tag:blogger.com,1999:blog-9897232046861153342024-02-19T23:39:25.308-08:00Mogambo Guru Report!Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.comBlogger47125tag:blogger.com,1999:blog-989723204686115334.post-85604903559472193522013-03-05T14:05:00.000-08:002013-03-05T14:05:07.128-08:00Poetry with a Punch...
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">February
8, 2013<o:p></o:p></span></span></span></div>
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<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Mogambo
Guru<o:p></o:p></span></span></span></div>
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<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
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<span style="mso-tab-count: 3;"> </span>Poetry
with a punch you can use</div>
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<o:p> </o:p></div>
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<o:p> </o:p></div>
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I am seriously considering
changing careers.</div>
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<o:p> </o:p></div>
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I have, to my dismay, discovered
that being a paranoid, angry, cynical, Austrian School economist and all-around
lunatic raving gold-bug whack-o slacker, who is absolutely sure that We're
Freaking Doomed (WFD), is an occupation that does not have that certain
glorious glamour and commanding cache to elicit the fawning adoration of hot
chicks ("Take me, Hot Mogambo Poet (HMP)! Bend me over something and let
'er rip!") that would certainly brighten up my admittedly bleak days
expecting, as you learned earlier in this paragraph, doom.</div>
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<o:p> </o:p></div>
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So I am thinking of becoming a
famous and influential poet.<span style="mso-spacerun: yes;"> </span>To
establish my impressive credentials, here, for your pleasure, is my first poem:</div>
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<o:p> </o:p></div>
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Roses are red,</div>
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Violets are blue,</div>
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<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
Gold and silver are such
screaming bargains because the evil, foul Federal Reserve is creating So
Freaking Much (SFM) currency and credit in some nightmarish flood of insane
monetary inflation that if you aren't buying them,</div>
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Then something is very, very
wrong with you.</div>
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<o:p> </o:p></div>
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Well, I am sure that you, like
poetry lovers everywhere, instantly recognize this as the absolutely best poem
ever written in English, as it is the only poem that tells you how to get
stinking rich by doing nothing except, as the poem makes abundantly clear,
buying gold and silver to capitalize on the suicidal idiocy of the Federal
Reserve creating so much currency and credit to fund the insane
deficit-spending of the corrupt Congress that must, by mathematical necessity,
bankrupt the whole country and cause ruinous inflation in prices, which is more
precisely defined by us professional economists as The Big Crapola (TBC).</div>
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<o:p> </o:p></div>
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<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
Other poems are but clever
and/or melodious trifles, toying with your emotions. </div>
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<o:p> </o:p></div>
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But here, from the Mighty Pen Of
The Mogambo (MPOTM), comes a powerful poem of such sublime rhyme, meter of a strange
sort and, if you look hard enough and really use your imagination, actual
alliteration, brilliantly combined with a sure-fire Path To Extreme Riches
(PTER), as guaranteed by 2,500 years of history</div>
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<o:p> </o:p></div>
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Now, please notice that I used
the word "currency" instead of "money."<span style="mso-spacerun: yes;"> </span>I did this for two important, but completely
different, reasons. </div>
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<o:p> </o:p></div>
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One reason is, by virtue of my newly-found
chick-magnet status of being the Best Poet Who Ever Lived (BPWEL),
"currency" is poetically alliterative with "creating" and
"credit" which is a literary technique us big-time poets use all the
time.</div>
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<o:p> </o:p></div>
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The other reason is because, as
Mike Maloney of goldsilver.com pleasantly pointed out to me, it is an important
fact that I never thought about, namely fiat dollars are NOT "money."
</div>
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<o:p> </o:p></div>
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This is a fascinating fact I
learned when I casually stopped by his office and politely asked for him to
loan me some money because I could use a few bucks since it was almost
lunchtime and I was hungry, but if I went home to eat, my wife would ask me
where I was all morning, and I'd say I was at the driving range like I always
am, damn it, and then I'd get some static about what a low-life, lazy bastard I
am. </div>
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<o:p> </o:p></div>
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And if I used my own money to
eat lunch, then I wouldn't have enough left over to get another bucket of balls
to hit at the driving range, to while away the afternoon so I wouldn't have to
go home and hear what a low-life lazy bastard I am. </div>
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<o:p> </o:p></div>
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So you can see my dilemma.</div>
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<o:p> </o:p></div>
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I'll never forget what he said.
First, he picked up the phone and said "Ask Security to send some people
to my office, please."</div>
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<o:p> </o:p></div>
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Then he turned to me and, with a
smile, said "Fiat dollars are not money. They are currency."</div>
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<o:p> </o:p></div>
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While we were waiting for the
Security people get up to his office, I learned that he is quite the educator,
and he pleasantly explained that while pieces of paper printed with pretty
pictures can be used as a medium of exchange and as a unit of account, two
important functions of money, they are not intrinsically valuable (another
feature of real money), nor are they a store of value, which is one of THE really
necessary things to be "money."</div>
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<o:p> </o:p></div>
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When he saw that I was soon
pretty confused, as I usually get when learning new stuff, he finally sighed
and said "I won't give you any money, but I will give you some currency.
How much would it take to make you leave and never come back?"</div>
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<o:p> </o:p></div>
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I said "Two
bucks!"<span style="mso-spacerun: yes;"> </span>He said "Fine. Here's
two currency dollars," and then I left, and I passed the Security guy in
the hall ("Hello, Carl!"<span style="mso-spacerun: yes;">
</span>"Go to hell, Mogambo.")</div>
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<o:p> </o:p></div>
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Thinking about it, I see that
this "fiat dollars are not money because they are not a store of
value" fact is made magnificently manifest by noting that at one time,
when I was a kid, a dollar could buy a quite few yummy candy bars, each a
delightful, delicious ambrosia of chocolate, caramel, nuts, sugar out the
wazoo, artificial colors and various preservatives.</div>
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<o:p> </o:p></div>
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But today, with that same dollar,
you can buy only one candy bar. If that!</div>
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<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
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So the lesson is: Fiat dollars
are not a store of value. </div>
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<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
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This can be made abundantly
clear of you think back, way back, to when you were a kid, and you were in bed
at night, awake, silently seething with anger about something, and you made
plans, lots of plans, dark, nefarious plans.</div>
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<o:p> </o:p></div>
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Perhaps one of them was "I
am going to hang on to the next dollar I get, so that in the future when, one
dark day of adulthood and I have had it up to freaking here with my whining
wife, and my crazy, juvenile-delinquent kids, and some stupid butt-head boss
who does not recognize my genius but who is instead always yelling at me about
my getting to work 'on time', or not sleeping on the job. or ducking out early,
or something, then I can take that dollar, go down to the store, and buy a
handful of candy bars, eat them all at one time, cramming my mouth completely
full, and get completely buzzed out of my mind on the sugar-high, blissfully
forgetting my problems for a couple of hours. Yeah! That's what I'll do!" </div>
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<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
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<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
And so, how did the plan work
out? I'll tell you how. You have that one lousy dollar, to buy one lousy candy
bar, and get one lousy, low-grade sugar-buzz for, what? A lousy half hour?</div>
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<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
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<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
Anyway, I see I got off the
subject by a long shot, when what I wanted you to know, in case you were
pooh-poohing my terrific poem, is that it has apparently already had an effect,
as we learn from a Bloomberg.com news item that China, perhaps inspired by my
poem that gold is a store of value, is using their vast hoard of not-a-store-of-value
fiat currencies to buy gold hand-over-fist, as implied by "gold imports
from Hong Kong jumped by 94 per cent to 834.5 tonnes in 2012 with a monthly
record of 114.4 tonnes in December."</div>
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<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
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<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
According to numbersleuth.org,
about 165,000 metric tons of gold have been mined in history.</div>
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<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
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<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
This means that last year the
Chinese bought one-half of one percent of all the gold mined in all of history,
and judging by the exponential trajectory of their increasing imports of gold,
it won’t be long until they have most of it!</div>
<br />
<div style="line-height: 13.5pt;">
Perhaps in that vein, as I don't know if the
Chinese are involved in this, too, but Goldreport.com <span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: Helvetica;">looked at the
"delivery requests on the COMEX for the month of February, we see that
they are reaching the astronomical amount of 43.26 tons of physical gold</span><span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;">, or 1,391,000 ounces of gold to deliver."<o:p></o:p></span></div>
<br />
<div style="line-height: 13.5pt;">
<span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;">To make sure we realize the
significance of this, as I surely didn't, they go on that "s</span><span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: Helvetica;">ince the
‘70s, it’s the first time that there is such a request for physical gold
delivery from the COMEX</span><span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;">."<o:p></o:p></span></div>
<br />
<div style="line-height: 13.5pt;">
<span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;">It's as if everybody has suddenly
heard and heeded the poet of the ages (me!), and are buying gold and silver at
a feverish clip!<o:p></o:p></span></div>
<br />
<div style="line-height: 13.5pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;"> </span>I don't know if they are saying to themselves
"Whee! This investing stuff is easy!" when they do, but they (as we
poets would say) should, and could, and probably would if they knew they
should!<o:p></o:p></span></div>
<br />
<div style="line-height: 13.5pt;">
<span class="bodytext1"><span lang="EN" style="font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com1tag:blogger.com,1999:blog-989723204686115334.post-45783122963635391232013-02-21T12:57:00.000-08:002013-02-21T12:58:28.150-08:00The Iron Laws of Economics (ILOE)<br />
<br />
<div style="line-height: 13.5pt;">
<span class="bodytext1"><span lang="EN" style="font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;"><span style="font-family: Arial;">February 21, 2013<o:p></o:p></span></span></span></div>
<br />
<div style="line-height: 13.5pt;">
<span class="bodytext1"><span lang="EN" style="font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;"><span style="font-family: Arial;">Mogambo Guru<o:p></o:p></span></span></span></div>
<br />
<div style="line-height: 13.5pt;">
<span class="bodytext1"><span lang="EN" style="font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
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<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">I am getting progressively more scared, angry
and paranoid, but mostly more scared and angry with "paranoid"
holding steady, and am thinking dark, dark thoughts.<o:p></o:p></span></div>
<br />
Perhaps this is why I was so intrigued by a blurb by Harry Shultz, dated July
9, 2012, sent to me by Junior Mogambo Ranger (JMR) Phil S.<span style="mso-spacerun: yes;"> </span>The entire email summed it all up for me, as
it chillingly read <span style="mso-bidi-font-style: italic;">"The entire
world has become a singular, massive banana republic, with investors frozen in
the headlights, earnestly searching for investments in an ‘impossible’
atmosphere. Banks are no longer banks (& cannot be trusted – to quote
Martin Wolf at the FT), where rating agencies & governments are dimly
viewed, where pensions are short of funds, where fraud is not the exception
anymore, and where most market trends only last a few hours. Heaven help
us."</span><br />
<br />
Heaven help us, indeed!<br />
<br />
Notice that Harry, being a classy guy, doesn't mention the actual problem,
which is that the Federal Reserve and the other smug, dirtball, lowlife, moronic
neo-Keynesian econometric halfwitted central banks around the world have
created far, far, far too, too, too much money, decade after decade, all of
which was grossly mal-invested in the private sector due to the false signals
of consumers borrowing to bring future consumption to the here and now, and the
false signals of the moronic federal government looking at all the resultant
flood of tax revenues as a constant stream upon which they can borrow.<br />
<br />
There are, of course, those of you who object to what I say, which you do
because you are morons and/or economic illiterates, and there are those who
also object because I call him Harry, instead of "Mr. Shultz," as in
"How can a little nobody, lowlife, pipsqueak writer of Stupid Mogambo Crap
(SMC), like you, that nobody reads, and those that do feel soiled and debased
by the experience, possibly consider yourself on first-name par with someone of
Mr. Shultz's caliber?<br />
<br />
<span style="color: #031793;"><span style="font-family: Helvetica;"><span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;">To these people I say, of
course, screw you, because the fact is, Mr. or Ms. Smarty-Pants, I called him
up to personally ask him if he would let me call him Harry! How do you like
them apples?</span></span><span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-weight: bold;"><o:p></o:p></span></span></span></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><span style="color: #031793;"><span style="font-family: Helvetica;">I even told the receptionist when she answered
"Hey! Tell Harry Shultz that The Magnificent Mogambo (TMM) is on the line,
and wants to ask him an important question, and maybe get a little inside
information so I can make a little fast cash since I'll have him on the line,
and how come I got an email, from somebody he probably doesn't even know, and
excerpted from something he wrote last freaking year, that did NOT contain the
Very Important Information (VII) that if an investor is not buying gold, silver
and oil right now, then they are some kind of idiot?"<o:p></o:p></span></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><span style="color: #031793;"><span style="font-family: Helvetica;">Well, I don't know what happened, maybe their phone
systems is new or something, but I was mysteriously disconnected every time I
called.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><span style="color: #031793;"><span style="font-family: Helvetica;">Fortunately, the clarion call to say that very
"buy gold, silver and oil" thing was kind of provided by the
illustrious Eric Sprott, who told King World News that "the massive plunge
in gold scrap recycling may be removing as much as a staggering 850 tons of
gold from world supplies each year."<o:p></o:p></span></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><span style="color: #031793;"><span style="font-family: Helvetica;">Yikes! We're running out of scrap gold! No more
storefronts and pawn shops blaring "We Buy Gold!"? And it's because
most of the scrap gold is, after all these years of them buying gold,
apparently gone?<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><span style="color: #031793;"><span style="font-family: Helvetica;">So, quickly donning my Mogambo Super Investor (MSI)
hat, I say, rubbing my chin thoughtfully, "Let's see here: a 'staggering'
850-ton supply of gold is no longer flowing into the market, while demand for
gold is growing exponentially! Hmmm!"<o:p></o:p></span></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><span style="color: #031793;"><span style="font-family: Helvetica;">Instantly, my mind goes "Ding ding
ding!", which is the sound of a brand-new Fabulous Mogambo Idea (FMI)
coming down the wire! The first part of the FMI is "Buy gold! Right
now!"<o:p></o:p></span></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><span style="color: #031793;"><span style="font-family: Helvetica;">The second part is where, if you don't want to buy
gold, or if you have already quit reading this Stupid Mogambo Crap (SMC) a long
time ago, probably after the first few sentences or syllables, you will look
deep, deep into my eyes, you are getting sleepy, sleepy, sleepy and want to do
my bidding, bidding, bidding, which is to go tell that guy that I want both of
you to loan me a lot of money, which I will repay at 20% interest, even knowing
beforehand that you will never see your money again, or that laughable 20%
interest, because this is just another blatant stupid Mogambo scam that never
seems to work out for me because you Earthlings are not quite as stupid as is
commonly rumored in the cosmos.<o:p></o:p></span></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><span style="color: #031793;"><span style="font-family: Helvetica;">I mean, you Earth people actually believe that you
can have zero inflation with an expanding fiat currency, despite the fact that
it has never happened before!<span style="mso-spacerun: yes;"> </span>Hahaha!
