i'm a goldbug.

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    Frank Smith (aka "Atocha")

    "What to do?" This is the question most often asked me. This is a supplement to my Gold-Eagle editorial: "Debt: Part III - Debtism Prophylaxis". That previous editorial covered the more concrete actions such as how many ounces of gold to own, etc. It is time to have another go at THE question, with some thoughts from a new and more abstract level of perspective.


    There are two basic approaches to: What to do? There is the goldbug approach and the greedbug approach. The greedbugs are goldbug imposters. Justs as rats transmitted the 'black plague' in the previous dark ages, greedbugs transmit the 'green plague' (the dollar and paper gold) in this developing dark ages.


    The greedbugs are imposters as goldbugs because they practice an intellectual schizophrenia. First: As professed goldbugs they protest the financial unsoundness of fractional reserve banking by current bankers. Yet, they practice that same financial unsoundness when they engage in fractional reserve investing by the use of futures leverage and the use of margin for stocks. Secondly: As professed goldbugs they protest the green currency paper transactions lacking of physical gold and silver. Yet, for their their own investment transactions they often purchase paper gold and silver. They protest a paper debt currency and they purchase paper gold and silver debts. Thirdly: As professed goldbugs they protest central bankers risking all with debt. Yet, as investors, greedbugs risk all with debt in futures contracts and other paper debt vehicles. Fourthly, greedbugs protest the immorality of fatal risks taken by fiat fractional reserve bankers; yet, greedbugs 'invest' for themselves as immoral, fatal risk, fiat, fractional reserve bankers.

    It is intellectual schizophrenia for greedbugs to protest 1) fractional reserve banking; 2) a banking paper debt currency, 3) bankers risking all with debt, and 4) the immorality of such actions. The gross schizophrenic contradiction of greedbugs is their being a professed goldbug and then immorally gambling all with paper debt (like fiat central bankers); using paper margin (like fractional reserve bankers); and, their using paper gold debt transactions (just like paper green debt). This full blown schizophrenia seems to escape the greedbugs because of their aversion to thinking. Biologists have noted that greedbugs have a face at each end. No wonder that they never know whether they are coming or going. As greedbugs, they practice precisely what they so vehemently protest against.


    If you are a goldbug, the very first thing to do is to completely, totally emotionally accept 100% responsibility for all the decisions that you make: Win or lose. You assign responsibility for your investment decisions solely to yourself. You accept responsibility for your own behavior.

    If you are a greedbug, you are lazy by choice, self-contradictory in your 'morals', and in full blown schizophrenic behavior you use the financial practices that you so strongly protest against. You also emotionally assign the responsibility for making you rich to one or more gurus. As a greedbug, you take the credit when you win and you blame the guru when you lose. After all, as a greedbug you have no moral consistency. As a greedbug, you follow in chain gang lockstep the words of your favorite guru, or writers, posters, or advisors. It saves thinking.

    As a schizophrenic greedbug, do not be surpirsed when you end up in a self-made debtor's prison. As a self-made lazy and uninformed greedbug, YOU WILL NOT LOSE THEIR 'MONEY', YOU WILL LOSE YOUR 'MONEY'! (Thank you Paul James, Merrill Lynch commodity futures broker in the l970s for imparting that wisdom.) As a greedbug, it was YOUR decision to follow the guru advice and to risk YOUR currency based on their advice. If you are a splattered greedbug, fully emotionally accept responsibility for being splattered, steming from the fact that it was YOUR lazy decision and YOUR uninformed risk to BLINDLY follow the guru advice. Greedbugs are like children with blindfolds playing 'pin the tail on the donkey'. Greedbugs put on blindfolds and play 'pin the tail on the guru'. Precious metals investing is not a child's game. It is a ruthless war, full of disinformation, ambushes, casualties, broken promises, misery, pain, suffering and the 'fog of war'. I hope that I don't shock you too much; but, occasionally a guru selectively omits or distorts their past track record.


    2) Secondly, if you are a goldbug, you have the self-discipline to study many sources of current and historic information. Goldbugs read, study, and understand DEBT. Goldbugs read, study, and understand the history of MONEY and CURRENCIES. Goldbugs read, study, and understand DEPOSIT BANKING and FRACTIONAL RESERVE BANKING. Goldbugs read, study, and understand KONDRATIEFF and the history of MUNICIPAL BONDS back to the days of the ancient Greeks. Above all else, goldbugs understand the relationships between DEBT and PURCHASING POWER. "Debt: Part One - Purchasing Power" Goldbugs study with self-discipline, intensity and dilligence. Thanks to self-discipline, and due dilligence, one day it all fits together like the pieces of a picture puzzle. Then, the sea of Wall Street disinformation will no longer worry you or lead you to ruin. Goldbugs QUIETLY protect the future purchasing power of their loved ones with fungible physical gold and silver. But out of respect for their fellow human beings, goldbugs do not cheer on the progressive, painful human ravages of the 'green plague' (the United States dollar). Goldbugs love thy neighbors and have moral consistency between their words and their actions. With love for their neighbors, and pain in their hearts, goldbugs can not loudly cheer on the financial evisceration of their neighbors.

