Nothing To Do… But Wait.

I sit here in my abode listening to smooth melodies of Jazz enjoying life as I live it, primarily focusing on microeconomics and security analysis. Occasionally I’ll check up on the general economy but what’s the use. I think man has lost himself to madness and if not yet his intellectual demise is near. In hours at a time many will become many times wealthier and others will learn what the word “deflation” really means.

But what do I care. I missed that train but I will not chase it but patiently wait for the next. Wealth is being happy with what you have and awaiting opportunity so when it arrives you’re ready, and likewise when it starts moving you’ve already got yourself a fine seat.

Gold and silver is what Kings and Empires fought wars over and I’ve got my own stash right in my possession. They say Henry Ford was nuts for offering his workers $5 a day. That’s five ounces of silver. Today many people make that much in an hour.

So I wait. Anxiously but patiently. What will give? Higher Federal Funds Rates or Lower? The Sub-prime disaster that Buffett has downplayed or higher income? Corporate Earnings or Inflation? The Derivative-laden Hedge Fund industry or complacency for risk?

I’m not quite sure I’d like to know but when it does chances are it will favor things of substantial value and wipe away the excess liquidity of credit creation. Until then let the Dow Jones (I refer to both the company and the index) sell to the highest bidders, let credit and good fortune rule and let the manipulators over good will and true assets continue their schemes.

But do not forget that we are in a deflationary stage. This means that the economy as well as credit is in a stage of contraction regardless of how many dollars they print. The Fed is in a rut and watching what they do later this week will only enhance the entertainment.

Over the years I’ve learned one thing about the market… When the economy expands invest in valuable business. When it contracts invest in gold. Got Gold?


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