Can't you see why intelligent beings from other planets come to look at you in
their UFOs, but never want to hear anything you say? Can't you see that say
nothing to us, either, because we are obviously too, too stupid to understand?<o:p></o:p></span></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><span style="color: #031793;"><span style="font-family: Helvetica;">I mean, the Austrian School of economics has been
right there, at Mises.org, the whole time, and yet impossibly stupid,
preposterous Keynesian crap prevails around the world! Hahaha! Prevailing in
spite of its complete failure! Hahahaha!<o:p></o:p></span></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><span style="color: #031793; font-family: Helvetica;">You can see that Eric King, whom I suspect is an
Earthling who IS intelligent enough to disbelieve such nonsense and does not
appreciate being lumped in with the idiots comprising the vast majority of
people who DO believe it, does not see the humor in that, and, ignoring me, goes
on that </span></span></span>KingWorldNews.com got the report where 'The secondary
market, which is scrap, business is down almost 50% year over year, and the
previous year was already a down year. The only supply now is coming from
the miners. This applies to both gold and silver."</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
Eerily echoing what I wrote
before, probably in one of the preceding paragraphs, about how you should be
buying gold, silver and oil with a frenzied abandon because of the profound
supply/demand imbalance, he goes on "Gold and silver bar and coin demand
is very strong and the supply has essentially dried up.'"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
"Hmmm!" I said to
myself, adjusting the tinfoil on my <span class="style141"><span style="font-size: 13.5pt; font-weight: normal; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;"><span style="color: #031793; font-family: Helvetica;">Mogambo Super Investor (MSI) hat</span></span></span>,
"850 tons is half the scrap gold, which means that there is STILL another
850 tons of scrap gold added per year, which adds up to 1,700 tons per year,
and yet BullionValut.com says that 'Gold is being mined at about 2,600 tonnes a
year,' which means that scrap gold adds 1,700 tons, which is waaaAAAaaay<span style="mso-spacerun: yes;"> </span>more than half of what is actually mined, to
total supply?"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
All of a sudden, I am frothing
at the mouth in my zeal for gold!<span style="mso-spacerun: yes;"> </span>Let me
remind you, in case you are not similarly frothing, that one of the Iron Laws
Of Economics (ILOE) is that changes in the price is what equilibrates supply
with demand, thus changing price, changing price, changing price, until supply
equals demand. </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
So, ipso facto, the price of
gold has to gloriously rise, rise, rise until it chokes off a Huge Freaking
Demand (HFD) for gold, enough so that a monstrous, ravenous demand equals a
pitifully small -- and falling! -- supply of gold! It’s the law!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
Thus, I scream, screech and
shout, scurrying about, "Huzzah! Huzzah!" and "Buy gold! Buy!
Buy! Buy!"</div>
<br />
<div style="line-height: 13.5pt;">
I mean, sure-fire, can't-miss investing doesn't
get any more obvious than this! Which is why savvy Junior Mogambo Rangers
(JMRs), around the world and across the cosmos, confidently buy gold, silver
and oil, knowing that "Whee! This investing stuff is easy!"<span class="bodytext1"><span lang="EN" style="font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;"><o:p></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com1tag:blogger.com,1999:blog-989723204686115334.post-70849337440583901892013-02-11T14:53:00.003-08:002013-02-11T14:53:47.543-08:00Poetry with a Punch
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">February
8, 2013<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Mogambo
Guru<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-tab-count: 3;"> </span>Poetry
with a punch you can use</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
I am seriously considering
changing careers.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
I have, to my dismay, discovered
that being a paranoid, angry, cynical, Austrian School economist and all-around
lunatic raving gold-bug whack-o slacker, who is absolutely sure that We're
Freaking Doomed (WFD), is an occupation that does not have that certain
glorious glamour and commanding cache to elicit the fawning adoration of hot
chicks ("Take me, Hot Mogambo Poet (HMP)! Bend me over something and let
'er rip!") that would certainly brighten up my admittedly bleak days
expecting, as you learned earlier in this paragraph, doom.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
So I am thinking of becoming a
famous and influential poet.<span style="mso-spacerun: yes;"> </span>To
establish my impressive credentials, here, for your pleasure, is my first poem:</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
Roses are red,</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
Violets are blue,</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
Gold and silver are such
screaming bargains because the evil, foul Federal Reserve is creating So
Freaking Much (SFM) currency and credit in some nightmarish flood of insane
monetary inflation that if you aren't buying them,</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
Then something is very, very
wrong with you.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
Well, I am sure that you, like
poetry lovers everywhere, instantly recognize this as the absolutely best poem
ever written in English, as it is the only poem that tells you how to get
stinking rich by doing nothing except, as the poem makes abundantly clear,
buying gold and silver to capitalize on the suicidal idiocy of the Federal
Reserve creating so much currency and credit to fund the insane
deficit-spending of the corrupt Congress that must, by mathematical necessity,
bankrupt the whole country and cause ruinous inflation in prices, which is more
precisely defined by us professional economists as The Big Crapola (TBC).</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
Other poems are but clever
and/or melodious trifles, toying with your emotions. </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
But here, from the Mighty Pen Of
The Mogambo (MPOTM), comes a powerful poem of such sublime rhyme, meter of a strange
sort and, if you look hard enough and really use your imagination, actual
alliteration, brilliantly combined with a sure-fire Path To Extreme Riches
(PTER), as guaranteed by 2,500 years of history</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
Now, please notice that I used
the word "currency" instead of "money."<span style="mso-spacerun: yes;"> </span>I did this for two important, but completely
different, reasons. </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
One reason is, by virtue of my newly-found
chick-magnet status of being the Best Poet Who Ever Lived (BPWEL),
"currency" is poetically alliterative with "creating" and
"credit" which is a literary technique us big-time poets use all the
time.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
The other reason is because, as
Mike Maloney of goldsilver.com pleasantly pointed out to me, it is an important
fact that I never thought about, namely fiat dollars are NOT "money."
</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
This is a fascinating fact I
learned when I casually stopped by his office and politely asked for him to
loan me some money because I could use a few bucks since it was almost
lunchtime and I was hungry, but if I went home to eat, my wife would ask me
where I was all morning, and I'd say I was at the driving range like I always
am, damn it, and then I'd get some static about what a low-life, lazy bastard I
am. </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
And if I used my own money to
eat lunch, then I wouldn't have enough left over to get another bucket of balls
to hit at the driving range, to while away the afternoon so I wouldn't have to
go home and hear what a low-life lazy bastard I am. </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
So you can see my dilemma.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
I'll never forget what he said.
First, he picked up the phone and said "Ask Security to send some people
to my office, please."</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
Then he turned to me and, with a
smile, said "Fiat dollars are not money. They are currency."</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
While we were waiting for the
Security people get up to his office, I learned that he is quite the educator,
and he pleasantly explained that while pieces of paper printed with pretty
pictures can be used as a medium of exchange and as a unit of account, two
important functions of money, they are not intrinsically valuable (another
feature of real money), nor are they a store of value, which is one of THE really
necessary things to be "money."</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
When he saw that I was soon
pretty confused, as I usually get when learning new stuff, he finally sighed
and said "I won't give you any money, but I will give you some currency.
How much would it take to make you leave and never come back?"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
I said "Two
bucks!"<span style="mso-spacerun: yes;"> </span>He said "Fine. Here's
two currency dollars," and then I left, and I passed the Security guy in
the hall ("Hello, Carl!"<span style="mso-spacerun: yes;">
</span>"Go to hell, Mogambo.")</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
Thinking about it, I see that
this "fiat dollars are not money because they are not a store of
value" fact is made magnificently manifest by noting that at one time,
when I was a kid, a dollar could buy a quite few yummy candy bars, each a
delightful, delicious ambrosia of chocolate, caramel, nuts, sugar out the
wazoo, artificial colors and various preservatives.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
But today, with that same dollar,
you can buy only one candy bar. If that!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
So the lesson is: Fiat dollars
are not a store of value. </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
This can be made abundantly
clear of you think back, way back, to when you were a kid, and you were in bed
at night, awake, silently seething with anger about something, and you made
plans, lots of plans, dark, nefarious plans.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
Perhaps one of them was "I
am going to hang on to the next dollar I get, so that in the future when, one
dark day of adulthood and I have had it up to freaking here with my whining
wife, and my crazy, juvenile-delinquent kids, and some stupid butt-head boss
who does not recognize my genius but who is instead always yelling at me about
my getting to work 'on time', or not sleeping on the job. or ducking out early,
or something, then I can take that dollar, go down to the store, and buy a
handful of candy bars, eat them all at one time, cramming my mouth completely
full, and get completely buzzed out of my mind on the sugar-high, blissfully
forgetting my problems for a couple of hours. Yeah! That's what I'll do!" </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
And so, how did the plan work
out? I'll tell you how. You have that one lousy dollar, to buy one lousy candy
bar, and get one lousy, low-grade sugar-buzz for, what? A lousy half hour?</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
Anyway, I see I got off the
subject by a long shot, when what I wanted you to know, in case you were
pooh-poohing my terrific poem, is that it has apparently already had an effect,
as we learn from a Bloomberg.com news item that China, perhaps inspired by my
poem that gold is a store of value, is using their vast hoard of not-a-store-of-value
fiat currencies to buy gold hand-over-fist, as implied by "gold imports
from Hong Kong jumped by 94 per cent to 834.5 tonnes in 2012 with a monthly
record of 114.4 tonnes in December."</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
According to numbersleuth.org,
about 165,000 metric tons of gold have been mined in history.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
This means that last year the
Chinese bought one-half of one percent of all the gold mined in all of history,
and judging by the exponential trajectory of their increasing imports of gold,
it won’t be long until they have most of it!</div>
<br />
<div style="line-height: 13.5pt;">
Perhaps in that vein, as I don't know if the
Chinese are involved in this, too, but Goldreport.com <span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: Helvetica;">looked at the
"delivery requests on the COMEX for the month of February, we see that
they are reaching the astronomical amount of 43.26 tons of physical gold</span><span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;">, or 1,391,000 ounces of gold to deliver."<o:p></o:p></span></div>
<br />
<div style="line-height: 13.5pt;">
<span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;">To make sure we realize the
significance of this, as I surely didn't, they go on that "s</span><span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: Helvetica;">ince the
‘70s, it’s the first time that there is such a request for physical gold
delivery from the COMEX</span><span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;">."<o:p></o:p></span></div>
<br />
<div style="line-height: 13.5pt;">
<span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;">It's as if everybody has suddenly
heard and heeded the poet of the ages (me!), and are buying gold and silver at
a feverish clip!<o:p></o:p></span></div>
<br />
<div style="line-height: 13.5pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;"> </span>I don't know if they are saying to themselves
"Whee! This investing stuff is easy!" when they do, but they (as we
poets would say) should, and could, and probably would if they knew they
should!<o:p></o:p></span></div>
<br />
<div style="line-height: 13.5pt;">
<span class="bodytext1"><span lang="EN" style="font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com2tag:blogger.com,1999:blog-989723204686115334.post-71482340523649105652013-01-30T15:33:00.001-08:002013-01-30T15:33:41.603-08:00One Smart Thing (OST)
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">The whole distressing thing is a big stink
about nothing. <span style="mso-spacerun: yes;"> </span>It started because of The
Economist magazine, which unfortunately tends towards that whole ridiculous
Keynesian crapola, but which nevertheless, and, I might add, quite
paradoxically, had a very interesting article buried on page 75 titled
"New Model army," with the subheads "Economics after the
crisis" and "Efforts are under way to improve macroeconomic
models."<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">First off, I immediately involuntarily laughed
the famous Mogambo Laughter of Scorn And Contempt (MLOSAC) at this stupidity of
"improving macroeconomic models," my voice dripping with undisguised
scorn and contempt, as is implied in the title, which was, in case you forgot,
Mogambo Laughter of Scorn And Contempt (MLOSAC).<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">Continuing with this seemingly pointless
narrative, I laughed and laughed and laughed beyond the point where I was still
actually amused at the idea of the government allowing changing the Keynesian
strangle-hold on the economy, until I was finally reduced to loudly dyspeptic
chortling, and with an additional angry, sarcastic, altogether snotty tone to
my voice, going "Guffaw, guffaw, guffaw!"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">This guffawing, for some reason, was upsetting
to everyone at the office, and they were saying hurtful things like "Shut
up! I'm on the phone here!" and even my own boss was yelling "Die,
you Irritating Mogambo Bastard (IMB)!"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">Apparently (and this is the crux of the matter)
there are threats of lawsuits over alleged flecks of flying spittle, referred to
by the Plaintiffs as Icky Mogambo Cooties (IMC), all according to entirely
baseless allegations where evidence is sketchy -- at best! -- beyond the dozen
eye-witnesses and those pesky video recordings which have CLEARLY been altered,
by a person or persons unknown, to discredit me. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">I cannot wait to argue my case in court, where
my razor-like, legal-eagle razzle-dazzle will skewer the flimsy case of the
whiny Plaintiffs, and expose them for the ridiculous, libelous and litigious
morons that they are, which I will easily prove by dragging them to the witness
stand, by the hair if necessary or if opportunity arises, and asking each of
them, under oath, "Have you been smart enough to have been buying gold and
silver bullion as part of your investment strategy to protect yourself against
the terrifying, ruinous inflation in prices that will inevitably result from
the insane levels of inflation in the money supply created by the Federal
Reserve so as to feed the gulping, all-devouring gullet of the enormous,
bloated, twisted, sick federal government?"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">They will, of course, all tearfully admit under
the relentless pummeling of my pointed questioning that no, they did not buy
gold and silver bullion, and they are ashamed.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">As an aside, this is to be expected because
they are members of "the majority of people," and there is an Iron
Law Of Investing (ILOI), as in "inescapable mathematical imperative,"
that dictates that the majority of investors MUST be wrong most of the time,
making them sure losers over the long term.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">Otherwise, you would have the mathematical
near-impossibility of a small minority of investors losing enough money most of
the time to make winners of the vast majority of investors over the long term! <span style="mso-spacerun: yes;"> </span>Think about it and say "Whoa! Ain't nobody
that stupid!"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">Pounding home the point, I would angrily bang
my fist against the table, and ask the terrified witnesses "If the
majority of investors were actually right, from where could their profits come,
except from the small minority of investors who, boggling the mind, were
monumentally wrong most of the time over the long haul?<span style="mso-spacerun: yes;"> </span>And to also pay the enormous fees, charges,
and expenses of the legions of middlemen and the relentless taxes of a ravenous
government? Huh? Where? From where do you think the money could possibly
come?<span style="mso-spacerun: yes;"> </span>Answer me, puny Earthling!
