Napoleon Hill’s Think and Grow Rich

September 8th, 2017

All over the free world, there are thousands of successful men and women who are where they are today because they once picked up a copy of Think and Grow Rich by Napoleon Hill. Without question, this single book has had a greater influence on the lives, accomplishments, and fortunes of more people than any other work of its kind.

This remarkable book helped me decide once and for all how I was to accomplish my goal. It unified my thinking and gave me a straight, clear road to the point I decided to reach. One of my closest friends found the book, stayed home for three days reading and digesting its material, and he then went on to reach the top of his industry. I’ve sat in richly paneled executive offices and listened to world famous business leaders tell me how reading Think and Grow Rich changed their lives.

When the last page of Think and Grow Rich is read, the hand that puts the book down on the table is a different hand. The man who then stands up and walks out into the world is a different, a changed man – the possessor of the unique knowledge that will enable him to turn dreams into reality, thoughts into things. So called fate and exterior circumstances are no longer in command. He who had been a passenger is now suddenly the captain.

The secret behind Think and Grow Rich, the reason why it has withstood the test of time, is because it stands on the foundation of truth: the clear, unchallenged fact that everything begins with an idea. One may start with nothing but ideas, but ideas are incredibly powerful when they’re supported by Definiteness of Purpose, persistence, and a burning desire for their translation into material objects or riches – “riches” being whatever it is you happen to want.

In other words, by controlling your mind, you can control your destiny. And you can start that amazing process today, by absorbing and applying Napoleon Hill’s famous 13 principles for unbridled success.


Desire is the starting point for all achievement, the first step toward riches. But it’s here that we so often run into a roadblock. A person will say, “I know what I desire, but can I get it?”

The answer was best expressed by Emerson: “There’s nothing capricious in nature, and the implanting of a desire indicates that its gratification is in the constitution of the creature that feels it.” In other words, you would not have the desire unless you were capable of its achievement.

Your burning desire is nothing more than an accurate picture of what you will one day become. So right here, firmly establish in your mind that which you desire more than anything else, and cherish and nurture that desire. Do not suppress or annihilate it. A man without desire has within him no principle of action, nor motive to act.


Faith is the state of mind that may be induced or created by affirmation or repeated instructions to the subconscious mind by conscious auto suggestion. By summoning over and over again a mental image of yourself already having accomplished your main desire, you will muster the faith you need. Faith is vital to accomplishment.

Have faith that you can accomplish that which you seek, for you would never have decided upon it unless it was meant for you to accomplish it. If you find it difficult at times to have faith in yourself, you may be certain that you can have faith in these principles.

Auto Suggestion

Through repeated suggestion, the subconscious mind can be put to work for you. It’s the faculty of being able to concentrate your mind on your burning desire until your subconscious mind accepts it as fact and begins to devise ways of bringing it about. Here’s where hunches come from, sudden flashes of thought, inspiration, or guidance.

To access the power of auto suggestion, go into some quiet spot, perhaps in bed at night. Close your eyes and repeat aloud so you may hear your own words a careful reaffirmation of whatever your goal happens to be. If it’s the accumulation of a sum of money, reiterate the time limit for its accumulation and a description of the service or merchandise you intend to give in return for it. As you carry out these instructions, see yourself already in possession of your goal.

Specialized Knowledge

Knowledge is power only to the extent that it’s organized into a definite plan of action and directed to a definite end. Before you can be sure of your ability to transmute desire into its monetary equivalent, you will require specialized knowledge of the service, merchandise, or profession that you intend to offer in return for fortune.

Realize that you must learn all you can about your specialty. Set aside a definite time every day for learning more about what it is you do for a living. Take the courses that are offered on your subject and associate with people who know your business well.


Whatever the mind of man can conceive and believe, it can achieve. Man’s only limitation, within reason, lies in the development and use of his imagination and subsequent motivation to action. The great leaders of business, industry, and finance, and the great artists, musicians, poets, and writers became great because they developed the power of self-motivation.

As you go about your daily work, think constantly of ways in which it could be done better, more efficiently. Think of the changes that are inevitable. Can they be made now? If you feel limited, remember the words of the late Frank Lloyd Wright: “The human race built most nobly when limitations were greatest and, therefore, when most was required of imagination in order to build at all.”


Analysis of several hundred people who’ve accumulated fortunes well beyond the million-dollar mark disclose the fact that every one of them had the habit of reaching decisions promptly and of changing these decisions slowly, if and when they were changed.

