Better Cindy’s $500,000 than a Mongolian election for successful mining

Small American flags have sprouted on the grass outside each of the 400 houses in our California town-house complex.  They were planted there by the local real estate agent who made sure her card was almost as prominent as the flag itself.   If you ignore the advertising component, the flags look rather nice and add an air of celebration to the neighborhood and the upcoming 4th July celebration.  For Huntington Beach has the largest 4th July parade west of the Mississippi and great fireworks of the beach in the evenings. 

We can celebrate the inanities of American patriotism and elections.  Like the flags that appear as adverts; the news that Cindy McCain charged $500,000 in one month to her American Express Platinum card; the fact that off-limits is a remark that being shot down in a plane hardly constitutes good experience in negotiating wars and the end to wars; that Obama decries attempts to overturn California’s Supreme Court on gay marriage;  that at the end of the day Obama is clearly more “religious” (whatever that means) than McCain who can’t quite recall his religious affiliation— but who could, trying to keep track of a wife spending half a million a month on family goodies?

 As I said we can celebrate these inanities, for at the end of the day, the election will be won or lost clearly—or decided by the US Supreme Court and carefully picked judges.  And there will be no riots and deaths and miscarriages of justice that negatively impact honest miners. 

Regardless of how much Cindy spends of her own fortune, we won’t have the turmoil that plagues mining prospects such as is occurring right now in Mongolia.  Or is even worse in Zimbabwe.  Silliness and excess are such small prices to pay for an honest and decisive election, that I vote for American silliness every time. 

I do not really know or understand the ins and outs of the Mongolian election.  To be entirely honest, I do not care about the ins and outs of the Mongolian election.  I am convinced that in the end it is just another of those systems where one tribe is trying to get the better of another tribe so that they can get their hands on the levers of power and the taps of dollars.  And they will then suppress the opposition. 

I also confess I have no sympathy for the mining companies trying to make a buck in this political turmoil or for the shareholders trying to ride to profits on the slippery slope of another primitive society of robber barons.   They know, or should know, the risks of operating in such places.  There is plenty written about the impact of political risk on mining.  They take it all into account in setting the budgets and the timetable for success. 

So let the Mongolian party steal the election or loose it.  Let the mines come or go as the taps sprout money for the winners.  Maybe put a few loose dollars of your investment money into the mines shares—afterall we all gamble a  little when we go to Vegas?   They may pay out with the same ratio of luck as the average slot machine.  No harm in trying.  No harm in a small flutter.

But spare us the sanctimonious financial analysis, the profound political analysis, the “bright”  predictions of success or failure.  This is gambling, plain and simple.  This is not investing, careful or prudent.  This is not saving the world or changing one desperately poor society.  This is a gamble that you bet on the robber baron who is going to win and will let you keep at least some of the take.  There is no ethics here.  This is not even an ethical issue.  This is just like putting your money in a slot machine and pulling one of those fake levers they all have now.  Good luck.  Good 4th July.  Good elections.  And good mining.