Resistance is futile!"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">At about this time in my brilliant legal
defense, the way I figure it, is when the judge is screaming for the Bailiff to
haul me away and put me in jail where I never again get to eat delicious beef
tacos, with their crunchy corn tortillas proving the perfect wrapping for a
full layer of crisp, cool lettuce and delicious sour cream, plus a sweet salsa,
whereupon I will wake up in a cold sweat, and then realize with a note of
relief that I was dreaming the whole time, I am not really a lawyer, and the
only things I know about law are from watching old episodes of Perry Mason on
TV ("Objection, your Honor! This testimony is incompetent, irrelevant and
immaterial!" "Objection sustained!" says the judge).<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">Anyway, the reason for my laughing so
uproariously in the first place is that any "improvement" in the
current Keynesian econometric stupidities will only be "allowed" if
the "New! Improved!" models show a gnawing need for even MORE insane
creations of money and credit, and a bigger and bigger government to regulate
more people and businesses, and an even bigger and bigger government to help
more and more people! Hahahaha! <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">Look! I'm laughing again! Hahahaha!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">The Economist magazine blithely ignores my
cruel taunting and disrespectful jibes, and continues merrily along, as if I
don't even exist, gliding over the fact that Keynesianism is a complete, total
failure, and merely noting that it is a real dud because it does not reflect
"the financial system accurately, nor allow for the booms and busts
observed in the real world."<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">The big problem is that the whole basis of
Keynesian theory rests on the idea that economies and economic actors seek
equilibrium, when any idiot knows that systems inexorably tend towards
disequilibrium and chaos, as in obeying the laws of entropy, and it takes
energy to keep that collapse from happening, which is, of course, the
opportunity for successful capitalism.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">The first job of these patch-'em and fix-'em
guys is to, surprisingly then, "put banks into the models"!<span style="mso-spacerun: yes;"> </span>Hahaha! I thought they were already in
there! Who knew, huh? Hahaha!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">The reason, The Economist magazine explains,
that banks are NOT already in the stupid neo-Keynesian econometric models is
because "macroeconomists thought of them as a simple 'veil' between savers
and borrowers, rather than profit-seeking firms that make loans
opportunistically and may themselves affect the economy." They did? Where
have they been for the couple of last decades? Hahaha! Dorks!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">And because I desperately want to know, exactly
how DOES one mathematically describe the variable functions of banks making
loans variously opportunistically, and variously in response to new and various
governmental regulations and/or tax law, variously affecting the economy,
especially when the foul Federal Reserve (a bank!) is permanently at the heart
of it, purposely creating variously monstrous amounts of excess money and
credit to satisfy the always-insatiable, gluttonous, ravenous appetite of the
federal government for deficit-spending nigh unto bankruptcy and inflationary
economic collapse?</span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">Thus we learn that, if life was fair, this is
where The Economist magazine would have put in a quote from me, perhaps along
the lines of "The Marvelous And Wonderful Mogambo (TMAWM) is quoted as
saying 'People who believe this preposterous neo-Keynesian econometric crap are
morons, and I say this without fear of contradiction because it is blatantly
obvious that it is not remotely possible to create such a monstrous huge clot
of equations and their bastard derived-and-substituted offspring -- with the
laughable precision of three decimal places, for crying out loud! -- about
something as grossly inexact as human behavior that didn't have so incredibly
much error built into every tiny piece of it that any real information -- if
any! -- is immediately drowned out by the deafening statistical noise in such a
bizarre, error-multiplying, iterative system, especially one that is That
Freaking Big (TFB).'"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">On the other hand, one can dispense with the dismal
failure of all of that silly Keynesian hocus-pocus, and the expensive computers
needed to run it, by just making the dollar be gold so that the money supply is
fixed, let the government die and take its onerous, crippling tonnage of
regulatory burden to hell with it, let the free market and sound money take
care of business, and everything will be fine, to which I say
"Hahahaha!" and let go with a hearty guffaw or two if you think that
the government is going to allow that! Hahaha! Guffaw! Guffaw!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">Since that is NOT going to happen by a long
shot, to protect oneself from the coming financial disaster, one need merely do
the One Smart Thing (OST), which is to buy gold and silver bullion, as is proved
by thousands of years of history, replete as it is with governments containing
the selfsame traitorous treacheries as the horrid Nancy Pelosi ("Let's all
hurry up and vote for the Obamacare bill so that we can find out what's
it!"), which is the horrifying history of governments and peoples doing
these same, sad, silly, suicidal stupidities that have now killed us today, as in
"We're Freaking Doomed (WFD)."<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">And with One Smart Thing (OST) having a fabulous
100% successful track record like that, how can one NOT buy gold and silver
bullion, and oil stocks, too, and then chortle with a gleeful, gloating
self-satisfaction while doing so?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">The while the use of the phrase "Whee!
This investing stuff is easy!" whilst doing so is, of course, entirely
optional, you take it from me, and from Junior Mogambo Rangers (JMRs) around
the world and in this whole quadrant of the galaxy, that it feels so
wonderfully good, <span style="mso-spacerun: yes;"> </span>to finally be a
guaranteed winner for a change, that the words just seem to come tumbling out. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">Whee, indeed! Whee!</span><span class="bodytext1"><span style="font-size: 10pt;"><o:p></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com1tag:blogger.com,1999:blog-989723204686115334.post-45585117668258264922013-01-26T12:32:00.001-08:002013-01-26T12:32:28.588-08:00The soothing lullaby of the Junior Mogambo Ranger (JMR)
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span><span style="font-family: Times, "Times New Roman", serif;">January
22, 2013<o:p></o:p></span></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span><span style="font-family: Times, "Times New Roman", serif;">Mogambo
Guru<o:p></o:p></span></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">To vividly demonstrate how rude people can be
these days, let me recount a recent experience at the grocery store.<o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">A guy, we'll call him Tom, and he is coming
across the parking lot to go into the grocery store behind me.<span style="mso-spacerun: yes;"> </span>I recognize him, and, for me, it was a kind
of reunion, and I thought he would be as happy to see me as I was happy to see
him. <o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">But he wasn't.<o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">He had his ragamuffin wife and kids with him,
and they were all apparently in some kind of bad mood as they trudged along
towards me, and I could see them looking at me furtively, and hear them
muttering amongst<span style="mso-spacerun: yes;"> </span>themselves "Oh,
no! It's that creepy old guy who is always trying to get us to buy gold
bullion, silver bullion and oil stocks because the evil Federal Reserve has
created so impossibly much money and credit that the inflation in prices will
destroy us!"<o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">At this I kind of beamed, and was pleased that
he learned something about monetary policy from our earlier encounter! <o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">Then I hear Tom say to his wife "And he
even suggested that we dump the kids, because the deadweight burden of our own children
will hasten our demise, and with the money we will save we could buy bullion
because it is imperative that we own gold and silver, in which case we shall be
rich, rich, rich, and then we can afford to get our own kids back, or buy as
many new kids as we want!"<o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">Well, regardless of your politics, ethics,
morality, having even a shred of human decency, or what kind of inhuman monster
could think up such a despicable idea, you gotta admit that the logic is,
nonetheless, iron-clad.<span style="mso-spacerun: yes;"> </span>But research
shows that this "dump the kids and buy gold with the savings!" as a
wealth-management idea never really, you know, resonated with investors.<o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">Now Tom, in a rude kind of ugly way, snarls
"Get out of my way, you idiot!" at me as he hurriedly brushes past!<o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">Instantly, by virtue of my Mogambo Empathic
Nature (MEN) combined with cursory brushes with genuine psychiatric/psychological
mumbo-jumbo, I knew that 1) henceforth I would call him Turd-Face, and 2) that
he was not actually angry with me, per se, but angry with himself.<o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">The reason is that he is now embarrassingly
revealed as, obviously, not following my Fabulous Mogambo Advice (FBA), which
was to buy gold, silver and oil because the foul Federal Reserve is killing us
with roaring monetary inflation which will inevitably produce roaring price
inflation and insuring that, from a purely objective and scientific
perspective, We're Freaking Doomed (WFD).<o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">And the Fed has created the dollars, and price
inflation was created, and the Fed is, and price inflation is, and the Fed will
continue to create untold trillions more dollars every year, and price
inflation will continue to get horrendously worse from here until, as you
probably suspected, the aforementioned We're Freaking Doomed (WFD).<o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">But ol' Turd-Face didn't buy them, and now he
is here, and to look at him is to pity him, where angels weep for him, and the
mocking voice of The Wrathful Mogambo (TWM) rings out loud and clear, "Moron!"
<o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">And speaking of rude, people ask me lots of
rude questions, too, such as the popular question "Are you as stupid as
you sound?", and "Do you ever shut up?", or the equally popular
question "Do I have to call a cop?"<o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">The answers are yes, yes and no.<o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">Then again, sometimes they ask me intelligent
questions, too, like about gold, as in "How much gold does the United
States own, in total, including the gold stored at Fort Knox, and under the
Federal Reserve, and probably at other places I don't even know about, and
nobody knows about, because all the records have been altered by a bunch of
lying, traitorous crooks who are stealing the gold to finance the impending
invasion of extraterrestrial spaceships coming to conquer the Earth?" <o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="font-family: Times, "Times New Roman", serif;"><span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">Well, as far as "how much" gold there
is, wikipedia.com lists the gold holdings of the "sovereign United
States" as</span> 8,133.5 tonnes of gold, which, at about 32,000 gold
ounces per tonne, is 260.3 million ounces, which pretty much agrees with the
figure of 261 million ounces claimed by the Federal Reserve, which, at $1,670,
per ounce is a lousy $436 billion. </span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="font-family: Times, "Times New Roman", serif;">Those of you who parse
everything I say, perhaps looking for Secret Mogambo Messages (SMM) about the
pending invasion of the Earth by alien creatures from beyond time and space,
doubtlessly have noticed that I said that the entire gold holdings of the
Federal Reserve is a "lousy $436 billion," which I delightfully do
with disdain because -- it's no secret! -- it's such a piece of chump-change! </span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="font-family: Times, "Times New Roman", serif;">I mean, the damnable,
bankrupting, moronic, treasonous federal government DEFICIT-spends that
selfsame $436 billion every three months! Which doesn't even count the $2.4
trillion spending in the federal government's budget that IS funded by actual
taxes, duties and fees! Hahaha!</span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="font-family: Times, "Times New Roman", serif;">So, you can see why I am
laughing at the gold in Fort Knox, when every bit of all that gold is only
enough, measured in today's dollars, to replace the federal government's
massive BORROWING for a few lousy months, and then the gold is all gone!<span style="mso-spacerun: yes;"> </span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="font-family: Times, "Times New Roman", serif;">And, perhaps more telling, is
that very bit of gold held by the federal government would only pay for 6 weeks
of government spending!<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Hahaha! What a public-relations faux pas,
which rhymes with "Hahaha!", which I point out for no particular
reason, other than perhaps as a desperate cry for the help I so obviously need.</span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="font-family: Times, "Times New Roman", serif;">This means that the Federal
Reserve will, instead of selling the gold and looking like a bunch of chumps,
print the $1.6 trillion to buy the newly-issued government bonds over the next
year, which the government will spend, which will cause the money supply to go
up, prices will have to rise, people will suffer and complain, the economy will
slow, round and round with more money, and more inflation, and more suffering
at every turn until everyone realizes We're Freaking Doomed (WFD)! <span style="mso-spacerun: yes;"> </span>Doomed I tells ya!</span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="font-family: Times, "Times New Roman", serif;">Which, if history is any guide,
won't be long in coming, and, unfortunately, there ain't nothin' that anybody
can do to stop it. <span style="mso-spacerun: yes;"> </span>Soon and inevitable.<span style="mso-spacerun: yes;"> </span>Ugh. Ergo my dismal outlook on things
economic.</span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="font-family: Times, "Times New Roman", serif;">Sometimes this surprising fact
is enough to elicit a life-changing, sudden, spontaneous flash of
transcendental enlightenment, turning an average, unsuspecting man or woman,
perhaps not unlike yourself in many ways, into an instantaneous, genuine Junior
Mogambo Ranger (JMR).</span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="font-family: Times, "Times New Roman", serif;">To be a JMR is to be
characterized by being scared out of one's wits by the irresponsible, insane,
incomprehensible madness of current monetary and fiscal policies that guarantee
soaring price inflation, leading to the JMR to feverishly buy gold and silver
in a panic-driven mania at the dire dread of the darkening doom, and to take
advantage of the fact that these precious metals are so laughably, insanely,
ridiculously undervalued right now.</span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="font-family: Times, "Times New Roman", serif;">The situation is indeed dire,
and only the absolute, dead-bang, lead-pipe-cinch certainty that the prices of
gold, silver and oil will go up, up and up, making oodles and oodles of
luscious, life-changing, massive capital gains for its lucky owners, makes it
all bearable. </span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Times, "Times New Roman", serif;">Hence the soothing lullaby of the Junior Mogambo Ranger
(JMR): "Whee! This investing stuff is easy!"<span class="bodytext1"><span style="font-size: 10pt;"><o:p></o:p></span></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com0tag:blogger.com,1999:blog-989723204686115334.post-62617150256696456762013-01-16T14:42:00.003-08:002013-01-16T14:42:33.651-08:00The Grand Council Of The Universe
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span><span style="font-family: Times, "Times New Roman", serif;">January
12, 2013<o:p></o:p></span></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span><span style="font-family: Times, "Times New Roman", serif;">Mogambo
Guru<o:p></o:p></span></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">I have
been extraordinarily busy lately responding to an inter-stellar memo from
Zygarb, the new hotshot poobah of the Grand Council Of The Universe, of whom I
know nothing except that he is a dumb-ass jerk, he thinks that I am
disrespectful, and that Earthlings are de-evolving back into the primordial
slime because the un-fittest genetic mutants of the population don't die young
anymore, but live and breed.<o:p></o:p></span></span><br />
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">In
particular, he demands to know that if, as an Earthling named Milton Friedman
so famously said, that "inflation is always and everywhere a monetary
phenomenon," how come his stash of gold is not rising in price in tandem
with the rise in prices, which John Williams, another Earthling, calculated in
his Shadowstats.com website is over 9%? <o:p></o:p></span></span><br />
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">Nine
Freaking Percent (NFP)! Yikes! At that rate, prices will double prices in 8
years!<o:p></o:p></span></span><br />
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">But as
high and frightening as that is, it pales in comparison to the increases in the
world's money supply as the central banks are creating, every day, insane
amounts of money and credit to forestall the inevitable financial collapse of a
stupid fiat-money economy, resulting in highly-indebted people, highly-indebted
companies, highly-indebted governments and a bizarre, bloated, suicidal
government-centric economy.<o:p></o:p></span></span><br />
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">You, and
Zygarb, are right to wonder why general prices are not soaring, and thus why
gold is not soaring in price, and thus why you are not dancing around the
house, giggling and laughing and saying "We're freaking rich!"<o:p></o:p></span></span><br />
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">Well,
Zygarb and you certainly have a good point, which is difficult to explain if
you don't understand the concept of lag-time, which is where you do something
now, and then something happens later as a direct result.<o:p></o:p></span></span><br />
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">There are
many kinds of lag time. The shortest one I have ever witnessed was one time
when I wanted to borrow a few dollars from my wife so that I could get the hell
out of the damned house and into some alcoholic beverage to celebrate, as I
said, getting the hell out of the damned house. <o:p></o:p></span></span><br />
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">I said
only "Hey! Can I b…" before she instantly -- instantly! --said
"No!"<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span><br />
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">And it was
almost another short-lag-time record when I instantly -instantly! -- realized
that the REASON for the hissing, nasty way she said "No!" was because
I was a lazy, good-for-nothing, paranoid lunatic whack-job, and she should have
listened to her parents, and her friends, and everybody she knew, when they
told her "Don't marry that Mogambo Moron (MM) because he is a lazy,
good-for-nothing, paranoid lunatic whack-job," but she didn't listen to
them, boo-hoo-hoo, and now I am going to hear all about it for the
ten-thousandth time.<o:p></o:p></span></span><br />
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">A much,
much longer lag-time, now taking years, is that time between huge increases in
the money supply (monetary inflation) and the huge rise in prices (price inflation)
that must necessarily result.<o:p></o:p></span></span><br />
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<span style="font-family: Times, "Times New Roman", serif;">Perhaps just by coincidence or by some kind of divine intervention, I dunno
which, my attention was grabbed by the title of an essay, which was "Era
of Monetary EXPLOSION Will Bring The Worst Inflation of Our Lifetimes." <span style="mso-spacerun: yes;"> </span>It was written by <span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">Martin D. Weiss, of Money and Markets
newsletter, and which expresses my sentiments exactly, including his use of
all-capital letters in EXPLOSION, although I would have added, although it was
implied,<span style="mso-spacerun: yes;"> </span>"We're Freaking Doomed
(WFD)!"<o:p></o:p></span></span><br />
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<span style="font-family: Times, "Times New Roman", serif;"><span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;">He says
"</span><span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">the U.S. economy is stumbling, Japan’s economy is
dead in the water, and Europe’s has sunk into the long-feared double-dip
recession.</span><span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p></o:p></span></span><br />
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;"><span style="font-family: Times, "Times New Roman", serif;">"What most people don’t realize is that the global economic
weakness is actually a blessing in disguise … because without it, the dramatic
expansion of money printing would already be causing an equally dramatic
explosion in prices."<o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">In short, the value of the dollar, and most
other currencies, will continue to go down because the central banks of the
world, including our own despicable Federal Reserve under the chairmanship of
the equally-despicable Ben Bernanke, are creating so much money, but thanks to
the moribund world economy, the damage will be gradual, if you think 9%
inflation is "gradual," but it will ultimately be so, so much worse.
