Commodities are the “thing” most of the experts say is the way to go as far as investments are concerned. Look at most if not all commodities prices in the last year, and you will find that everything from corn to gold, to just about anything else has gone up appreciably in depreciating dollars. Tangibles, in other words. But hold on there pardner! When all these smart people invest in commodities, where are they? Answer: They don’t exist, with the exception of physical gold and silver being delivered into the hands of the investors. Do these things actually exist when you invest in them? As far as silver existing in the COMEX, the answer is probably no, as the COMEX has violated its own rules for years as far as silver is concerned. What rules? The rule of thumb in all markets, which says you must own something before you can sell it!
Does this situation exist as far as corn, soybeans, and pork bellies? Probably, because these are merely “futures” contracts, and these things may not have even been produced or grown as of the time that the futures contracts are sold. Who knows what the future may hold? I don’t know for sure, but I do know that with a $40 trillion debt, the dollar is doomed eventually. I know not when, because all currencies are being printed, including the euro. Printing press ’money’ does not create value. Value is a tangible thing held in ones’ hand, and not some piece of paper with all sorts of promises on it or wonderful engravings…in my opinion. Look at all the sub-prime loans made with all sorts of contracts signed, notarized and recorded. They aren’t with the paper they’re printed on and many of the glorious Wall St. firms have taken huge baths, and continue to do so.
Where is the future then? I think it is gloomy, and even NPR, Wednesday morning, said that there will in all probability be 750,000 more foreclosures this year, and the bottom of the housing market is far from achieved as of now. Is the PPT holding up the stock market for all it is worth? In my opinion, the stock market should have crashed months ago. Like commodities? I don’t blame you, but why not try investing in commodities that are more than promises of future production or things which don’t exist? Men’s, governments, and corporate promises, have all too often proved to be either lies or promises which are impossible to fulfill. I think the best investment is physical, historic money. Tangible money which in of itself has value, and does not have value based on promises, deeds, recorded instruments, or fancy engravings. Paper promises are all too often pie in the sky, no matter who makes them. And just in case you didn’t know already, “Money Market Funds” are backed by nothing. They are mere promises by banks which are already in deep trouble. Millions think their “Money Market Funds” are safe, and they may be, but there is nothing in back of them. Absolutely nothing, other than promises by banks.
According to the American Monetary Institute, the credit market debt in 1946 was $350.8 billion. In 1956 it was $611.4 billion. In 1966 it was $1.187 trillion. In 1976 it was $2.904.0 trillion. In 1986 it was $9.816.1 trillion. In 1996 it was $19.744.2 trillion, and in 2006 it was $44,700 trillion, and that was over a year ago. I shudder to think of what it must be now. Could debts such as this ever be repaid without the printing press? I don’t think so. I am not trying to be an alarmist, but NPR this morning also said that due to the housing crash, ’Hundreds of thousands of workers have been laid off in various housing industry industries, such as making doors, roofing, plumbing, and other related fields.’ Yet, government press releases say that tens of thousands of new jobs have been ’created.’ Nuts. Sounds like the first column I wrote for Gold Eagle, which you can still access by clicking on “Archives” at the top of my web site, plus about 300 other columns. (I always seem to be accurate but premature).