Wednesday, June 6, 2012

Guest post from Mammoth


Inside a made-in-china bag of toys that my 6-year old received as a gift, I found this toy debit card!  Doesn’t this bring back memories of the toy credit & debit cards that you played with as a child?
 
Oh, wait a second – they didn’t have these back when you were a kid!  Children’s toys are a reflection of the adult world, and they thus tell a story.  And that story is one about the transition from an economy that was based upon manufacturing objects of value – to an economy whose foundation is borrowing and creating debt.
 
To a 6-year old’s mind, when you buy something it just magically becomes yours.  To the mind of those adults who manage the money supply, printing more money (electronically or on paper) magically fixes the economic malaise.
 
One may excuse the child for not understanding how the world really works, but not the adults…
 
by Mammoth




344 comments:

1 – 200 of 344   Newer›   Newest»
Mammoth said...

Thank you Queenbee for putting up my post. You may take the rest of the day off! I hear that it will be warm again in Florida today.

Anonymous said...

Outstanding Mammoth! I hope some of the SD's come over to visit the Bee. I think they'll be surprised.

2 OZ.

Anonymous said...

It seems that we wee the lost generation...lost in space and time...but not in awareness to the worlds maladies...I have traded in PM since the 1970's...just wish I had kept more of it in my control...good luck all as the next storm is near!

Best

Triplef

edgar said...

Member since 1998? If the child got that card at birth that would make them a teenager already. btw, i hear teens are really good at spending money.

Gold up, miners down. Mining is expensive and marginal.

chicken little said...

Greetings all here at THE HIVE!

Like McArthur (anyone remember this line?) I HAVE RETURNED.

We were in a very 'tourist' area of Western Md, (Deep Creek Lake) for the Highland games for our anniversary trip. I can tell you that people were spending money. WE were our typical 'careful' type selves. When they want $34 for a steak, I look for 'common' fare. Our anniversary was a tiny place that had plain fare on a buffet with baked chicken, hot applesauce, sauerkraut and kilbasa, etc. for $15. Not a 'big deal.' We ate at the hotel for their special prime rib the next night for $15 per person. We also kept tabs low by shopping for breakfast at the local market and buying our own fruit to go with the complimentary coffee/tea. We did a mile-and-a-quarter hike on our anniversary to some falls and got some great pictures. It was fairly early so the park was virtually tourist free. We also took a ride and got lost (my hubby was humming from DELIVERANCE) but enjoyed the trees and wildlife (groundhogs). We loved the sheepdog herding DUCKS as well as lambs; the reenactors; the pipers, and, especially the SHORTBREAD baked by the local church.

We had a great breakfast at a small antique store/stool & booth breakfast/lunch place inside. Darned if I didn't see the button cash register I used to play with as a kid! I remember adding up stuff out of the pantry to pretend and using money to learn how to count. The lady at the cash register and I were speaking on Mammoth's topic about how kids today can't even tell time on a face watch, let alone make change!

It was a nice trip but it is good to be home. The maid left us a personal note thanking us for the small gratuity we left each day. Evidently, even a place like this (golf/ski/spa type) people don't usually think to thank the help. I WILL say that everyone was extremely friendly and anxious to please. As we had a 'king' room with separate sitting room we had a key to the 'lounge' where water, soda, coffee, etc. was free and access to a computer.

Course, I see where the world has dropped off a cliff since I left ;-)...! Still, the sun came up today.

edgar said...

http://online.wsj.com/article/SB10001424052702303665904577450142645764320.html?ru=yahoo&mod=yahoo_hs

Queenbee said...

Thanks for the link Edgar and the nice personal story CL. That is what makes this place special. Personal stories, Gold, Silver, Miners, Charts, Macroeconomics just about anything goes.

Mr. Kowalski said...

I completely agree Mammouth-- Iceland should be the model for the way forward, not Greece.

I was kinda surprised at the central banks today-- the ECB did'nt lower interest rates or do anything. The Fed's beige paper came out, and more or less they said all is well, so there looks like no more QE either.

For crude and PM's, look out below. Unless things change, I look for gas to go below $3.00/gal.

chicken little said...

I must have missed something while away.

I own no crystal ball to tell me whether gold/silver will increase or decrease. I simply see it as another form of diversifying a portfolio.

I read SD from the link on this site. Did it always offer a sales pitch? Or was that recent?

To me, and this is only ME speaking, it is a wise person who judges someone who is selling something as having a different sort of 'skin in the game'. That goes for those selling financial services of any type. If you want advice without partiality, then you go to a planner who isn't SELLING a particular interest. Then you 'may' have a chance at getting it. (Even then it is a toss up!)

Any site that fails to consider POLITELY those with a different opinion is one that I would consider as suspect. There are many varying opinions here. I have been chastised here but always with a degree of politeness for the most part which is why I stay. Anyone can read people they agree with; it takes a truly intelligent person to deliberately try to gather information on subjects/opinions that they disagree with so as to learn.

