wonder we don’t see guys in nice Italian suits kneecapping taxpayers to steal their retirements to cover their blundering decisions. Wait a minute; they are kneecapping the schmucks; with an aluminum baseball bat called “inflation” which few understand nor desire to learn about. Alas, this is not a lesson on macroeconomics, but of insurance, safety and a desire to put a little bit away for a rainy, er, hurricane type day.
Last week the leading crime family met, the Federal Reserve, and elected to lower the Fed Funds target rate to 2%. Big whoop. The statement paid lip service to all of the usual suspects, inflation, gas prices, politicians, green ducks in a pond and the economy that they endorse providing fraudulent data to investors to provide cover for their operation. In reality, Don Bernanke and the boys are ready, willing and able to continue to flood the system with as much cash as necessary to keep the perception that things are in control alive and well. Who cares if 80 year olds have to eat Alpo dog food, at least they are eating so let’s destroy the dollar and get this meeting over with because the Hamptons are calling and summer is here. Of course this chart of the dollar tells the tail and if you’ll note, we still have yet to touch, kiss, hug or get a whiff of the 200 day moving average:
Keeping that in mind, you now begin to realize that the sell off in gold would be just as easy to manipulate and create as the market can be controlled quite easily by any one of the New York families like Morgan or Sachs. Because that chart should indicate gold priced at almost double it’s current levels. But with the organized crime family running our banking system it’s just a matter of selling enough futures or buying enough puts on GLD to trigger computerized sell programs. And since the average American sheeple only pays attention to what the mainstream media or Bubblevision tells them about prices, they have no clue as to the reality or depths of the crisis we are still in. That all being said (did I rant enough for ya?) I sincerely hope that you plan to sell me and my friends all of your precious metals. We don’t want futures. We don’t want paper. We don’t want promises. We want the real deal. The metals you can have and hold as opposed to the paper promises. Why is that so important and what’s the difference? Glad you’re asking….
Mafia Insurance Policy
With all of the stories since February of 2007, the fraud, the deceit, the bald face lies presented to the American public (you know, like 0.0% CPI in February), wouldn’t it seem prudent to maybe, just maybe put a little insurance out there to protect your assets, your family and your future? Think about it. If you lived in a crime infested neighborhood like the USA, you have three realistic options:
1. Pay the crime family their protection money and believe everything you see or hear on CNBC.
2. Buy some insurance to protect your family and pay the crime family off while you get ready to make your move.
3. Get the heck out of there.
Since most of us do not have option 3 as a realistic possibility, I highly advise option number 2. You see, we have to pay our taxes, that’s one of the realities of life we have to deal with. And those taxes are And those taxes are further penalized via inflation by the banksters, aka. “the syndicate,” who have elected to gamble at the casino with your money, your nation and your future and they rolled snake eyes over and over again. Here we, the public, sit exposed to not just a historic collapse of an economic system, but the potential collapse of our nation, planned or unplanned, all in our life time. Wouldn’t you want a little peace of mind and insurance against that? But all you hear on Bubblevision is the “relic” argument against precious metals because their time frame is minutes, not years, and yours needs to be for the long term also. You need insurance against these Mafia like clowns who are gambling with your children’s future. I will not go into another rant to teach you that in times of trouble, people flock to precious metals, gold primarily, to hedge against the destruction of a fiat currency. If the economic matters which triggered the crisis in Bear Stearns and the entire world credit market regime was truly “contained” would it not be logical to assume that the traditional safe haven investment of gold would be well back into the five hundred dollar price range where it traded when this latest move began two years ago? Look at the chart below and think; who knew what was coming and what hedge did they pile into?
Now you get the idea. A lot of the smart money knew what was going to happen. Heck, I’m just average schmuck money and I figured it out. Then again, I felt that since the year 2000, something was wrong and the speculative bubble in the dot.cons would create the nightmare we are living through now. I never imagined that those investments eight years ago would give my family long term security should this fiasco continue. And as the prices decline to what I deem are intermediate and short term levels of tolerance, I will buy again. And again. And again. Since we are kissing the 200 day moving average on gold all those screaming “sold to you” please form a line to the left.
I’m buying and it’s that “again” time.
Because this time, when the black limo pulls up and the two nasty looking guys come to kneecap me, I want to have a golden shield to protect my family and I from the inflation loaded baseball bat and the idiots behind it.
And if you’re wondering, Greenspan is the real ‘Don Corleone’ should we be casting the movie parts. Bernanke is Fredo.
God help us all.