Mad Money Machine

MMM-086: Maybe I’m Amazed at Jimmy

A new song for Jimmy. Ron Paul to eliminate IRS. Guru answers: What is money? Why is the dollar falling? How should the Boys and Girls Club invest? Performance Chasers Underperform. GIVEAWAY! Tool to calculate your portfolio’s risk versus return. Buy BRK now?

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• Maybe I’m Amazed at Jimmy (lyrics below)
• “We have it in our power to begin the world over again.” -Thomas Paine
• Warning: Political Rant Ahead. Ron Paul wants to drastically reduce the size of the Federal government. And ELIMINATE the IRS. Is there something in Ron Paul’s message that you don’t agree with? Let me know.
• Our Guru schools us about constitutional money. Watch the 7-hour class on the US Constitution. Or just watch the part about money.
  Actually, it seems his talk is largely derived from this video of The Money Masters.

We have the best money that Congress can buy. Why are gold and silver used as money? They have value. There is a limited amount of it so it won’t inflate as easily. You want to buy my apple, you give me some gold. Disadvantage, it is heavy and makes noise. I take my gold to the goldsmith. He turns it into coins. He stores it in a lock box and gives me a receipt. If I want to buy your apple, I take my receipt to the goldsmith to get some gold, give you the gold you give me the apple, then you take the gold to the goldsmith and get a receipt. That’s too many trips. Instead of all that, I could just give you my gold receipt.
The goldsmith realizes now that only 10% of all people holding gold receipts come in to pick up their gold. Being rather unscrupulous, he prints more gold receipts: basically legally counterfeiting money. This is called fractional reserve banking. He can’t use the excess gold receipts himself, but he can lend them out to others. He lends gold and gives out a receipt for it. He gets paid interest, in gold. He is now making money hand over fist. Eventually, he runs out of people to lend to. He finds a big borrower: governments. The love to borrow to pay for wars. He lends to both sides. If they stop fighting, it is bad news for him.
Who is this unscrupulous goldsmith? The Federal Reserve.
The Federal Reserve Notes are basically IOUs that they own. They have the right to charge rent. Are there competing options? The Liberty Dollar.

• Speaking of dollars, what is happening to the dollar?
• Boys and Girls club gets a donation of poorly-performing stock. What should they do with it now that it was sold for nearly $14 Million? Please, please invest it in INDEX FUNDS.
• Performance Chasers Underperform. Here is the full article. Lesson: Get rid of your active managers.
• GIVEAWAY: The 4-CD set entitled An Audio Journey to Tradeless Nirvana. Fantastic listening for your commute. Give it to a friend who is in need of sound investment advice. Make a comment about the Mad Money Machine in iTunes then email me your iTunes account name. I’ll pick a winner randomly.
• Our Tool is a lot different from other tools. Send me your portfolio of mutual funds (up to 11 funds), their ticker symbols and percentages, and I will calculate the portfolio’s annualized return and annualized risk so you can compare with the performance of the Lazy Portfolios.
• The Onion’s report on what banks are doing to make up their losses.
• Molly calls and asks whether she should buy Berkshire Hathaway (BRK.B) or buy a mutual fund. Take a look at the chart showing its risk versus return for the last 20 years. Instead of just one company, buy all of them. But first, take the Risk Capacity Survey.
• As I See a Black Tornado

Maybe I’m Amazed at Jimmy
Lyrics by Paul Douglas Boyer

Maybe I’m amazed at the stocks you’re loving all the time
Maybe I’m afraid if I watch I’ll trust you
Maybe I’m amazed at the way you trade at the wrong time
And are hungry for a climb
Maybe I’m amazed at the way I don’t need you

CHORUS:
Maybe I’m a man and maybe I’m the only man
Who’s figured out something
That Jimmy doesn’t really understand
Maybe I’m a man and maybe you’re the only man
Who could never help me
But now I’m rising up to take a stand

Maybe I’m amazed at the way you’re on TV all the time
Maybe I’m afraid of the way I believed you
Maybe I’m amazed at the way you never buy and hold
You’re stocks are bought and sold
Maybe I’m amazed that they think they really need you

CHORUS

Music from music.podshow.com:
ALTA PLAZA – XRAY DOGS – not played on this show!
Maybe I’m Amazed – Blake Morgan
Ruby In the Dust – The Runaway Train – Under Feather
Talk 2 Me – Aaron
Lonely Boy – Aaron

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