Gold & Silver: A Bet Against The Unnatural

I sat down over the last few days with one of the greatest works ever written, The Law of Compensation, published by Ralph Waldo Emerson. It’s relevance to today’s financial times is shocking.
In reflecting on highlights from Emerson’s masterpiece (shared further below), I got to thinking about precious metals, mining shares, and many other commodities, which at this time represent high-leverage bets against the “unnatural”.

It’s betting the Guinness World Record Book’s heaviest man or woman will suffer from heart failure. It’s betting a steroid-using athlete will face organ collapse, it’s betting that silicone breast implants will ultimately look much worse than natural breasts…and it’s further betting that government and financial institution “borrowings from the future to survive today” will also collapse. And it’s further betting that bailout-supported industries (synthetic monopolies if you will) will also crumble. It’s simple a matter of time.
Will it happen tomorrow? Probably not. Next year? Maybe not. But it will happen eventually.

Emerson states that, Nature hates monopolies…[without] exceptions…The retribution…it is inseparable from the [cause], but is often spread over a long time, and so does not become distinct until after many years. Crime and punishment grow out of one stem. Punishment is a fruit that unsuspected ripens within the flower of the pleasure which concealed it. Cause and effect, means and ends.”

He further adds, [Nature] refuse[s] to be mismanaged longIf the government is cruel, the governor’s life is not safe. If you tax too high, the revenue will yield nothing. If you make the criminal code sanguinary, juries will not convict. If the law is too mild, private vengeance comes in.”

He concludes with, “Such also, is the natural history of calamity. The changes which break up at short intervals the prosperity of men are advertisements of a nature whose law is growth.”

In reflecting on the sage wisdom of Emerson, it is clear the growing financial imbalances of the West and global currency manipulations, are simply more doughnuts given to the heaviest man alive, another shot to the short-lived star athlete, and another implant of some kind to a body beyond recognition.

When the collapse picks up speed, it will be absolutely normal, just another arc added to the larger circle of nature as Emerson put it so well, more than 100 years ago.

Thoughts are welcomed.
A copy of Emerson’s “Law of Compensation” can be found here.
By Bullmarketthinking