-- Posted Thursday, 23 August 2007 | Digg This Article
The doors of the Mogambo Bunker Of Stark Terror (MBOST) are in full lockdown mode, I am armed to the teeth, and I have a tasty pizza in the oven whose delightful aromas are already working their calming magic. With those precautions out of the way, I thought I was ready to take a look at Total Fed Credit, that gushing fount of money and credit called "monetary inflation", which is what causes price inflation, which is what destroys societies and economies.
Then my eyes saw the number. I instantly knew that I was wrong. Daydreams of hot, luscious pizza loaded with yummy pork products flew from my head when I read that Total Fed Credit shot up an astounding $17.2 billion last week! Huge!
Wow! The reason was that the last decade was a truly historic time of insanely irrational increases in the size of the money supply (and the size of the debt thus created). All this new money and credit caused insanely irrational increases in price inflation of, and number of, financial-based assets (stocks, bonds, derivatives and government), and then, in a final glorious explosion of irrationality and greed, a monstrous inflation in the prices of houses and in the number of houses.
And all of this deluge of money financed the attendant inflation in the degree of corruption of the banks, financial industry and government, as Congress, private investors, the courts and regulatory agencies all "looked the other way", if not actually abetted, the whole sorry mess because it generated so much money, so damned much money, so insanely preposterous much money, everybody getting rich with profits to be taxed by governments and spent in an incandescent orgy of a cradle-to-grave smorgasbord of benefits and guaranteed equality of outcome. It was so irresistible that none of them could say no! So they said yes! And now here we are! Hahahaha!
And then the government spent its expanded budget, time and personnel coming over to my house and asking stupid questions, like "Why do you have a cannon in your front yard?" and "Why are you wearing that tinfoil hat?", not to mention the ever-popular question "Why do you hate the Federal Reserve, the Supreme Court, the Congress and the United Nations so much that you make rude hand gestures at them and make stupid farting noises?"
So, for the thousandth time, I have to explain to this new set of people, as calmly and politely as I can possibly manage, "And why aren't YOU doing all these things, you government goon squad, Gestapo Nazi pigs? Don't you see what is happening all around you, because of all the inflation in prices, you low-life morons? Get out of here, all of you, or I'll kick your butts! Yes, even yours, little lady!" and everybody turns around to see the little girl look up and say (with big stupid tears in her eyes) "But I'm just a little kid walking by your house on my way to school, mister!", all innocent-like, as if I don't know that she is just another little government-robot-in-training.
And then the cops get all upset at suddenly realizing the Terrible Truth Of The Mogambo (TTOTM), but instead of roaring off to arrest Alan Greenspan and everyone connected with the Federal Reserve and throw them all in jail, they take it out on me! Me! It's the old "kill the messenger" reaction!
Like, maybe they think that suppressing the truth will make all the bad stuff go away, and everything will be fine, if they hassle me and grind my explanatory leaflets ("The Economics Of The Federal Reserve Is Insane!") to the dirty ground under the heels of the jackboots. Morons! See the kind of stupid crap I have to put up with around here? Jeez!
But this is not about me and my problem with police robots harassing me all the time and rustling around in the bushes outside my house, but that one day this economic stupidity has to come to a stop. And you can easily believe me when I say this by merely looking deep, deep into my Blue Mogambo Eyes (BME) and seeing my utter, utter sincerity, which is all the proof you need.
Or, if you are still distrustful of my veracity, you can fire up your computer and try to find one other place and time in all of Earth history (even back to the days when the first multi-celled creatures appeared in slimy, primordial pools and they were trading commodity futures on herds of one-celled creatures) where the result of continually increasing the money supply with excessive amounts of money and credit was a good thing, and everybody lived happily ever after, and nobody ever said, "The Mogambo was right! Inflation in the money supply means inflation in debt and inflation in prices, which means we're freaking doomed! And we should have bought gold and silver like that Big Stupid Mogambo (BSM) was always yammering about, and yammering about, and yammering about until I was sick of hearing it, instead of wasting my time trading one-celled organism futures and getting my flagellum cut off and handed to me by the crooked sharpies in the futures pits! We're freaking doomed!"
Look it up. I dare you. And this is going to be, I am sorry to say, another one of those times.
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Editor's Note: Richard Daughty is general partner and COO for Smith Consultant Group, serving the financial and medical communities, and the editor of The Mogambo Guru economic newsletter - an avocational exercise to heap disrespect on those who desperately deserve it.
The Mogambo Guru is quoted frequently in Barron's, The Daily Reckoning and other fine publications.
-- Posted Thursday, 23 August 2007 | Digg This Article
