SilverForecaster.com goes beyond mere facts and figures that, alone, seem to
shout, "Buy silver right now, you freaking moron!" as he conveys a certain
sense of alarm and dread that the economic downturn is extending beyond
bailouts to outright protectionism, as "Capital controls in emerging markets
have staged a notable re-appearance in the past few months as policymakers in a
number of countries have struggled to deal with the consequences of the
collapse in global risk appetite."
Well, I'll say this for protectionism; it makes some things cost me more!
Hahaha!
Forgive my levity, but what kind of an idiot does NOT know that protectionism
makes things cost more money so that a specific group of people can make more
money after the government gives
them an unfair advantage over foreigners and competitors, which is, as I
understand it, the whole point of the damned thing?
Julian Phillips, the editor of the newsletter, does not disagree with me
outright, although you can tell that he thinks I am creepy and disgusting, and
he doesn't want to agree with me about anything, which is sort of like my wife
in that respect.
Instead, he says that the use of capital controls "shows how policymakers can
rely on administrative measures to ration foreign exchange during emergencies,
as they try to protect foreign exchange reserves, limit currency volatility,
reduce the volatility of asset prices and make the economy less susceptible to
flows of 'hot' money".
All of that is probably significant as hell, but I don't understand any of it,
although I do understand how things cost me more money as the protectionist
tariffs are passed along as a "cost of doing business" expense, and merely
added into the price that I, the hapless consumer at the end of the line, says
to the retailer, and then one day I go in there and say to the shopkeeper,
"Hey! The last time I was in here, these prices were too high for me to buy
anything, so I did not buy anything, and despite the drop in demand, prices are
higher this time! What in the hell is going on, you thieving bastard?"
Of course, I know it is not his fault, and I am just looking for a scapegoat to
blame. I know that it is actually the fault of the Federal Reserve creating all
the excess money and credit that created the inflationary boom that is now
busting and taking everyone down with it, at which point I remembered the
parting words of my grandparents and friends as I was being transferred to this
planet. "Mogambo," they said, "watch out! Those Earth people are dangerously
stupid!"
And the other thing that I know is that whatever the Fed or the government does
or does not do, it's a matter of government getting money, and it will have
profound effects simply because the layers of government are so huge, including
all those weenies from the local Neighborhood Association who now have a new
rule banning residents from having a Christmas manger scene where, if you look
through the nativity scene and out the "back door" of the barn, there is an
outhouse with a figure of Santa inside taking a crap.
This is not to show you the sad, sad state of editorial freedom in this country
and the fascist suppression of my artistic decry of the crass commercialism of
the religious season, but about the enormous number and size of governments we
have, starting with these snooty Neighborhood Association morons who would not
know real, biting editorial commentary if it came up and took a big stinking
crap on their heads.
And speaking of crap, the list of our governing masters continues with the city
government, to the county government, to the state government, to the federal
government, to (it is rumored) the United Nations, the Tri-Lateral Commission,
Plan B From Outer Space, and all of the other little political fiefdoms like
the school board who have been given authority to tax your house directly,
which certainly has the fiscal effect of a government gone insane!
And why not work for the government? From federaljobs.net we learn from
"Chapter One, Introduction to Government Employment" that "There are many
reasons to consider federal employment. The average annual federal worker's
compensations pay plus benefits, is $106,871 compared to $53,288 for the
private sector. Student loan payoff, relocation, and cash incentives are now
offered for hard-to-fill positions and the benefits package is exceptional", by
which they mean, "More than anybody makes in the private sector that you know,
unless you are already rich, in which case you are not reading this, so it
doesn't matter to you anyway, but you probably aren't, so it does."
It's just too bad that government workers are a deadweight loss, as they
produce no profit from their labors with which to pay their bloated salary and
benefits packages, and they produce profit-lowering costs for those who must
obey their commands, sort of a lose-lose situation.
But then again, without them destroying the economy and the currency, we
citizens could not make money by investing in gold and making a fortune when it
soars as a result! Hahahaha! Whee! This investing stuff is easy!
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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Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
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