-- Posted Thursday, 8 November 2007 | Digg This Article
| Source: GoldSeek.com
Total Fed Credit was up last week by $3.8 billion, which seems like a lot of money to us proletariat working trash, but it is mere chump change to the American banking system, which can literally compound that money to infinity at their whim, thanks to the magic of insane levels of fractional-reserve banking and zero required reserves against new deposits or loans. In short, the banks are corrupt scum, just like always, and that is why history shows that all financial crises are always caused by the banks.
The biggest hubbub was when the GDP came in at 3.9% growth, thanks to a reported 0.8% inflation! Hahaha! I am laughing so hard that something came flying out of my nose, which I assume was a UFO of some kind, but the office is apparently filled with "experts" who can tell, at a glance, the difference between a booger and a tiny, mucus-covered flying saucer.
So people ask me, "Hey, Mogambo! If you're so smart that flying saucers come out of your nose, how is 0.8% inflation even freaking possible, you Worthless Halfwit Moron (WHM)?" Naturally, I immediately wonder who the real moron is around here, as asking a question of a moron like me seems so, ummm, moronic.
But the simple, Occam's Razor-like answer is that it is made possible by the government lying their corrupt heads off, and how this means that we ought to rise up in an angry, drunken, mindless mob and storm Washington, D.C. in protest, and drag these liars and corrupt trash all out into the street and kick their lying, nasty butts out of town, down the road, and into a swamp where they would live the rest of their stinking lives eating bugs and getting eaten by bugs, which, even then, is too good for them.
Rex Nutting of the Economic Report explains that there is no reason for Vicious Mogambo Vengeance (VMV), but that in pure Orwellian bizarro gibberish, "Inflation was low because oil prices surged", which he says can be explained by noting that "In GDP math, sometimes one plus one equals zero."
At first, I thought that he was insulting me by expecting me to believe such stupidity - that price inflation would fall because oil went up in price, but he holds up the actual news article from MarketWatch.com, which confirms that "As odd as it sounds, the government reported that inflation was at a four-decade low in the third quarter, primarily because import oil prices rose so much."
And sure enough, there is the actual sentence, "If you don't understand that, welcome to the confusing world of national income accounting, where up sometimes is down, and where sometimes one plus one can equal zero."
I am suddenly very scared and very confused, and Mr. Nutting sees me reflexively reaching under my jacket for one of the pistols I have tucked in there just for emergencies like this, and quickly assures me that there is no reason for taking any extreme action or discharging any weapons, but that it is all so easily explainable by Shelley Smith, who's in charge of figuring the price index for the government's Bureau of Economic Analysis, who said sometimes the mechanical formula produces some "quirky, nonintuititive relationships."
"Most of the time," it is explained, "the government's formula doesn't produce any weird numbers, because the mathematical quirks all cancel each other out. But in the just concluded third quarter, it did produce quirky numbers that don't accurately reflect reality, even though they are correct from an accounting point of view."
And from that "accounting point of view", the way it works is that prices of imported goods rose at a 10.3% annual pace in the quarter, but that import prices are subtracted from GDP, and thus somehow subtracted 1.3 percentage points from inflation, even though the prices of imports went up! Hahaha!
The big hubbub around here, however, was when the Mogambo Interstellar Daily News Report (MIDNR) aired the AP news story that Senator Barak Obama, one of the "front-runners" in the race to run for President as a Democrat, is quoted as saying to 5 year-old Hadassah Jones that he is a filthy, stinking, commie-bastard, lowlife moron, which is the only possible interpretation of his own words, namely, "We've got to make sure that people who have more money help the people who have less money."
If the MIDNR radio signal was not jammed everywhere on this planet by the CIA, you would have been able to hear the Blistering Mogambo Editorial Comment (BMEC) that if Democrats and/or the people who elected this nitwit did not immediately rise up and demand that this loathsome commie resign from Congress immediately (because communists are expressly forbidden to run for elected office), then they were all corrupt commies, too, because it is certainly NOT the business of government to "make sure that people who have more money help the people who have less money", but to make sure that people are given a fair shake by hewing strictly to the Constitution, and not being made poor in the first place by the damned stinking Federal Reserve allowing the banks to create excess money and credit, and thus creating the inflation in prices that make the poor poor!
But he is a Democrat. And a member of Congress. And with those two strikes against him, I am sure that he is not even aware how loathsome and despicable he really, really is.
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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, 8 November 2007 | Digg This Article | Source: GoldSeek.com
