Hot and cold of economic winter
By The Mogambo Guru
Thanks to Junior Mogambo Ranger (JMR) Joseph Z, who sent the Bloomberg article
of the National Weather Service saying, "The high in New York City today is
forecast to hover around 80 degrees, making it only the second time on record
that June and July temperatures failed to reach 90," which I take as proof that
the world is not heating up, but instead is cooling down.
In fact, not only is the world not getting hotter, but neither is New York,
which is not actually a part of the World As We Know It (given the people they
elect), but which is still affected by the
weather, and in this case, "The average temperature for the month in Central
Park so far is 72.6, 3.9 degrees below normal, putting it in a tie for sixth
place on the list of coolest Julys, along with 1895" whereas "The coolest July
on record was 1888, with an average temperature of 70.7."
And arctic.atmos.uiuc.edu has a chart that shows that "Current Southern
Hemisphere Sea Ice Area" has expanded by a huge 14 million square miles, up
from 2 million square miles, in the last six months! Wow! It takes a lot of
cold to make 14 million square miles of sea ice!
And this is exactly what you would expect from the strange disappearance of
spots on the sun that has made me crazy with fear in the last year or so as it
developed, which is admittedly not the only thing that has made me crazy in the
last year or years or decades, but the sun is the source of the Earth's energy,
and when something happens to the sun, it is Important Freaking Stuff (IFS) in
that all-important weather way that, Chaos Theory-wise, affects everything.
In fact, Prisonplanet.com had the headline which summarizes it all: "Artic Ice
Grows 30% in a Year", and from that deduces that "A general cooling trend
across the planet is now clearly apparent as sunspot activity, the main driver
of climate change, dwindles to almost nothing."
The facts are that there have not been any sun spots for over 400 straight
days, and the evidence of measuring sun cycles and sun spots for the last 200
years leads to the prediction that "global temperatures will drop by two
degrees over the next two decades as solar activity grinds to a halt and the
planet drastically cools down, potentially heralding the onset of a new ice
age".
In fact, it must be worse than that, as we later find out that temperatures
have already fallen by about 0.5 degrees Centigrade over the past 12 months,
which seems like a hell of a lot to me if it is going to take 20 years to drop
2 degrees, which is enough to be another Maunder Minimum, like the kind that
lasted from 1645 to 1715 and during which "sunspots became exceedingly rare and
contributed to the onset of the Little Ice Age during which Europe and North
America were hit by bitterly cold winters and the Thames river in London
completely froze".
I cannot pass up the opportunity to proclaim that you should be heeding the
Loud Voice Of The Mogambo (LVOTM), the introductory overture of which
predictably begins "We're Freaking Doomed (WFD), you morons! Your money is dead
and you will be economically dead, if not actually dead, all because you turned
your backs on your own Constitution and its requirement that money be only of
gold and silver coin, and instead embraced a stupid fiat currency, unleashing
torrents of new money (inflation in the money supply) that produced
bankrupting, inflationary booms in stocks, bonds, houses, consumer debt,
derivatives and size of government, all of which that selfsame government is
trying to keep from imploding by printing and spending more money, which caused
the problems in the first place, which means huge, huge HUGE inflation in
consumer prices, even without this scary sun spot thing and the horrendous,
unthinkable possibility of years and years of persistent crop failures and
famines during a mini ice-age, all of which mean that you should be buying
gold, silver and oil with both hands, and indeed all commodities, because their
prices, like all prices, are determined by the dynamic of demand versus supply,
of which there ain't a-gonna be any."
And I say this not because I am an insufferable, arrogant and horrid little man
who knows a little bit about some things and now he thinks he knows everything
about everything, but instead I say this because things that we eat don't grow
very well or much during ice ages.
All of which make me squeal with childish glee, "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.
Head
Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
Central, Hong Kong Thailand Bureau:
11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110
