-- Posted Wednesday, 28 November 2007 | Digg This Article
| Source: GoldSeek.com
"The Dollar Crisis" by Llewellyn H. Rockwell, Jr. president of the Ludwig von Mises Institute, says, "Have a look at Murray Rothbard's America's Great Depression, which remains the best overall account of why the stock market crash happened and what Hoover did to make everything worse. Murray shows that the depression was not a crisis of capitalism but the result of a disastrously loose monetary policy in the 1920s."
Book? What in the hell is he talking about? I am here to learn how to make a lot of easy money in a hurry, and he wants me to read? Oh, crap!
So I find myself growing ill at east about this "reading" thing, but Mr. Rockwell relentlessly goes on, "Do you find yourself tripped up by inflationists throwing intellectual curveballs? Maybe you should sit down with the great treatise on money and banking in our time: Money, Bank Credit, and Economic Cycles by Jesus Huerta de Soto."
Again with the books! I start to get up to leave, but as I gathered up my lunchbox, my bag of snacks, my pizza box, a bag of potato chips and a bag of Oreos, he says, "Back in the 19th century, there were many people who wanted inflation: bankers, debtors, and the government", and I think to myself, "Hey! Just like now! This could be interesting!"
And indeed it is, as it brings up an article in the Financial Times with the title "Bernanke seeks to have the best of both worlds." The pertinent paragraph was, "Mr. Bernanke signaled that the implied objective would not be 'zero inflation, properly measured', but something higher than that, because of the danger of very low inflation" Hahaha!
"Danger of very low inflation"! Hahahaha! This is the most asinine and thoroughly ridiculous thing I have ever heard! In all my years of studying economics and rigorously defending my theories (Them: "You're an idiot!" Me: "No, I'm, not!"), I have never heard of such a thing as a "danger of low inflation", and a Google search showed that there is not one instance of anybody saying that there was such a thing, even hypothetically, as "the dangers of low inflation", because inflation in prices was always supposed to be, and assumed to be, zero, or less, and it usually was, and everything was always fine, and there is not much that is lower than "zero or less".
So that is why the references to inflation being "too low" are actually about "the dangers of deflation", which is that awful feeling you get when you notice that all those assets you acquired in the big boom are not going up in value lately, and they are costing you money, and people are not borrowing money to buy them from you, and it appears that the Last Sucker In Line Who Paid The Top Price At The Top has been identified, and it is you, and you are ready to sell at a loss just to get away from the embarrassment.
And now Ben Bernanke, as is promised by "targeting inflation" and heralded by the spooky sound of ravenous wolves howling in the distance and getting closer and closer, is going to bury us in price inflation and destroy us all, but that is the only thing he can do, as there is literally nothing he can do, for if there was, someone else in all of history would have thought of it, and tried it, when their stupid experiments with fiat currencies destroyed them, and believe me when I tell you that they tried everything, and they all failed.
Then, I almost gagged on a burrito I was eating to get the taste of this whole Bernanke thing out of my mouth, when I read the Bloomberg.com news item that included "Stephen Cecchetti, professor of international economics at Brandeis University and a former research director at the New York Fed", which appears to be pretty impressive credentials until you next read that he said, "Nothing leads me to suggest that there's an inflationary pass-through from dollar depreciation." Hahahaha!
I am simultaneously busting a gut laughing while puking up blood and odd bits of burrito in anger, as this is too, too, too much!
I see Jim Rogers, being interviewed by Bloomberg.com, and I motion for him to take over here and give this moron a few Blistering Mogambo Insults (BMI), such as, "You, sir, are a moron and you should be whipped, and you would be whipped if Americans were not stupid as posts or our Congresspersons were not so corrupt (except Ron Paul)!"
Instead, it is reported that Mr. Rogers went after Federal Reserve Chairman Bernanke "for comments on the currency before a congressional committee on Nov. 8."
Mr. Rogers is quoted as actually saying, "He is a total fool." And about what is Bernanke a fool? "He said Americans who buy only American goods are not affected if the value of the U.S. dollar goes down. I was terrified."
And to prove that Mr. Rogers did NOT graduate from the Mogambo School Of Stinging Editorial Critique (MSOSEC), no matter what his resume says or doesn't say, he didn't stop there and start viciously attacking the character of the guy, the guy's family and children, the guy's friends, telling vicious lies and ruining their credit rating, which is what you learn on Day One at the MSOSEC.
Rather, he just explained how even newborn babies, fresh from the womb, cry because they know that, "If you only buy American products and the dollar goes down, the price of oil goes up, copper goes up, wheat goes up. That affects you. He doesn't understand the economy as far as I can see."
Being a graduate of the MSOSEC, I would have said more. Much more. With obscenities. Lots of them. Ugh.
Mogambo sez: If it weren't for gold, we would be in a mess with no place to go for safety. If it weren't for silver, we wouldn't have such a startling upside potential.
And if it weren't for corrupt people in and out of government who have created the mess, neither one of these assets would make us as filthy stinking rich as they are going to make us, as the ultimate value of fiat currency is always literally zero, meaning that when all the money is gone, the skimpy 5 billion ounces of gold extant in the world will be, theoretically, ALL the money, and the people who have some of it will have their share of everything! Wheee!
P.S. To get The Daily Reckoning sent directly to your inbox, sign up for our free email newsletter, or if you prefer to use RSS, subscribe to the Daily Reckoning RSS feed.
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. Click here to visit the Mogambo archive page.
-- Posted Wednesday, 28 November 2007 | Digg This Article | Source: GoldSeek.com