Fatal, probably.<o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">So buy gold, silver and oil with both hands,
using all the money you have at hand, and with all the money you can borrow
from neighbors, friends and relatives, because one day soon, like Junior
Mogambo Rangers (JMRs) at mogamboguru.com and everywhere across the universe,
you will make merry when their prices soar, soar, soar because of the
massively, insanely, unbelievable, continual creations of more and more money
and credit.<o:p></o:p></span></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 2;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><o:p><span style="font-family: Times, "Times New Roman", serif;"> </span></o:p></span></div>
<span style="font-family: Times, "Times New Roman", serif;">
</span><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-family: Tahoma; mso-font-kerning: 18.0pt;"><span style="font-family: Times, "Times New Roman", serif;">And if you do buy gold, silver and oil, then, like the aforementioned
JMRs on the aforementioned "one day soon," you will also, perhaps, exclaim
gleefully "Whee! This investing stuff is easy!"</span></span><span class="bodytext1"><span style="font-size: 10pt;"><o:p></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com3tag:blogger.com,1999:blog-989723204686115334.post-53650545953985324492013-01-01T12:16:00.001-08:002013-01-01T12:16:34.783-08:00Giggling Glee
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">December
20, 2012<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Mogambo
Guru<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-family: Arial;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-family: Arial;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.5in; text-indent: 0.5in;">
<span style="mso-spacerun: yes;"> </span>Giggling glee born of easy, greasy greed<span class="bodytext1"><span style="font-size: 10pt;"><o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
Higher
taxes for millionaires?<span style="mso-spacerun: yes;"> </span>First ask
yourself "How did they become millionaires?" Then ask yourself
"If I'm so smart, how come I'm not a millionaire, too?"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
Well,
if this helps, I have noticed that one of the differences between us slovenly proletariat
trash and millionaires is that they seem to have a lot of perfect teeth and
nice haircuts.<span style="mso-spacerun: yes;"> </span>So, if you have nice
teeth and hair, the data apparently shows that you've got it made, so relax!
Haha!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
If
you don't have these, however, you will need to do it the appropriately-named "hard
way", which brings up one Big Important Difference (BID) between us
busted-out lowlife dimwits and the millionaires: We spent our money on pure
gluttonous consumption, and had a wonderful time for a surprising number of
years by virtue of racking up suffocating amounts of debt, whereas millionaires
got their millions from profitably (as in compounding the money borrowed from a
bank) investing their money in productive, profitable businesses, like making
money by making things, or by mining things, or making money merely handling
whole oceans of money, or making money by running this towering, engulfing
deluge of money created by the evil Federal Reserve through some Wall Street
scam, con job, bamboozle or 401(k), or in any of the rest of the gigantic
financial services industry which produces, as best I can remember instead of
researching it to find out, about 40% of all the profits made in America.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
You
no doubt noticed that I surprisingly did not use an exclamation point to
emphasize such a huge, glaring fact that is destroying this country with some
silly, low-IQ, pie-in-the-sky crap about how investing all your retirement
money in the stock market is such a good idea when in fact<span style="mso-spacerun: yes;"> </span>-- in fact! -- it is a mathematically a
guaranteed -- guaranteed! -- loser for the vast majority of trusting, gullible
and embarrassingly ignorant people who are stupid enough to think that putting
all their money, and their entire financial future, into the general stock
market is a "good idea" despite a complete lack of successful
historical examples, common sense and the mountains of evidence to the
contrary, when, alas, it isn't, as the evidence had already proved, so it's weird
anyone would do it. </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
Anyway,
I remember when I found out that investing long-term in stocks is a Big Time
Loser (BTL) for the vast majority of people, and a Small Time Loser (STL) for
almost everybody else.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
For
me, it was the Five Stages of Shock.<span style="mso-spacerun: yes;">
</span>First, I was in denial, then, in the Second Stage, I was angry, then I
was depressed, then I was angry again, then more angry, and then violently
angry and scared out my Mogambo Freaking Mind (MFM), where I remain today.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
And
it's especially bad when dividends from owning stocks are taxed so highly.
We're the highest taxers of dividends in the world!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
Forbes
magazine posted a blog by Austin Johnson on the new changes in taxes on
dividends. The top corporate rate on the dividend is now 39.6%.<span style="mso-spacerun: yes;"> </span>The recipient of a dividend, if in the top
tax bracket, is taxed at 39.6%, too, plus another 3.8% (the new Medicare tax),
for a whopping combined tax rate of 65.8l%!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
And
if you just stupidly add up the tax rates, it comes to an 83% tax! This 83% tax
rate is both highly shocking and, unfortunately, a ridiculous and useless
concept, except as evidence that I have no idea what I am talking about, as if
anyone needed more evidence of that! Hahaha! Come on!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
But
what else can people do, except buy stocks, with all the trillions and trillions
of new dollars being first created by the evil Federal Reserve and then spent
by the government? All these tons and tons of new dollars, busily working their
economic way down winding, wending paths through an economy's worth of
manufacturers, miners and farmers, workers, middlemen, retailers, owners and
shareholders, and government itself, all of whom always have to wonder
"What to do with all this money rolling in, and how can I get some more of
it?"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
And
what other market can absorb literally trillions and trillions of dollars per
year? </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
Ergo,
the stock market has to go up because the government is not going to stop
deficit-spending, and thus the Federal Reserve will not stop creating lots and
lots of money, and there is nothing else to do with that much freaking money,
except maybe buy bonds, which are, alas, Totally, Totally Toxic (TTT). </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
Get
a load of this: With the price of bonds so high, the imputed yield on the
10-year bond is at a tiny, micro, miniscule 1.5%, when even the government's
own ludicrously-doctored figures show that inflation in prices is over 2%, and
the money supply is expanding by over 10% a year! </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
It's
actually over 8% price inflation, as I gather from John Williams at
shadowstats.com, who calculates inflation the old-fashioned way: It measures
how much prices went up, more nearly matches the increase in the money supply.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
So
join with me in asking what kind of morons are buying bonds, thus losing real
buying power in inflation-adjusted dollars, when history shows the average yield
is about 6%, which means that when the interest rate gets back to its long-term
average (if it ever does! Ha!), then the expensive 10-year bond you bought
today, yielding a laughably low 1.5%, will have lost 75% of its cost? <span style="mso-spacerun: yes;"> </span>Yikes! Big loss!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
And
this does not even MENTION the reduced spending-power value of the remaining 25%
of your dollars, thanks to inflation.<span style="mso-spacerun: yes;">
</span>All in all, bondholders will pretty much be wiped out! Yikes!<span style="mso-spacerun: yes;"> </span>Nice long-term investing there, dude!
Hahahaha!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
At
this point, you may be asking yourself "What kind of an insulting idiot is
this Stupid Mogambo Person (SMP) disrespecting the insurance and retirement investment
industries who have to buy bonds because they have no choice, and who are
getting screwed along with everybody else, except for the executives, of
course, who are all, I am sure, making out like bandits? I hate him!" </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
Or
perhaps you are even rubbing your chin, thoughtfully saying "I hate him,
too, just like the guy in the paragraph above, but what he says makes sense! <span style="mso-spacerun: yes;"> </span>But I hate him nonetheless after listening to
him blabbering and blubbering, rambling incoherently in that loud, stupid voice
of his about how We're Freaking Doomed (WFD) because of the inflation in prices
that will be caused by the inflation in the money supply because the evil
Federal Reserve is forced to create more and more and more money and credit so
that the federal government can continually deficit-spend us into a twisted,
inflationary hell without the government having to embarrassingly try to
auction off such astonishing, astounding, completely unbelievably massive loads
of new government debt by actually competing in the credit markets, bidding
against other sellers of new debt for a relatively limited pool of private
funds, pushing interest rates To The Freaking Moon (TTFM), <span style="mso-spacerun: yes;"> </span>destroying America and the world.<span style="mso-spacerun: yes;"> </span>I mean, what kind of idiot IS this guy?"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
What
kind of idiot am I, you ask? Well, I'll TELL you what kind of idiot I am! I am
the kind of idiot that that is so stupid that he fails at everything, and the
only things at which I did NOT fail are, firstly, to finally recognize and
accept my own inherent stupidity, and secondly to wisely acknowledge the
correctness of my naturally-suspicious paranoia and cynical hostility towards governments,
self-interested salesmen and self-proclaimed "experts."</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
Thus,
I looked, instead, at history to find out what happened all the other times
over the last 4,500 years when a government acted this stupidly (most of them,
as it turns out), and to find<span style="mso-spacerun: yes;"> </span>the
ultimate best investment that lasted through it all.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
As
an aside, I could have saved a LOT of time, learned the same thing about
economics, just by reading Hazlitt's nifty book "Economics in One
Lesson," or by simply going to Mises.org and getting -- free! -- the glorious
wisdom of the Austrian School of economics, thanks to the foresight and work of
Lew Rockwell, whom I never actually met, but who must be a busy guy because if
I call him up and say to the receptionist "Hey! Ask Lew Rockwell if he
will lend me twenty bucks!", I find that he's never available, and they
won't even take a message anymore. <span style="mso-spacerun: yes;"> </span>So he
must be a busy guy!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
I
can tell by the look on your face that you are not interested in hearing about
another smart person who doesn't want to talk to me, either, and what you really,
REALLY want to know is "What turns out to be, as the ultimate Idiot's
Delight, the best investment during a period of government deficit-spending and
money creation about which you have been shooting your mouth off until we are
sick of hearing it?"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
Well,
since you asked so nicely, I am happy to report that you, too, can succeed
financially despite any personal shortcomings, such as being a rude moron who dares
challenge me instead of cringing before my towering intellect, and/or having severe
behavioral difficulties so that your kids hate you because you are a clueless,
terrible parent, and your boss and all your co-workers hate you because you are
incompetent at your job which makes their jobs harder, and you naturally hate
them in return, stabbing them in the back at every turn, sparing no venom,
daring to mix metaphors right in front of their stupid little, hateful faces.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
And
you can financially prosper even if your spouse and your relatives and your
neighbors all hate you, too, mostly because they are all a bunch of
small-minded Earth-people whose serious lack of intellectual capacity cannot
possibly allow them to comprehend the profound inherent safety and strong security,
and thus an invaluable neighborhood asset, of having a Mogambo Big Beautiful
Bunker (MBBB) in my backyard, bristling with enough firepower and miscellaneous
armaments to kill them all a thousand times over if they give me a bunch of
crap, which they, so far, don't.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
And
so the important, profound answer to the question "How to have a
successful, wealthy future despite being a complete moron and your own
government is acting like one, too"? </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="mso-spacerun: yes;"> </span>It is (drum roll, please!) to buy gold bullion
and silver bullion!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
And
I think to buy oil stocks, too, because oil has absolutely the most net energy
per unit of volume, and it literally comes out of the ground almost ready to
use as a fuel. Wow! Talk about intrinsic value that will surely rise with
general inflation which is guaranteed by the Federal Reserve creating so much
money and credit! How could oil NOT become more expensive?</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
So,
I mean, investment-wise, how could things get any more obvious?<span style="mso-spacerun: yes;"> </span>Not stocks. Not bonds. Not houses. Not cash.
Not anything but gold, silver and oil.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
And
speaking of "how" could something possibly be, ones wonders how could
one NOT shout loud huzzahs, hoorahs, and heehaws to the highest of heavens, nor
feel compelled to excitedly exclaim with a happy, giggling glee born of easy,
greasy greed, "Whee! This investing stuff is easy!"?</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-family: Arial;"> </span></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com2tag:blogger.com,1999:blog-989723204686115334.post-53641488528797408382012-12-16T13:54:00.002-08:002012-12-16T13:54:47.655-08:00Scared Again, As Usual Anymore, About Taxes, Debt And Inflation
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">December
14, 2012<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Mogambo
Guru<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
<span style="mso-tab-count: 2;"> </span>Scared Again,
As Usual Anymore, About Taxes, Debt And Inflation<br />
<br />
Perhaps not surprisingly, my career is suddenly going nowhere since I
retired and quit working completely.<span style="mso-spacerun: yes;">
</span>For example: Is the wife asking me to take the garbage out?<span style="mso-spacerun: yes;"> </span>"What do I look like," I ask
incredulously, "some kind of janitor, or custodian, or maybe a
professional garbage-taker-outer?<span style="mso-spacerun: yes;"> </span>Ha!