    Greedbugs let the relentless Wall Street media campaign of thousands of often false, tiny details, obscure and deny their understanding of the big picture. With their minds entwined in a vast sea of bogus spaghetti theories from the Wall Street media, they meekly surrender all cognitive functioning.

    Your financial future, your children's financial future, and the financial future of your children's children, depends upon your due dilligence and your correct decision making now and in the near future. Greedbugs are lazy and they substitute cheerleading for due dilligence.

    Greedbugs are easily recognized because they always carry gold pompoms and a megaphone. Their favorite cheer is: "Two bits, four bits, six bits, a dollar. All for the destruction of the dollar, stand up and hollar!" They cheer on the economic destruction of the western world and our descent into the worst and longest economic depression in the history of mankind. For this 'bull market in gold' is probably the final destructive 'bear market in the dollar' as presently constituted. "Give me an H for hunger! Give me an H for Homeless! Give me an H for hara-kiri!" With stone hearts, and only greed in their eyes, greedbugs cheer on the economic disembowelment of the United States and the world. With only greed in their hearts, they cheer on the evisceration of their relatives, friends, and neighbors.


    The two most difficult things to do are to accept full responsibility for your actions; and, to apply self-discipline to due dilligence. Let us now delve into some basic things. This editorial is my own personal opinions for educational and entertainment purposes. Climb aboard at YOUR own risk. This is not intended as investment advice. I am not an investment advisor. As a disclaimer, my IRA has never held anything except gold and silver stocks. Every individual has different perspectives and different needs. These are the free speech satirical rumblings of a cynical criminologist with a precious metals entrepreneurial background (retired, no inquiries please.).


    3) If you are a goldbug, you will study the big picture historical perspective until you KNOW that the dollar/gold relationship is not going to end at 370, 470, or 870, in terms of presently constituted dollars. If you are a studious goldbug, you KNOW that the silver/dollar ratio is still being suppressed with paper and that the silver/dollar ratio is not going to end at 5, l5, or 45, in terms of presently constituted dollars.

    If you are an undisciplined, schizophrenic, amoral, hypcritical, self-made lazy and uneducated greedbug, you will fret, sweat, and change your diapers out of fear that each twenty dollar move is the end of the 'bull market'. Or, you will fear that the gold/dollar relationship is going to two hundred presently constituted dollars; and, because of that fear you miss the purchasing power express.


    4) Goldbugs buy and hold. Goldbugs buy and hold fungible physical gold and silver in their direct possession. Goldbugs invest debt free, leverage free, and fractional reserve free. Goldbugs do not use margin for physicals or stocks. Goldbugs do not gamble in the futures market. Goldbugs do not make fractional reserve 'purchases'. Goldbugs know that the 'Grey Sheet' prices for 'collector coins' are often meaningless when selling because THE GREY SHEET DOES NOT BUY AND SELL NUMISMATIC COINS. So goldbugs do not buy numismatic coins.

    Greedbugs trade and trade. Greedbugs use margin debt and all the leverage that they can get. They maximize the fractional reserve backing of their investments. Greedbugs gamble in the futures market. Greedbugs behave as fiat central reserve bankers and as fractional reserve bankers. It was my experience during the l970s that almost all greedbugs were market losers during that historic precious metals 'bull market'. When the large multi-day limit down moves in spot came, the margin requirements were raised, and the greedbugs become splatter. If the stop loss orders did not splatter them, the increased margin requirements splattered them with margin forced liquidations. Greedbugs get splattered by margin calls, their own stop loss orders and by their own greed that fueled their use of debt and leverage for fractional reserve investing. Greedbugs are also prime suckers to be ripped off in the numismatic market. Nothing sells to a greedbug better than an appeal to greed.

    (A true story from personal knowledge during l979.) A man opened a commodity futures account at the Merrill Lynch office where I traded. He immediately went long about thirty contracts. He was quickly ahead over $100,000.00. He flew to the Bahamas and bought a condo with his 'profits'. Then he quickly flew back home and walked into Merrill Lynch. By then he had lost all of his profits and he faced a very substantial margin call and margin liquidation.

