-- Posted Thursday, 18 September 2008 | Digg This Article
| Source: GoldSeek.com
Naturally, I turned a jaundiced eye towards the new Total Fed Credit ("the magical fount from whence spews new credit, which becomes new money and a new debt when somebody borrows this new credit") that was created during the week that the federal government nationalized the bankrupt and corrupt behemoths called Fannie Mae and Freddie Mac. It was, surprisingly, down by $5.5 billion!
This is, theoretically, Bad, Bad News (BBN), in that we cannot stop creating new money and credit, as we are already too far down the Rocky Road Of Destruction (RROD) of a fiat currency that comes into existence by virtue of somebody going into debt, and the "point of no return" has been long passed, sort of like when an airplane is taking off and it reaches that place and speed down the runway where it can no longer stop, and the pilot must therefore continue to take off and try to fly that sucker, even if the engines quit and the wings fall off, which makes the task that much harder, as I understand it.
The good news is that "Rocky Road Of Destruction (RROD)" is the new hit release of the band called "Mogambo and the Mogambo-Tones", where the fabulous band now takes a dark foray into Goth, with a tune propelled by the catchy hook "We're freaking doomed!" which is constantly repeated over a soundtrack of wolves howling, people screaming and crying out "We're freaking doomed because of the inflation that was set in motion in the '30s when the corrupt Supreme Court overruled the Constitution and declared that paper money was the same as gold money, and then it was brought to a head in 1997 when the Federal Reserve under Alan Greenspan started an exponential creation of so freaking much money and credit so that, in 1999, when the loathsome Bill Clinton repealed the Glass-Steagall Act, the banks had the wherewithal to create so much more debt and thus an increase in the money supply to finance asset bubbles and derivative bubbles (now approximated at $1.25 quadrillion world-wide, or about $200 for every freaking man, woman and child on the freaking planet), which makes you laugh at the audacity of such lunacy, but then we did it for so freaking long that the resultant inflation in prices no longer appears as inflation in stocks, no longer as inflation in bonds, no longer as inflation in houses, but always as more and more inflation in the size of government and the cost of living (price inflation), which means that the Federal Reserve must create more money that the Congress needs to borrow, which will make inflation in prices worse, which was the original problem in the first freaking place! Oh woe! Oh woe!"
Okay, I realized that the lyrics needed a little work, but I am too lazy to do the work and nobody else wanted anything to do with it, but the point is not that most people are tone-deaf morons who wouldn't know good music if it came up and kicked them in the crotch.
I prove this brash allegation by showing how few of them own any gold, even as the Federal Reserve keeps expanding the money supply, which is so stupid that it qualifies as "moronic."
And as a true moron myself, let me tell you that this really takes the cake.
But don't start me talking about cake, because then I would not talk about gold, and believe me when I tell you that there is nothing better in times like these than cake. I mean gold. I mean cake. I mean gold.
Well, you know what I mean, so let's break for lunch. Maybe have some cake. And then buy some more gold and silver! Whee!
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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, 18 September 2008 | Digg This Article | Source: GoldSeek.com
