Gerald Celente, founder and director of the Trends Research Institute opines,
"To be using 1930s' models to get the US out of this is really stupid. Back
then when we first crashed, most people didn't have homes. There was no such
thing as home equity loan. And back then, people didn't have credit cards. The
consumer wasn't 14 trillion dollars in debt. We had a manufacturing base that
built the world out of the Great Depression following World War II. We no
longer have that."
He doesn't mention that we Americans also had the big advantage of having a
just-expanded economic infrastructure that was completely undamaged, almost
pristine, whereas everybody else had only ashes and destruction, which is such
a big financial
advantage that I keep stressing to my own executive board the wisdom of burning
our competitors to the ground, leaving us unscathed with an entire market to
ourselves, but, as usual, I am ignored and called names like "homicidal maniac"
which is not very flattering and I think is hurting my career.
Mr Celente is obviously going to side with "them" and not support tactical
arson and miscellaneous felonies as part of a successful business plan, but he
will allow that "there are two sets of books that the government keeps. When
they measure up unemployment, they don't add in the people who are no longer
looking for jobs because they have become discouraged since they cannot find
employment after looking so long. And they don't include part-time workers.
When you put that number into it, the number is 13.7%." Yikes!
That is a lot of unemployment! In fact, it's reminiscent of the Great
Depression, which was also caused by the collapse of a bubble, namely the
bubble of the Roaring '20s, which was also caused by rampant expansion of the
money supply by the damnable Federal Reserve! Spookily similar, wouldn't you
say?
And to have 13.7% unemployment at this early stage of collapse surely means
that we're freaking doomed! Doooooommmmmmed!
And it looks like it is not going to get any better, either, as he adds, "By
their deeds you shall know them!" At this, I thought, "Uh-oh! The guy found out
about me and is going to expose me as the vicious gutter rat that I am!" But I
was, thankfully, wrong!
As I was slinking out of the room, I heard him say that Barack Obama and the
Democrat crazies "brought in Larry Summers, Timothy Geithner. Look at the crew.
Look who they are. They're strike out artists, every one of them"! To which I
appended an exclamation point as an editing decision concerning punctuation, as
there are now more of these incompetent blowhards in the Obama administration
that just these two, and which now includes the terrifying Eric Holder and
laughable Leon Panetta, which is not to even mention the monstrous Hillary
Clinton! Gaahhh!
The last thing we need right now is more incompetence, and yet proven
incompetence is the only thing we now have! Gaaahhhh! We're freaking doomed!
But, in an effort to calm myself, this is good news as far as gold is
concerned, and this is exactly what it needs to go shooting to the moon in
price, as nothing drives gold higher than incompetents and morons mindlessly
demanding to expand government spending while relying on the Federal Reserve to
create more money and credit to finance the spending spree!
And why are Obama and these Leftist idiots doing this? Marketwatch.com went on,
"For the second time in a decade, the Fed has sounded the alarm that deflation
could be lurking. While most people might suppose that falling prices would be
a godsend, a little reflection shows that deflation would be devastating for
any economy based on debt" which is exactly right!
I gotta tell ya that I think the word "devastating" is a good word for it, and
if you go to your handy Mogambo Encyclopedia Of Economic Stuff (MEOES) and look
up "Deflation, effects of, fiat currency regime, extreme fractional banking in,
United States," you will actually see the word "devastating" several times,
mostly in the vein of, "It was devastating to Emily when Brad abruptly said,
his strong, masculine voice sending chills across her satiny skin, that he did
not want to, as usual, throw themselves into a wild, passionate embrace and
make love all over the house with lots of panting and moaning interspersed with
various husky instructions concerning position or technique, because, now that
the economy was ruined by the criminally stupid Federal Reserve (especially the
insane Alan Greenspan who is responsible for it all) creating inflationary
booms and bubbles in stocks, bonds, housing and size of government that have
now gone bust, now Brad's damned father was laid off, too, and is now at home
all the damned time and he can hear everything, making it uncomfortably and
devastatingly weird for Brad, and similar grown men of 35 living with their
parents, because there is no work that he can do with his limited intelligence
that pays enough to allow him to survive on his own, and he cannot understand
how the Fed creating so much money and credit makes prices go up and up and how
people have to borrow more and more money to pay the higher and higher prices,
which makes the money supply go up, which makes prices go up and up until one
day, for the same Chaos Theory reason as a butterfly in the Amazon flapping its
wings creates a little, tiny change in the air currents and causes it to rain
three days later in Chicago, now some similarly unseen financial butterfly
flapped its wings and the economy tragically went into the crapper a year or so
later, and Emily was devastated at the news, her heaving bosom and naked thighs
yearning for so, so much more."
And that, boys and girls, is why extreme fractional reserve banking using an
abused fiat currency to irresponsibly expand the money supply is so criminally
stupid.
And that is also why, boys and girls, buying gold, silver and oil is so
sublimely smart when they do it! 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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