Friday, September 2, 2011

Debt. Gold vs. Platinum. Banks sued.

^---  Note our Federal debt is over $120,000 / taxpayer (yes I know that this debt widget may not be the most accurate, but it is close enough).  $120,000, who has that?  Very few.  How do we resolve that?  Inflate it away always seems to be the easiest solution.

Which brings up precious metals.  Gold was up an impressive $50 + today.  Gold is now priced slightly higher than platinum.  That is historically rare (since Pt became seen as precious anyway).  Is this a sign that freegold may be coming?

I once asked FOFOA that by email (disclosure: I contribute), how quickly we could see freegold, what signs to look for.  He replied that it could happen at any time, soon or in the future.  I infer from him that it would most likely be a Black Swan event that would do it, something unexpected.  But, maybe just Chavez wanting his 99 tonnes of gold might do it.

Finally worth pondering this weekend is the fact that our government is suing a bunch of banks for doing whatever to Fannie and Freddie.  What a farce.  We bail them out, now we sue them.  We the taxpayers will pay again...  Some of the alarmists at ZH are saying the time has come to pull all money from B of A (and maybe the others).  I will settle for $500 / day at the ATM...

What a lousy week.  At least gold has helped me and many of you.  Imagine the hurt coming to those who do not have any...


  1. Nice day for traders. Imagine my pleased surprise when a couple hours after I'd gone long FAZ at the close, ZH reported that bank suit news. Though I could have held it longer, I closed that trade near the open today. Zowie, that has to be a record for profit vs holding time for me. I didn't quite back up the truck, but I DID get more than a shovelful.

    Then flipped into SPXU for the rest of the day (or nearly). Gold, Silver, fun fun fun. Didn't buy more though (yet) - I hear the plan is to buy low. I did get long in my fave oil company (BTE), currently hammered by a drop in oil and uncertainty about that pipeline from them to us, which of course will come right back up when people realize that most of the rigs in the in Gulf are shut down for the storm, and not producing...lemme see that candy, baby.

    All my staid divvie produces stood pretty pat, I'm fine with that, picked up a little more. Unless I see too-scary news, I think Sept will be a good time for bottom fishing a little, then sell later in Dec or Jan for some longer term (for me) swing trades. But my gut will decide that.

    Wish I did that well every day -- that was a months living expenses gained. Nice!

    People without gold (even the paper stand in) are getting hammered, you'd think they'd learn. Saw that tour of the GLD vaults on CNBC someone linked at ZH. Nice pile...if it's real. Sure was purty.

  2. To add:
    If I could cut the feds a check for $120k, and in return get a promise for "no more, leave me alone now" I'd do it in a heartbeat. Even if I had to borrow it (but I wouldn't have to).

  3. DCFusor, me too +++ re ENDING my Income Tax liability forever if I cut them a check for $125,000 (I'll throw in a bit more). Like you said, in a heartbeat.

    LOL and congratulations on your late FAZ purchase! I only managed to lose money in the leveraged ETFs, at least it wasn't too much.

    So, don't ask ME for short-term trading advice!


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