Re: Contrary Indicator? and The House of God
in response to
by
posted on
Jan 31, 2010 09:36PM
Creating value through Exploration and Development in the Sierra Madre of Mexico
Joe and Everyone: We shall see about Carotare. I think it's going to be a very positive announcement. Also, you will all remember that Kimber is in the process of doing a financing right now. The stock always does this when this is happening. One reason for this dip is that Kimber shareholders are selling shares to get into the financing. This pushes the price down. Sometimes they even sell at less than the financing price. This seems not to make sense, but it happens.
My belief is that when the financing is completed and the Carotare results are announced we could see a great run-up in the share price. And if we don't? I will ask you all once again, what on earth would you put your money into besides this?
Let's consider a few options...
Bonds? What are bonds? They are promises to receive future dollars with interest. Not a good idea in certain situations. Ask bondholders of the Confederate States of America. The dollar is a doomed currency. The United States is probably not doomed, but this particular United States Currency is. Who would bet on it surviving this? It would be like betting on Barry Bonds to make a comeback. Sure it might happen, but it would be short-lived and fragile.
The Dow? The Dow is an INDUSTRIAL AVERAGE. Here's a question: How do you make an industrialist laugh? Show him the DJIA. Remember the great industrialists this country once had? Ford, Carnegie, Rockefeller, Insull. Show them the DJIA and I think they would do a double take. American Express, Home Depot, Disney, Coke, Bank of America, General Electric (The great industrial behemoth turned financial services company)? McDonald's? What the heck is Mcdonald's? An abomination, that's what. Selling crap food to an already unhealthy people and children making them fatter and clogging their arteries to drain huge amounts of needed funds out of the general coffers for coronary artery bypass grafting operations. What a nightmare! McDonald's destroys the productive capacity of the United States. It adds nothing positive to the economy or the world.
What are we making here anymore? We don't make anything here anymore that someone else can't make better, stronger and faster. Even true industrial components: Caterpillar, 3M, Boeing can't depend on their names forever to carry them. They pay their people too much to make too little. Intel, Cisco, Microsoft. These are thought companies, innovators that are where they are because of the minds of their founders. They stop innovating and they die. Andy Grove was right. It is "Innovate or Die!" But that's only because we pay people too much to produce too little so they can leave after work and forget about their jobs and play fantasy football and ride around on ATV's for fun. What about the days when people took pride in their jobs, in building something? What about the days when Ford Quality meant quality people that built quality cars? "Innovate or Die!" What about, "Produce or Die!" or "Manufacture or Die!" We don't produce here! We don't manufacture here! What do we do here? We whine and complain about why grocery stores need to supply us with motorized scooters so we can move our big fat butts around and buy more frozen pizzas and Cokes.
No, no. The DJIA is supposed to be a measure of Industry. We have no industry. The service economy is a myth that will be laughed at by historians. A chain of hotels that calls paying its maids an "economy" years after its guests have all disappeared to vacation in China or the Philippines is a joke!
Why invest in an index that reflects the value of something that does not even exist?
Financial Stocks? B of A, Citibank. That dynasty, built on fake money and legerdemain is about to crumble too. They don't make anything. They don't add value. Financial products? I may just throw up. What a waste of brainpower. A whole generation... correct that ... two generations brought up under dishonest weights and measures, worshipping the gods of Wall Street. Worshipping the bankers. These kids should have been learning how to build things, how to make things, how to create things. Instead this government's disastrous polices of rewarding the stupid and lazy and punishing the hard-working have pushed these once fine young Americans into unwholesome positions, teaching them how to steal from each other as the way to supposedly find happiness. And now, more confused than when they started, they find themselves, doing evil things, playing an elaborate game of financial musical chairs with the number of chairs shrinking rapidly.
China, Vietnam, Japan? They're all built on the dollar system too. They won't escape a dollar collapse. They might just end up causing it. They're smart, those Chinese, but obviously not too smart. FDR figured out that it would be better to let the Japanese bomb Pearl Harbor rather than have a Communist Revolution. Chiang Kai-shek didn't have such foresight. But now the tables have turned. You don't think those Communist leaders in China aren't crapping their pants right now wondering about a peasant revolution that will cost them their heads?
Russia? Please....please!
Real Estate? Hyperinflation ALWAYS leads to deflation. And boy oh boy are we in for a whopper Deflation this time. Look for real estate to hit 1995 prices before 2013. You can use your silver and gold to buy it back then.
There is nowhere to put your money but gold and silver. Nowhere. Not oil, not corn, not farmland. We might have hyperinflation first. I believe we will, but deflation will follow. I don't give a darn how much or how little oil is left in the world. No one will have any money to buy it. Cars are going to diminish in numbers tremendously. Middle class families, or what's left of them in ten years will be lucky to have one car for all to share. People are going to eat less meat. Fast food restaurants are going to all but disappear. Cell phones will be much fewer in number. High schoolers twenty years from now will have no idea what "texting" means. Nursing homes will become a thing of the past. Pacemakers will no longer be surgically implanted as family members who today "want everything done" will suddenly decide, when they have to start paying for things, that perhaps it might be better to let Grandma "die with dignity."
Gold and silver and the companies that mine them, are your only sure bet. Get that? A sure bet! You are betting with the house and the house always wins. The house is not the house of Goldman Sachs any longer. It is the House of God.
Now, life is pretty boring just holding everything in gold and silver bullion, so you need to find a miner or two to invest in. What is better than Kimber out there? What is better? Where else will you go? Show me a better company out there, with better prospects and better management for the money. There is not one. Believe me. My people and I have screened them all. It's doable in this industry.
No story is better than this story... http://www.youtube.com/watch?v=jl9kDNfVvVU
See it! The bubble is in the dollar. It is getting bigger everyday, and it is going to burst. There is a lot of money to be made in Kimber. A lot of real and lasting money. I would advise all of you, your families and your friends not to miss it. Don't be nervous. Don't be worried; just sit and wait. Bull