Screw that! You got the wrong boy, babe! That's work, and I'm retired!"<br />
<br />
Of course, this is my usual empty bluster and whining about how one day
things are going to be different around here, see, and I will run the show --
with an iron fist! -- and everybody will do what I want for a change, and yet
there I am, taking the damned garbage out to the damned garbage can, but
grumbling and mumbling incoherently under my breath to show that I am not the
least bit happy about it.<br />
<br />
However, if I ever decide to return to writing, willingly suffering the
slings and arrows of outrageous editors ("Worthless trash from a no-talent
hack"), I will apply at <span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">Reuters news service as a
hot-shot editor, since I obviously have a knack for seeing the profound writing
mistakes made by others, taking a cruel joy in hurting the writer's feelings
because, I self-righteously ask, where were in the hell were THEY all those
years when I was being criticized ("Worst crap I have ever read! I feel
soiled from the experience!"), crying myself to sleep every night, boo hoo
hoo. <o:p></o:p></span><br />
<br />
<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">You are probably saying to yourself "Who
cares? You ARE a crappy writer! Is there a point to all of this? Is it because
Reuters wouldn't even let you take their garbage out because you are a stupid,
raving lunatic?"<o:p></o:p></span><br />
<br />
<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">"No," I imperiously say. "It's not
about that at all. What I am talking about is how Reuters treats a simple news
item like "The U.S. Internal Revenue Service on Wednesday released final
rules for a new tax on medical devices, products ranging from surgical sutures
to knee replacement implants, that starts next year as part of President Barack
Obama’s 2010 healthcare law."<o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">Reuters goes on to explain that "The 2.3-percent tax must be paid,
effective after December 31, by device-makers on their gross sales. The tax is
expected to raise $29 billion in government revenues through 2022."<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">Now get a load of this: The tax "applies mostly to devices used
and implanted by medical professionals, including items as complex as
pacemakers or as simple as tongue depressors," which is kinda scary since,
apparently, medical professionals "use and implant" tongue depressors
in people! Yikes! I had no idea!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">Anyway, despite my little attempt at humor that seems to have fallen
somewhat flat, that is pretty much it. End of story!<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">If I was indeed the intrepid editor of this news story, and I had made
it back to the office not too late from one of my famous two-hour
power-lunches, and I was not too falling-down, snot-faced drunk to actually
manipulate at least one of my fingers, I would sit at my keyboard and edit that
last sentence to read "…which means only that the device-makers will happily
charge more money for their devices so that the company can still make the same
profit after paying another 2.3% tax, which means that the prices of medical
devices will go up, which is popularly defined as inflation, which is a kind of
tax paid by consumers, or companies will go out of business because their
prices are now too high, whereupon all the stockholders (orphans, widows and
your retirement account) lose everything, and the employees are all fired,
which is kind of a tax, too, and all the millions of the people who pay these
higher prices for the devices have to turn around and charge more money for
their goods and services to try and break even, which means more inflation in
prices and a shrinkage of the economy unless the Federal Reserve creates more
money and credit, which they invariably do, which makes inflation in prices
worse and worse in some horrifying dance of inflationary economic death, and
which makes it so easy to predict that We're Freaking Doomed (WFD)!"<o:p></o:p></span></div>
<br />
<div style="line-height: 15pt; margin-bottom: 12pt;">
And, speaking of WFD, I note
with a trembling horror in my voice and my heart pounding, pounding, pounding
in my ears that the latest Consumer Installment Debt figures for October jumped
up by a massive $14 billion, bringing the total to of this huge, strangling,
staggering $2.753 trillion, which is -- unbelievably! -- higher than the $2.6
trillion in Consumer Installment Debt at its "height" in 2008!<span style="mso-spacerun: yes;"> </span></div>
<br />
<div style="line-height: 15pt; margin-bottom: 12pt;">
To be sure, that $2.6
trillion record-setting debt set in 2008 dropped over the next few years by a
couple of hundred billion dollars as people cut gradually paid off some of
their debt.</div>
<br />
<div style="line-height: 15pt; margin-bottom: 12pt;">
But now! Now, in the last
couple of years, despite rising unemployment, rising bankruptcy, stagnant wages
and an economy that is at death's door because the evil Federal Reserve created
so irresponsibly much money and credit for the last three decades, people are
again borrowing money with the greedy, reckless, mindless abandon of old, and
have astonishingly gone another $300 billion deeper in consumer debt in the
Last Freaking Year (LFY) alone!<span style="mso-spacerun: yes;"> </span>A short twelve
months! $300 billion in the LFY! That's $2,000 more personal debt for every
adult in the Whole Freaking Country (WFC)!!</div>
<br />
<div style="line-height: 15pt; margin-bottom: 12pt;">
Like most of you, even the
exciting use of two exclamation points cannot penetrate my shocked numbness
from the steady drumbeat of disturbingly, terrifyingly higher and higher
prices, and a higher and higher money supply, and higher and higher debts, both
cash-basis and accrued.</div>
<br />
<div style="line-height: 15pt; margin-bottom: 12pt;">
Fortunately, this
shell-shocked attitude is not universal, and Ed Steer of the eponymous Ed
Steer's Gold & Silver Daily newsletter reports <span style="mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">that Stephen King (if that is
his real name!), and who is supposedly chief economist at HSBC Holdings Plc in
London and a former U.K. Treasury official, said</span> "<span style="mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">There
are lots of things central banks are worried about at the moment, and inflation
is not the highest priority.<span style="mso-spacerun: yes;"> </span>As long as
people believe central banks are committed over the longer term to price
stability, there is leeway to play around with other objectives.”</span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">A
high-decibel Mogambo Scream Of Outrage (MSOO) was literally in my throat when I
was stopped the humor of Ed's reply.<span style="mso-spacerun: yes;"> </span>I
envision an arched eyebrow, curled lip and contemptuous sneer to accompany his
understated "Such as???"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">According
to the Mogambo Rules Of Punctuation For Economics Stuff (MROPFES), the use of
three -- three! -- question marks indicates extreme stunned incredulity mixed
with anger and shock, as seems apropos to the very idea of a central bank not
being foremost concerned with inflation in prices above all other concerns.
ALL! <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">Well,
the answer to Ed's question "such as?"<span style="mso-spacerun: yes;"> </span>is, of course, that the central banks are
committing yet another monetary sin, artificially holding interest rates down
to near zero by creating mountains of new money and credit with which to buy up
bonds (driving their prices up and their yields down) at the rate of almost
$200 billion per month (about $90 billion mortgage bonds and, recently
announced, other bonds, which, I assume, is on top of the $100 billion a month
in new Treasury bonds that have to be sold to finance a $1.2 trillion federal
budget deficit). That's $2.4 trillion a year in new money! Gaaahhhh!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">You
can see how I am on the verge of working myself into a screaming fit of fearful
outrage, and how I could go on for hours and hours about the evil Federal Reserve,
predictably ending with me telling you, with a voice rising hysterically in
volume and timbre, to feverishly buy gold bullion, silver bullion, and oil
stocks, because such absolute, suicidal idiocy like that is, I am chilled to
say, running rampant, and thus We're Freaking Doomed (WFD)! <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">Rather
than be drawn into one of my sick little melodramas, Ed wittily and pithily
goes on, while expressing the exact same anger and outrage as found in any of
my wild incoherent tirades packed with profanity and vague death threats, with
a subtle "I can't believe he said that! Be very afraid."<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">Be
very afraid, indeed. He correctly said that. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">Buy gold, silver and oil. I correctly said that.</span><span class="bodytext1"><span style="font-size: 10pt;"><o:p></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com0tag:blogger.com,1999:blog-989723204686115334.post-65733302834827508182012-12-06T14:44:00.001-08:002012-12-06T14:44:06.764-08:00It's that time again
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
December 6, 2012</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
Mogambo Guru</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span style="mso-tab-count: 2;"> </span><span style="mso-tab-count: 1;"> </span>It's that time again</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
These are, indeed, times that
try men's souls.<span style="mso-spacerun: yes;"> </span>To such a profound
revelation, some would perhaps delightedly say "Indeed,
Mogambo!"<span style="mso-spacerun: yes;"> </span>Perhaps you, too, are
inclined to say "Well said, Mogambo! Thou art truly the greatest of
writers, who can, with a mere fillip of prose or punctuation, turn a such
simple phrase into immortal, graceful poetry, and anybody who criticizes you is
an idiot and a jealous, loudmouth, know-nothing halfwit who wouldn't know true
writing talent if it came up to them and took a whiz on their shoes!"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
If so, I have to confess that I
did not, alas, write it. But thanks, anyway.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
That famous phrase is from, as
it turns out, Thomas Paine, who used it in his "<span class="ft"><span style="color: #222222;">The American Crisis."</span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="vshid1"><span style="mso-hide: none;">He actually wrote </span><span style="mso-spacerun: yes;"> </span><a href="http://webcache.googleusercontent.com/search?q=cache:-amsnialZkoJ:www.ushistory.org/paine/+days+that+try+men's+souls&cd=1&hl=en&ct=clnk&gl=us"><span style="color: black;">Cached</span></a> - <a href="http://www.google.com/search?hl=en&tbo=1&qscrl=1&rlz=1T4SKPT_enUS435US437&biw=1015&bih=481&site=webhp&q=related:www.ushistory.org/paine/+days+that+try+men's+souls&sa=X&ei=LwKsUJTcO4X49QSluoGABA&sqi=2&ved=0CC8QHzAA"><span style="color: black;">Similar</span></a></span><span style="display: none; mso-hide: all;">You +1'd this publicly. <a href="http://www.google.com/webhp?sourceid=toolbar-instant&hl=en&ion=1&qscrl=1&rlz=1T4SKPT_enUS435US437##"><span style="color: black; text-decoration: none; text-underline: none;">Undo</span></a></span><span class="ft">"These are the </span><span class="ft"><span style="mso-bidi-font-weight: normal;">times that try men's souls</span>," so you </span><span class="vshid1"><span style="mso-hide: none;">can see how I vastly improved upon
this Paine guy by cleverly inserting the </span></span><span class="ft">word
"indeed," brilliantly using a couple of commas, and deftly removing
the "the."<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">This, I am sorry
to say, however novel and clever I hope it is, is sadly indicative of the
woefully low level of personal creativity that I display these days, probably
contributing to my appallingly "relaxed" attitude towards blatant, outright
plagiarism.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">In my own
defense, please remember that what I admittedly lack in talent or professional
ethics, I make up for with other, perhaps more endearing, qualities.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft"><span style="mso-spacerun: yes;"> </span>I mean, who can deny my sheer, screaming
paranoia?<span style="mso-spacerun: yes;"> </span>And with that, I throw in --
for free! -- a howling, homicidal anger, and an incoherent, blubbering
blood-thirst for awesome revenge against the treachery and betrayal of America
by legions of greedy, smug morons for the last half century, ranging from the
lowliest leftist voter thinking the government is there to "help
people," up through the vast, expansive realms of "We're helping
everyone, and borrowing ourselves into bankruptcy to do it" governments,
and, perhaps most painful of all to see, up through the awful Supreme Courts.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">All of these
inexcusable dimwits are totally ignorant of the Constitution of the United
States literally requiring that money shall be ONLY gold and silver
specifically so that the money supply can't grow, thus preventing any inflation
in the money supply, thus preventing the emergence of inflation in prices, and
thus also preventing unsustainable, bankrupting bubbles in sectors like housing
bubbles, stock market bubbles, bond market bubbles, size of government bubbles,
size of debt bubbles, number of government dependents bubbles, and the entire,
total tonnage of pure economic stupidity and simpleminded sophistry espoused by
loathsome neo-Keynesian econometric halfwits like Alan Greenspan and Ben
Bernanke and every other worthless butt-wipe who works, or ever worked, at the evil
Federal Reserve, and the overwhelming proportion of the nation's colleges and
universities, all of whom I blithely brand as a clot of clownish, intellectually-impoverished,
poseur dimwits who see NOTHING wrong with ANY of this monetary and fiscal
absurdity, when it is perfectly, blazingly, blatantly obvious that there is absolutely
nothing right about it, and that is why it is a total failure and has achieved
such disastrous results,<span style="mso-spacerun: yes;"> </span>Decade after
freaking decade! Dimwits all!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">Whew! I pause to
catch my breath, surprised at the raw anger pouring out of me, perhaps borne of
fear that my wife will notice that I took a lousy twenty bucks from her purse
when she, foolishly, was not keeping an eye on it, like I am personally to
blame for her lack of responsibility and need to go to the bathroom.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">Or perhaps I am
upset about how the time is soon coming for rioting mobs of desperate people
frantically flooding through the streets, their money inflated to
worthlessness, ruined financially, economic zombies, looking for a handout and
someone to blame for their plight, all because the evil Federal Reserve under
the satanic Alan Greenspan, from 1987 to 2006, started the bank's treacherous
trend of creating so incredibly much, so astonishingly much, so tragically too,
too much money and credit, based on the sorry excuse of error-filled equations
in worthless neo-Keynesian econometric lunacy.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">And then these
angry, desperate people, making the mistake of their lives, will think to
themselves "Hey! That Irritating Mogambo Moron (IMM) was right!<span style="mso-spacerun: yes;"> </span>If we had invested in gold, silver and oil
like he said to do, we would be rich, instead of being poor and wretched!<span style="mso-spacerun: yes;"> </span>Let's go over to his house, attack his stupid
Mogambo Bunker Of Doom (MBOD), and if any of us survive the assault, we can
split the gold and silver, and any leftover ammunition, we find inside!"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">Through the
periscope of the bunker I will, of course, see them coming. As they reach the
perimeter that I have arbitrarily and secretly designated, I will give the
klaxon a mighty, high-decibel blast, and the PA system will blare
"Intruder alert! Intruder alert!", all of which has a very, very
intimidating effect, as I found out the hard way when I came home one night,
staggering from another alcohol-related incident, accidentally tripped the
alarms and, just as accidentally, peed in my pants I was so startled and
scared!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">Well, it sure
made a lasting impression on me! And on the family and neighbors, too, who came
out to see what the fuss was about, and they saw me, and they laughed at me,
mocking me, their insulting jeering and jabbering cutting through me like a Red
Hot Knife Of Shame (RHKOS), yet they turn around the very next day and wonder
why I hate them so much!<span style="mso-spacerun: yes;"> </span>Stupid or what,
huh?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">Anyway, through
the Mogambo Communication Portal (MCP), I will ask them "What do you want,
or shall I startle you once again?"<span style="mso-spacerun: yes;">
</span>They will say "We want you to give us some dry pants and some clean
underwear; we peed all over ourselves here! And we want all your gold and
silver, too, so that we can buy ourselves some food and get some nice clothes
that haven't been slept in or peed in!"<o:p></o:p></span></div>
<br />
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<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">I, of course,
will say "No. But as true Democrats, you got the attitude down
perfectly!"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">After a lot of
flustering and blustering, stumbling about in their confused stupidity, I will
ask "Are you the same people who think that an idiocy like 'government
deficit-spending to make up for lack of private spending because everybody is
bankrupted under a massive load of debts, which is why they stopped spending'
could possibly, possibly, ever in a million jillion years, work, when it never,
ever has? Are you they? Is you them? Which or neither? Answer me! Now!"<o:p></o:p></span></div>
<br />
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<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">Of course they
will say "What? Uh, no, we are not those people, we don't think!"<span style="mso-spacerun: yes;"> </span>I will laugh at them, and reply with a
twinkle of amused merriment in my voice, "Are you telling me that you
instantly, intuitively understand, like normal people with even half a brain,
that a constant freaking flood of new, government money disastrously distorts
an already distorted, government-centric economy, making a normal recovery
totally, completely impossible, as seemingly proved --proved! -- because nobody
has ever, EVER heard of a case, in all these thousands of years of history, of
robust private demand, despite cancerous over-indebtedness (and impending
pandemic bankruptcy) somehow, perhaps magically, growing to replace the
artificial demand created with massive government deficit-spending of new fiat money?"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">Having
accumulated a lot of experience over the years, educating a lot of people about
the inflationary horrors of allowing the Federal Reserve to create so much
excess money and credit, and how you would have to be an idiot not to be buying
gold and silver, I recognize that this is when the average person says
"Huh? What? I don't understand!", as does, obviously, Ben Bernanke.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">Don't believe me?
