A Campaign Against Pejorative Gold Hoarding
“My plan is a simple one, that if Reuters does not issue an apology right away, I shall take this as an act of war and, as a good German in the extreme sense, invade Poland, and subjugate France and all of Europe...”
by The Mogambo Guru
With all the big corruptions all around us, let’s not forget all the petty corruptions, such as the one uncovered by Tony Cherniawski of The Practical Investor newsletter, who said, “J.P. Morgan paid $1.9 billion for WaMu’s deposits and real estate. It got the questionable $307 billion portfolio at no cost. In addition, it received $31 billion in tax losses for which it paid nothing. What a deal! At a corporate tax rate of 35%, JPM instantly made $10.85 billion in tax write-offs alone. Economically, J.P. Morgan expects the takeover to add earnings of 50 cents per share in 2009.”
Soon, since I have no respect left for Wall Street, the banks, Congress, government in general, the news media, the schools, the Supreme Court, the United Nations, or anybody I can think of, I am soon bored with another scandal, and I am mindlessly picking at a scab on the end of my nose, thinking that if the Girl Scouts were President, at least maybe we could get cookies out of the deal.
But I was interrupted mid-pick when Mr. Cherniawski suddenly said, “Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, has jumped 18 percent in two weeks.” Wow! Talk about an increase in demand!
Maybe this new demand for gold is because people are waking up and saying, “Hey! That Loudmouth Idiot Mogambo (LIM) and the Founding Fathers were right! I gotta get me some gold, and lots of it, and right away!”, which would explain why the Central Fund of Canada, “an exchange tradeable refined gold and silver bullion holding company”, is expanding by up to US$600,000,000; gold ETFs are all reporting big inflows of money, there are reports of shortages of gold, and Reuters is reporting the headline, “Germany’s Bundesbank To Keep Its Gold Reserves”, meaning that Germany’s “Bundesbank will hold on to the vast bulk of its gold reserves in the next 12 months.”
I assume this means that the practical nature of Germans has seen the folly of paper, fiat money and the wisdom of gold, thus explaining why they are suddenly opting out of “the terms of a five-year deal between 15 European central banks” to sell gold into the market, suppressing its price with this flood of supply, but now Germany says, “it would sell no gold apart from 6.5 tonnes to the German finance ministry, as already agreed” which is what you would expect when Germany actually sold very little gold the whole time of the agreement, and which “consistently passed on most of its quota to other institutions and sold only enough bullion to mint coins.”
And it is not like they can’t afford it, as the Bundesbank’s 3,400 tonnes of gold “is the second-largest hoarder of gold behind the U.S. Federal Reserve”, although my Germanic heritage and the Austrian school of hard-money economics makes me bristle at the term “hoarder” when talking about gold.
My plan is a simple one, that if Reuters does not issue an apology right away, I shall take this as an act of war and, as a good German in the extreme sense, invade Poland, and subjugate France and all of Europe until the idea of gold backing the currency is seen not as “hoarding”, but as “the smartest damned thing that a people can do for itself, if it wants to protect its money against the predations of the government and the banks, and anybody who says differently will be picked up and interrogated!”
Well, you better get used to this kind of thing, because a police-state is the end-result of the misery that will be caused because the S&P500 index is back to where it was in 1997, which is 11 years ago!
So, it seems that there are people who made no money by investing in the S&P500 in 11 years, although there are a few people who are still making money if they bought the stocks in 2003, but there are a Whole Freaking Lot (WFL) of people who have lost a lot of money in the S&P500 since 1997! The damned thing was 30% higher than it is now, twice in the last few years!
And yet there are still people who seriously think that they can fund a retirement by not only making no money, but usually losing a lot of money, and then have the little bit of money that is left be debased by over half its buying power in those same ten years? Hahaha! The average “betting my retirement in the stock market” moron has lost over two-thirds of his, or her, buying power in the last ten years! Hahaha!
In effect, they invested enough for a whole pizza, and now they lost so much (mostly due to inflation) with their stock market investments that they only have enough in their retirement account to pay for a third of a pizza! Hahaha!
You gotta laugh at anybody who thinks that there is a free lunch somewhere, and fortunately, you get not only a good laugh from it, but a handy reminder to buy gold, which HAS increased in value since 1997 when it was $325 per ounce, and which will increase in value from here because the government is going to try and provide people with free lunches by borrowing and spending money, which increases the money supply, which increases prices, which makes gold go up! Whee! This investing stuff is easy!
