Week of Nov. 15, 2010
Euphoria In the Land of the Money Changers. I remember being on the floor of the IMM the day they started gold trading. They (the government) had finally unprohibited the ownership of gold in this, the land of the free and the home of the brave (LOL). It didn’t take long before everybody figured out that all those that wanted to own gold already owned the stuff (some of us are patriotic types. The government calls us rebels and criminals.) So it wasn’t too long before I stood on one side of the pit, and found myself selling the stuff to a big pork belly trader (next day was my biggest money making day when the gold opened up limit down). So, on this day of the resurrection of GM, I have to be callous again, and start to think, what’s it going to mean to the market if this thing (GM) goes belly up?
How is it that we couldn’t own gold? Hhhhmmm, gold is mentioned in the Constitution, isn’t it? It’s supposed to be in our coined money, isn’t it? Don’t people go off to war or swear to uphold the Constitution in their different jobs as police men or politicians? Makes you wonder if those folks have taken the time to read this document that they are pledging their lives toward. Seems to me the document calls for coined gold and silver money, seems to me the Constitution prohibits the states from making any thing other than gold and silver coin a tender in payment of debt (tell that to your tax collector when he sends you a greeting). And doesn’t the Constitution require that the Congress only borrow coined gold and silver money (of which there is a finite amount, thus preventing unlimited national debt?)
The whole thing is a fraud. A deception. A big lie. So we remain committed to the short side of the stock market and will continue converting our profit to hard assets. Our Daily Comments continue to track ETFs that reflect both equities and hard assets, as well as interest rate yields. Expect interest rates to go through the roof, and the higher rates, as well as our depreciating currency, will destroy the stock market.
Lawrence Sarsoun
The ETF Report
sarsoun@cfl.rr.com
