October
25, 2012
Mogambo
Guru
Now, I gotta tell
ya, I can remember a lot of things,
mostly as a result of living a lot of years and thus spending a lot of years
finding out about a lot of stuff, but 1910 was not one of them.
Accordingly, on
the Mogambo Hierarchy Of Interest (MHOI), it always rated a big, fat zero since
I have never heard anything about 1910 that I could use. For instance, maybe in 1910 there was some
wonderful hair tonic to grow my hair back, only fuller and more luxuriant, or some
glorious elixir to give me a powerful, studly physique with bulging biceps and
washboard abs, but without exercising, preferably in an inexpensive pill, that
works overnight, while I sleep, so that I wake up refreshed, strong as an ox
and looking like a million Hollywood bucks.
Now THAT'S as a 1910
I could use!
So, perennially
scoring the proverbial "none of the above", I thought I would be
immediately bored to death with some doofus email about 1910.
It turns out I
was wrong! It was more interesting than
that, from an economics standpoint, by which I mean from an inflation
standpoint, by which I mean prices going up, by which I mean the inevitable
result of creating too much money and credit, by which I mean that the evil
Federal Reserve is creating massively too much money and credit so that the
horrid Obama administration can deficit-spend roughly $1.5 trillion a year, by
which I mean we're talking about annually adding national debt equal to ten
percent of GDP, by which I mean This Is Too Freaking Insane For Words
(TITFIFW).
For instance,
from the email we learn that in 1910, "The average US wage in 1910 was 22 cents per hour."
We later learn
that "The average US worker made between $200 and $400 per year."
Well, I
immediately sense that this is the perfect opportunity to show off my skills in
using a calculator, and so I start to look for mine, and I couldn’t find it,
eventually gave up after a fruitless twenty seconds or so, and reluctantly did
the long-division by hand, over and over, seemingly getting a different result
every damned time, until my hand got a cramp and I was really grumpy.
In doing so, I
found out two interesting things. 1) Doing long-division with paper and pencil
is more confusing than I remember, and 2) The average US worker (working 52
weeks a year) worked somewhere between 909 hours per year (a lousy 17.5 hours
per week) and 1,818 hours per year (a more respectable 35 hours per week).
Immediately, the
nimble Analytical Mind Of The Mogambo (AMMTM) concluded "Seventeen hours a
week working? What a bunch of lazy bastards they were!"
Of course, I am
not going to call them "lazy bastards" out loud since that would
cause, as it always does, those people who are merely standing nearby to perk
up, happily start talking trash about me, and how I am the King of Lazy
Bastards, and that I am, by consensus, the laziest bastard in town, no matter
what town I am in, and definitely the laziest man any of THEM ever met. Ever!
And it's not like
I don't patiently and clearly explain to them that "I am not here to do
any work, you lowlife morons! I am only here to (insert variously 'Get a
paycheck,' 'Sit on my fat ass,' or 'Eat like a pig')!"
Yet, unbelievably,
they look at me like I am the crazy one!
Me! I mean, why ELSE would I even
BE here, ya morons? For my health?
"So," I
can hear you asking yourself, "what does any of this have to do with
anything? Is there a point? Will he ever
get to the point? Why am I wasting my pathetic life reading such Stupid Mogambo
Crap (SMC), anyway? What in the hell is WRONG with me?"
Well, since you
are so impatient, I'll tell you the point: It has to do with inflation in
prices, and how intelligent people fear inflation, especially the kind where
people cannot afford to buy food, which is the big killer of economies and
countries, and then there is usually a war with somebody, and the whole thing
is a Big Freaking Bankrupted Mess (BFBM).
More to the point,
in 1910 "Sugar cost four cents a pound."
Eggs were fourteen cents a dozen.
Crappy coffee was fifteen cents a pound.
Eggs were fourteen cents a dozen.
Crappy coffee was fifteen cents a pound.
That got me
started thinking about how the prices we pay for these things are relatively
low, according to the inflation calculator at the Bureau of Labor Statistics, as
they calculate that it now takes $23.37 to buy what one dollar bought in 1913
(the farthest back the program can calculate).
And even though
1913 is three full years after 1910, that's still a whopping 2,337% inflation! And that staggering loss of buying power of
the dollar comes from just 3.14 % inflation per year, compounding!
So anybody -- and
I mean anybody! -- telling you that 5% inflation is a worthy goal, "to
prevent deflation" in the prices of stocks, houses and overvalued things
in general, is a complete and irredeemable moron, which I deftly prove by
noting that this outrageous idiocy is the actual opinion of the horrible Ben
Bernanke, lowlife loser chairman of the catastrophic failure known as the
Federal Reserve, and whom I nominate as King of the Keynesian Econometric
Nitwits.
Now, after that
unsavory-yet-satisfying bit of completely gratuitous rudeness and scornful disrespect,
I will now, at last, add that spicy, piquant bit of extra horror that is so
traditional during the Halloween season.
In this case, the
terror of John Williams of shadowstats.com still calculating inflation the
correct, old-fashioned way, and finding the chilling, terrifying result that inflation
in prices is now over 9% per year, compounding!
And by
"compounding" we mean, of course, "growing exponentially",
which is the problem with debt growing at an exponential rate: After all these
years and decades of creating massive amounts of debt (and therefore new money)
to both spend and to pay the interest due on an even more unbelievably colossal
amount of existing debt, the upward-sloping curve of debt ("curve of
death!") is getting pretty steep, the required amount of new money
necessary to "keep on keeping on" becomes truly unbelievable, and
soon, after that, things will really start getting completely irrational.
What to do? Beyond
screaming in outrage and vowing to use the upcoming elections to wreak righteous
revenge on the elected scumbags who caused all this mess, you mean? What to do?
That's a good
question! Hundreds of millions of people in the last 4,500 years of world
history, in millions of other countries and governments, have faced this Exact
Same Question (ESQ) because their rulers were this same kind of Stupid Corrupt
Scumbags (SCS).
So, pray tell,
what did those hundreds of millions of people do? What Did they do? What did
THEY do? What did they DO?
I mean, if we knew
what they all did, and how it worked out for them, it could provide a valuable,
valuable clue as to what to do!
Hmmmm! "A
valuable, valuable clue as to what to do"! Catchy!
Anyway, my
fabulous bon mot aside, what history boils down to is that when the value of
the currencies kept going down and down because the governments acted like they
always do, the people who owned gold and silver (and got the hell out of town
with it) did very well.
Those who owned
all other things did, unfortunately, not.
So, I ask
incredulously, how can this "investing thing" get easier when it is
so glaringly, grotesquely obvious that the corrupt Federal Reserve is now, year
after year, creating enough money equal to a tenth of GDP?
Causing massive
price inflation? So that the insane federal government can borrow and deficit-spend
that selfsame tenth of GDP? All because the US economy is now disgustingly
distorted, monstrously malignant, twisted and totally, totally dependent upon
massive, gagging amounts of government spending?
If you suddenly
feel sick to your stomach, like me whenever I think of it, cheer up! I have good
news at last!
What to do? It's
not for nothing that Junior Mogambo Rangers (JMRs) around the world eagerly accumulate
gold and silver bullion, and who say to themselves as they do, "Whee! This
investing stuff is easy!"
And with 4,500
years of history backing their play, how can they lose? Easy and guaranteed! Whee!
I'm suprised no one mentioned the fact until now that the 22 cents per hour were composed of two silver dimes and two copper pennies per hour. Honest money for honest labor long before fraudulent fiat was the norm.
ReplyDeleteAll Hail Mogambo!