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Saturday, October 15, 2005

It is truly the best of all possible worlds...

Or- New York Mag says,  guns and butter go well with gold...
There's more to the article than that,  but it's as good advice as any,  I suppose.   Relatively cheap debt on something valuable...   Pay back in cheap dollars.  Good trick...

...What if our fiscally clueless president really does keep spending at a rate that far exceeds what our government can take in at these low tax rates? What happens if the president's acolytes and the Pollyannas in Treasury keep believing that we can grow our way, fairy-tale-like, out of this jam? You can bet that when you cash out your nest egg of nice U.S.-based mutual funds and solid common stocks, your dollars will fit nicely into a wheelbarrow designed specifically to cart worthless currency to the bank.

Or you can take matters into your own hands and build a portfolio around these five imminent-Bush-disaster stocks. Be the first on your block to immunize yourself against what may turn out to be the most financially reckless president in history with these anti-inflation equities designed to profit from our president's unbelievably foolish Panglossian profligacy.

Any portfolio designed to counter government-mandated inflation has to be bedrocked in gold, and there is no gold outfit that can rival Goldcorp, known as Gigi on Wall Street for its GG symbol. Gigi is on pace to produce 1.1 million ounces of the precious metal this year, with a finding cost of $60 per ounce (significantly lower than the industry standard). While Gigi is wildly profitable with gold at $465—you didn't know gold had shot up that much lately? Well, what did you expect with this deficit?—I figure gold could reach $1,000 if the Chinese stop buying our paper. Once the levee to the Treasuries breaks, the easy high ground worth gaining will be gold. Gigi's got no debt and is incredibly well run—the only gold stock you will ever need. Oh, and like all the companies in this portfolio, it's not based in the United States, so it's less tied to the health of the U.S. economy and the strength of the dollar. What a godsend!...