    (More from personal knowledge during the l970s.) This was before computer trading at home and many commodity futures traders came into the Merrill Lynch commodity office in order to trade. (Orders went through a tube to the 'wire room'.) There was about five of us who had been there for years. There was also a vast and steady stream of greedbugs who came, lost, and left, before we learned their names. In fact, we regulars did not want to get to know them because we knew that they would quickly be splattered losers and departed in devastating emotional pain. They marched in with grins and greed, and they shuffled out with thousand yard stares and tears in their eyes. The large inside glass window to the Merrill Lynch commodity futures office was usually well splattered with the remains of greedbugs. Greedbugs become splatter. That is their role in life, to keep window washers employed. I personally watched and witnessed a seemingly endless army of real human greedbugs get splattered when the precious metals markets became volitile during the late l970s.. The very same trading practices that 'worked' very well during the early stages of the 'bull market'; splattered them during the middle and late stages of the 70s 'bull market'.

    Goldbugs buy and hold fungible physical gold and silver and well researched precious metals stocks held without debt or margin and they keep themselves splatter-proof.


    5) Goldbugs quietly purchase and take possession of sufficient fungible physical gold and silver in order to protect the future purchasing power of their loved ones. Fungible physical gold first for survival (I prefer light weight, common bullion coins for spendability.); and then, fungible physical silver for increased profit potential. (I prefer junk silver dimes for the easiest spendability.) Today, that fungible physical gold and silver in goldbug safe possession is purchasing power that is government default proof, it is repudiation proof, depreciation proof, confiscation proof, immune to hackers, immune to contract default, immune to corporate stupidity, immune to corporate hedges, immune to corporate fraud, immune to an exchange default, immune to exchange rules changes, immune to currency changes, immune to faulty guru advice, immune to a real estate crash, immune to foreclosure, immune to liens, immune to bank holidays, immune to escalating real estate taxation, immune from EPA lawsuits, immune to fraudulent corporate accounting, immune to fraudulent lawsuit awards of compensation, immune to FEMA, immune to Presidential emergency decrees, immune to computer error, immune to mutual fund collapse, immune to government shutdown of derivatives markets, immune from nationalization, immune to forced margin liquidation, immune to stop loss orders, immune to subjective grading, immune to bogus certificates, fractional reserve proof, immune to dealer default, immune to a terrorist collapse of the internet system, and immune to confiscatory taxation.

    Once that they are debt free, and the unleveraged survival of purchasing power is accomplished with fungible physicals, goldbugs often consider the riches afforded by the stocks of the sound gold and silver miners. With survival assured, goldbugs purchase well researched and strong performing stocks of gold and silver miners without margin. Again, goldbugs buy and hold. Goldbugs do not trade out of a precious metals stock position unless after careful research they are convinced that their funds would be better invested in a specific different precious metals stock.

    Greedbugs are addicted to taking risks to the point of being financially suicidal. The more risks, the higher the buzz. Greedbugs act on word of mouth and spur of the moment impulse. Greedbugs love to spend their funds on commissions for trades. Greedbugs love to brag about their winnings and they have short memories about their losses. Being schizophrenic in words and deeds, and emotionally addicted to taking suicidal financial risks, most greedbugs don't survive in order to stay paper rich. Being addicted to the risk taking of financial Russian roulette is not conducive to retaining purchasing power. Wall Street calls them hara-kiri bugs.


    6) Goldbugs understand the many decades of cold, calculating, ruthless and unconstitutional white collar criminality of the United States government and the legislated private Federal Reserve Bank. Goldbugs know that they are not playing a child's game of 'pin the tail on the donkey'; or, 'pin the tail on the guru'. Goldbugs know that they are engaged in a war for the survival of their purchasing power. Goldbugs are engaged in a war to insure that they, and their generations to follow, will have purchasing power for food, clothing and shelter. Goldbugs are engaged in a war to insure that they do not come to live in a cardboard box, or a tent city, and eat at a soup kitchen. Goldbugs know their enemy. Goldbugs know that 'the game' is fixed and they figure out how to win because it is fixed. They know that their enemy is a pack of crafty and power rabid werewolves seeking their purchasing power. Goldbugs know that the werewolf pack comes to them cloaked in finely tailored sheepskin suits of altruism, the common welfare, expertise, trust, sympathy, social psychology games, cheerleading, disinformation from planted posters and planted gurus, and disinformation from the Wall Street media. In Wall Street, fine tailoring is the substitute for intelligence and honesty.

    Greedbugs, deluded by their schizophrenic madness, play musical chairs, 'pin the tail on the guru', and financial Russian roulette. They cover their self-made laziness and self-made ignorance by substituting cheerleading for due dilligence.

