-- Posted Sunday, 4 January 2009 | Digg This Article
| Source: GoldSeek.com
Mish Shedlock at globaleconomicanalysis.blogspot.com has looked at the latest Z1 Flow of Funds report, and found that "$7.08 Trillion in wealth has vaporized in the past year."
He goes on that if this, the last quarter of 2008, is also as bad as it looks, then "roughly $10 Trillion in household wealth will be vaporized in little over a year. And looking ahead, there is no reason to believe the stock market, the housing market, or the economy will show signs of recovery anytime soon." Yikes! $10 trillion!
Then I think, "Perhaps this is not as dire as it looks! Thank goodness for the upcoming Obama Economic Stimulus Plan, huh?" Hahaha!
Well, Mr. Shedlock throws cold water on that, too, and says, "Obama needs to create 3 to 4 million new jobs just to counterbalance another 3 to 4 million layoffs" that he figures will appear in 2009.
He says, "I doubt Obama can do that quickly, if indeed at all."
Suddenly, I see my chance to get the spotlight off of Mr. Shedlock, who deserves it, and onto me, who does not, but who craves it more, so that I might bask in it's glory and maybe somebody will say, "Maybe the Mogambo is not as stupid as he sounds!" because I know how such an increase in employment can be done!
As a result, maybe I'll get a nice, cushy job with the Obama administration as their way of saying "Thanks!" since I am sure to need the job soon, as the economic downturn surely means that I will either be fired soon or be paid what I am really worth, which amounts to the same thing.
So I jump up and say, "Hey! Over here! I know how he can increase employment! All you have to do is give me a 100% deduction against my income for all my expenses in employing somebody, including the employer's half of Social Security and Medicare taxes (so that I will at least break even on the deal!), PLUS give me a tax credit (which is cash in my pocket!) for, oh, say, 10% of what I spent, as a sort of a "management and overhead expense."
In that way, I would have an incentive to hire as many people as I could, and pay all the employees top dollar, too!
Hell, at that rate, I'll personally hire 5 or 6 people right now, full-time, to get my yard, trees and shrubberies in shape, wash and wax the cars, and do all of that fixing, painting and replacing of broken, leaking or noisy crap around the house that the wife is always nagging for me to do, nag, nag, nag, all the time nag, nag, nag.
Like, for instance, just the other day as she was cleaning the house and trudging through the room with another load of laundry to be folded after being washed, I politely asked, "Hey! How's about a little lunch around here?" And she said to me, with this real frosty tone to her voice, "If you are going to lay there watching TV all day, then at least get your damned feet off of the couch, ya moron!" like she's my boss or something!
So you can see the kind of nag, nag, nag crap I have to put up with around here every damned day of my life.
But Mr. Shedlock is not alone in not being too rational and sane to be able to see the absolute madness and stupidities allowed by a fiat currency, like my bizarre example here, and Bloomberg.com has some guy named Akio Mikuni of Mikuni & Co. saying that "Japan should write-off its holdings of Treasuries because the U.S. government will struggle to finance increasing debt levels needed to dig the economy out of recession." Hahaha!
I say, "Hold on there, my little sushi roll! You don't have to write off anything, as we Americans will do it for you by debasing our currency to worthlessness by creating so much of it, saving you a lot of accounting, tax and legal wrangling!"
Apparently, he either did not hear me or he is ignoring me, but he suspiciously makes reference to this very same "dollar devaluation" theme when he says, "The dollar may lose as much as 40 percent of its value to 50 yen or 60 yen from the current spot rate of 90.40 unless Japan takes 'drastic measures' to help bail out the U.S. economy", which is pretty tall talk from a guy whose own country has been going nowhere for almost 20 years! Hahaha!
To further show you how this Japanese guy does not understand the power of a fiat currency that you can create at will, in any amount you want, he says that "Treasury yields, which are near record lows, may fall further without debt relief, making it difficult for the U.S. to borrow elsewhere." Hahaha!
So I say to him, "I say 'hahaha' to you, because we have a 100% fiat currency, made of nothing but paper or electronic blips in a computer somewhere, and we can create all the money that we need to borrow, and we will never have any real difficulty in borrowing! Hahaha! I know it sounds stupid, but it's true!"
Apparently he doesn't believe me, but then again, we learn that Mikuni is 69 years old, so maybe he has not heard that the dollar has no backing of any kind, which would explain why he would say something as stupid as, "It's difficult for the U.S. to borrow its way out of this problem", which is not even remotely true when you have a Federal Reserve creating all the money and credit that any government could want to borrow. Look at Zimbabwe!
And if that chilling comparison of Zimbabwe to the USA is not enough to make you get up off of your dead butt and buy more gold, silver and oil, then nothing is! Moron!
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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 Sunday, 4 January 2009 | Digg This Article | Source: GoldSeek.com