I think most, if not all, at THE HIVE are interested in learning from one another.

Just my opinion.

Queenbee said...

Continued
"The majority opinion on all gold and silver bug sites are not always right.
Me: They can be dangerous as I was told that one new girl to TD's site bought a monster box at peak. I don't think she knew what she was doing but just an opinion. Remember we all have one. Investing from a one sighted point of view can cost you everything. That was my intent.

"I don't see any death throes and life pretty much is normal in Europe from those I know there and people who have visited. Don't always believe the sky is falling."

Now Mugabe WMW and Bukko who just got back said that life has not ended and people from their comments give me that impression. Maybe the economies are close to "death throes" as Sinclair put it. We talk about the issues in the Eurozone all the time.

"Types like Sinclair or Eric King being broken records."

"Jim Sinclair is a broken record. He will be saying gold is going to the moon when it is trading again at 500.00. The man can be heard every week on KWN stating the same BS."

Queenbee said...

Imagine if GAW or MrK or anyone made an opinion and I just called it BS. Then I took it out of context and added what a stupid person you were.
I don't think there is objectivity on SD and other sites like that. I was actually trying to fit in and got blasted for my trouble.

Queenbee said...

You can see my comment in it's entirety on the SD blog at:

http://www.silverdoctors.com/jim-sinclair-we-are-witnessing-the-death-throes-of-all-fiat-currencies/

Queenbee said...

CL thank you for your comments. It has been a long time since anyone has said anything negative about another persons thoughts here. Your personal stories add flavor just as Mammoth's does about gardening and his lovely daughter.

I did finally reply since I was called out. I don't understand why people feel the need to attack others and call them names for having an opinion.

I even told them if they have any content to add they are still welcome as long as they stay within the boundaries of our culture.

Queenbee said...

Anon comments are turned back on. I don't want to restrict anyone. Even the spammers. I can easily delete it if the content is inappropriate.

Anonymous said...

Just checking to make sure anon comments are working. QB

chicken little said...

I have to say that while I know people fear the net compromises their identity, I sometimes wonder if we all wouldn't be better admitting who we are and stating what we believe rather than hiding under tags such as Anonymous? I mean, I understand the reason people try to stay under the radar but isn't that part of the problem we have? Shouldn't we all be willing to stand for what we believe if we truly believe it?

(This isn't against the many who use this tag, it is simply a comment on the 'times we live in.'

I think (again...you all must be tired of hearing this) about my fav movie 1776 where poor Hamilton was worried because 'MINE IS THE ONLY NAME ON HERE.' And Franklin's "we must hang together or we will all hang separately!"

I know it is a naive supposition and I understand secrecy (I mean, I was alive for WATERGATE) and I understand the need to protect whistleblowers and all the tinfoil mania out there, but there may come a time when neighbor will turn in neighbor and all the anonymous tags in the world won't hide us...

gaw said...

If they don't like what you say, so what. There is no need for personal attacks. Opinions are like rear ends, everyone has one.

Honestly, I can momentarily feel some pity for people who are so close minded they get upset when someone posts an opinion about something like gold. Then I say, screw 'em.

And I have probably, at times, owned more gold/silver than most here, or at SD, for that matter. Around 2006 I had 15K oz of silver and 100 oz gold. So what, I sold it for a good profit, and moved on. Maybe I didn't capture all the profit I could have, but who cares - any trade you make a buck is a good one, move on, and never look back.

It's just a metal FFS. It is dug up out of the ground, and has a "value" only because we all agree it has. Get over it already.

gaw said...

cl - glad to hear you had a good holiday.

Those are the important things in life, the good times shared with family and friends.

After we move on to a (hopefully) better place, does it really matter how much gold you owned?

Mammoth said...

Great comments today as always and welcome back Chicken Little, glad that you had a good vacation. You deserve to have a bit of fun!

GAW well you really had quite an enviable stack of PM's and it is good that you sold all that dead weight before you dropped it on your toe.

Would be interesting to hear how you stashed it all. You probably did not sleep very well on that lumpy mattress.

The Contrary Indicator said...

Speaking of PM's, I bought a fistful of old Silver coins today. This was the first tikme that I have done so in months; got it for just a hait over tonight's spot price and some of these coins appear to be in uncirculated condition.

But today's purchase may be taken as an indicator of further price drops in PM's - it happens every time I buy!

The Contrary Indicator said...

Apologies for the typos. Writing when you have a purring cat on your lap - who is rubbing his head against the mouse - is my only excuse for this.

gaw said...

Well, don't tell any gold bugs, but it was all 'paper' RBC certs. Which, if you know anything about Canada, is really a bet that the Federal Government of Canada is not going out of business.

