I have to admit that I was certainly intrigued by the five exclamation points, with the result that my Super Mogambo Senses (SMS) switched to high-alert status, looking for signs of danger, at the sight of them.
And fortuitously so, as I soon found dangerous things! Firstly, he writes of Franklin D Roosevelt in 1933 infamously ordering that
everyone turn in their gold at the nearest bank and receive fiat currency in exchange.
Even then, it was a government Big Screw Job (BSJ) because "At the time," he writes, "a $20 gold coin contained over $20.80 worth of gold, but the citizens got only a $20 bill."
Re-read the previous paragraph, and see if you detect a Big Screw Job (BSJ) in getting a $20 bill in exchange for $20.80 in gold, too.
There is no question that the BSJ continued, as next, Mr Arbutine writes, "Many of the big banking institutions shipped those $20 gold coins to Switzerland and other European banks where they received the full amount", giving the banks an instant 3.9% gain!
Next, as part of the next Big Screw Job (BSJ), "By another executive order seven months later (after all the gold was confiscated) the dollar was revalued in terms of gold, making a $20 gold coin worth $35 in paper dollars," in effect handing Swiss and "other European" banks a nice, instant 68% gain! ($35 - $20.80) / $20.80)! Instantly!
So, I figure something like that is "in the works" since there is nothing that can be done to save the economy, even by robbing the people with taxes, and/or killing enough old people and poor people so that Social Security, Medicare, Medicaid and all the welfare programs cost less, and/or constantly trying to print enough money to spend our way out of debt by adding to the debt.
Most likely, it will be a little of all three, and more. And under any scenario you can name, including these three, gold, silver and oil will go up mightily in price, not only to match the roaring inflation caused by the Federal Reserve (and the other central banks around the world) creating so staggeringly much new money, but almost certainly with a huge premium because the future is so bleak!
And so if you are NOT buying gold, silver and oil, then I gotta ask, "What in the hell do you want out of an investment besides virtually guaranteed huge gains and zero effort? I mean, you must be very hard to please, because, whee! This investing stuff is easy!"
Richard Daughty is general partner and COO for Smith Consultant Group, serving the financial and medical communities, and the editor of The Mogambo Guru economic newsletter - an avocational exercise to heap disrespect on those who desperately deserve it.
Republished with permission from The Daily Reckoning. Copyright 2011, The Daily Reckoning.
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