Then find out for yourself! Call the Federal Reserve in Washington, D.C., and
when they answer the phone, say "I want to ask that big butthead Ben Bernanke
if he has ever heard of a case of robust private demand, despite
over-indebtedness, replacing the artificial demand of massive government
deficit-spending?<span style="mso-spacerun: yes;"> </span>Now, put him on the
line, and make it snappy, will ya? I ain't got all day!"<o:p></o:p></span></div>
<br />
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<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">Go ahead! Call!<span style="mso-spacerun: yes;"> </span>I'm betting that, like when I called and
asked them this same question, they put you on hold and never picked up the
call, or you were mysteriously disconnected when you called them back, over and
over, getting more angry each time to helpfully let their Customer Service
Department know how angry I am about Bernanke ducking my calls, probably
because Bernanke DOES think this stupid crap!<span style="mso-spacerun: yes;">
</span>Thus, it's proved, I tells ya! Proved! If he's innocent, why doesn't he
come forward and deny it?<o:p></o:p></span></div>
<br />
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<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">And that interesting-yet-terrifying
tidbit of news is just another teensy, tiny clue to buy gold, silver and oil.
All the other zillions of wonderful reasons to buy gold, silver and oil have
4,500 years of history backing them up. <o:p></o:p></span></div>
<br />
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<span class="ft"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-outline-level: 4;">
<span class="ft">And with evidence
like that, against the foolish thinking of a guy who won't even answer the
phone, what can one say except "Whee! This investing stuff is easy!"?<o:p></o:p></span></div>
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<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-family: Arial;"> </span></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com0tag:blogger.com,1999:blog-989723204686115334.post-82384226429698719472012-11-29T13:52:00.002-08:002012-11-29T13:52:38.291-08:00Laughing it up to keep from cryingNovember 29, 2012<br />Mogambo Guru<br />
<br /> Laughing it up to keep from crying<br />
<br />I was taking a much-needed break from keeping an eye on my weird neighbors, whom I suspiciously think are some of the idiots who elected the commie knot-head Obama instead of electing the religious knot-head Romney. <br />
Of course, my heart was with Ron Paul the whole time, who would have been a good president -- perhaps even a terrific president! -- forty years ago when there was still enough time to stop the suicidally-stupid deficit-spending, money-printing, entitlement-creating, government-centric, "impossibly huge government taking care of everyone," typical Democrat horse-crap nonsense.<br />
And maybe back then he would even have gotten get us back on a gold standard monetary system, with no fractional reserve banking allowed, to automatically make the currency as strong as the inflation-free economy, because it would be based, as it should be, on real, sustainable demand, instead of relying on phony government deficit-spending-financed demand, with a crazy Federal Reserve creating the excess money and credit to buy up all the gluttonous globs of government debt.<br />
And, as reasons to print money, let's not forget that Consumer Installment Debt astoundingly went up by about $250 billion -- a quarter of a trillion dollars! -- over the past year, and that money had to come from somewhere, too!<br />
I mean, it's all freak, freak, freaking me out here! Gaahhhh!<br />
So, I was trying to focus my Mighty Mogambo Mind (MMM) on something new to stop my thinking about what idiots we are and how completely devastating it will be when that far-left Obama (who has horrifically given himself, Stalin-like, the power to order Americans murdered without a trial!) really gets started.<br />
I was thinking of starting a completely new career, never to think of that ugly economics stuff again. Sleep well at night without waking up screaming in fear at the inflationary horror that awaits us, dreaming of devouring demons!<br />
It's that kind of "fear" thing that makes me figure that people would LOVE to have some comedy when the whole thing starts falling apart because the evil Federal Reserve is creating so much, so much, so impossibly much money, and, predictably, inflation in prices is skyrocketing, people are rioting, cities are burning, murderous gangs roam the streets, zombies are eating the dead, aliens from outer space have landed, and blah blah blah. You know.<br />
So, seeing the obvious opportunity, I was considering being a (ta-da!) stand-up comedian! <br />
I had even been working on my new act, as the other choice that occurred to me was "homicidal maniac," instead of being just an irritating, gold-bug, paranoid, angry, cynical old man and all-around nice guy.<br />
And since it doesn't take a lot of planning or training to be a homicidal maniac, I chose that option as my "fallback" position, and was working on my stand-up comedy routine. In fact, I had already written one terrific joke! I was on my way!<br />
It goes, "Why did the chicken cross the road? Because he wanted to get the hell out of this stupid country before the monetary and fiscal madnesses of, respectively, the evil Federal Reserve and the corrupt governments of the federal, state and local varieties destroy our money, the economy, the Whole Freaking Country (WFC), and probably the Whole Freaking World (WFW) with horrendous inflation in prices caused by such irresponsible over-creation of money and debt, all to create a huge, suffocating, government-centric economy, so that you slowly starve to death because you can't afford food. <br />
"But the 'all natural and organic' weight-loss makes looks you look fashionably thin the whole time! Hahahaha!"<br />
After a brief pause, I deliver the boffo punch line, which is "Except for maybe, you know, that part at the end, right before you die, where your bones literally stick through your skin. Hahahaha!"<br />
I deliberately put that "Hahahaha!" at the end so that the audience -- and maybe Jay Leno would be watching! -- would all know that it was a joke, and that they should applaud like maniacs and laugh heartily at this classic Mogambo Dark Humor Of The Damned (MDHOTD). <br />
So you can see that my life was, for a change, working out just fine, and I was really getting into this comedy thing, when I, coincidentally, got a devastating email from Junior Mogambo Ranger (JMR) Paul P, who had written a much funnier original joke.<br />
After the obligatory sniveling and servile salutation "Oh Mighty Mogambo," JMR Paul humorously writes "With the economy being so crappy I have decided to join the army and change my name to Clifford Fiscal. That way, during roll call when they call out 'Fiscal, Cliff', I can yell back 'It's here! Here I tells ya!'" <br />
I, of course, laughed, even as my Mighty Mogambo Heart (MMH) was breaking because his joke was better than my joke, all my plans are for suddenly and cruelly for naught, and I'm actually kind of pissed about it, now that I think about it.<br />So, I am laughing, sad, and angry, all at the same time. You can see how that "homicidal maniac" idea seems suddenly so easy and natural.<br />Of course, when it comes to easy and natural, 4,500 years of history says ain't nuthin' easier than capitalizing on these kinds of inflationary idiocies of government: Buy gold, silver and oil! And keep on buying them, gradually, more and more, month by month. And when any one of them drops significantly in price for no apparent reason, as they mysteriously do from time to time because of all the corruption and manipulation of markets these days, then buy LOTS more!<br />See? It's easy! Repeat along with me: "Whee! This investing stuff is easy!"<br />
<br />Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com1tag:blogger.com,1999:blog-989723204686115334.post-68406406714078227092012-11-20T15:48:00.001-08:002012-11-20T15:48:22.703-08:00At the Store
<br />
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">November
20, 2012<o:p></o:p></span></span></span></div>
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<br />
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Mogambo
Guru<o:p></o:p></span></span></span></div>
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<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-family: Arial;"> </span></o:p></span></span></div>
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;"><span style="mso-tab-count: 3;"> </span><span style="mso-tab-count: 1;"> At the Store</span></span></span></span></div>
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<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-family: Arial;"> </span></o:p></span></span></div>
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As I stood in the line at the grocery store, I watched the
family in front of me, which reminded me of a Norman Rockwell painting; an
all-American family, out happily shopping together, what with the mom, the dad,
and the two little kids.</div>
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
As I watched, my heart went out to them, knowing that they
had no clue as to the economic cataclysm that is going to befall all of them,
especially the cute little kids.<span style="mso-spacerun: yes;"> </span>So I
kindly stepped forward to help them.</div>
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<o:p> </o:p></div>
<br />
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I leaned forward towards them and politely said "Pardon
me, but I see that you are buying Froot Loops cereal for, I assume, your
darling children. And speaking of Froot Loops, did you know that the horrid
Obama deliberately deficit-spent a monstrous $1.5 trillion every year for the
last four years, which was on top of the $2.4 trillion that the government
already collected in taxes, fees, expenses, tip, tag and title?"</div>
<br />
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Well, bless their hearts, they predictably tried their best
to ignore me, and I could see them furtively looking around for a way to get
away from me.<span style="mso-spacerun: yes;"> </span>Unfortunately, there were
other shoppers in the checkout line ahead of them, blocking their path.<span style="mso-spacerun: yes;"> </span>And I had cleverly stationed my shopping
cart between them and me, both blocking the aisle to prevent their retreat, and
(very importantly!) keeping out of range.</div>
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
In their best interests, I earnestly continued my loud line
of highly-instructional questioning by asking them "And did you know that
his blithely increasing the national debt by a whopping, eye-watering,
gag-inducing, terrifying six trillion bucks in 4 short years is equal to a
staggering 40% of our $15 trillion GDP? That's almost half of our Entire
Freaking Economy (EFE)!" </div>
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
I could feel my panic growing as I continued instructing
them "And did you know that it was all outrageously heaped on the aching
backs of the 300 million overly-indebted men, women and children living in this
country?"</div>
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Out of the corner of my eye I could see the store manager
coming towards us, huffing and puffing, with that "Oh, no! Not you
again!" look on his stupid face.<span style="mso-spacerun: yes;"> </span></div>
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Instantly I knew that I had to make a crucial tactical
decision: Whether or not to abandon my groceries, leap atop the checkout
counter, run to the end to make a glorious, fabulous, flying leap towards the
door and thus making my getaway, taking my leave with my standard shout of
farewell, "Buy gold, silver and oil, you morons!"</div>
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
To do so, however, would be to suffer the sad, sorry loss of
a lot of delicious "buy one, get two free" frozen burritos, and who
knows when they are going to have a sale like THAT again? I mean, c'mon! What
to do? What to do?</div>
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
I thought to myself "My time to educate these people
grows short if I am to, heroically, before the manager gets here, teach these
morons about how the evil Federal Reserve is creating So Freaking Much Money
(SFMM) that inflation in prices will destroy those who do not wisely buy gold,
silver and oil!"</div>
<br />
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Quickly, I summed up by saying "And this is just the
INCREASE in the national debt to an incomprehensible $16 trillion, which is
already bigger than the aforementioned Entire Freaking Economy (EFE), which
comes to a debt of $53,000 dollars for each of you two adults, and the two
little tykes, too, which comes to a nice, round $212,000 just for YOUR little
family. How you like them apples?"<span style="mso-spacerun: yes;"> </span></div>
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<o:p> </o:p></div>
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I was hoping they would, at least, enjoy my witty reference
to apples as we are in a grocery store.</div>
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
But no. Seeing that I was getting nowhere with the adults, I
turned to the kids and said, "Kids, enjoy that Froot Loops cereal, because
soon prices will be so high that you will be eating horrible, soupy, microwave
gruel, making the huge assumption that your folks will have a microwave oven
and can afford the electricity to cook gruel, unless your parents wise up and start
buying gold, silver and oil!"</div>
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<o:p> </o:p></div>
<br />
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Just then, the little manager comes storming up and says,
predictably, "You again?"</div>
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
I said "Yes!<span style="mso-spacerun: yes;">
</span>'Tis I, The Wise And Wonderful Mogambo (TWAWM), spreading the gospel of
TWAWM, namely the revelation to buy gold and silver to capitalize on the
guaranteed cataclysmic inflation in prices that you get whenever your idiot
government is allowing the Federal Reserve to create so excessively much, so
monstrously much, so stupendously much, so impossibly much money and credit. And
proud to do so, sir!"</div>
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
I was thinking to myself, of course, "And there ain't
nothing you can do about it, you little bastard who probably has all his
retirement funds idiotically 'invested' in common stocks and/or in the most
ludicrously overpriced asset of all, namely bonds, and who is going to
tragically get The Royal Screw Job (TRSJ) because of it."</div>
<br />
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
The bad news is that the store manager stood there, glaring
at me, the whole time I am in his stupid little store, and I am wisely keeping
my mouth shut, just in case I put a lot of innocent frozen burritos in
jeopardy.</div>
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<o:p> </o:p></div>
<br />
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But the good news is not only did I, Mogambo, heroically
help a young family with TWAWM, but when their turn soon came to check out,
they just pushed their cart out of the way and ran out the door!<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>I was
able to start checking out right away! Great! </div>
<br />
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
It just goes to show you one more way, on top of a million
other ways, that good things happen to those who buy gold, silver and oil.</div>
<br />
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
And that is, perhaps, also one more reason that people who
buy gold, silver and oil say "Whee! This investing stuff is easy!"</div>
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<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-family: Arial;"> </span></o:p></span></span></div>
<br />
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com1tag:blogger.com,1999:blog-989723204686115334.post-58682933941507380672012-11-12T14:17:00.001-08:002012-11-12T14:17:58.644-08:00Mogambo Time!