When you make up your mind, stay with it. The majority of people who fail are generally easily influenced by the opinions of others. Opinions are the cheapest commodities on earth. Keep your own counsel when you begin to put into practice the principles described here by reaching your own decisions and following them. Take no one into your confidence except the members of your mastermind alliance (as discussed later), and be very careful in your selection of this group, choosing only those who will be in complete sympathy and harmony with your purpose. Close friends and relatives, while not meaning to do so, often handicap one through uninformed opinions and sometimes through ridicule.


Persistence is simply the power of will. Willpower and desire, when properly combined, make an irresistible pair. Persistence is to an individual what carbon is to steel. In uncounted thousands of cases, persistence has stood as the difference between success and failure. It is the lack of this quality more than any other that keeps the majority from great accomplishment. As soon as the going gets tough, they fold.

If you’re to accomplish the goal you set for yourself, you must form the habit of persistence. Things will get difficult. It will seem as though there’s no longer any reason to continue. Everything in you will tell you to give up, to quit trying. It is right here that if you’ll go that extra mile and keep going, the skies will clear and you’ll begin to see the first signs of the abundance that is to be yours because you had the courage to persist. With persistence will come success.

Enthusiastic Support

It is of great significance that behind practically every great leader has been the supportive love and inspiration of a spouse. When things get tough – and you can count on it, they will – you may be deserted by some you thought were friends. But if you’ve got a good woman or man supporting you, you will never be alone. He or she will be willing to start over again if necessary and will give you the new enthusiasm that comes through faith in you.

Having someone to love is having someone to share your success and accomplishments; to give you the praise that all of us need from time to time. A person can become successful without a spouse and family, but much of the real joy is lost if it cannot be shared. Take care of your spouse and children as your greatest possessions.

Organized Planning

The first of the six steps for transforming desire into reality is the formation of a definite, practical plan through which this transformation may be made (see From Desire to Reality in Six Easy Steps, pg. 40). Once you do, it is critical that you ally yourself with one or more people or a group of as many people as you may need for the creation and carrying out of your plan. These people are your “mastermind alliance.”

Before forming your mastermind alliance, decide what advantages and benefits you may offer the individual members of your group in return for their cooperation. No one will work indefinitely without compensation, though this may not always be in the form of money.

Arrange to meet with the members of your mastermind alliance at least twice a week, and more often if possible, until you have jointly perfected the necessary plan or plans for the accomplishment of your goal.

Maintain perfect harmony between yourself and every member of your mastermind alliance. Keep in mind these facts: First, you are engaged in an undertaking of major importance to you. To be sure of success, you must have plans that are as faultless as possible. Second, you must have the advantage of the experience, education, native ability, and imagination of other minds. This is in harmony with the methods followed by every person who has risen above the average. Work at this until you have a well-executed formal plan for reaching your objective. In this way you’re never confused or wondering what you should do next. Every morning you know exactly what you’re going to do and why.

Organized planning is one the most important principles, because a person without a plan is like a ship without a course. With no place to go, disaster is a probability.

The Power of the Mastermind

No two minds ever come together without thereby creating a third – a third invisible, intangible force that may be likened to a third mind. You may have noticed many times that by discussing something with another person you suddenly get good ideas as a result of the discussion, ideas you would not have gotten without this association. Well, the same thing happens to the other person. A lot of good ideas have been born in individual minds as a result of having met in committee.

Associating with your mastermind alliance is not meant as a means of letting others do your thinking for you, far from it. It is meant to stimulate your own thinking through the association with other minds. No one knows everything. The more sympathetic minds you get together – that is, minds working for a common purpose – the more related information is going to be available. Great ideas are a combination of related information.

Pick the members of your mastermind group with care. Make sure they’re people you respect and who are hard working and conscientious. You’ll have a lot of fun, and you’ll reach your goals just that much sooner.

The Subconscious Mind

The subconscious mind is a mental area in which all inputs through any of the five senses are classified and recorded, and from which they may be recalled or withdrawn like data from the storage banks of a limitless computer. No one knows very much about what we call the subconscious mind but we do know that it is incalculably powerful and can solve our problems if we go about using it the right way.

The best way is to hold in your conscious mind as often as possible a clear picture of yourself already having accomplished your goal. Know what you want. Define it clearly, and then project it on the motion picture screen of your mind. Hold it. See yourself doing and having the things you have when your objective will have been reached. Do this as often as practical, particularly at night just before you go to sleep and the first thing upon waking. As you do this, your subconscious will begin to lead you toward your objective. Don’t fight it. Follow your sudden hunches, the ideas that come into your mind, knowing that they may well represent subconscious knowledge.