“My plan is a simple one, that if Reuters does not issue an apology right away, I shall take this as an act of war and, as a good German in the extreme sense, invade Poland, and subjugate France and all of Europe...”
by The Mogambo Guru
With all the big corruptions all around us, let’s not forget all the petty corruptions, such as the one uncovered by Tony Cherniawski of The Practical Investor newsletter, who said, “J.P. Morgan paid $1.9 billion for WaMu’s deposits and real estate. It got the questionable $307 billion portfolio at no cost. In addition, it received $31 billion in tax losses for which it paid nothing. What a deal! At a corporate tax rate of 35%, JPM instantly made $10.85 billion in tax write-offs alone. Economically, J.P. Morgan expects the takeover to add earnings of 50 cents per share in 2009.”
Soon, since I have no respect left for Wall Street, the banks, Congress, government in general, the news media, the schools, the Supreme Court, the United Nations, or anybody I can think of, I am soon bored with another scandal, and I am mindlessly picking at a scab on the end of my nose, thinking that if the Girl Scouts were President, at least maybe we could get cookies out of the deal.
But I was interrupted mid-pick when Mr. Cherniawski suddenly said, “Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, has jumped 18 percent in two weeks.” Wow! Talk about an increase in demand!
Maybe this new demand for gold is because people are waking up and saying, “Hey! That Loudmouth Idiot Mogambo (LIM) and the Founding Fathers were right! I gotta get me some gold, and lots of it, and right away!”, which would explain why the Central Fund of Canada, “an exchange tradeable refined gold and silver bullion holding company”, is expanding by up to US$600,000,000; gold ETFs are all reporting big inflows of money, there are reports of shortages of gold, and Reuters is reporting the headline, “Germany’s Bundesbank To Keep Its Gold Reserves”, meaning that Germany’s “Bundesbank will hold on to the vast bulk of its gold reserves in the next 12 months.”
I assume this means that the practical nature of Germans has seen the folly of paper, fiat money and the wisdom of gold, thus explaining why they are suddenly opting out of “the terms of a five-year deal between 15 European central banks” to sell gold into the market, suppressing its price with this flood of supply, but now Germany says, “it would sell no gold apart from 6.5 tonnes to the German finance ministry, as already agreed” which is what you would expect when Germany actually sold very little gold the whole time of the agreement, and which “consistently passed on most of its quota to other institutions and sold only enough bullion to mint coins.”
And it is not like they can’t afford it, as the Bundesbank’s 3,400 tonnes of gold “is the second-largest hoarder of gold behind the U.S. Federal Reserve”, although my Germanic heritage and the Austrian school of hard-money economics makes me bristle at the term “hoarder” when talking about gold.
My plan is a simple one, that if Reuters does not issue an apology right away, I shall take this as an act of war and, as a good German in the extreme sense, invade Poland, and subjugate France and all of Europe until the idea of gold backing the currency is seen not as “hoarding”, but as “the smartest damned thing that a people can do for itself, if it wants to protect its money against the predations of the government and the banks, and anybody who says differently will be picked up and interrogated!”
Well, you better get used to this kind of thing, because a police-state is the end-result of the misery that will be caused because the S&P500 index is back to where it was in 1997, which is 11 years ago!
So, it seems that there are people who made no money by investing in the S&P500 in 11 years, although there are a few people who are still making money if they bought the stocks in 2003, but there are a Whole Freaking Lot (WFL) of people who have lost a lot of money in the S&P500 since 1997! The damned thing was 30% higher than it is now, twice in the last few years!
And yet there are still people who seriously think that they can fund a retirement by not only making no money, but usually losing a lot of money, and then have the little bit of money that is left be debased by over half its buying power in those same ten years? Hahaha! The average “betting my retirement in the stock market” moron has lost over two-thirds of his, or her, buying power in the last ten years! Hahaha!
In effect, they invested enough for a whole pizza, and now they lost so much (mostly due to inflation) with their stock market investments that they only have enough in their retirement account to pay for a third of a pizza! Hahaha!
You gotta laugh at anybody who thinks that there is a free lunch somewhere, and fortunately, you get not only a good laugh from it, but a handy reminder to buy gold, which HAS increased in value since 1997 when it was $325 per ounce, and which will increase in value from here because the government is going to try and provide people with free lunches by borrowing and spending money, which increases the money supply, which increases prices, which makes gold go up! Whee! This investing stuff is easy!
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