<br />
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">November
12, 2012<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Mogambo
Guru<o:p></o:p></span></span></span></div>
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<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-tab-count: 4;"> </span>Getting
it good and hard</div>
<br />
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<o:p> </o:p></div>
<br />
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<o:p> </o:p></div>
<br />
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The elections being over, I shall not unduly comment on the
reelection of the horrid Obama, or the un-professional, traitorous hacks of the
leftist media that kept his many scandals, incompetences and disgraceful lies
out of the news, or about the trusting, gullible, ignorant, greedy and stupid
people who elected him, except to quote the immortal Thomas Jefferson, who said
<span style="color: windowtext;">"The government you elect is the government
you deserve."</span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
But it was H.L. Mencken who said it best, as far as I am
concerned, when he quipped "People deserve the government they get, and
they deserve to get it good and hard," which naturally brings to mind all
those times in life when one has, indeed, gotten it "good and hard,"
dredging up, as it does, painful memories, usually replete with scars, either
physical or mental, often both, and with a deep, dark, dangerous desire for
some kind of vicious, bloodthirsty revenge on some worthless bastard who
deserves it "good and hard."</div>
<br />
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
So ol' H.L. (as I like to call him since it implies that I
am a hotshot smart guy on a collegial, first-name basis with a fellow famous
and cynical intellectual, but who died when I was seven years old, which is
pretty weird, probably says a lot about OTHER weird things about me, when you
stop and think about it) was exactly right with the getting it "good and
hard" thing.</div>
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Now, getting it "good and hard" perfectly
describes the current situation, which is that there is No Way In Hell (NWIH)
that our aforementioned "current situation" CAN'T end badly, as in
"very badly," as in "financially and economically fatal"
because trillions and trillions of dollars pumped into the welfare economy via
federal government deficit-spending Every Freaking Year (EFY), and tragically
combined with "and there ain't nothin' you can do about it, moron."</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Even worse,<span style="color: windowtext;"> if the government
truly reflects the population, then (not to put too fine a point on it) we are
a nation of lying, corrupt, greedy, stupid, ignorant, superstitious,
bankrupted, lowlife, low-IQ murderers and thieves.<o:p></o:p></span></div>
<br />
<div style="margin: 0in 0in 15pt; vertical-align: baseline;">
<span style="color: windowtext;"><o:p> </o:p></span></div>
<br />
<div style="margin: 0in 0in 15pt; vertical-align: baseline;">
<span style="color: windowtext;">My </span>low, low
opinion of the government and the general population of the USA is, by sheer
coincidence, perfectly reflected in a <span style="mso-bidi-font-family: Helvetica;">CNSNews.com
news item sent to me by </span>Junior Mogambo Ranger (JMR) Phil S.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>It
read <span style="mso-bidi-font-family: Helvetica;">"</span><span style="mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;">On Aug. 2,
2011, President Obama signed a deal he had negotiated with congressional
leaders to increase the debt limit of the federal government by $2.4 trillion.
But, now, after only 15 months, almost all of that additional borrowing
authority has been exhausted."<o:p></o:p></span></div>
<br />
<div style="margin: 0in 0in 15pt; vertical-align: baseline;">
<span style="mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;">Now, to the casual reader who knows anything about
economics, this seems like bad news. And it is! Congratulations on your
perspicuity!<o:p></o:p></span></div>
<br />
<div style="margin: 0in 0in 0pt; vertical-align: baseline;">
<span style="mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;">You know
things are getting weird when I, out of the blue, use words like
"perspicuity," and, I am sorry to say, it is worse than that.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>This
is to be expected since the government is (as previously described) a group of </span><span style="color: windowtext;">lying, corrupt, greedy, stupid, ignorant,
superstitious, bankrupted, lowlife, low-IQ murderers and thieves, as</span><span style="mso-bidi-font-family: Helvetica;"> is proved when, later in the same news
item, we learn that "according to the Daily Treasury Statement (DTS), the
portion of the federal debt subject to the legal limit was
$16,222,235,000,000--just $171.765 billion below the $16,394,000,000 debt
limit."<o:p></o:p></span></div>
<br />
<div style="margin: 0in 0in 0pt; vertical-align: baseline;">
<span style="mso-bidi-font-family: Helvetica;"><o:p> </o:p></span></div>
<br />
<div style="margin: 0in 0in 0pt; vertical-align: baseline;">
<span style="mso-bidi-font-family: Helvetica;">Did you see the part that read "the
portion of the federal debt subject to the legal limit"? What?<span style="mso-spacerun: yes;"> </span>What in the hell is THIS? There is a portion of
government spending NOT subject to the debt limit?!?<span style="mso-spacerun: yes;"> </span>There is some secret debt not subject to
limits? What in the hell is going on here?!?<o:p></o:p></span></div>
<br />
<div style="margin: 0in 0in 0pt; vertical-align: baseline;">
<span style="mso-bidi-font-family: Helvetica;"><o:p> </o:p></span></div>
<br />
<div style="margin: 0in 0in 0pt; vertical-align: baseline;">
<span style="mso-bidi-font-family: Helvetica;">Oh! Oops! I forgot!<span style="mso-spacerun: yes;"> </span></span><span style="color: windowtext;">Lying,
corrupt, greedy, stupid, ignorant, superstitious, bankrupted, lowlife, low-IQ
murderers and thieves. Ah so! It all makes sense now! </span><span style="color: #00006a;"><o:p></o:p></span></div>
<br />
<div style="margin: 0in 0in 15pt; vertical-align: baseline;">
<span style="mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div style="margin: 0in 0in 15pt; vertical-align: baseline;">
<span style="mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;">Thus it is, I am horrified to say, a gigantic,
gagging-up-blood, "We're Freaking Doomed (WFD)!" disastrous expansion
of the money supply via the evil Federal Reserve creating the money to monetize
the debt, thus committing the worst sin of central banking!<o:p></o:p></span></div>
<br />
<div style="margin: 0in 0in 15pt; vertical-align: baseline;">
<span style="mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;">And if the words "gigantic,"<span style="mso-spacerun: yes;"> </span>"gagging-up-blood,"<span style="mso-spacerun: yes;"> </span>"We're Freaking Doomed (WFD)!" and
"disastrous" are not enough to scare the hell out of you that
inflation in prices from such a whopping huge increase in the money supply is
going to destroy you and everyone you love, even when punctuated with an
exclamation point for additional emphasis, then perhaps an actual number will
convince you: $2.4 trillion over 15 months equals a massive 13% of GDP in One
Freaking Year (OFY)!!" <o:p></o:p></span></div>
<br />
<div style="margin: 0in 0in 15pt; vertical-align: baseline;">
<span style="mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;">Please note the TWO exclamation points,
conveniently provided to you by yours truly, to instantly draw the appropriate
(and only) conclusion without any thinking, of any kind, on your part, which is
the handy kind of conclusion I like best, as do, I'll guess, you.<o:p></o:p></span></div>
<br />
<div style="margin: 0in 0in 15pt; vertical-align: baseline;">
<span style="mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;">And if you are not buying gold, silver and oil
with every dollar you have, and with every dollar you can weasel out of your
wife's purse, or with every dollar gotten by shortchanging the kids on their
allowances, then there is something very, very wrong with you, and you should
see a therapist of some kind, or at least wear a sign around your neck that
says "I am stupid!" so that people will have pity on you instead of
laughing at you.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-family: Helvetica; mso-bidi-font-weight: normal;">On the other hand, for those of us who ARE furiously buying the
aforementioned gold, silver and oil with the aforementioned sources of cash,
our "therapy" is the happy, secure feeling we get when we buy them,
knowing that their values will soar, soar, SOAR in the catastrophic price
inflation and social destruction it causes, and we are merrily thinking to
ourselves "Whee! This investing stuff is easy!"</span><span class="bodytext1"><span style="font-size: 10pt;"><o:p></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com1tag:blogger.com,1999:blog-989723204686115334.post-32312769884994321512012-11-07T11:35:00.002-08:002012-11-07T11:35:36.272-08:00 Scary Halloween Time
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Mogambo
Guru<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-family: Arial;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-tab-count: 4;"> </span>Scary
Halloween Time</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
The horror of our economic situation is, for some weird reason,
made even more terrifying on Halloween, when the little darlings from the
neighborhood come to the door with their annual "Trick or Treat"
tomfoolery, knowing that it is going to cost me money. </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
I find that I can no longer frighten them away by popping up
with the usual scary masks, fangs, fake blood, or even screaming at them at the
top of my lungs, my face bent down to theirs, nose to nose, "You're going
to die!<span style="mso-spacerun: yes;"> </span>Die!<span style="mso-spacerun: yes;"> </span>You and your parents will die horrible,
painful, lingering deaths because the evil Federal Reserve is creating so much
money that it will cause so much inflation in prices that you will all starve
to death! Have some candy! Happy Halloween!"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
This year, I decided that I was becoming stale.<span style="mso-spacerun: yes;"> </span>That is why, this year, I greeted them by
saying "Happy Halloween! Have some candy!<span style="mso-spacerun: yes;">
</span>Eat up! Enjoy it while you can, kids, and eat all this yummy candy to
make yourself fat and sweet because your parents will soon have to kill you,
probably while you are sleeping, and then use big, sharp knives to cut out your
bones and organs to sell on the black market, and then cut up what's left of
you into little pieces before they cook you.<span style="mso-spacerun: yes;">
</span>And then they will eat you, maybe topped with some tangy barbeque sauce
made out of your congealed blood sautéed in butter with some minced onion,
brown sugar, maybe a little mustard, salt and freshly-ground pepper to taste,
topped with a festive sprig of fresh parsley, all because the prices of food,
and the prices of everything else, are so high that they cannot afford to buy
regular food! Fatten up, kids!"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
As I am dishing out handfuls Halloween candy to each of the
kids, I continued in Fine Mogambo Style (FMS), loudly yelling at the kids anew,
asking "And you want to know why? Huh? You want to know why you are going
to be killed and made into hamburgers? <span style="mso-spacerun: yes;"> </span>It's
because the evil Federal Reserve is creating so terrifyingly much money, and
thus creating horrifying, murderous inflation in prices. And they are doing it to
-- incredibly! -- allow the corrupt, insane federal government to give money to
literally half the population by irresponsibly deficit-spending the equivalent
of a full 10% of the Whole Freaking Economy (WFE), and, in the process, racking
up insane, suffocating amounts of painful, bankrupting debt that cannot
possibly be repaid!"<span style="mso-spacerun: yes;"> </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
By this time, out of the corner of my eye, I can see the
concerned parents are no longer patiently waiting in the street, but are coming
up to see why I am yelling at their kids and the other trick-or-treaters,
making them scream and cry, but still wanting for me to give them more candy,
the greedy little beggars.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
The parents call out anxiously "Angela! Are you okay?
Why are you crying?", and "Jimmy, get away from the creepy, horrible
man!"<span style="mso-spacerun: yes;"> </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Immediately sensing that they are nervous and distressed, I
soothingly tell the concerned<span style="mso-spacerun: yes;"> </span>parents
"Of course they are okay, you lowlife morons! They are crying in fear
because they have seen the ugly future, a destroyed, nasty, barbaric world
after an insane Federal Reserve has created untold more trillions and trillions
of dollars in new money and debt, until the buying power of the massively over-produced
dollars falls to zero. And it scares them, as it should!"<span style="mso-spacerun: yes;"> </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Keeping the kids carefully herded into a tight group standing
between me and their strangely-and-suddenly angry parents descending upon me, I
quickly explained "I was just trying to help your children learn to buy
gold, silver and oil to capitalize on the inflationary horror destined to
devour them, since you seem to be too stupid to understand any of it!"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Then, surprisingly, one of them yells out "If you are
so smart, how come the velocity of money is going down?"<span style="mso-spacerun: yes;"> </span>Well, I gotta tell ya, I was pretty
astonished at this odd turn of events!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
And so was everyone else, apparently, as suddenly everything
got very quiet, and everyone was looking right at me. </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Well, of course, the reason is that the velocity of money is
merely a plug figure, equal to GDP divided by the money supply. This comes from
the famous Fisher equation where the Price of things sold, times Quantity of
things sold, equals Money supply times the Velocity of money (turnover in
financing transactions), or, more familiarly, PQ = MV.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Since PQ is essentially the Gross Domestic Product (GDP),
the idle calculation of velocity of money is made simplistically easy by simply
dividing the money supply into GDP, which are two readily-available figures, thus
perhaps explaining its popularity.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
In general, when the denominator (Money supply) goes up
faster than the numerator (Price times Quantity sold, or GDP), the calculation
of Velocity will, by simple arithmetic, go down, and when things are
vice-versa, vice-versa.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
In this case, though, the question seemed apt, though the Halloween
setting seemed odd, as the Money supply is undeniably rising rapidly, making
Velocity go down, but Prices are obviously rising, making Velocity go up, and
Quantity sold is disastrously going down, making Velocity go down.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
But remember: Velocity is the result of three variables, and
velocity could be rising (a supposedly good sign) although Prices were
exploding upward (a bad economic sign) and the Money supply was rising (another
bad economic sign) if Quantity sold was actually falling (a very bad economic
sign).</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
With all due respect to the singer Meatloaf and his immortal
song, maybe two out of three ain't bad, but not so when zero out of three is,
without a doubt, bad.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
So I answered, in that strangely cryptic, monotonic, robotic
way that visitors from other planets have when addressing Earthling
carbon-units, "Velocity has fallen because the ratio of the numerator to
the denominator went down. Surrender, Earthlings. Resistance is futile."</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
I expected, if not a suddenly-enlightened crowd cheering and
shouting my praises for my illuminating insight in interpreting PQ=MV, at least
a brief smattering of polite applause for my pithy profundity.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Well, there MAY have been some of that, but it was drowned
out by shouts of "You're crazy!" and "Quit trying to look up my
wife's skirt!" and "Burn him and take all his candy!"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
At least, I THINK that is what they were saying, because by
that time I have scurried off, safe and sound inside the Fabulous, Fully-Fortified
Mogambo Bunker (FFFMB), and all I hear is muffled voices through the thick
walls.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
In the sudden silent solitude, I realized that the kids got
the candy treat, referred to in "Trick or Treat,", but their moron
parents got the trick, in that I did not get a chance to tell them to
frantically buy gold, silver and oil to prevent their looming and dooming
calamity.<span style="mso-spacerun: yes;"> </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
But, then again, they would not have listened.<span style="mso-spacerun: yes;"> </span>They never do.<span style="mso-spacerun: yes;"> </span>That's the way it is with most Earthlings.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Happy Halloween, doomed carbon units.<span class="bodytext1"><span style="font-size: 10pt;"><o:p></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com1tag:blogger.com,1999:blog-989723204686115334.post-9028734490124217872012-10-25T15:17:00.002-07:002012-10-25T15:17:32.434-07:00A Valuable, Valuable Clue As To What To Do
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">October
25, 2012<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-family: Arial;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Mogambo
Guru<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-family: Arial;"> </span></o:p></span></span></div>
<span lang="EN" style="mso-ansi-language: EN;">Junior Mogambo
Ranger (JMR) Philip S. kindly forwarded an entertaining email to me, containing
a lot of facts about, of all things, the year 1910.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">Now, I gotta tell
ya,<span style="mso-spacerun: yes;"> </span>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. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">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.<span style="mso-spacerun: yes;"> </span>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. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">Now THAT'S as a 1910
I could use!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">So, perennially
scoring the proverbial "none of the above", I thought I would be
immediately bored to death with some doofus email about 1910. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">It turns out I
was wrong!<span style="mso-spacerun: yes;"> </span>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).<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">For instance,
from the email we learn that in 1910, "</span><span style="mso-bidi-font-weight: normal;">The average US wage in 1910 was 22 cents per hour." <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">We later learn