If you’ll keep at this, you’ll be amazed and delighted by the ideas that just seem to come from nowhere.

The Power of the Brain

If you had access to all the wealth in the world and used only a penny, you would be doing exactly what most of us very probably have been doing in the use of our brains. You own in your brain the most marvelous, miraculous, inconceivably powerful force the world has ever known.

It is the brain that has given us the computer, supersonic airplane, our deep rocket probes into outer space, the sciences, and the arts. All of what we know today and will achieve tomorrow is born from this small, gray mass each of us carries around.

Can you doubt, even for a moment, that your brain can bring you and yours everything you want here on earth? Recognize its power, give it the job you’ve decided to accomplish, and watch it handle it.

The Sixth Sense

The sixth sense can be described as the sense through which your infinite intelligence may and will communicate. This principle is the apex of the philosophy. It can be assimilated, understood, and applied only by first mastering the other 12 principles. The sixth sense is that function of the subconscious mind that has been referred to as the creative imagination. It’s also been referred to as the receiving set through which ideas flash into the mind, sometimes called hunches or inspirations.

The sixth sense cannot be described to a person who has not mastered the other principles of this philosophy, because such a person has no knowledge and no experience to serve as points of reference. The sixth sense is not something one can take off and put on at will. The ability to use this great power comes slowly through application of the other principles we’ve outlined. So begin to develop it now by applying the principles we’ve talked about here.

Remember this: Man can create nothing that he does not first conceive in the form of an idea, a desire. Keep fear out of your mind. Concentrate on the mental picture of yourself achieving your desire. Cut yourself away from the average – from the mediocre – and chart your course on the dream in your heart. These 13 principles will never let you down. You need only remember and use them.

From Desire to Reality in Six Easy Steps

Six definite practical steps to transform a burning desire into reality.

Fix in your mind an exact picture of what you desire. It’s not sufficient merely to say, for example, “I want plenty of money.” Be definite as to the amount.

Determine exactly what you intend to give in return for the thing you desire. There’s no such reality as something for nothing.

Establish a definite date by which you intend to possess the desired thing.

Create a definite plan for carrying out your desire and begin at once, whether you feel entirely ready or not to put this plan into action.

Write out a clear, concise statement of your responses to the preceding four steps.

Read your written statement aloud twice daily. Once after arising in the morning and once just before retiring at night. As you read, see and feel and believe yourself already in possession of whatever your goal happens to be.

“Through some strange and powerful principle of mental chemistry, nature wraps up in the impulse [of a] strong desire that something which recognizes no such word as impossible and accepts no such reality as failure.”
- Napoleon Hill

The Genius behind Napoleon Hill’s Science of Personal Achievement

These are just a few of the influential people Napoleon Hill interviewed on his 20-year quest to discover the science behind success.

The Purchasing Power of Pizza

September 8th, 2017

- I am really, really getting scared here. I don’t know what scares me most: the Federal Reserve increasing Total Fed Credit (which is the legendary “money from thin air” that banks use to make credit, which gets borrowed, which turns it into money, which increases the money supply, which makes prices go up) by another $5.9 billion, or that the national debt has suddenly, inexplicably, declined by a lot. Weird! In fact, the national debt has literally collapsed $58 billion in less than two weeks! Unprecedented!

I have decided that I don’t care which one scares me the most, as either of them is enough to give me the Screaming Mogambo Willies (SMW), and now all I care about is getting my fat, frantic fanny out to the Mogambo Bunker Of Safety (MBOS) in hopes of saving myself. And yes, it is too bad about the wife and kids, but they can’t say I never warned them about dawdling. Locked safely inside, I have time to ponder that the Fed increasing Total Fed Credit is easily explainable: the Federal Reserve wants to create more money, which drives down interest rates. That’s all those buttheads ever do.

But, it is the drop in the national debt, on the other hand, that has turned my eyes into mere slits of suspicion and panic. My brain swirls as I ponder the Mogambo Question Of The Day (MQOTD): “If debt is going down while spending is going up, then where in the hell is all of the money coming from?” This is too, too, too, too weird for me!

