Buy Gold & Silver or Buy Gun ?

Recently the University of Texas Investment Management Co. converted its gold futures holdings into physical bullion worth about $1 billion. The fund has 20.7 tons of gold stored in a New York vault. Bruce Zimmerman, chief investment officer of the $26 billion fund said, " It's a very conservative hedge against some low probability scenarios, such as the debasement of a major currency." He's not alone. In 2010, total physical investment in gold bullion soared 66% to 880 metric tons. That's also almost mostly stored in New York vaults.

Assuming that no one has tunneled into the the gold vault and it is still there next week and the worse happens. What's Bruce to do? Bruce is in Texas and the gold is in New York. Can Bruce handle 20.7 metric tons of gold? Does he have a truck? Who will help him pack the gold? What will the help charge? Where will they take the gold? Who will be in business to accept gold? What will they charge? Will vendors of food and services respect Bruce? Does Bruce own a gun?

Financial assets are a lot different than physical assets. One can have billions of financial assets in a drawer whereas thousands in gold or silver needs a lot more care in storage. Mega wealth in dominations of gold and silver needs massive security precautions. And in the end relies on the honor of all involved. That need for "honor" is a tall order. In the future guns are a better investment for personal security than attracting threats to ones personal security by lugging gold or silver around.

Warren Buffett: Greed Cartoon

Warren Buffett was in Omaha, Nebraska this past weekend reporting to his faithful Berkshire Hathaway shareholders. He rambled for hours. One interesting part of his monologue was his defense of Goldman Sachs behavior leading up to and during the financial meltdown. He said, " Goldman was caught up in the worldwide mania that prevailed throughout the investment world".

But only Goldman has been charged with civil fraud by the S.E.C. And most people don't resort to stealing no matter what mania is prevailing. Of course Buffett has a large stake in Goldman and other financial service companies. So he's no doubt arguing this point based on his positions. All people evolve into caricature. Buffett is no different. His long time quest for money has now made him a cartoon of take-no-prisoners greed.

Where Are The Indictments For Financial Meltdown?

Will anyone go to jail for the financial misdeeds and meltdown? No. Because the heretofore criminal financial manipulations were made legal by the legislation that Congress passed. Wall Street and the bankers bribed our reps. Congress is largely a criminal enterprise. Don't forget .

"Hello Manhattan, Israel Calling"

Approximaely 50% of Wall Street investment banking management is Jewish. That doesn't make them necessarily Zionist but probably most think there should be a Jewish homeland which is the definition of a Zionist. Israel enjoys a unique U.S. tax code advantage. Donations to the Jewish state by American tax payers is deductable against U.S. income. The donations sent to Israel by these Wall Street operators neatly allows them to have it both ways.

Israel is an odd country. It's founding and nurturing depends on money and political influence from worldwide Jewry. If that is ever shut off or diminished ,Israel like some out of this world space station ,would suffer or cease to exist. And so the recent cataclysmic events on Wall Street and financial centers around the world threaten Israel's mother's milk so to speak i.e. money. The financial melt down may be a humane way to finally get Israel to pursue peace or disappear. Either way would be an improvement.