To show you the kind of butthats that are in charge of things these days, and
as an example of the complete imbecility that seems so pervasive that it makes
you want to scream, SteveQuayle.com posted the news.Xinhuanet.com story that
"World Bank president Robert B Zoellick has called on leaders of the G-8 [Group
of Eight] as well as the major oil producers to act now to deal with surging
food and energy prices, warning that the world is now 'entering a danger
zone'."
He's upset that price inflation has now entered food and energy, and that makes
it a "danger zone". When inflation in the money supply showed up in the prices
of houses and goosed the
economy of the world for almost five years, that was not a "danger zone".
When inflation in the money supply raised the prices of stocks and the prices
of bonds and the prices of houses and the prices of monumental government
spending (including the money for programs like his), that was not a "danger
zone" either.
As soon as I finish my screaming in bloody outrage at this staggering
stupidity, I will explain that he, in agreement with the World Food Program and
the International Monetary Fund (IMF), estimates "that about US$10 billion is
needed to meet short-term needs of people hit hardest by the crisis". And these
are the SHORT-TERM needs, where most of the money will "disappear" along the
way! Hahahaha!
What a moron! What a collection of morons!
He, and the rest of those worthless dimwitted trashy organizations and people,
were completely silent as the US Federal Reserve created all that money and
credit for all those years in a massive monetary inflation, and he was "mum's
the word!" all the time that all the other central banks of the world had to
inflate their own currencies to soak up all those mountains of dollars that
were flowing into their countries via the trade deficit, which they felt they
had to do to prevent their own currencies from becoming strong as they traded
zillions of dollars for their own paltry supplies of their own currencies on
the foreign exchange market, which would mean higher prices to American
consumers (or falling profits to the foreign producers).
All of that was okay with all of these guys.
But now that people are literally starving to death from the rise in food and
energy prices, "catastrophe" looms, which it does, which means that an Angry
Mogambo Screaming Fit (AMSF) has started in earnest! AhhhoooOOOoooo!
After that aural onslaught, Mr Zoellick has decided that he is still in favor
of central banks creating too much money and credit, thus he is in favor of
making everything worse and worse, but now he wants some of that new money to
be given away to "them-that-need", so that they can buy food, which at present
they can't thanks to inflation in prices, thanks to inflation in the money
supply of the world, thanks to morons like him aiding and abetting it central
banks their whole freaking careers!
To be fair, Mr Zoellick also said, "What we are witnessing is not a natural
disaster - a silent tsunami or a perfect storm: it is a man-made catastrophe,
and as such must be fixed by people." Which is exactly right; it IS a man-made
catastrophe!
But my words of praise turn to ashes of contempt because people like him, the
World Bank, the Federal Reserve, the IMF, every central bank, every government,
and the majority of worthless PhD "neo-Keynesian" university-spawned
"economists" spent the Last Few Freaking Decades (LFFD) urging the creation of
more money and credit, congratulating each other on how much money and credit
they were creating, and urging each other to create more and more money and
credit for which they could be congratulated, all spent on speculation (driving
up the prices of stocks and bonds, to name but two), spent on consumer goods
(driving up the prices of houses and collectibles, to name but two again), and
spent on whole new glittering universes of government, government, government,
dispensing enormously expensive and expansive perpetual boatloads of
communistic, "from-those-that-have-to-those-in-need" government programs!
Hahaha!
And now the money has (unfortunately) stopped inflating just the prices of
stocks, bonds, houses and government, and is now inflating the prices of food
and energy, which leaves the consumer with less money to spend for stocks,
bonds, government and housing! Hahaha! We're doomed!
And it's not like these guys are new at this, as the World Bank says that its
budget in 2007 was $26.8 billion (which included $2.1 billion for
administrative expenses!), that it has been around since 1944, that it has
10,000 employees, and that it gives out "technical advice, loans, credits and
grants for poverty reduction and the improvement of living standards". Hahaha!
With completely, utter stupidity like that rampant in the world, what can one
do but laugh, unless it is to wonder in amazement that we've lasted as long as
we have? Hahahaha! Ugh.
The Mogambo sez: when I die, I do not want the words "Strange visitor from
another planet" on my headstone, or any words even hinting to the fact that I
am a total failure as a son, a boyfriend, a husband, father, brother, neighbor,
in-law, citizen or total freaking stranger.
I would like it if, on the other hand, it had something tasteful about "Anybody
strictly following Awesome Mogambo Investment Advice (AMIA) to buy only gold,
silver and oil, and things related to them, would have made a big damned pot
full of money and kicked investment ass the whole time as a result of betting
against a Federal Reserve creating excess money and credit, which means that
gold, silver and oil will soar in freaking value as the dollar loses its value
due to the excess creation, which they did, in spades, and now I look like the
freaking genius that I am and everybody else can kiss my big, fat butt!"
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.
(Republished with permission from
The Daily Reckoning. Copyright 2008, The Daily Reckoning.)
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Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
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