Home > Uncategorized > Mogambo Guru: Why Economy isn’t Different This Time

Mogambo Guru: Why Economy isn’t Different This Time

You could say that the more things change, the more they stay the same. You could say that history rhymes. Or, more simply, there is nothing new under the sun. Heck, The Talking Heads had it right when they said, "Same as it ever was".

Richard Daughty, aka the Mogambo Guru outlines why the more things change, the less anything changes. Government has an unbroken streak of getting in over its head in debt and blowing the economy up at fairly regular intervals.

Ultimately, in the Guru's opinion, fiat currencies will be worth nothing and silver and gold will head to infinity. Maybe not actual infinity, but much higher than present values. Daughty points out that the historical value of gold to silver is 16:1 which means that silver should be valued closer to $120 per ounce.

China has been steadily accumulating gold, as have the central banks of other nations, which should bid up the price of gold. Daughty foresees the eventual decline of United States' power and the ascent of China.

In my opinion it would be advisable to convert some of your fiat currency to silver and gold. Silver may be somewhat riskier as it is a smaller market and its price can be more easily manipulated. By silver and gold I mean physical silver and gold, not futures contracts, not ETFs, not mining stocks or some other instrument – physical gold and silver that you have in your possession.

Personally, I believe that silver, withing the next 4 years or so should climb to around $200.00 per ounce. Having said that, how you treat your silver and gold – as protection against the collapse of the current economic regime, or as an investment  – will ultimately influence how you think about the precious metals. I view them as both an investment, and as the only effective means to protect wealth against the foolish whims and ultimately failing policies of corrupt and stupid governments the world over.

I recommend you watch the video below and Google Richard Daughty and / or Mogambo Guru and read some of his entertaining and informative articles – some of which can be found on the Daily Reckoning:

http://dailyreckoning.com/author/mogamboguru/

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