There are those of you, whom I call "the overwhelming majority", who are
dissatisfied with my snotty-and-unshakable attitude about the price of oil,
which I confidently predict will go up in price, a Fearless Mogambo Forecast
(FMF) based on many, many things, the most important of which is the fact that
I am a recklessly arrogant hothead who, unfortunately, is not as smart as he
thinks, but who endearingly admits that he is so lazy and confident in his
prediction that he will not even get up off of his Fat Lazy Butt (FLB) to do
any research at all on the subject because of all the sheer freaking tonnage of
stuff I have read over the last half century, the distillation of which is such
that I can report that I have never, ever seen two - count 'em, two! - things.
The first thing is that I have never seen a photograph of a beautiful girl,
especially ones in swimsuits, that did not have that sultry
"come hither" look in her eyes that clearly said, "I am burning up with passion
for you, my Hot Mogambo Stud (HMS)!"
The other thing that I have never read is an explanation of why it is that all
the hot babes in the photographs want me so much that you can actually almost
see them panting, burning some raw, primal lust, their glistening porcelain
bosoms heaving as an inner, unquenchable fire rages up from their inflamed
loins until it consumes their last pretenses to civilized behavior, unleashing
primal, sweaty, raw animal instincts, but in real life they always say things
like, "Ewww! This creepy old guy is hitting on me!"
Okay, I admit that was not supposed to be the "other thing" that I had learned,
but you can see how it has left me scarred and pitiful, which is another story
for another time, because I was planning on, at this point in the essay,
referring to the difficulty in locating One Lousy Example (OLE) in all of
history of a valuable, necessary commodity (like oil) going down in price when
the currency in which it was denominated (the dollar) was being devalued by
massive overproduction of money and credit.
And, if you are a real Junior Mogambo Ranger (JMR), then you know that we are
talking about the fiat dollar price of a precious, necessary commodity with
real intrinsic value, that exists in limited supply (thanks to the sheer
limitations of infrastructure, which is not to mention Peak Oil), denominated
in a wildly inflating currency, which makes your mind go, "Whoa, dude! This
does not sound like lower prices to me! How can I get a piece of this coming
price-rise action in oil so that I can, hopefully, make enough of the Big, Big
Money (BBM) to quit my lousy job and get the hell out of this stupid little
town, to start life over in a new town, with a new name, a new haircut and some
snazzy clothes!"
Nevertheless, there are, believe it or not, those who are actually envisioning
a day of oil selling for as low as around US$20 per barrel, which is less than
the cost of production which, if true, would mean it was suddenly possible to
"lose money on every sale, but make it up on volume", probably having something
to do with derivatives or something, I guess, whereas little guys like me get
fired when our stubbornly insisting on producing at a loss almost drives our
employer out of business, whereupon I lose everything and everyone is looking
at me like it is all my fault or something.
This brings us Junior Mogambo Ranger (JMR) Phil S, who sent a short essay by Dr
Adrian Rogers (1931-2005), who famously said, "You cannot multiply wealth by
dividing it", which stems from his observation that, "You cannot legislate the
poor into freedom by legislating the wealthy out of freedom. What one person
receives without working for, another person must work for without receiving"
since "The government cannot give to anybody anything that the government does
not first take from someone else."
Well, that got me thinking that with the "dumbing down" of scholastics in
general and economics in particular to the point where laughable academic
economists are suggesting "negative interest rates" as a monetary policy.
Considering that ridiculous development in theoretical economics, maybe it is
also now considered possible to multiply wealth by dividing it, if only you try
hard enough and the Federal Reserve creates the money! Hahaha!
And I sincerely wish these folks well, since it implies that it IS possible to
eat as much as you want and never gain an ounce of weight!
Until them, eat right, exercise moderately, and buy gold, silver and oil,
because while the first two are relatively useless except to insure that you'll
be skinny when you die, the last three will ensure that you will be fat and
happy when you die after they go zooming up in price because the dollar's
buying power is being debased by a dirtbag Leftist social-welfare country
wildly over-spending by issuing debt and creating those mountains of fiat
currency to pay for it! Hahaha!
Whee! Gold silver and oil! 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.
Head
Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
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