When inflation comes a-knockin' By The Mogambo Guru
Mike Shedlock of globaleconomicanalysis.blogspot.com writes that I - and people
like me, who are expecting inflation - are a bunch of idiots, which is
unfortunately true about me, and I am grateful that my Natural Mogambo
Stupidity (NMS) is his only complaint about me. I only wish that others were
equally restrained in their criticism, as there is apparently no end to either
my personal shortcomings or the delight in pointing them out.
He writes, thankfully not mentioning me by name, "You would think that
inflationistas would have caught on. But they haven't. Nor will they. And
articles about shrinking day care, collapsing retail sales, rising
unemployment, record foreclosures, massive credit card defaults, bankrupt
insurers, collapsing auto sales, sinking commercial real estate, plunging
commodity prices, and
dozens of other things will not change their minds either, including an
implosion in China."
I have to admit that he is right, as my wife and kids will happily tell you
that I never change, except to get worse. On the other hand, I steadfastly say
that neither the Federal Reserve, nor the federal government, is going to sit
still when people are whining about "shrinking day care, collapsing retail
sales, rising unemployment, record foreclosures, massive credit card defaults,
bankrupt insurers, collapsing auto sales, sinking commercial real estate,
plunging commodity prices, and dozens of other things" when they have a fiat
currency that they can instantly create, with unlimited abandon, which they
promised to do, will do, and are already doing.
Thus, with a staggering, unbelievable amount of money being created, these and
many more deflationary problems will soon be just a quaint memory as voluntary
fiscal and monetary restraints around the world are being thrown wholesale into
the dumpster even as we speak, and humongous "economic stimulus plans" financed
by massive increases in fiat money are being trotted out across the globe, all
meaning that inflation will rise and rise.
As if to prove me right, the article went on to note that Professor Steve
Hanke, formerly with Credit Suisse and now a senior fellow at the Cato
Institute in the United States, said that this month, "Zimbabwe's annual
inflation had soared to 2.79 quintillion percent", which is the inevitable
result of the moron government of Zimbabwe spending decades literally printing
all the paper money that makes such inflation possible!
In case you were wondering, "a quintillion is a figure with 18 zeroes and is a
rung above a quadrillion", which I will helpfully write out as
2,790,000,000,000,000,000%!!!!!
If you are a Junior Mogambo Ranger (JMR), then you need no explanation as to
why I included five exclamation points at the end of that sentence, which
indicates some extreme significance.
But even if you are NOT a JMR, then you should still need no explanation as to
the significance of inflation that is measured in quintillions of percent, or
even inflation measured in quadrillions of percent, or inflation measured in
trillions of percent, or inflation measured in billions of percent, or
inflation measured in millions of percent, or inflation measured in thousands
of percent, or inflation measured in hundreds of percent, or inflation measured
in tens of percent, or Any Freaking Inflation At All (AFIAA) that is more than
zero, because what it means is that Bad, Bad Times (BBT) are a-coming as all of
this money starts chasing a static supply of goods and services and people get
Very, Very Upset (VVU).
And besides the fact that inflation in the USA is already running between about
5% and 10% (depending on your source), it is going to get worse and worse, and
thus a BBT and a VVU are a-coming, which is why you need gold, silver and oil.
And the fact that they have been sold off to (as is theorized) raise cash and
thus drive their prices to Laughably Low Levels (LLL), should have you in a
buying frenzy, gobbling up as much of each as you can, and then going around to
your stupid neighbors and ringing, ringing, ringing their doorbells and
knocking on their doors, and then kicking their damned doors over and over
because you can hear them in there whispering to each other, "Shut up or he'll
hear you!" and so you yell out, "Buy gold, silver and oil as fast as you can,
you morons, or die a horrible death by inflation like the people of Zimbabwe!"
But as usual, they don't buy gold, silver and oil, and they don't even answer
the door. Don't you make that mistake!
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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