This is about as weird as this week’s installment of One Interesting Mogambo Statistic (OIMS), which is that savings and other deposits at the banks are on track to register what looks to be their biggest (by far) one-month gain in history: up $125 billion in the last three weeks! Wowee! One huge whopping percent of total United States Gross Domestic Product has appeared, like magic, as savings and “other deposits” in the banks! In one month! Like I said, weird!

- I got a real laugh out of the headline from the Associated Press that read: “The Battle Over the Blame for Gas Prices.” Hahaha! The article figures that it is either greedy oil sellers or gluttonous buyers – or, as others say, Congress. And while all these people are all guilty to one huge degree or another, everybody entirely misses the point, which is that while Americans might enjoy getting dollars in exchange for goods and services, the people of the oil-exporting countries do not want dollars, euros, yuan, or any other money. They want their own money, doofus.

But what all these groups of people have is common is that they all want to be paid in their own units of purchasing power. With oil at $75 a barrel, that works out to about 10 pizzas. It makes no difference to sellers what kind of money you use to pay for the oil, as long as they can exchange it for 10 pizzas. Preferably, they would like to be paid in units of purchasing power that gain in purchasing power, so that tomorrow they can buy eleven pizzas for a barrel of oil. And if not gain, then at least not lose purchasing power, and tomorrow only be able to buy six pizzas!

Unfortunately, the dollar is not a currency that is going to gain in purchasing power. It is, on the other hand, one of those currencies that will be losing purchasing power. So, everybody, including foreign oil exporters, has to charge a higher price for oil just to make up the losses in purchasing power they will suffer until they can actually get around to spending the damned dollars on pizzas!

And, it is going to get worse, much worse, as you can readily conclude from Chuck Butler at his famous Daily Pfennig site, who reports that at the latest G-7 meeting (representatives of the seven or so biggest economies in the world), they announced that they all decided “it was ‘critical’ for the Asian currencies to let their currencies rise versus the dollar. I would not be surprised if China started spending its dollar reserves on all the crude oil supplies they can purchase – at any price. What will be more valuable to their economy next year, 75 U.S. dollars or a barrel of oil?” In short, will seven pizzas be more valuable than six pizzas, next year?

As we now see, class, there are other reasons for rising gasoline prices, and one important one was found on WorldNewsTrust.org. It read that the ministers of the Organization of Petroleum Exporting Countries said, “Soaring commodity and raw material prices are increasing the cost of oil and gas projects by up to three times. Qatari Oil Minister Abdullah al Attiyah said: ‘Our costs have tripled from two years ago, due to high (commodity) prices. And it’s not just that, it is also contractors who have tripled their prices.’” I laugh! Doubled costs and tripled prices? Hahahaha! They themselves must laugh uproariously when they hear that our government always says that there is no inflation! Hahahaha!

So, the next time you are watching in horror as that gasoline pump is sucking the money out of your wallet (“sluuuurrrrp!”) and you wonder why gasoline costs so much, don’t be like me and get mad, go running up to the clerk, calling him a cheating, thieving little over-charging bastard from hell. Experience has shown that it won’t help.

And anyway, it usually turns out that the kid had nothing to do with the price of gas, but instead the price of gasoline is up because the purchasing power of the dollar fell! And, the dollar fell in purchasing power thanks to the horrid Federal Reserve, which has been creating excess money and credit with their every waking moment since the dreadful moment when that hideous creature of fraud and corruption was created in 1913, which was (as Mogambo musicologists know) the inspiration behind the classic Mogambo reggae tune: “The Fed’ral Reserve Be Killin’ Me Money, Mon!” This song contains the immortal line: “Based on lies, and founded on the sly, based on lies and founded on the sly in 1913, mon, me money goin’ down, mon, me money goin’ down!”

- I confidently predict that the gross domestic product report, due to be released Wednesday, is going to show a nice big increase in GDP, and everyone will rejoice and celebrate by buying stocks, houses, bonds or something.

To this I say “Hahaha!” The way it works is this: suppose GDP of Mogambo Land last year was 100 widgets produced, and sold at a buck apiece. Total Mogambo Land GDP=$100.

Now this year, the economy consisted of 90 widgets produced, yet sold at $1.20 each. Nominal GDP would show an increase to $108, which sounds good to those who do not have Mogambo-Sharpened Economic Senses (MSES), and those who do laugh as one, “Hahaha!”

Normally (back when the government was not filled with loathsome liars and cheats because the newspapers didn’t let them get away with it), total revenues ($108) would be properly discounted by the inflation in prices (20%), which is the loss of purchasing power of the dollar, and thus the real, inflation-adjusted change in prices (20%) exactly matched inflation. So, real GDP = 90, which is 90 widgets produced and sold for one dollar’s worth of buying power each. So, GDP is actually down by 10% (only 90 widgets produced)!

