-- Posted Thursday, 22 May 2008 | Digg This Article
| Source: GoldSeek.com
If you want to see how things are going to get after the elections, after the politicians have stopped pandering to us with their phony smiles, stupid ideas and alligator tears about "the poor" that they helped make poor, then let's look at the Netherlands. In the Netherlands, gasoline is selling for 1.61 euro per liter, which works out to, apparently, $9.45 a gallon.
A reader of UrbanSurvival.com notes, without even a hint of outrage, that out of that $9.45 per gallon that they pay, "70% goes to the government in taxes."
In short, taxes will be going up, but as bad as taxes are, a piece in the Wall Street Journal titled "You Can't Soak the Rich" by David Ransom shows that no matter what the top tax rate is, total federal tax revenue is always about 20% of GDP! Of course, this is only federal income taxes, and the total tax rake-off by local, state and federal agencies is roughly 50% of GDP.
The best news for the world is that Horst Köhler, former hotshot of the International Monetary Fund, has revealed that damned banks "have made huge mistakes", everything is ruined, and now we are going to suffer a lot of economic pain, the degree of which has not ever been seen or even contemplated in this country before, which makes it worse, much worse, a lot worse, a hell of a lot worse than the Great Depression, which is a lot of suffering that is nonetheless on top of the punishment of hearing The Mogambo always laughing derisively and saying, "I told you so! Hahahaha! I told you so, you morons!" and the only way to shut him up is to rudely tell him that he only said what Ludwig von Mises and the whole Austrian school of economics said, and if that doesn't shut him up, mention how that proves he never had an original thought in his whole stupid life, and even though he is rich because he bought gold as a defense of this banks-abetted-by-government explosion of fiat money and leveraged financial crap, he didn't even think of that, either!
And then note that maybe that is why nobody likes him, which is, admittedly, just one of a million theories about that, but a good one.
I am embarrassed to admit that there is nothing that The Mogambo ever said that was remotely original, except for his unique corporate motto of "No refunds for any reason, including incompetence and theft!", although I will point out that you can make an argument that the corporate motto of "No refunds for any reason, including incompetence and theft!" is not even original, as that is the whole attitude of the banks in general and the Federal Reserve in particular: incompetence and theft!
What did the Fed and the banks steal? The purchasing power of your money, you chump! How do I know this? Hahaha! Look at the raging inflation in the prices of food and energy, you moron! Hahaha! Do you actually think that a dollar seems to buy as much as it used to? Hahaha! Where did the purchasing power go? The Fed stole it!
Another, more scientific way, but which does not involve laughing or making fun of idiots who look at the fall in the dollar and are not stunned to insensibility by the awful ramifications, is to look at the foreign-exchange value of the U.S. dollar index, which has dropped from about 120 in the year 2002 to about 72 now! Almost a 40% loss! In six years! Almost half of your dollar's buying power, gone!
Of course, lots of people loved it when the inflation in the money supply was felt in stocks that were rising, bonds that were rising, houses that were rising, government tax revenues that were rising ("taken from those according to their ability to pay") and government spending that was rising ("given to those according to their needs"), but now that inflation is in the prices of food and energy, they are all running about shouting "Oh, no! What shall we do? The government must do something!"
Well, one thing to do would be to take a lousy split second to finally, finally, finally understand that multiplying the money supply is never, never, ever a good thing in the long run, and that is why the Constitution of the United States mandates, in Article 1, Section 10, that only silver and gold shall be used as a tender in payment of debt, and that, in turn, is why I consider everyone in Congress (except Ron Paul) since 1913 and every member of the Supreme Court since 1934 to be dirtbag traitors, and when the Big Freaking Bust (BFB) finally gets here and The Mogambo seizes complete supreme executive power to rule the world with caprice and whim leavened with vengeance, then you will know the full horror of letting the damned Congress (except Ron Paul) let the damned Federal Reserve create so damned much money and credit, until we are both screaming in outrage and spitting up blood from the terror.
Well, to be fair, the lesson of history is that economic crises are always caused by the banks, the damned banks, the despicably corrupt, greedy and dishonest banks, and only when the governments, the damned governments, the despicably corrupt, greedy and dishonest governments allow banks to get a way with it, which they have, and now we will suffer, just like all economies have always suffered when their damned banks and their damned corrupt government have destroyed the currency! The damnable banks! The damnable government!
Well, this is not about how Ben Franklin was right that a republic is doomed when the voters find out that they get money from the government, but about Horst Köhler correctly saying, "The only good thing about this crisis is that it has made clear to any thinking, responsible person in the sector that international financial markets have developed into a monster that must be put back in its place."
What he didn't say was that while the Japanese have shown remarkable abilities to fight monsters like Godzilla and Mothra, The Mogambo can do it at a cost lower than hiring the entire Japanese military, even after supplying enough power, porno and pizza to sustain his Manly Mogambo Effort (MME). So, if you see Mr. Morley, remind him of this, please. I'll wait by the telephone for his call.
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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. Click here to visit the Mogambo archive page.
-- Posted Thursday, 22 May 2008 | Digg This Article | Source: GoldSeek.com
