Oct 14, 2010

The case for buying boolits

I don't know  why some people  complain about a lack of "blog fodder." My regular morning tour of the financial press alone could keep me writing until the sun sinks slowly into the west, leaving me no time at all to live a life or make fun of politicians and hoplophobes.

I usually resist for three reasons. Not many people around here share my interest. I am usually too lazy to translate money-geek jargon into the kind of English that deals with actual referents.  And the field is defiled by a high proportion of nincompoops who, like His Obamaness, possess formidable bardic talent.

But an exception occurs this morning, probably because it aligns itself  with my prejudices:

“All I see is a wall of liquidity that is eventually going to be chasing too few things,” he says. “This is a story of swinging from paper to things.”

I doubt he's referring specifically to investing in 550-round bulk packs of Federal .22s, but he could be.  

By a "wall of liquidity" he means, of course, hyperinflation as the result of politicians pretending they have enough money to buy voting blocks, and voters willing to go along with the gag.

Chris Martenson is an "economic researcher," and he seems to make part of his living selling videos explaining why paper -- currency, stocks, bonds -- is a fool's investment. I tag along for part of his trip, especially since he's straightforward  in admitting he doesn't know exactly what will happen, or when, or whether a collapse  will be bad enough to  thwart the amazing ability of the human race to adapt. He adamant on just one point: The world debt level is beyond servicing barring an Industrial Revolution 2.0.

Beside, he's an expert who gives me permission to keep investing spare change in those Federals.  

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