PROFESSIONAL GUESSERS AND FEARFUL INVESTORS

17 08 2011

Authored by William Robert Barber

As the stock markets of the world kinetically vibrate, setting a pace of newly found extremes for sell-off and buy-in, investors surrender to the bafflement of two offers: The first is to accept the blindfold, and the second is to stare-down the oncoming bullet as it races for the spot just above one’s nose.

Speculators of genuine risks are buying gold futures, coin, and billion by following the golden rule for speculation: Prices rise when buyers significantly outperform sellers — of course the opposite rings just as true.

Remember! The purchase of gold does not add capital to a company’s balance sheet; these treasures will not fund research of discovery or invention. An ‘investment’ in gold is a bet founded on the principle of hoarding.

King Midas regularly counted his gold; but he gained no material benefit from the gold until he made a purchase. Obviously, as soon as Midas transacted a purchase, he not only had less gold but the price of gold as a necessity of market dynamics depreciated. When one sells ones — gold which is a requirement in order to attain a product or service — one does so by a conversion to fiat currency. In other words, eventually one is going to sell gold for legal tender; otherwise, there is no benefit to holding on to gold. If I was a holder of gold I would want to be first in line on the selling side because if I am not in the front, the price of gold will be far less valuable to me standing somewhere in the middle of the sellers pack.

Licensed professionals bandy about their theories and conjecture their forecast. All of these suit-and-tie personalities act as if they were/are the bona fide harbingers of repute, each exuding the confidence of an “I knew my horse would win” bettor; of course this is only after the horse race was over.

It is my belief that genius, like wisdom, and luck are results that can only be accurately measured in arrears. No one knows — one only guesses that one knows.

A hypothesis, a tentative explanation of a phenomenon, is a best guess effort to explain what we do not know for sure. I believe all of these professional guessers are sincere hypothesist striving to analyze and present a reasonable rational commentary on an event that quite possibly could be wholly unreasonable and irrational.

The statist that occupy the White House lament that the Stimulus was too small, not big enough because they miscalculated the enormity of the economic Bush debacle. Their premise of finding the economically viable light and the way has not moved one iota from their insistence that Keynesian economics is the answer to the woeful status of present US economic ills.

In keeping with that belief they also believe that the federal government can directly create private sector jobs. Well, the certainty is that the federal government cannot directly create jobs. Other than covertly enhance or overtly embrace governmental bureaucracy, possibly bedfellow, even more openly the unionization of America, government involvement in private business can only increase the cost of doing business, stymie productivity, and – when coupled with Obama’s resolve on super-regulating enterprise – government can only belay growth.

I have no idea why we need to relearn the simple and palpable over and over again. Capitalism is the most potent of economic methodologies/systems. Currently, the federal government is managed by progressive persons who depend on an ever-increasing manifest for governmental largeness; they depend on the viability of increase taxation as a matter of policy. Factually, liberal progressives could not sustain their raison d’être, their howl in the light of a full moon if government is limited in operational scope. Progressives require a big fat bureaucratically enriched government in order to inhale their brand of oxygen.

This American economy will overcome the Keynesian policy of where-for-naught as it intersects with the Obama administration’s design of social justice and class warfare; it will rise above the ills of the EU malaise, it will, with the aid and assist of the Supreme Court, withstand the costly breach of good sense by rescinding ObamaCare. All is to be rightfully settled in the election of 2012.

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