    7) WE; OR, ME

    7) Goldbugs have a moral consciousness. They practice the same morality that they preach. They act with moral responsibility to protect the purchasing power of themselves, their loved ones, their neighbors, and their fellow countrymen.. For goldbugs, "Thou shall not steal" is absolute and not relative to who is doing the taking. Jason Hommel wrote an excellent editorial on greed and "The Moral Failures of the Paper Longs".

    Greedbugs know three words: Me, Me, Me. The 'crimes' of fiat central bankers and fractional reserve bankers become the boastful virtues of greedbugs. All morality vanishes in a sea of relativism.


    If they think at all, greedbugs dwell on much ado about nothing. They think with a day traders mentality: "Show me the profits, today!" Too many have no concept of the historical context of where we are and where we are going. Too many are motivated by obvious self-proclaimed greed. Greedbugs soil their diapers green with each five dollar move in the dollar/gold ratio, so biologists call them green bugs or stink bugs.. Greedbugs gleefully contemplate and boast how they will spend their yet unrealized riches on the likes of luxury cars and yachts. They arrogantly and heartlessly cheerlead the precious metals message of the incremental economic collapse of the world economy and the financial demise of their neighbors. The greedbug pompous braggadocio is prime cannon fodder for a government campaign of scapegoating and taxing those terrible 'gold hoarders'. As more and more dot com greed afflicted fools become greedbug precious metals posters, this obnoxious trend will probably worsen. Too many examine their navels with microscopes in order to determine the dollar/gold ratio at the close today (short term) and at the end of the week (long term). With shallow, misguided, hypocritical, schizophrenic and amoral pseudo intellectualism, too many greedbugs look at individual leaves and they never see a branch, or a tree. Greedbugs never see that the forest all around them is ablaze with debt liquidation, collapsing purchasing power, and increasing human despair and misery. Too many sit on their nest and cackle about their golden egg. The precious metals boards all to often resound to the greedbug tune of: "Cackle, cackle, cackle".


    Well my greedbug 'friends'. When your golden egg hatches, it is not going to bring forth a plump and tender Thanksgiving turkey. NO! When your golden egg hatches, out will spring a mega totalitarian Tyrannosaurus Rex. It will be a very angy and very hungry totalitarian Tyrannosaurus Rex full of envy. A primary food source for the mega T. Rex will be the greedbugs, aka green bugs or stink bugs. Greedbugs are known to swarm like locusts about every sixty years. And now, that periodic swarm is swelling in numbers. Yet, like the Passenger Pigeon that used to darken the sky, greedbugs are on the official Wall Street endangered species list. As a T. Rex foodsource, the foul odored greedbugs will learn that you have to survive before you can get rich. Being a southerner, my palate personally prefers skewered and BBQed greedbugs. Marti, please light up the grill and get the BBQ sauce.


    If the greedbug slipper fits, wear it. And like Cinderella, you will turn into a skewered and BBQed pumpkin at midnight. I have consciously seen to it that I never made a penny, or accepted a favor, as a consequence of my editorials. I have never done any advertorials. So, I figure that frees me to speak my mind and write my opinions. This one does not cheerlead or preach to the choir. So, flame me!

    We are living in the doorway to one of the most cataclysmic times in human history. We are descending into a new dark age in history, afflicted by the 'green plague'. The excesses of technological debtism and the fatal flaws of a fiat reserve currency (the green plague) shall splatter the world (depreciation, default, and repudiation as means of debt liquidation) with 'green death' (a historically unprecedented collapse in purchasing power). Yet the greedbugs, oblivious to the historical significance of the 'green death' and the paper world ablaze around them, cackle like a clutch of hens chirping in order to hear their own voices.

    If modern greedbugs had been on the Titanic after she struck the iceberg, they would have bet their life savings and more that the ship would sink and that they would die in frozen waters. Then the greedbugs would have jumped overboard without life preservers in order to 'win' their bets. How about some snow white pompoms and a cheer for icebergs? That is the nature of the short-term behavior of the greedbugs.


    Look in the mirror and ask yourself if you are a greedbug or a goldbug. A single sincere testimonial of conversion from greedbug to goldbug would give me great cause for joy. I truly mean it.


    Fortunately, I know from my emails that there are many very serious and studious goldbugs world wide that are deeply concerned with the purchasing power future of their loved ones. I deeply regret that because of time and health limitations that I have not answered all of the very thoughtful emails that I have received. I sincerely apologize to those that I have not answered. I also sincerely thank all the true goldbugs who have sent me studious and kind emails. You and your heartfelt feedback are the reason that I still write editorials.

    Copyright 2003, Frank Smith
    [email protected]

    January 29, 2003

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