-- Posted Sunday, 11 January 2009 | Digg This Article
| Source: GoldSeek.com
I was looking for a good example of the category called "People and things that just don't understand that things have now changed forever, and that old 'borrowing to consume' crap is all over, now that consumers, businesses and governments have borrowed themselves into an Un-payable, Stinking Quagmire Of Debt (USQOD) and the people acquired mass, child-like dependence on enormous quantities of government spending, and it ain't about 'liquidity' as much as it is about being So Freaking Far In Debt (SFFID) with no visible means of real, non-government market support that bankruptcy and ruination is inevitable."
At the same time as I was looking for the example, I was also engaging in the kind of productivity that "made America great", in that I was also investigating with the Guinness Book of World Records-people to see if this category has set a world record for "the longest name of a category concerning economics, back-breaking debt, raging monetary inflation, high consumer price inflation all brought about by the idiocy of a criminally-incompetent Congress, Supreme Court and Federal Reserve, who see nothing wrong with a fiat currency or bizarre neo-Keynesian econometric theories, even though those same bizarre neo-Keynesian econometric stupidities have now destroyed the fiat dollar, the USA and, by extension, the world", but I think they called me something that sounded like, "Oh, crumpy fair glagger, eh, guv'na?" and hung up on me.
Of course, in my more rabid moments, I would say, loudly and with disgusting Mogambo Spittle Droplets (MSD) spewing from my slobbering lips in my outrage, that any of the things connected with either the government or the Federal Reserve would serve as a good example of Stupidity Writ Large (SWL), but perhaps the best one was when Bloomberg.com reported that "GMAC LLC, bolstered by a $6 billion federal bailout, resumed lending to General Motors Corp. customers with lower credit scores as the U.S. widened its effort to keep the automaker in business." Hahaha!
I am actually laughing while simultaneously grinding my teeth in outrage at the fact that taxpayer money is being used to go back to lending money to people who are poor credit risks, in a dying service economy where people are losing their jobs and businesses are going under, so that these sad-sack people can buy new cars at prices that, with only slight exaggeration, now average approximately the annual HOUSEHOLD income in America, and which they obviously cannot afford! Hahahaha!
But - and here I pause and chastise myself for my shallow humor - maybe it will work! This belief is perhaps evidenced by the dollar suddenly zooming because, according to one theory, everybody is convinced that Obama's massive stimulus spending program is going to work, everything will be fine again, everybody will finally get rich, stock prices will soar, houses will soar, incomes will soar, everybody will profit, and life will be wonderful, wonderful, wonderful for Every Freaking Body (EFB).
If you are new to economics, you may not yet understand that economics literature is rich with obscure terms, meaningless equations, worthless concepts and sheer stupidities by the ton, which I use to explain why I used repetition of the word "wonderful" as a way of indicating sneering sarcasm and Utter, Utter Contempt (UUC), although it really doesn't explain it, but if you know why I am here on this planet, then it does.
As such, it is part of my unfortunate duty to be assigned to this planet, where I am to heap disdain and disrespect on people who so desperately need it, because if this stupid little planet is ever going to join the Federation of Planets and learn the Secrets Of The Universe (like "Why do fools fall in love?"), you Earth people have got to stop believing stupid things and start thinking smart things.
For one thing, "Deficits DO matter" and another is that "Fiat money in the hands of the Federal Reserve is suicidal because inflation in the money supply will lead to inflation in prices as this new money goes into the bidding for resources and assets, and it is the exponential nature of inflation in prices over the long-term that culminates in rioting in the streets because food and fuel are so highly priced, and that is what kills ya!"
So, being a nice guy like I am, I am trying to keep this news from leaking out into the universe, because then other whole civilizations throughout the galaxy, at least, will laugh at this puny planet for its stupidity; but Obama and Congress are going to try (with the encouragement of the Leftists loonies, the Wall Street weenies, banker bastards and hordes of other economically-clueless morons with undue powers and influence about things they don't understand, both foreign and domestic) to create so incredibly much Treasury debt so that Congress can literally spend America's way out of its recession/depression, which was, laughingly, caused by too much spending and debt!! Hahaha! What imbecility, as I indicate with the two exclamation points!
It reminds me of Hayden, in an episode of Coach, being told about one of his plans of desperation, "But, Hayden. It's insanity!" to which he angrily exclaimed, pulling his hair out in frantic frustration, "But it's all we've got!" Hahaha!
But this new spending is, of course, entirely predictable, as this is what has always been done by all other bankrupt, brain-dead corrupt governments on this planet in the past 4,500 years that had racked up so much debt that they collapsed.
In case you are wondering, I am not just another paranoid lunatic holed up in some filthy cubbyhole somewhere with his guns and gold, eternally pessimistic and cannot see a silver lining, but can only see the dark cloud with lightning bolts shooting out of the bottom of it, boom, boom, boom, lightning striking all around you, boom, boom, boom, and you run, run, run for your car, and you are bending over while you are running so that you are shorter than the kids, and they are asking, "Why are you running like that, daddy?" and I act like I can't hear them.
The reason is that there is, indeed, a palpable optimism, which is that gold will rise in price as the buying power of the dollar falls from all of this insane over-issuance of dollars! I'm optimistic!
And you don't have to be around the field of investing very long before you recognize the crucial importance of buying something now, at a low price, that will rise in price in the future.
The best part is… It's easy! It's as easy as predicting that the money supply will rise in response to all this new money and credit, and in that regard, let me introduce Bill Bonner from here at The Daily Reckoning, who says, "In the last two months of last year, MZM - a measure of the money supply - grew at 11% per year." Eleven percent! Eleven freaking percent!
And I hear that the M2 measure of the money supply is up, in the last four months, by an annualized 14%!
And yet, I rub my eyes in disbelief… You don't think consumer prices will rise, or that gold will rise, or that you ought to be buying gold with every breath you take, which is a line I took from a Sting song, and now you want to make a mistake by not buying gold AND mess with a guy named Sting, too? What bravery! I am impressed with your sense of daring!
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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, 11 January 2009 | Digg This Article | Source: GoldSeek.com
