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 US$6 billion federal bailout, resumed lending to General Motors Corp.
customers with lower credit scores as the US 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 president-elect Barack
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 Coach, the US sitcom of the
1990s, 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 have 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!
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 2009, The Daily Reckoning.)
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