If you can get away with lying about inflation, and fraudulently say that inflation was zero, then you can “prove” that GDP did, indeed, increase by eight percent, when in actuality it declined by 10%! Hahaha!

And, they can legally say that inflation is zero because of the fraud and fiction of hedonic statistical smoothing: if beef doubles in price, but chicken doesn’t, the government figures that you will buy less beef (zero) and more chicken (100%), thus spending the same amount of money. Therefore, you suffered no inflation! Hahaha!

Welcome to the shabby underside of the banking system, which created its own rules to create the recent invention of hedonic statistics, of which this is only one – one! – of many despicable lies concocted by the horrid Michael Boskin, a smug big-shot university-professor consultant who, I guess, agreed to take the rap for creating the monster when the people finally revolted, and the despicable Alan Greenspan, former chairman of the Federal Reserve (1987-2006) who actually did it to us – and we never even got kissed.

- If you want to know why the future of gold promises much, much, much higher prices than is even justified by the low (and falling) worth of the ridiculous dollar, here is a little something to chew on. Sent to me by my buddy Phil, it is a very interesting article from the Globe and Mail, entitled “It’s a Gold Rush.” It is written by somebody named Tavia Grant, whom I assume is a female of the species.

In it, Tavia reports that gold and silver are suddenly very popular in Canada, especially Alberta. Why Alberta? I have no idea, although I once knew a girl named Alberta. She had these really huge boobies and was real popular, too, but I don’t know if there is a connection.

But, if I can distract you from thinking about Alberta for a minute, I will direct your attention to the part where she says, “While Albertans may be the biggest buyers of gold and silver these days, interest is growing across the country.” Further, she found that dealers in gold and silver say, “silver demand is particularly strong,” which oddly corresponds with the recent rise in price, as you would expect, because for prices to go up, there have to be more buyers than sellers. And here they, as she reports, are!

And it is not just Canada, either! Kenneth Y. in Tokyo writes that he sometimes visits bullion/coin dealers in the area called Ginza, which he translates as meaning “Silver-Mint.” Anyway, he reports that one of the biggest bullion shops, called Ginza Tanaka, “stopped selling silver (until further notice). They said they were out of stock! So, no silver in silver-town from the silver shop, since opening in 1892!” I shake my head in disbelief! The store is out of silver for the first time in 114 years? Yow!

And if you want to speak of gold (and who doesn’t?), the Telegraph.co.UK reports that gold fever is spreading, and “even pension funds are buying.” Wow! Talk about huge potential demand!

The article goes on to report, “GMFS, the precious metals consultancy, has suggested that gold could surpass $850 a Troy ounce this year.” This year? Instantly, I try to check the calendar, but I don’t seem to have one handy, so I yell out, “Hey, somebody! What is the date of today?” In unison, they yell back, “It’s the day you ought to die, you horrible man, and set us all free to finally be happy!” I ignore them, as that is almost the same stupid answer they always give, although usually in response to my asking, “Hey! What time is it?”

But I don’t need a calendar to see that gold rising from $630 to $850 in two-thirds of a year is a big, big juicy gain. Especially when added to the 20% gain we’ve already had in gold since January 1, 2006!

- We continually seek out responsible, authoritative sources of news and opinion, one after another, until we finally get to the bottom of the news barrel. Among the dregs, we find The Mogambo Daily Economic Rag, the nation’s only authoritative news source for the Gold-Bug, Second-Amendment Gun-Nut, Paranoid And Scared Majority Of Real Americans. In this week’s scary issue, we learn that the real reason gold and commodities will zoom, zoom, zoom is that we have got to have a bubble in something, and pretty damned soon, too, if we are to survive as an economy!

You are correctly thinking, “That Mogambo is a big idiot! Who ‘needs’ a bubble? They always end badly!” As correct as you are, I shake my head and figure that you are stoned out of your freaking brain, because you are obviously living in some happy dream world where Congress and the Federal Reserve are honest, decent people who would not even dream of creating bubbles in something and unleashing all that future suffering and misery.

But trust me, my Delightful Mogambo Darlings (DMD), when I say that creating a bubble in something is all they are dreaming about right now! And, it is what they are working to arrange this very minute! I laugh with the hysterical dementia of the damned and say, “Welcome to the hell of a fiat-money economy!”

