Monday, July 5, 2010
Left over mixed nuts
Gulf oil spill or do we call it a gusher?
There are numberous silly reports that the last ditch effort to contain this runaway well would be for the military to set off a nuke at the well head. That's not going to happen for several reasons. I may have mentioned the first a while back. When setting off a nuclear device underwater or underground like they did in the 1950s the force of the blast creates a bubble. In the underground tests the land rose up then slammed down so hard it created a creator. The sea floor in the well area is made of mud and sand. Setting off a device would cause the sea floor to glassify for about a few seconds then the force of the bubble would shatter that glass layer. End result would be that the shale below the mud and sand could fracture even more making the flow worse and possibly radio active. Remember there's a mile of water that would be slamming down on it. Each gallon weighing 8 pounds more or less.
And now the tin foil hat crowd thinks that there is a secret plan to move 50 million people from the gulf coast region and house them in detention camps in FEMA trailers in Missouri and elsewhere. Once again these nut jobs haven't done their homework. There is a plan that's been in the works for what to do in the event of another large hurricane like Katrina. Exactly what do you do with even a couple of million people or even a couple hundred thousand people for that matter when there is that much destruction? We saw what happened with Katrina. It could happen in other places as well with a flood or earthquake. I think that's why they call it "emergency management".
Gold what not to invest in
Seems everywhere you turn there an ad to buy gold. Gold that safe place to invest. Gold is going higher every day. Gold coins, gold bars, gold futures, gold jewlery, buy gold, sell your gold.
I say bunk!
I saw the exact same thing happen in the late 1970s and early 80s. Gold prior to that time was fixed at $35 an oz. It went as high as just under $900 an oz. And back then you couldn't own gold other than gold coins. Remember we went off the gold standard which backed our currency until it was discovered that Russia had a large stash and was about to flood the market. And of course our government wanted to make currency fluctuate enabling us to print money. That's a good and a bad story but I won't go into that now. Just like the housing bubble the gold prices have gone up and up but really. Stop for a moment and think. Is gold really worth what they say it is? In the 80s a two bedroom apartment in downtown Tokyo went for $2 million. That figure has since fallen to a more realistic level. We always think that our stuff is more valuable than it really is but the truth is it's only worth what someone else is willing to pay for it and if by some chance that gold rush fever takes hold then the price climbs creating the next bubble. Those unlucky enough not to notice get crushed when the sell off begins.
So like the kitty I think I'll just forgo the ride and keep my feet on the ground.