It's like making money on corruption and incompetence! (Mogambo Guru)

Richard Daughty, the angriest guy in economics -- World News Trust

Jan. 24, 2007 -- A lot of worried people ("I'm worried that gold and silver are not exploding to the upside even as we speak and that I won't be rich soon enough to suit me!") and a lot of angry people ("And I blame it all on you, you Stupid Mogambo Moron (SMM) and now I'm going to kill you!") are asking, in essence, "Why aren't precious metals moving up lately?"

To these, and many others, I hereby take the lazy way out and reprint my pithy reply to a certain Mike S., whose query was along that very line. "Dear Mike", I wrote, "What is happening is that there is a colossal short position in damned near everything, with the promise of more and more at the drop of a hat. Paper money, paper stocks, paper bonds, paper derivatives, paper silver, paper gold, paper soybeans, paper paper paper everything.

"And as long as everyone treats them as a money-equivalent, then how could prices go up if any additional demand was met with more paper silver (or paper soybeans or paper T-bonds or paper anything else) being instantly created and dumped on the market?"

And how long will this situation last? Ahh! That is the Big Important Question (BIQ)! And since you asked, I firstly assume that neither the scumbags who run the exchanges nor the regulators who are supposed to keep this corrupt crap from getting out of hand will, as usual, show any interest whatsoever.

Therefore, you can expect the price to remain artificially low as long as the number of people trying to take physical delivery is less than what can be brought to market without undue losses for the shorts, as then everything falls apart, with bankruptcy, scandal, investigations, media coverage, consumer and investor outrage, and a government that is suddenly a little too interested in what OTHER market scams are out there to suit the slimy insiders who are making all the money and running all the scams, and who are desperate to keep this thing going as long as they can!

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