So who “needs” a bubble? Well, for one, all the folks now six years closer to retirement than they were six years ago after all their retirement dreams went down in flames when the stock markets took a big dive. Their desperation swept them, and others, into trying to make up for lost time by getting deep into debt to get into this real estate thing, but – horror of horrors – now IT is starting to collapse, too, taking away people’s retirement dreams, again! Damn!

Now all of those people are even further behind the eight ball! And since stocks are already still hovering near their highs in terms of overvaluation with an SP500 P/E of almost 20 and paying squat for dividends, there is not a whole lot of reason to expect a new bubble in stocks.

Also, since bonds are selling at prices far higher than they should be, too – causing bond yields to fall to (unbelievably) less than the rate of inflation (and a lot les than that, net of inflation and taxes!) – a new bubble in bonds is also pretty unlikely.

Houses? Well, obviously you just got here from Mars, or you are not paying attention. I just got through saying that the housing bubble is what is busting now! And so, to look for long-term higher-and-higher housing prices, in a sudden resumption of the massive housing bubble, seems to require a big stretch of credulity.

“And worse yet,” I cry out, my voice piteously breaking from sorrow and anger, the cinematic tension crackling like static electricity in the air, “all the umpteen trillions of dollars in new debt that was used to finance all of that real estate bubble, the stock market bubble, and the bond bubble is still outstanding and payable! Now it is all reduced in value, thanks to the fall in the dollar and the attendant rise in interest rates, which is all now losing money for the lenders! Gaaaah!

Even more horrifying, most of that huge towering mountain of debt was securitized and sold to some sucker. “Who?” you ask? It’s us! A lot of pension funds and investment funds and shares of Fannie Mae! Double gaaaaah!”

So, what are these sad-sack, desperate people going to do? What can they do to desperately try and finally rescue themselves, and all the other new people looking at their own retirements, at the same time as they are seeing all of this? Ergo, we have to have another bubble in something to keep us from collapsing under the debt!

The question that springs (“boooiinnnnng!”) immediately to mind is, “If the bubble is not commodities (like gold), then what? What else is so historically undervalued that it has lots and lots of room on the upside for a big ol’ booming bubble, and is also so big that it can absorb all of that money escaping from stocks, bonds, and houses?”

But, as usual, being the last one to know, I see that the inflation in commodities has already started! Looking at the Economist magazine and their “Commodity Price Index,” the year-over-year gain in the category of “All-Items” is up 24.7%, while “Food” is up 6%, “All Industrials” is up 46.4%, “Non-Food Agriculturals” is up 14.9% and “Metals” is up a staggering 62.4%! In one year! If that ain’t price inflation, then what in the hell is it?

Higher prices are already affecting spending, as I infer from Adrian VanEck, at the Money Forecast Letter, who reports, “American personal consumption expenditures on durable goods peaked early last August and at last report were down at an annual rate of $100 Billion.”

-The wild, recent sell-off in silver was probably caused by the announcement that margins were being raised on silver contracts for future delivery, effectively raising the cost of the silver future. Nobody wants to pay more money for something they already own, especially in response to a nasty phone call from the broker who demanded that I get my Nasty Mogambo Butt (NMB) down there pronto and deposit a lot more cash to meet the new margin requirement. He sounded real snotty when he pointedly reminded me that he said “cash,” which meant that I had better not try to pass another of my Rubber Mogambo Checks (RMC), like I don’t know what the word “cash” means or something. So, in response, everybody said, “Sell, you nasty, greedy bastard!” and the price of silver, of course, tumbled since demand tumbled.

But, everybody forgets that the price of silver has about doubled in the last year, but the margin requirement did not rise to meet the new, higher price of silver. And so, those old low margins were very low as a percentage of price, and were way overdue to be raised to normal levels. The old margin requirements were becoming, in essence, a free gift to the investor.

The lesson is not that the markets are full of crooked bastards, but that absolutely nothing has changed concerning the current Mogambo Certified Rating (MCR) of Uber-Bullish about silver, except for the justified increased cost to the people who want to borrow money to make bets on the coming meteoric rise in silver, using the futures market to leverage, leverage, leverage.

This makes the price of silver go up, which validates my point: buy silver bullion, and lots of it.

- Several readers have challenged me to explain how the gold lease rates can manipulate the price of gold up and down. I smile, as nothing could be easier, my precious Mogambo grasshoppers! And, there is nothing I like better than something that is “easy,” unless it is something that is tasty. And so, pizza delivery gets very, very high marks for being both easy and tasty.

