I think it's time for a little nap, Laurie!
G'day. I feel like I'm in Bill Murray's "Groundhog Day" and I have no freakin' idea when it's gonna change. It will one day and my guess it will be with quite a bang rather than a slow deflation of the many bubbles. So we can just sit back and look for clues and take whatever gets dished up in the meantime.
Metals are doing nuthin' right now but an hour is a long time these days.
I hear Bloomberg carried an article today suggesting that maybe Elmer was misinterpreted the other day when he was gobbing off about the U.S. deficits and how things aren't so bad. Whatever. In my opinion, the fact of the matter is that they are insurmountable and no matter who says what, the recent fiscal announcements by GWB do nothing to address the structural issues facing the U.S. economy, let alone the massive 2 Billion dollar a day deficit that we poor suckers overseas have to fund. The deficits will not go away without some very serious pain being worn in the U.S., and quite frankly, I don't think the country or its leaders have got the ticker to address it any other way than by devaluing the dollar and inflating away everyone's debts.. Just my 2 lousy Aussie cents worth.
Sorry about this but I was watching the TV news and something came up that got the blood up. So take this for what it's worth. I read an article the other day where someone said in the defense of the fiat system and bashing "gold-bugs" or anyone who disagreed with the power of the U.S. dollar, that there is always somewhere else to go from the dollar if it gets to that... like Australia. He cited our commodity based economy, stable government system and a number of other "reasons" to head for the Aussie dollar. Obviously the guy has no idea what he's talking about when it comes the Land of Oz. U.S. citizens owe $2.5 trillion or just over $9000 per head and everyone's freaking out about it. We owe nothing like the total but individually we're up for over $13,000 and growing everyday. Not so flash is it?
Australia is no "pin-up" economy no matter what people think or read. No one here sees any problems either, especially watching the mainstream media. We have massive water problems. We have a property bubble that is out of control, but looking softer every day. Yes Elmer, I know one when I see it. Infrastructure in Sydney is literally falling apart. We can't even catch a bloody train down here with any certainty it will stop where it is supposed to. Hospitals have massive waiting lists and the health system is paralyzed. My older brother is a specialist emergency triage nurse and I know all about what's going on there. Education is a joke and nothing is being done to address anything. Everyone is turning to the government to fix it but won't pay a cent of extra tax and in fact want bigger government handouts. Welfare is a birthright, many contend.
We've sold nearly every substantial natural resource that we have including Western Mining Corporation (WMC) and the massive Olympic Dam resource, which will be rubber-stamped by our Government later this week in total disregard of the national interest. Olympic Dam is the world's largest copper-uranium mine. It also spews out gold, silver and whatever else you want to name in quantities that any country would do a "Welsh rugby supporters job on themselves" for. In this day and age I would think a massive uranium deposit like this would want to be government controlled, not by some faceless mob out of Switzerland. This is another chapter in the continued rape and pillage of Australia, all with our Government's blessing. The only one they have rejected, very begrudgingly, was Shell's (SC) attempt to control the North-West Shelf oil and gas deposit through its takeover of Woodside Petroleum, of which I have intimate knowledge of the why and wherefore. They let someone buy Mt. Isa for goodness sake (the same mob who want WMC!!)
On WMC, I have a number of ideas on how to keep this in OUR control, legally and without incurring any further debt. I have broached such with senior elected government officials, but I am fed up with pi$$ing into the wind, especially when about 75% of our elected representatives are lawyers who wouldn't know crap from clay, especially about the real world. Cop this for a decent resource, all in one mine!
China is hooking up with anyone and everyone who can supply the natural resources that they need to consume. Russia and Oil, Brazil with mining and agriculture, South Africa for gold plus.... What's going on that our guys, the Australian Government, can let my kids "inheritance" get stolen for some worthless paper dollars?
Enough of that stuff, I best draw breath and go for a walk.
Gold is still hanging around the major average at $412 and the Amex Gold Bugs Index (HUI) is doing bugger all. The IMF blurb has spooked the market. Waiting for a break, either way. Goldcorp (GG) rejected the Glamis (GLG) bid and paid a 50c special dividend. Nice, but I want Mr McEwen to pay the dividend in gold, not dollars! Seriously.
Comex silver could get interesting soon. I note that physical stocks are hanging around 100 million ounces. That's only $650 million bucks to grab it all. I see Donald Trump just hooked Deutsche Bank for a billion or so to build some temple to himself in Chicago. Anyone want to lend me a billion bucks for a few years, so as to take delivery of most of the world's above ground silver stock? I'll give them back U.S. dollars at the end. Unlike gold, there ain't an IMF or a bunch of Central Banks to scare the price down because no one has the physical, except maybe Mr Buffett. I'd take my chances with him.
It's time to punch out some zzzz's and we'll speak a little later.
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