The World According to Gold – Literally
by James West: Gold
and Silver Poised to Surge on Ticking Debt Bombs
I write a World According to Gold piece, gold is setting
a new record, among a new crop of bubble-callers, and still the
world hesitates to pile into gold for fear of getting burned. Many
of those who have doubled or tripled their money have since died,
retired, or simply kept on making money investing, succumbing to
the addictive quality of wealth. The only other consistency with
the new old record and another eponymous article, is that there
is yet again more fiat capital in the system. But now, the rate
at which capital fabrication is increasing is itself increasing.
In other words, larger sums are required just to keep the international
circle-jerk in motion.
congressman John Boehner, feverishly, we are led to believe, developing
his own alternative plan to the Democrat sponsored plan, suggests
raising the debt ceiling in two stages. First, he proposes raising
it by $1 trillion, and then by another $1.4 trillion next year.
Does that mean were going to need an additional $2.4 trillion
in debt over the next 18 months?
If I have a
loan I cant repay, the bank doesnt lend me more money.
The bank takes my house and my car and anything else it can find
of value and turfs me onto the street. Now I understand that a great
nation like the United States cant be turfed onto the international
street, because in many ways, it is the street. But its this inability
to stop borrowing, simply through the inertia caused by the great
mass of entitlements and military spending, that precludes any serious
discussion about balancing a budget.
Gold is going
to be making a serious comeback to the global monetary stage in
an official capacity. Thats the only possible outcome of the
debt death spiral were in. The U.S. is indeed going to be
thrown into the street, as are all the nations of Europe and Asia,
in due course. And that street is the yellow brick road.
If a brick
of gold could actually talk, it would say, among other things:
you human beings are remarkable on so many levels. Such imagination
and ingenuity, yet wasted, on deluding yourselves into cutting short
your guaranteed brief time on earth. All so that some of you can
have a few more toys, homes, cars and sit at the front of the airplane.
But what really
gets us, is that even in the face of irrefutable evidence of intrinsic
value, your vaunted economists proclaim us to have no intrinsic
value. After doubling and tripling in value, returning hundreds
of percent on capital investment, the same vapid suited fools decree
that we provide no investment income. (So if you bought 10,000 ounces
in 2002, and sold 50 ounces every month since that time, you would
not be receiving investment income?).
When we anchor
your false paper money through a policy enforcement (paper money
was originally a certificate proclaiming ownership of a quantity
of gold), you enjoy monetary stability. When you abandon the standard
and stability of gold, chaos ensues as sure as night follows day.
You aver that we are not money, yet we are in fact, the only real
money, of which all else is a derivative, or imitation of.
And most remarkable
of all, in the face overwhelming evidence, your elite financial
and governing class, who collude to bamboozle and impoverish you
at maximum velocity the rest of you just stand by and let
them do it.
gold could only talk. Probably a good thing it cant. Imagine
how annoying it would be to have somebody around who is always right.
ago, Cisco Systems announced that it was going to lay off 10,000
people worldwide, and last week, Borders Books announced its imminent
liquidation, which also means the liquidation of another 10,000
jobs. Clearly, the U.S. economy is in full recovery, and we have
nothing to worry about. But since the only item to worry about involves
the ability of the developed world to continue issuing currency
to obscure the fact that bankers and governments are actively defrauding
their citizens, the recovery cant seem to manifest itself
in anything except corporate earnings, which would have nothing
to do with those billions in stimulus, easing, bailouts, etc that
have merely filtered through the banking layer onto the balance
sheets of the Fortune 500 beneficiaries.
The only solution
to the Greek, Spanish, Italian, Portuguese, Irish, and American
and soon to be Chinese, Brazilian, Japanese and Belgium problems,
is the issuance of more debt, which really just means
the electronic fabrication of more Euros, Dollars, Yen, and Yuan.
The touchy-feely warmth masquerading as a perpetually beneficent
sun is in reality a harsh light shone directly into our faces so
we cant see whats going on in the elite sky beyond.
Despite the apparent disdain for gold in any national financial
equation, here is another thing gold has to say, if it was allowed
you boobs. The only viable solution that has ever been embraced
after a period of monetary hyper-inflation, such as that we are
in the midst of now, is a return to the a gold standard.
who dismiss the viability of such a standard are either intentionally
disingenuous in their proclamations, or merely ignorant. The only
thing standing between fiat hyperinflation and the viability (or
the inevitability) of a gold standard, is the price of gold. Its
not a smart thing to say theres not enough gold in the
world to support a gold standard.
Gold, Im just too cheap. You boobs dont even know
how much Im worth.
(Im imagining if Gold could talk at this point, it would be
a little condescending
Gold is right.
Imagine a gold price of over $30,000 an ounce. Or $50,000 an ounce.
If we can fabricate $600 trillion worth of bogus, fraudulent securities
and commodities derivatives, what is the limit in value we could
accord something as tangible and intrinsically valuable, whose returns
as an investment have far outperformed any asset class in the last
So while congressmen
on the western side of the Atlantic Ocean, and Finance Ministers
on the eastern side of the Atlantic Ocean, squabble over the inevitable
increase in debt/money to preserve, at all costs, their standard
of living and expense accounts, gold quietly notches higher, silently
reproachful of every political twist and turn, patiently abiding
its time in exile from its rightful role as The Money.
Gold is now
shouting obscenities as us. Rude yellow metal.
with permission from the Midas
West is an independent capital markets entrepreneur and investor.
He is publisher of the Midas
© 2011 MidasLetter.com