The Mogambo Guru on Derivatives, Fiat Money, and Metals

Richard Daughty says "the reason for the calamity is stupidity, pure and simple" — It will happen. An excerpt:

The interesting thing to me is that The Economist magazine explains that the market for derivatives has gotten so huge because (and this is the important point) they are useful to people signing contracts, as "After America came off of the gold standard in 1971, businesses wanted a way of protecting themselves against the movements in exchange rates", by which they mean that nobody wants to experience a loss of the buying power of their stupid fiat money!

So, figuratively climbing upon my soapbox to thunder at passersby, once again we have one more damning piece of evidence, to add to the mountain of other evidence, that the US dollar being tethered to gold, as per the US Constitution, was a Good, Good Thing (GGT), and that any other arrangement was a Bad, Bad Thing (BBT), especially the fiat dollar thing, which was the worst thing of all things, and now the Worst Of The Worst Things (WOTWT) is going to happen to us!

The author concludes that before we get down to "hunkering down in our filthy, stinking bunkers waiting for the world to collapse in flames and the fiat dollar to collapse, as have all other fiat currencies in all of history and all the stupid economies that depended upon them," that "there is still time to buy... a little more gold and silver before the prices explode." Other gold bugs have come to the same conclusion:

Michael S. Rozeff is "long-term bullish" and "can generate targets like $1,370 to $1,465, $2,040 to $2,550, and $3,000 to $5,865" — On the Price of Gold.

"Make 203% as Washington becomes a global laughing stock," advises Adam Lass — Want a Way Out of the Economic Stupidity? Buy Gold.

"Gold is powering up towards $1,000 an ounce, and while the odd hesitation along the way is possible it will shortly cross this boundary, hit a new all-time high and then head upwards again," says Peter Cooper — Don't Kick Yourself Later for Not Buying Gold and Silver Now.