Helicopter Bernanke has reneged and joined the crowd. The presses were running overnight all around the world, including America. Trillions of yen, bucks, euros et al have been printed and “injected” as they like to call it, into the world’s economies. What could have been a real market action, has now been turned into just another bail-out for the fools, dummies, and idiots. Remember Long Term Capital? That was a fund managed by degreed, pedigreed morons, and when it went down, it could have taken not only the ’investors’ but maybe a good part of the whole economy. It should have! The so called ’economy,’ is merely pieces of paper controlled by governments and which fools the public into indolence and false expectations. As libertarians say, “TANSTAAFL,” Or “There ain’t no such thing as a free lunch.” Or is there? Bernanke has just cut the fed funds rate by a full half percent. Not even the usual quarter percent, but a full half percent. This is in spite of his decision not to do so just a few days ago. Can’t let the fools down, now can we?
Will this help? Of course, because now the traders, tycoons, and big wheels can re-gain some of their losses. Why should a half percent rate cut help, and especially since it really has no effect on mortgages or other stuff? Because it is all one big charade in the first place, and this is just another act or ’olio’ as a comedy act is called in a melodrama. How hilarious! Now, I’ll bet that metals will go up too, because sales will stop flooding the market so shorts can be covered. It’s all so shallow, but all the TV nabobs and ’economists’ are rejoicing, because the fed and other governments can ’save’ the economies by cutting rates and printing moola. One source says that since 1971, the buck is worth 6 cents in purchasing power, and another says that since 1950, it is worth 15 cents. Who knows? All we know is that since the ’injections’ of scrip everywhere, prices will also go up everywhere. But hallelujah! The world is saved!
Had this been allowed to continue, the fools would have been given their just due, and this includes no down, risky home ’buyers,’ trusters in hedge funds, stocks, bonds, and other sham paperwork. I know, your metals stocks took a bath too, and I am sorry, but that serves you right also. How do you know those mines actually have viable gold and silver? Even Dell Computer has to ’refigure’ its profits from the last few years, as it has overstated its income by $150 million, it is said. In other words, the world’s largest computer maker (in China) (until lately), has lied to its shareholders, and guess what? Their stock took a tumble. Sure, with price drops, my safe contents lost value, but it’s paid for, so who cares? I got no margin calls on what I own. My wealth in true wealth (ounces of metals) didn’t go down. Only it’s worth in dollars, but so what? Your metals stocks went down in dollars, and those stocks didn’t represent real wealth in gold and silver, but only dollar manipulation and maybe lies by CEOs trying to get their stocks up so they can sell at the top. No one knows what’s really going on in the stock market except the insiders in each corporation, and they aren’t telling. When they sell, and tell everyone all is well, better watch out. Like World com and Enron? Of course! Or that wonderful gold stock, whose CEO lied about wealth and production, and whose stock went from 75 cents to 2 cents. Stocks? Not me. It’s far more fun to go to Las Vegas and gamble in person, because that’s all stocks are.
I know, you all have made gobs of taxable money on your stocks. Maybe even more than with physical even? After taxes? Better check. and those ETF’s with gold and silver supposedly stored overseas? How do you know there’s a single ounce there? Never let anyone store anything for you! Go to the store, buy a steak, and tell the butcher, “You store it for me. I’ll pay you now, but you just keep it till I need it.” Wouldn’t do that? Stupid? What’s the difference? The only difference is that you might need the steak before you would need the silver. That’s the ONLY difference! Why trust ANYONE? You bought something? Then, for god’s sake keep it, hold it, fondle it, and have it. Don’t trust CEO’s of corporations, governments, and ETF’s. In other words, as I used to say on Gold Eagle (RIP) “Protect yourself.” Have a great weekend while you’re at it.