< meta name="DC.Date.Valid.End" content="20050825"> Amendment Nine: More on that Kirby Article

Thursday, May 19, 2005

More on that Kirby Article

I've reread the Kirby article now. It's pretty devastating. Essentially, if he's right, a financial meltdown of massive proportions is about to occur. Let me give you an example. When I was about 12 years old, I went down to the shore with my dad. We parked in a public parking lot, and were going to go fishing. Some guy who looked like an official of some sort was handing out flyers and selling tickets. He was making quite a ruckus, and people seemed very enthused to speak with him. We approached. "How you two doing today!" He roared. "Let's get those rusty fishing poles back in the wagon and get ready to have the night of your lives." He continued: "In just a few short hours the northern public access parking lot will be filled to capacity with a carnival like you've never seen." He went on for several minutes, finally letting us in on the deal, 2 tickets, $2, right here, right now. We bought them. As did hundreds of others (it seemed) that day. Later that evening, when we came back, there was no carnival anywhere. We weren't the only ones tossing our tickets in the trash. Lesson: its okay to sell dreams, as long you deliver. If you don't deliver, you're just selling trash.

The implication of the Kirby article, if true, is that our government has been selling trash, literally, for the last few months. They've been saying lots of hedge funds have taken the place of Asian Central banks, and have continued to buy long treasury notes. According to this article though, that is simply not the case. There is no Caribbean carnival. If there were, it would be gone by now anyway. 40% losses in a $20B position would tend to do that to anyone, except the US Govt. The case that we're printing money and cooking the TIC books is a pretty good one. It deserves some more attention and examination, but its a pretty good one. Go read the article, read the initial article too, and then come back and let me know what you think!