Prize

........... Recipient of the 2010 MacDougal Irving Prize for Truth in Market Manipulation ...........

September 2, 2014

Investment Opportunities under Communism: Part 1


      Thing is, there's no wondering how it could ever happen here.  We already live in a communist state, and have been since our Marxist Central Party in Washington manipulated their nationalized banks into giving away what were actually free Trotskyite houses to pinko comrades who didn’t really pay for them.  Before communism, responsible capitalists would buy a home through a traditional lender with their own cash plus a mortgage loan, and the loan principal got repaid over time, completing the transaction in 20 years or so.  To switch us over to bail-out banking, the insidious form of sedition that made Marxism possible on these shores, all the Central Party had to do was nudge nationalized banks into cutting out that silly cash part, and then make pretend loans to low-or-no-income Bolshevik deadbeats, and dump that worthless paper onto unsuspecting capitalist suckers who had it coming because capitalist suckers have money and, to the invidious collectivist mentality, anybody who’s got money always has it coming.

      Problem there was, the Marxist Central Party in Washington is run by lame-brained Maoist idiots, and the lame-brained Maoist idiots in control of the train wreck called commie America can’t think further ahead than the day before yesterday, so their misguided attempt to foist bail-out banking on us failed miserably.  That doesn't mean American communism went away though.  Just look around you.  Nothing works right anymore, and what we're left with is this: commie America got pulled off the tracks by Marxist bail-out banking and will keep getting pulled off the tracks by Marxism as long as a short-sighted commie leadership keeps giving away free pinko stuff to oblivious proletariat dolts who vote to get free pinko stuff from them.

      And so, the banks got “rescued”, newspeak for nationalized, the commie Central Party took no heat from the Stalinist propaganda machine that has become our media, and free-market suckers like you and I ARE STILL BEARING THE ENTIRE LOSS stemming from the stealth commie takeover.  In fact, lately innocent bank shareholders have had to fork over spectacularly obscene Justice Department payoffs that felonious banking racketeers arrange to keep themselves out of the slammer - and keep that lavish campaign contribution payola flowing.  Moreover, our totalitarian central bank has been printing commie funny money in ways that suppress interest rates to the point where capitalist suckers aren’t being paid what it takes to assume the risk of getting targeted at the center of the market crash crime scene every damn time, which would be right there in your asset management account, where the upcoming next big train wreck is scheduled to take place again soon.

      About here in functional, or free-market, days, MacDougal would be recommending bonds, but there aren’t any bonds in dysfunctional commie times, just commie crazy paper.  Commie crazy paper designed to keep failed destructionist politicians in power.  Just as these failed destructionist politicians publish fictional statistics proving that the consumer prices we see going up aren’t going up, they issue pretend commie Treasury securities priced to turn a blind eye to the eventual inflationary apocalypse that will destroy utterly the family savings of anybody duped into holding pretend commie crazy paper.

      Maybe it’s time to back up the truck and start loading it with, and MacDougal never thought he’d ever say this, ever in his entire life, gentle readers........... GOLD, for goodness sakes.  Or gold mining stocks.  Prices of gold mining stocks may well be attractive right now, though MacDougal wouldn't really know because it never dawned on him to consider gold mining stocks before, perhaps extraordinarily attractive if the communist U.S. Dollar turns out to be as worthless as the form of government falling apart behind it today.

      Then there’s the moral thing, albeit a side issue here: a runaway spike in the price of gold would bust commie interest rate manipulation apart at the Stalinist seams.  Stepping into an arena with the big boys who’d love to make that happen kinda brings a twinkle to your intrepid author's eye.

     (This is Part 1 of a continuing series on investment opportunities under Communism.  Part 2 will follow if MacDougal can think of another one).