So, I smile beatifically and rub my fat little tummy in satisfaction, which is, even as we speak, growling for more pizza or fewer donuts.

Nevertheless, I say, “Hear me now, my quizzical ones! First, tell me all the ways – all the sleazy, slimy, slippery ways that you can manipulate markets when you control everything and have the Federal Reserve, a supplier of seemingly endless amounts of gold at very cheap rates, as a willing co-conspirator. There must be a zillion ways right there! Hahaha!”

My laughter ringing hollowly in their ears, I ruthlessly went on, “And on top of that, tell me more ways to make a profit by insiders manipulating the gold market if they are also free to use any combination of leased gold bullion, market-provided gold bullion, custodial gold, certificate gold, gold mining shares, mutual fund’s gold shares, warrants, futures, options, private contracts, promissory notes, poker chips and side bets! Hahaha! That ought to be good for a few gazillion ways to profit right there!

And then, tell me all the more ways you can profit from manipulating the gold market if you can also take a short position in any or all of those things, too! Hahaha! And then, as if that is not enough, tell me all the additional ways to make a profit manipulating a market when the money to finance all of this insanity is provided by Japan and their zero-interest-rate policy!”

I dramatically pause to let my words sink in – ruined by an inadvertent big, burping belch (“Burrrrrp!). Hurriedly, I exclaim a little too loudly, “Tell me these things, my Young Mogambo Larvae (YML), and I will tell you exactly how it is done!”

I look over the crowd assembled at my feet and glare purposefully at the ones nearest my feet who are harshing my buzz by loudly complaining about the smell. Then, I smile and say, “All you really need to know, my Greedy Little Ones (GLOs), to make a whole gigantic humongous ton of money with gold, is to buy it when you see that the price is held down by these manipulations! Huge multiples of the total existing global supply of gold is now mere paper, traded as if it were gold, which it ain’t, and probably never was. By now, the only thing that flimsy promissory note has in connection to gold is some words on paper or a computer disk somewhere. It will end badly for them. And, it won’t be long in coming.”

“And, it can work until the scam gets overwhelmed by sheer physical demand by millions of people, perhaps billions of people, who are all coming to their economic senses and are scrambling to buy silver and gold against the coming economic hard times, driving prices relentlessly up and up and up, as gold will be, just like it always has been, Pure Economic Salvation (PES) for people, as protection from the unstoppable depreciation in the purchasing power of the money caused by a huge government, which is massively deficit-spending a massively inflating stock of fiat currency based on debt, multiplied by an insanely low fractional-reserve ratio in the banks! Just like it has in all of history, and just like now! Hahaha! Now you know why I laugh!”

Then, dismissively, I point to the door and exclaim, “Go thee now! Go! Hie thee to thy places of gold and silver exchange, and buy, buy, buy!”

Soon, the place is deserted, and everybody has gone home, mostly muttering how they feel stupid even listening to an idiot like me. They whisper hateful things back and forth, like, “Did you get a whiff of those feet? Pee-yew!” Everybody laughs.

Whether or not you believe a raving lunatic like The Mogambo (and you would be an idiot if you did), the gold lease rates had again fallen (over the last 10 days) to a singularity (a strange situation where leasing gold short-term costs the same as leasing long-term!) in the last two days. Sure enough, right on schedule, the price of gold soon had a huge downdraft! You want more proof than flimsy, sheer coincidence? I shake my head in wonder, as you are not nearly as paranoid as you need to be, nor nearly as paranoid and angry as you are soon going to be.

Switching on the Mogambo Risk Analyzer (MRA), I quickly discover that, unfortunately, the chances of getting the money back, thanks to the mutual fund loaning it to dimwit dirtbags, are, officially, Pretty Damned Slim (PDS). And this coincides exactly with how people who loaned money to a dimwit dirtbag named The Mogambo, never got it back, either. So, you see how this all fits a little too neatly together to suit me!

If those are not enough reasons to own bullion gold, from some of the gold mining stocks I own, I, as a shareholder, am getting always asked to vote for all kinds of weird proposals buried deep in the prospectus, like allowing them to issue a lot of free options so that the company can give them to “select” people. This lets them, at some time in the future, opt to buy shares of the company, but at today’s price! Hahaha! Oddly enough, I think that this shameless scam signifies that they think gold is going to rise in price, if they are greedy enough to try and it off now! How bullish!

