I was intrigued that a guy named David Thurtell, of Citigroup, surprisingly
said, "The liquidity pumped out by central banks means that there is a lot of
money sloshing around that needs to find a home."
I was so intrigued that I was tempted to use it as the basis for my first
report to the new supervisor for this quadrant of the galaxy, Karpus Klegg the
Implacable, at his new office at Intergalactic Headquarters after the "palace
coup" and interstellar personnel shake-up that I just found out about.
However, I did not want to start off a relationship with some guy I never met
named Karpus Klegg the Implacable by saying that
people on this planet believe that money can find a home, as it sounds so
stupid.
After a little checking, I learned that I just needed to say that the people on
this planet had evolved to the point where they seek pleasure all the time, and
just send him some porno films of earthlings, which he will like better than
anything else I could send him.
So, with that feather in my cap, I turn my attention to denizens of this
planet, singling out for Mr Thurtell of Citigroup to receive the Hot Mogambo
News (HMN) that money never finds a home! Never!
Money never "finds a home" because money, once created, is always being
exchanged for an asset, and then the asset seller has to exchange the newly
acquired money for another asset, and then that asset seller has to exchange
the newly acquired money for another asset, and then that asset seller, and
then another, and another, around and around, up and down, back and forth, with
all the new money constantly being used to add to the money already bidding on
goods and services, causing higher prices, higher and higher prices, even as
the money is being nibbled away, bit by bit and piece by piece, by relentless
and total government taxation at each exchange.
And yet, even then, as soon as any of the money is taxed away out of the
private economy, it immediately reappears! It is reborn as higher government
spending, and becoming "new money" that needs to "find a home" too!
So the idea of money ever "finding a home" makes me laugh the cruel Mogambo
Laugh Of Scorn (MLOS) at such a benign-sounding phrase, as all this new money
does is to increase prices!
And, if you want to know my opinion, deliberately increasing prices is a cruel,
mean-spirited, despotic and despicable thing to do to people.
However, cruelty of an elitist government towards the population is nothing
new, and it is a little known fact that the Elvis Presley hit, Don't Be Cruel,
originally had the lyrics:
Don't be cruel,
To the currency of a guy who trusted you Fed bastards to maintain the
purchasing power of the dollar.
Don't be cruel,
To the currency of a guy who trusted you Fed bastards to maintain the
purchasing power of the dollar.
I don't want no other cash!
But the dollar's turned to trash!
Don't be cruel!"
Firstly, thank you, thank you, thank you for your kind
applause of appreciation for my fabulous impersonation of Elvis Presley! Thank
you! Thank you!
Secondly, there is a moral about the purchasing power of money in there,
probably in the second verse where he had a leash around his neck and being led
around, which is now unfortunately lost, so you have to take my word for it,
where Elvis himself - The King! - was advising you to buy gold and silver when
the Federal Reserve was creating so much money, which it was doing at the time
of his death in 1977, all because Nixon severed the dollar's convertibility to
gold in 1971.
If you don't believe that Elvis was a gold-bug and Austrian-school of economics
kind of "cool guy," and/or that these are the original lyrics, then perhaps you
will start to believe me when I say that the Federal Reserve creating trillions
of dollars per year is going to make Elvis look more visionary than ever when
gold soars to the moon in the terrifying inflation in consumer prices and the
destruction of the economy!
And to think you can prevent all that by just buying, as suggested by Elvis
Presley himself, gold and silver! Don't be cruel, indeed! 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 2011, The Daily Reckoning.
Head
Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
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