Picture a couple of sweet little kids out to make a few bucks in summer while school is out. They decide to sell lemonade in front of their house. Mom is a big help. She furnishes the lemons, sugar, cups, a bit of change, and Dad makes the stand and does the sign. A classic American story. I did it, and so did you probably. I can’t resist one even today, because I want to help the kids. Usually business is not as good as it could be, so what do they do? They drink it or sell it to themselves. Might as well, because business isn’t so good. Now compare it to a current national habit, which in reality is like kids selling lemonade to themselves.
It’s called “monetizing the debt,” and it not only is going on, but will increase drastically in months to come. It’s like the lemonade stand, because they are selling the debt to themselves! No one wants to buy US debt? “OK, we’ll buy it ourselves.” How can this be? Since there are hundreds of billions of dollars which must be sold each week, just to keep us afloat, someone must loan it to us, or “buy our debt.” No one trusts the buck any more? Everyone is afraid of the dollar, because US sub-prime mortgages have infiltrated every single crevice around the world? “Hedge funds are going bust, so we won’t trust the dollar.” “You guys are in so deep, that you’ll never get out except by printing, and that will cause hyper-inflation. If I buy your paper, it may become worthless, or at least worth a lot less than I bought it for.” “Your stock market is on its last legs, and you are going to have tens of millions of homes in foreclosure, making the buck toast without any butter or jam. No thanks, I’ll steer clear of your dollar.” “Me? loan you idiots money? Do I look like I just fell off the turnip truck?” “Full faith and credit of what? You think you guys and D.C. have faith and credit? Ha. I’d rather loan to my dead uncle.” And so it goes. Sure, the Chinks are buying a bit, but selling more than they buy, so as not to cause a panic. The Japs are manipulating the yen right and left to cover up their sins, and the dollar presses are running 24/7. Helicopter Bernanke says we are only having microscopic inflation. Just a couple of percent, isn’t it? And by the way, the moon is made of green cheese.
The Federal lemonade stand, when no one wants to buy lemonade. We’ll buy it ourselves. How to do that? It’s really quite simple. Just print the debt instruments which are for sale. What? No one wants to buy those fancy, beautifully engraved notes, which are backed by the ’Full Faith and Credit of the US Government?’ (Caps to make them seem valuable). We’ll just have to buy them ourselves. And so they do. They create the money out of nothing to buy the notes, and you thought Monopoly Money was just a game? You thought that when he said ’we have the power of the printing press and will drop dollars out of helicopters if it is necessary,’ he was kidding? It’s become quite a common thing to blame Sir Greenspan for the big mess, but that’s only part of it. He played fast and loose with bucks and credit, causing Joe Six-pack and other morons to borrow, borrow, and borrow some more, without a thought of ever re-paying. “Sure, lets put another mortgage on the house, so we can buy a new Harley, boat, or take a vacation. The price will go up and we can pay it off with the increased value. Interest is low, and look, we can pay interest only.” The house didn’t ’go up in value.’ It was a balloon, dummy. All, balloons have to pop eventually. The buck is also a balloon which is going to deflate (slow pop) till they have to invent a new currency. It will happen.
Unless all the laws of economics are false and un-true, gold, silver, and tangibles of all sorts, will go up in declining dollars. They didn’t ’go up.’ Prices of gasoline, butter, bread, and light bulbs haven’t ’gone up.’ The dollar has GONE DOWN. Real estate has ’gone up,’ and now must ’come down’ for the same reason that the buck is sliding. Too many of them for sale, like Federal notes. 99% of American sheeple save in dollars. Makes sense, doesn’t it? Not to me, but to most it certainly does. Think about those 4% interest notes from the D.C. Gang, and then pay taxes on that 4%, when we’re having probably 11% inflation. I forgot! We’re only having a couple percent inflation, and 4.5% unemployment. Plunge Protection Team keeping things going? “Nonsense. You gold bugs make me ill. We have a wonderful economy,” So say the professional ’economists.’ Maybe the moon is made of cheddar cheese? The saddest thing is the total ignorance of John Q. Public, and the frauds on the boob tube proclaiming perpetual prosperity. It really is true…”The majority is usually wrong.”
Mattel is now recovering hundreds of thousands more Chink toys made with lead paint. I wonder if the over-paid executives at Mattel ever thought of opening an AMERICAN factory, hiring AMERICAN employees, (not illegals with fake green cards), to make toys sold in AMERICA. Probably not, any more than the rich by inheritance Walton kids never gave it a thought either. Isn’t it grand when kids get rich by inheritance, never do a day’s work in their life, and make decisions which affect millions of innocent workers who are thrown out of their jobs? I have a client who used to play golf with old man Walton. He said he was a great guy, but his kids weren’t so nice. How sad that a few guys who run huge corporations can throw an entire nation out of kilter and make other nations rich by their decisions. Hope your Labor Day was great. Ours was. Only 58 miles from a wonderful little mountain town of 9218 feet in elevation. Took the motor home and Jeep, and had a ball on steep trails, cooking out, and enjoying cool weather. Couldn’t write this stuff on Gold Eagle. It would have been censored! I don’t miss writing for them.
P.S. A moronic dealer has taken a bunch of the special edition .99999 pure Maple Leafs and had them professional graded to MS 69, thereby ruining them. These coins are so pure that if they are ever removed from their hard plastic case, they will be only .9999 pure. Now, he is trying to unload them, and guess what? No one in their right mind would want them. The .99999 pure Maple Leaf is in a hard plastic case, and there are a total of 30,000 of them. At 4% over spot, they are numismatic at a bullion price, and never need to be graded. A couple of years ago Canada came out with the 25th anniversary Maple Leaf also in a hard plastic case, for a few bucks over regular price, and they are worth a lot more now. I hate numismatics and those who deal in them, but the 5/9 Mapes are a good deal, while they last!