- George Ure, of UrbanSurvival.com, took a look at the latest CPI release, and notes that the annualizing the latest monthly rise in prices equals 7.4% inflation! I will wait a minute until you have gobbled a few nitroglycerine pills and checked your pulse, before I hit you with the news that inflation is actually higher than that!

First off, he begins with a little joke to, you know, sort of break the tension. He notes that in figuring inflation, “The Labor Department uses the Seasonally Adjusted Annual Rate” and then (pausing slightly for dramatic effect), he hits you with the punch line: “You don’t have one of those in your checkbook.”

Hahahaha! I’m rolling on the floor laughing! And then, I am immediately sorry for rolling on the floor because it seems that I have rolled into something wet. I am ashamed of myself for laughing because there is nothing funny about inflation. If you think otherwise, then tell me how funny it is the next time you buy gasoline at these record-high prices to fill up your gas guzzler so that you can take your stupid daughter to her stupid soccer game, where she sits on the stupid bench the whole stupid game, whining and complaining about how much she hates me. I mean you. She hates you.

And, since we are talking about it, there is nothing funny about getting your pants wet, either, because now it looks like I have peed in my pants. Everyone is pointing and laughing, “Hahaha! The stupid Mogambo peed in his pants… again!” All the women are making faces and saying horrible things like, “Ewww! Now he disgusts me more than ever!” Although, I note for the record that they were slyly suggesting all kinds of forbidden things (wink, wink!) back when they were interviewing for the damned jobs!

This is not about my dampness problems with trousers, or teasing-then-traitorous female employees, but about inflation. I motion with my hand for Mr. Ure to please go on with the news about inflation. Thankfully, he goes on to say, “The headline number means 7.4% inflation, but buried in the report, the Labor Department says the benchmark has changed. Check the emphasis-added part: ‘CPI (Old Weights) For the first six months of 2006, BLS also will calculate Old Weights CPI-U and Old Weights CPI-W based on the 2001-02 expenditure pattern used in the CPI from 2004 through 2005. These Old Weight data are contained in tables 1(OW)-4(OW). From February to March, the Old Weight CPI-U rose 0.7 percent and the Old Weight CPI-W rose 0.6 percent. Note these series are not seasonally adjusted.’”

Mr. Ure smiles, waves his hand dismissively, and says, “So there you have it: Inflation at an annualized old weight is 8.7%.” Pandemonium filled the room at this horrific inflation news! Well, the truth is that the only thing filling the room was the sound of me howling like an angry, frightened banshee at the looming horror of 8.7% annual inflation, and the sound of everyone else yelling, “Oh, hell! It’s that damned Mogambo idiot! Who’s responsible for letting that creep in here?” The noise was so deafening, that I never even got a chance to point out that the footnote admitted: “these series are not seasonally adjusted.”

- Greg Z. went to the British Museum to see a special exhibit on the History of Money. The best part, and you are going to love this, was Mr. Whitten, who is descried as “a small, elderly gentleman who has been hired by the Museum to man a table at the end of the exhibit hall.” He was displaying, among other monetary oddities, “silver coins from Pericles’ Athens and Victorian England (clipped by the way). He is very proud of all the precious metal coins and boasts of how beautiful (and valuable) they still are today.”

Mr. Z then goes on to relate, “He also has base metal coins from today’s modern world. During his presentation, he picked one up, stared at it ruefully and said, ‘Today this is made from base metals. The metal itself isn’t even worth the value of the coin.’ He then sighed and said in that great British accent, ‘Rubbish really.’”

Ahhh, the fabled British reserve and understatement! Mr. Z says, “Couldn’t have said it better myself.” Me either, Greg! Me either! Hahaha!

- The Economic Indicators came out, and the leading indicator was down – bad news. Paul Kasriel of Northern Trust writes, “The year-over-year growth in the LEI has done an excellent job of foreshadowing the onset of recessions. That is, a steady downtrend in the year-over-year growth in the LEI has been a warning of an imminent recession. Not surprisingly, the LEI is not only a good predictor of the cyclical behavior of economic growth, but also a good predictor of the directional behavior of the fed funds rate.”

The coincident indicator (indicating current economic activity) was up slightly, as you would expect, and the lagging indicator (indicating future inflation) was also up – more bad news.

This Indicator stuff is apparently not impressive to because, “Historically, the combination of sharply rising bond yields, gold prices and oil prices has led to a stock market decline, and in 62% of the cases to a stock market crash.” Ugh.