RBC is officially TBTF, and I am 100% certain they would be fully bailed by the Feds here is they had to be. I could not care less if they actually have the metal in the vault to back the certs, as I would be getting paid regardless. Which I don't think they need to be bailed anyway, they are pretty healthy financially, certainly better than 99% of the rest of the worlds Banks.

I could get concerned, but I'm just not that paranoid. If it gets that bad that RBC fails and the Feds can't bail them, it would be time to seek shelter in a fallout shelter. In which case food and water would be the primary concerns, and having a large amount of real metal on hand would be a dangerous liability, without a lot of formed lead to protect it, and never being able to sleep soundly being worried about it.

gaw said...

It's a no brainer actually.

Where else can you buy 10K oz of silver at the NY NYMEX spot price, with a 5 min phone call or 5 seconds of mouse clicking, and pay a grand total of $225 commission, with no storage, administration or any other fee ever after, until you sell it, and pay the same. Which I did many times.

Compare that to the cost and time involved to buy/sell the physical, and it's an easy choice.

Just the time involved to bury the physical in the backyard, and then dig it up again later, if you can remember where you buried it - I'm too lazy for that chore.

I'm sure a true goldbug would be horrified.

gaw said...

What really makes me laugh about the bugs is they will lecture you for hours about how every other investment choice is so manipulated you have no hope of making any money, and are totally insecure.

As if the gold market is not subject to manipulation. I guess they imagine that somehow it would escape the manipulators attention, or that gold is so pure it just can't be manipulated. Sure.

It's really rather touchingly naive to think that, but they do.

I guess they figure that if they hold the physical they can sell it or barter it, after the SHTF, at a price that is not manipulated. You better have an armed tactical team to guard you when you go to do that, or somebody will relieve you of your metal pretty quickly. And kind of hard to figure out what the "fair" price would be, with no internet or markets open.

But reality has never stopped anyone from having their firmly held delusions, and brooking o contrary argument. Whatever.

gaw said...

Mammmoth - thanks for the post.

Sad to see how low our society has sunk these days, isn't it?

But that is the world we live in. Does not mean we have to buy into the consumer consumption society myth though.

If they were counting on me to buy enough to keep the wheels turning, I am sad to say, dream on.

I buy almost nothing new these days, and don't feel bad about it at all. Big box stores are an interesting sight, as I drive by, without stopping. I buy things I really need, only when I really need them.

Other than PC parts etc, but that is a hobby, not a necessity. I work at a place where I could get an extremely low cost refurbed gadget of almost any type, nfor about next to nothing, and I can't be bothered. Hundreds or thousands come and go every day, by the turckload, who cares. Yawn.

gaw said...

At least you can get a good laugh from the MSM, where "Investors were disappointed by Bernanke's failure to launch QE3"

LOL

The crack heads were ready to riot when the boulder baggy did not get refilled.

As if QEx will do dick for the real economy anyway. Ole Ben has fired all the cannons already, and the little flag that said "Bang!" has already deployed.

Central Bankstas can flood the world with "liquidity" and it will do nothing, except inflate the price of a few select commodities - making the economic situation worse. If only they could drown themselves in it.

The velocity of money is moving about as fast as that dead skunk somebody ran over last week. And there is zero hope of changing that anytime soon.

See this for a good explanation:

http://advisorperspectives.com/dshort/guest/Lance-Roberts-120606-Fighting-The-Deflation-Dragon.php

gaw said...

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/9317854/Spain-too-big-for-EU-rescue-fund-as-China-recoils.html

LOL

"China's sovereign wealth fund said it will not buy any more debt in Europe until the region takes radical steps to restore credibility.

While the International Monetary Fund thinks Spanish banks require €40bn or so in fresh capital, any loan package may have to be much larger to restore shattered confidence in the country.

Megan Greene from Roubini Global Economics says Spain's banks will need up to €250bn, a claim that no longer looks extreme. New troubles are emerging daily. The Bank of Spain said on Thursday that Catalunya Caixa and Novagalicia will need a total of €9bn in new state funds.

JP Morgan is expecting the final package for Spain to rise above €350bn, while RBS says the rescue will "morph" into a full-blown rescue of €370bn to €450bn over time -- by far the largest in world history.

"Where is the money going to come from?" said Simon Derrick from BNY Mellon. "Half-measures are not going to work at this stage and it is not clear that the funding is available."

Is that all? Whew, glad there's no problemo.

gaw said...

"Eric Dor from IESEF School of Management in Lille said Spain would have to step out of the EFSF as a creditor the moment it asks for funds. This has instant effects on the residual core. Italy's share rises from 19pc to 22pc, and Italy is in no shape to face extra burdens. France's share rises from 22pc to 25pc, and Germany's from 29pc to 33pc.

"The credibility of the guarantees given to EFSF bonds would collapse. This would cause an incredible turmoil on the European sovereign debt markets," he said"

Waiter! Another round of Failout over here! And make that a quadruple!

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