Junior Mogambo Ranger (JMR) Terry L sent
me the essay "Fiscal Armageddon in the USA" by C
Banesh, who reminds us that "Sometime between now
and 2012 the US debt will equal the country's
gross domestic product (GDP), the total market
value of all the goods and services in our economy
for an entire year."
Nobody says it,
although it is obvious to everyone that I will be
a complete raving lunatic by that time, driven out
of my mind by the monetary excesses of the Federal
Reserve.
The facts are pretty stark, in
that, "The $1.65 trillion deficit for 2012 will
make the debt grow to 105% of the nation's GDP,"
which he calls "a perilous milestone".
For
some reason, perhaps my rising sense of panic, I
suddenly wonder if he really means milestone,
which it would be, or maybe
he means millstone hanging
around our necks, which it also is, or maybe this
was some oblique reference to tombstone, in that
We're Freaking Doomed (WFD), or that we should get
stoned on the way to our tombs, or that stoned
zombies are rising up out of their tombs, or what
in the hell am I talking about, I have no idea
because I am getting so scared?
I don't
know, as it boggles my mind that "This year the US
will spend $200 billion in interest payments on
the debt", which is even worse than it looks
because, "Thanks to historically low interest
rates this figure is lower than normal. Once
interest rates start to rise - and rise they will
as inflation is quickly spreading throughout our
economy and the world - we will face an extra $100
billion in interest payments per year for every
one (1) percent increase in interest rates."
$100 billion more for each percent rise in
interest rates? Did somebody say, "We're Freaking
Doomed (WFD)!"? Yes, someone did! Me! WFD!
My dark mood was lightened when, for some
reason, he quotes The Wall Street Journal
ridiculously predicting that "without any changes,
the interest on the nation's debt will reach $900
billion annually in another 10 years", which means
absolutely nothing in that the ludicrous
simplifying assumption is "without any changes",
which is a pretty stupid base upon which to
calculate anything over the next 10 minutes, let
alone 10 years, particularly in a quickly
expanding fiat-currency, maximum
fractional-banking, government-centric,
deficit-spending world! Hahaha! "Without any
changes!" Hahaha!
But even with that
blanketing, soothing assumption, the results are
still terrifying, in that, "According to their
forecast, those yearly interest payments will be
17% greater than our annual Medicare costs and 82%
larger than 'the cost of all non-security
discretionary spending programs combined.'"
This, of course, seems a completely
ridiculous situation, and the important "without
any changes" stipulation will certainly be
violated at every opportunity, by every
government, at every opportunity, paid for, at
every opportunity, with money created out of thin
air by the Federal Reserve, increasing the money
supply and thus making prices go up and,
eventually, making interest rates go up, making
the day when the government's annual interest
payments surpasses all other spending into a
reality by the fact that discretionary spending
programs and stimulus deficit-spending cannot
increase as fast as interest rates rising to
require another $100 billion per each
interest-rate increase, and which will reach
double-digit rates meaning perhaps another
trillion dollars per year in interest payments!
Yikes! We're Freaking Doomed (WFD)!
I can
see that all this theoretical stuff has bored you,
despite my using my trademark WFD, replete with
exclamation point. Perhaps it is because you are
only here looking for a guaranteed, fast and easy
way to make a lot of money without working.
In that case, you have, indeed, come to
the right place, because it is right here, and
right now, that you can learn that buying gold and
silver is the PERFECT way to make a lot of money
with ease, thanks to the foregoing Boring Mogambo
Crap (BMC) about the evil Federal Reserve.
As for the guarantee, it is backed up 100%
by the last 4,500 years of what happened when
thousands and thousands of other dirtbag
governments borrowed so much money that they
couldn't pay it back.
And as for being
fast, it will get faster and faster exponentially,
which, at the rate that money is being created
around the world, the rise in the prices of gold
and silver should reach infinity Pretty Damned
Soon (PDS)!
And with that kind of Easy,
Fast And Guaranteed Investing Strategy (EFAGIS),
what can you say except, "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. )
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Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
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