Use access key #2 to skip to page content.

Buying a "stack of macks" and the Dark Bailout



October 09, 2008 – Comments (5) | RELATED TICKERS: GLD , SKF , GOLD

I sold my SKF position yesterday. Now I feel alone, naked and vulnerable. It was an accident, I wanted to reduce my exposure, but accidentally unloaded the whole position….I fear the corrupt cartel of the FED and Treasury to venture back in SKF at $150+++. Who knows what corrupt financial magic and/or misguided interventions they may dictate to undermine my love of SKF? 

I have been explaining to my Mother, that she needs to start acquiring physical gold, as a hedge against the dollar and as insurance policy in case of currency collapse. She refuses to buy Gold at the current price, so I have been looking for alternate positions and investment ideas for her.

The investment theme is converting the nominial into real. When the WSJ delivered this “Burning Bush” article speaking directly to me:  

Mackerel Economics in Prison Leads to Appreciation for Oily Fillets Packs of Fish Catch On as Currency, Former Inmates Say; Officials Carp

"It's the coin of the realm," says Mark Bailey, who paid Mr. Levine in fish. Mr. Bailey was serving a two-year tax-fraud sentence in connection with a chain of strip clubs he owned. Mr. Levine was serving a nine-year term for drug dealing. Mr. Levine says he used his macks to get his beard trimmed, his clothes pressed and his shoes shined by other prisoners. "A haircut is two macks," he says, as an expected tip for inmates who work in the prison barber shop.

There's been a mackerel economy in federal prisons since about 2004, former inmates and some prison consultants say. That's when federal prisons prohibited smoking and, by default, the cigarette pack, which was the earlier gold standard.

Prisoners need a proxy for the dollar because they're not allowed to possess cash. Money they get from prison jobs (which pay a maximum of 40 cents an hour, according to the Federal Bureau of Prisons) or family members goes into commissary accounts that let them buy things such as food and toiletries. After the smokes disappeared, inmates turned to other items on the commissary menu to use as currency.

If the corrupt private cartel the FED, can ban “short selling” on a random whim, can they ban owning gold? How far away is the FED from banning trading of Gold or seizing GLD? Do not know…

The US has ban holding of Gold before. I understand it is illegal to move Gold out of France. etc....(Footnote 1).

So what is the plan if the corrupt FED acts “in the interest of Main Street” or to stop "terrorists" decide to seize GLD or ban alternative currency holdings or to save us from the corrupt capitialist markets?

Here is the behind the video of FED Bailout that was released secretly on Youtube:  The Dark Bailout

I am just kidding, I love the FED! They are our saviors, King Henry what will you have me do? Just tell me your bidding! Anything you ask! Anything! Just do not take anymore of my Mackerel! Can’t a man keep some of his fish?

Ἀπόδοτε οὖν τὰ Καίσαρος Καίσαρι καὶ τὰ τοῦ Θεοῦ τῷ Θεῷ

Matthew 22:21

FYI - Some history for the younger Fools:

"I, Franklin D. Roosevelt, President of the United States of America, do declare that said national emergency still continues to exist and pursuant to said..."

"With those mealy words, America's Depression-era president ventured from bad luck into treachery. The Executive Order he issued on the 5th of April 1933 confiscated Americans' private holdings of gold, then valued at $20.67 per ounce. Then, in January, 1934, the U.S. president fixed the price of gold at $35. All of sudden, Americans' dollars had been devalued by 69.3%.

Whether this act of nationwide larceny did the economy any good or not, we cannot say. It was not until after World War II that the economy fully recovered the spring in its step. And U.S. stock prices didn't return to their '29 highs until 1950.
FDR reneged on America's historic obligation to its own citizens; after 1933, they could no longer redeem their paper money for gold. Richard Nixon stiffed the foreigners in 1971; henceforth, if the French wanted to trade their dollars for gold they were out of luck."

- Bill Bonner

2. The Dark Bailout

5 Comments – Post Your Own

#1) On October 09, 2008 at 1:04 PM, alstry (< 20) wrote:

Thanks for all your work.

Report this comment
#2) On October 09, 2008 at 1:13 PM, Gemini846 (34.06) wrote:

Without vision the people perish. (Prov 29:18 paraphrase mine).

Report this comment
#3) On October 09, 2008 at 2:00 PM, AnomaLee (28.90) wrote:

Since, gold can no longer be redeemed I can't think of a reason why the government would need to ban the public from holding "hoarding" gold.

However, I can easily foresee the government banning both imports and exports of gold exported to protect the value of its national currency or something similar to what happened in Vietnam just this past year.

Non-redeemable = Default

Report this comment
#4) On October 09, 2008 at 2:06 PM, lquadland10 (< 20) wrote:

Report this comment
#5) On October 09, 2008 at 8:28 PM, Harold71 (< 20) wrote:

I've also seriously cut down my short positions, even though I think the market still has pain ahead, and I missed out on mucho gains today...FXP went from 124 to 200+ in one day?  I owned that from $100 to $120.  It's getting nuts out there.  Intense. 

The grim reaper is definitely starting to make his presence known.  Cutting down all that is corrupt.  He's got his eye on the monetary system itself next.  :)

Report this comment

Featured Broker Partners