If there’s one message that’s been clearly reinforced over the last two years, it’s that there is no substitute for good, old fashioned dollar bills.

Elaborate hedging strategies like shorting and options are all good and fine, but not here and not now.

This is a game.

We’re sitting here patiently, waiting for the end of the world, because a handful of idiots decided to gamble with our well beings on some farfetched prospect of attaining total enlightenment and ending all war, and now the same bastards who did this to us are demanding that we trust them with even more – because apparently we’re supposed to buy that only they know how to save the world.

This sort of nonsense has twice now staved off the collapse, creating the most impressive runs we will likely ever see in our lifetimes. The mere threat of intervention can send us higher by another 20% in a matter of no time.

I don’t need to tell you this.

What I do feel I need to tell you is that there are differences between counterparties and custody of assets. Just ask PFG’s debtors, who are now suddenly being made aware that their loans may actually have been hypothecating depositors.

What good are your options if the people who owe you money aren’t around to pay you? Ask anyone short housing through a Lehman brokerage account how that works out.

What use is an ETF giving you leveraged exposure to silver or volatility or, God forbid, the USD, if market liquidity dries up and/or the funds handlers get blown to shit?

Exactly.

Have cash, ladies and gentlemen. And a contingency policy if cash goes away. You don’t know what’s going to happen. I don’t know what’s going to happen. So play it safe.

There will be plenty of time to gripe over missed gains when you aren’t in bankruptcy.