"The Crisis Is Upon Us" is an essay by Ron Paul, a retired pediatrician and the
only guy in the US Congress that I would trust with the future of the United
States of America by electing him president. I am inconsolable that he is not
the Republican nominee, and now I must instead choose between some old white
guy who has never had a job where he was not either mindlessly taking orders
(the military, then Vietnamese captors) or screwing things up (he is currently
one of the lowlife, numbskull yahoo Congresspersons that got us into this
economic mess that is going to destroy America), or alternatively choosing to
vote for some leftist/Marxist affirmative-action black guy who knows absolutely
nothing about real life (and is also currently one of the lowlife, numbskull
yahoo Congresspersons that got us into this
economic mess that is going to destroy America).
But this is not about how Mr Paul would have made a great president instead of
Ronald Reagan after Federal Reserve chairman Paul Volcker got rid of the
horrendous inflation that consumed the 1970s because he understands economics
and he wouldn't have allowed the Fed to create all that excess money and credit
that is causing inflation in consumer prices nor any of the other
inflations/busts in asset prices, but about how that knowledge about economics
leads him to ominously say, "I have days - growing more frequent all the time -
when I'm convinced the time is now upon us that some Big Events are about to
occur. The world economy and political system will share in the chaos about to
be unleashed."
I know what you are thinking. You are saying to yourself, "Hey! That sounds a
lot like what the Stupid Loudmouth Mogambo (SLM) is always yammering about,
right before he starts getting hysterical about how it is all caused by the
Federal Reserve creating too much money and credit, and proceeding from there
to heaping justified insults on Congress (except Ron Paul), most of the Supreme
Court, the United Nations, all foreigners and malevolent alien beings from
outer space who are here to undermine the system prior to conquest by flying
saucers and ray guns, which predictably leads to how we are freaking doomed,
and if you are not buying gold and silver then you are some kind of drooling
idiot!"
As correct as that is, it gets even MORE eerily reminiscent of the Loud And
Fearful Mogambo (LAFM), off on one of his rambunctious toots as Mr Paul goes on
to list inflations ("gasoline prices over US$4 a gallon; skyrocketing education
and medical-care costs"), deflations ("the collapse of the housing bubble; the
bursting of the NASDAQ bubble; stock markets plunging"), personal miseries
("unemployment rising; massive underemployment") and the crushing debts that
are becoming un-payable ("excessive government debt; and unmanageable personal
debt"), all caused by Alan Greenspan and the Federal Reserve.
That is why Mr Paul says, "The financial crisis, still in its early stages, is
apparent to everyone", and that there is "little doubt" about "whether we'll
get stagflation. The question that will soon be asked is: When will the
stagflation become an inflationary depression?"
One of the things that he finds worrisome is that "things may even be worse
than I first thought", which probably shows why he was not selected to be the
Republican presidential nominee; he is inexperienced in catastrophe.
In case you were wondering, this lack of experience with catastrophe is NOT the
reason that I, The Mogambo, was not nominated to be the Republican candidate.
In fact, I have lots and LOTS of experience in catastrophes, mostly in the vein
of coming home after midnight stinking of cheap liquor and cheaper perfume, or
showing up at work both late and ditto the liquor and perfume, but mostly
because I am stupid, rude and impetuous, and which are the reasons why I never
get promoted around here and am still stuck in this stupid, dead-end job and
which, in turn, explains my constant hostility, vengeful paranoia and sour
disposition, which IS the reason I was not nominated to be president.
The point is that with my wealth of experience, I know that things are ALWAYS
going to be worse than you first thought. Usually a lot worse! Hahahaha!
And George Ure atUrbanSurvival.com seems to agree with Mr Paul's "Big Event"
prediction, and says, "We're now inside the 90-day window to what I expect will
be the 'Fall in the Fall' of the markets for any number of reasons."
And, apparently, Ambrose Evans-Pritchard at The Telegraph in London agrees with
us, too, and writes, "We are now at the point of maximum danger. The US may
soon tip into a second leg of this crisis as the fiscal package runs out and
Americans lose jobs in earnest."
The reason he says this is, "US bank credit has contracted for three months"
and "real US wages fell at almost 10 percent (annualized) over May and June"
(which is calculated as nominal wages less the inflationary fall in purchasing
power), which makes for "a ferocious squeeze for an economy already in the grip
of the property and debt crunch."
All I can say for them to do is to do what I do when a creditor calls me up
demanding that I pay back some money; I say, "Mogambo fella him gone, no come
back. Me no speakee English!" and hang up.
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 vocational exercise to heap disrespect on those
who desperately deserve it.
(Republished with permission from
The Daily Reckoning. Copyright 2008, The Daily Reckoning.)
Head
Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
Central, Hong Kong Thailand Bureau:
11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110