that "The average US worker made between $200 and $400 per year."</span><span lang="EN" style="mso-ansi-language: EN;"><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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).<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">Immediately, the
nimble Analytical Mind Of The Mogambo (AMMTM) concluded "Seventeen hours a
week working? What a bunch of lazy bastards they were!"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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')!"<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">Yet, unbelievably,
they look at me like I am the crazy one!<span style="mso-spacerun: yes;">
</span>Me! <span style="mso-spacerun: yes;"> </span>I mean, why ELSE would I even
BE here, ya morons? For my health?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">"So," I
can hear you asking yourself, "what does any of this have to do with
anything?<span style="mso-spacerun: yes;"> </span>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?"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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).<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">More to the point,
in 1910 "Sugar cost four cents a pound."<br />
<br />
Eggs were fourteen cents a dozen.<br />
<br />
Crappy coffee was fifteen cents a pound.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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).<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">And even though
1913 is three full years after 1910, that's still a whopping 2,337% inflation! <span style="mso-spacerun: yes;"> </span>And that staggering loss of buying power of
the dollar comes from just 3.14 % inflation per year, compounding!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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! <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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). <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">So, pray tell,
what did those hundreds of millions of people do? What Did they do? What did
THEY do? What did they DO?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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!<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">Hmmmm! "A
valuable, valuable clue as to what to do"! Catchy!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">Those who owned
all other things did, unfortunately, not.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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? <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">If you suddenly
feel sick to your stomach, like me whenever I think of it, cheer up! I have good
news at last! <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">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!"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-bidi-font-weight: normal;">And with 4,500
years of history backing their play, how can they lose? Easy and guaranteed! <span style="mso-spacerun: yes;"> </span>Whee!</span><span class="bodytext1"><span style="font-size: 10pt;"><o:p></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com1tag:blogger.com,1999:blog-989723204686115334.post-41424875293143495912012-10-17T17:57:00.002-07:002012-10-17T17:59:23.456-07:00The Fabulous Mogambo Rational Dullard Portfolio (TFMRDP)<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">October
17, 2012<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Mogambo
Guru</span></span></span><span class="bodytext1"><span style="font-size: 10pt;"><span style="mso-tab-count: 1;"><span style="font-family: Arial;"> </span></span></span></span></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-family: Arial;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">If I was a
betting man, a hard-core gambling man, I mean a real long-shot kind of man
greedily looking to make a ton of money in a hurry, using minimal investment,
without doing any work, I would start accumulating out-of-the-money SP500 put
options and/or short futures, starting right around in here someplace.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">However, I am
definitely NOT a betting man, because I really, really, really hate to lose
money.<span style="mso-spacerun: yes;"> </span>That's why I invest only in gold
and silver: They are a sure-fire, can't miss, "a winner every time"
kind of thing, as definitively proven by 4,500 years of history, compared to
almost everything else being a guaranteed long-term loser, as evidenced by that
selfsame 4,500 years of history.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">Instead of
opening old wounds ("You bet HOW much money doing WHAT, you lowlife,
irresponsible, deadbeat moron?"), let me show you why I am thinking of
making bets again.<span style="mso-spacerun: yes;"> </span>As is Completely
Freaking Obvious (CFO) from a cursory glance at the graph at multpl.com, the
SP500 price/earnings ratio has been clearly rolling over since 2001, when the
market made its last high, and is seemingly on its dismal way to plumb new
lows, making suckers out of people who bought-and-held equities over the
preceding 30-year bull market that began in 1980.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">In short, just as
it has done 4 times since 1870, or roughly averaging every 30+ years or so, the
bull market is again falling apart, and people holding equities are again going
to lose their money, as they sadly must, since it is mathematically impossible
for everyone to take more out of the stock market than they put into it.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">Thus, the
majority of investors take long-term capital losses, which is the cruel punch
line of the biggest swindle of all: putting your retirement money into the
stock market.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">And how about
adding the additional pain of inflation-adjusting those big losses?<span style="mso-spacerun: yes;"> </span>Don't ask! For God's sake, don't ask!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">So, hating to
lose is why I completely quit making bets of any kind.<span style="mso-spacerun: yes;"> </span>And my wife didn't help matters when her
"loving support" consisted of, at breakfast one morning, saying
"It's only a lousy dollar on the stupid lottery, you whining jackass!<span style="mso-spacerun: yes;"> </span>If you are so upset to lose One Stinking
Dollar (OSD) a week, why do you buy the damned lottery ticket when you know you
are going to lose? I mean, it's not like they didn't TELL you that the odds of
winning are 18 million to one, you whining bonehead!"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">Of course, the
kids cheerfully chimed in "Whining bonehead! Whining bonehead!"<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">I, to my dismay,
had nothing to offer in my own defense, except to cleverly say "Shut up!
All of you just shut up!"<span style="mso-spacerun: yes;">
</span>Unsurprisingly, their uninspired, dull response was "No, YOU shut
up!" to which I wittily replied "No, YOU shut up!"<span style="mso-spacerun: yes;"> </span>I expected that the repetitious repartee
would soon end, but it didn't, and instead went on and on. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">I will spare you
the ugly details, except to say that there was a lot of yelling and screaming
and crying (mostly me), and someone stole one of my waffles when I wasn't
looking, <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">probably when I
was busy throwing a childish tantrum because I was, firstly, righteously upset
about my own children causing the eternal question "How sharper than a
serpent's tooth is an ungrateful child?" to spring to mind.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">Secondly, I was
upset that I was rudely rebuffed when I carefully explained to them, in calm,
cool, soothing tones, as befits a tender, loving father, "I am playing the
lottery because we are freaking desperate, you little morons! The foul Federal
Reserve is destroying us with a horrifying exponential/ logarithmic
over-creation of money and credit, which means prices will have to rise in a
terrifying inflation to absorb all of that new money coursing through the
economy forever, and the response to such an economic horror is that the evil
Federal Reserve creates even MORE money and credit, making everything
worse!"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">They were not
impressed with that answer, as the odds of my hitting the lottery are probably
better than the odds of my making money in the stock market, especially using a
stupid buy-and-hold strategy. The fact is, as I never tire of pointing out, it
is mathematically impossible for the majority of investors to take more out of
the stock market than they put into it, thus the majority of investors will
always realize a cumulative long-term capital loss, with the last guy to buy
stocks taking the biggest hit.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">And now, scarily,
the current bull market that began in 1980, when Reagan started the fiendish fad
of slashing taxes and making up for it by deficit-spending untold billions and
billions of dollars, is -- sure enough!<span style="mso-spacerun: yes;">
</span>-- about 30 years old, the P/E line is predictably rolling over, private
debt is at a maximum, and the cyclical, boom-bust nature seemingly inherent in
the history of economics is, again seemingly, repeating itself.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">In case you were
wondering, the P/E ratio is currently a tad above 16, which is sort of on the
high side.<span style="mso-spacerun: yes;"> </span>If things run to form, the
SP500 will, with fits and starts, bottom-out about ten or twenty years from now
("mark your calendars!") when the price/earnings ratio is about 5 or
below.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">"So," I
hear you asking, "How low will the SP500 actually go, since you think you
are so smart and you run around shooting your mouth off like you know
everything?"<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">Well, consulting
the Mogambo Triad Of Awesome Prediction (MTOAP), consisting of 1) mystical
chicken bones, 2) things I vaguely remember from a long time ago, and 3) making
up the rest to "fill in the gaps," the resultant Official Stupid
Mogambo Opinion (OSMO) is that the index will probably fall down to around 100
(assuming there are 500 companies left to make up the index!), or less
(assuming there are not), whereupon everyone gets squat, or, if you prefer, in
the original German, "Squatzumwalletgebangenschlag."<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">I am so gloomily
pessimistic because I expect a complete, cataclysmic catastrophe to strike
(checking my watch) any second now, partly because of this eerie "every
30-year cycle" thing,<span style="mso-spacerun: yes;"> </span>but mostly
because of the fact that everything and everyone is up to their ears in suffocating
debt, and so the horrid Federal Reserve is always creating so much, so
impossibly much, so unbelievably much, so terrifyingly overmuch money (and
corresponding more debt) over the last Half Freaking Century (HFC), and never
more than Right Freaking Now (RFN)!!! <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">I will not go
into an elaborate, jargon-filled scientific explanation about the concluding
three exclamation points at the end of that last sentence, but suffice it to
say that it doesn't take a Junior Mogambo Ranger (JMR) to know one important
thing: That much more new money means that much more new inflation in prices,
and thus (extrapolating to the obvious, horrifying historical and theoretical
conclusion) We're Freaking Doomed (WFD)!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">And when you
couple this P/E thing portending disaster, with the government's promise of
higher taxes for years to come, wouldn't the rational investor sell before the
December 31 cut-off, so as to realize taxable gains this year when taxes
haven't gone up yet, as they must soon?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">And when you
combine all that with looming, dooming specter of inescapable trillion-dollar
federal budget deficits for years and years to come, all requiring the Federal
Reserve to create massively more money and credit to both absorb all that new
Treasury debt and to pay the gigantic, growing, gagging interest payable on the
massive, monumental mountains of existing public and private debt, all at terrifying
levels never before seen in history, it seems, even to a complete dullard like
me, that a really rational investor would be selling equities and loading up on
gold, silver and oil.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">Thus, we behold
the genesis of The Fabulous Mogambo Rational Dullard Portfolio (TFMRDP),
holding only physical gold, physical silver and oil stocks, and destined, as it
surely is, to be the best investment advice that any paranoid, angry, cynical
and hateful old man, who has studied the Austrian School of economics and thus
"seen the light," ever gave.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">And did I mention
easy? Why, that's the best part! It's easy, too, as I prove by gleefully
exulting "Whee! This investing stuff is easy!"</span><span class="bodytext1"><span style="font-size: 10pt;"><o:p></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com0tag:blogger.com,1999:blog-989723204686115334.post-15525395431039557662012-10-10T13:59:00.001-07:002012-10-10T13:59:15.524-07:00Mogambo Hunka Hunka Bunker (MHHB)
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">October
10, 2012<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Mogambo
Guru<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-family: Arial;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">I was hunkered
down in the Mogambo Hunka Hunka Bunker (MHHB) after having worked myself into another
panic about the inescapable inflationary terror that will surely follow the
monstrous amounts of money being created by the corrupt Federal Reserve and
other central banks, including the horrid International Monetary Fund. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">I was trying
desperately to calm down, hoping to feel safe behind triply-locked doors, armed
to the teeth and surrounded by microwave burritos, gold, silver, oil
stocks.<span style="mso-spacerun: yes;"> </span>After awhile, and after a
hastily-consumed burrito, I knew I was going to be "fine."<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">In fact, I will
probably "a lot more than fine," with the wide sweep of possibilities
ranging from the mundane "I'll be fine" to the classic "I'll be
astronomically wealthy in terms of the sheer tonnage of neat stuff that I can
buy, including enough money to pay off the wife and kids and finally shut them
up about how I don't give them enough money to spend on their worthless
trinkets, doodads, shoes, medical treatments and all that dental crap because I
maniacally invest all our money in gold, silver and oil, demonstrating that I
am smarter than all of them put together, entitling me to reap the rewards of a
snazzy new car, maybe with some fancy mag wheels, in which to haul my worthless
butt to the golf course, or just use the car to ride around looking for more
things to buy, playing the radio and honking the horn at pretty girls walking
down the street who are (as I am perfectly aware so I don't need to hear it
again from you) young enough to be my granddaughters."<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">Finishing off a
second burrito, mid-bite, out of the corner of my eye, I could see the Mogambo
Monetary Seismographs (MMSs) going crazy, their inky needles wildly scritching
and scratching frantically across the paper.<span style="mso-spacerun: yes;">
</span>I thought to myself "That's odd!<span style="mso-spacerun: yes;">
</span>How could such tinny sounds actually be the hoof beats of the Horsemen
of the Apocalypse?"<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><br />
Well, that was entirely too melodramatic, I admit, but that's the kind of
crappy mood I was in, detached, as if in a dream, and not the good kind of
dream where beautiful ladies run their fingers through my hair, breathing
huskily and saying "Oh, Mighty Manly Mogambo (MMM)!<span style="mso-spacerun: yes;"> </span>I am thrilled by your raw, seething antipathy
towards the evil Federal Reserve creating so much excess money and credit
because it will destroy the dollar, destroy the economy and destroy us, and I
am enthralled and entranced by your seething hatred of the corrupt, low-IQ
Congress that lets them get away with, as you would charmingly call it,
Monstrous Monetary Crap That Will Destroy Us All (MMCTWDUA)."<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">Normally, I am
eager to fall into such a dream state and resist anyone rousing me from it,
especially saying something like "Wake up! You are going to be late for
work!" or "Wake up! The boss wants to see you in her office right
now!"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">But no such
luck.<span style="mso-spacerun: yes;"> </span>I was brought back to stark
reality and the fullness of its ugliness by my eyes falling on the 5-Minute
Forecast, written by Addison Wiggin.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">"</span><strong><span style="font-weight: normal; mso-bidi-font-family: Arial;">As of Monday, Oct.
1," he writes,</span></strong> "the national debt stands at
$16,159,487,013.300.35. This means the government racked up
$1,369,146,684,743.20 in new liabilities last year."</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">If you are
intimidated by incomprehensibly large numbers, or your brain refuses to
understand what it sees, or you are like me and just too slow-witted to
immediately comprehend what the hell is going on, then permit me to simplify. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">To wit: The
usurper Obama and his horrid, neo-Marxist administration overspent the
government's revenues by a whopping $1.4 trillion dollars in the last twelve
months!<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">How much is $1.4
trillion?<span style="mso-spacerun: yes;"> </span>This is more than all the
individual and corporate income taxes paid to the federal government,
combined!<span style="mso-spacerun: yes;"> </span>In fact, it is more than half
of the $2.3 trillion total federal tax receipts, including Social Security and
Medicare taxes! <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">The $1.4 trillion
deficit -- alone!<span style="mso-spacerun: yes;"> </span>-- is a gigantic 9% of
the Whole Freaking Economy (WFE) of the USA!<span style="mso-spacerun: yes;">
</span>Choking on my outrage, I stammer out "Unbelievable! One out of eleven
dollars of GDP is deficit-spent by the federal government!"<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">Of course, this
always sets me off about the horrible Supreme Court, which made it all possible
by ruling, over and over again, that the Constitution of the United States did
not really, really, really mean it when it was stipulated that money
"shall only" be silver and gold, which would have prevented any undue
expansion of the money supply, and which would have prevented any of this
bankruptcy crap from happening, and which was the whole purpose of the Founding
Fathers writing into the Constitution the requirement that money be only gold
and silver.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">But it was the
Congress that created the Federal Reserve, which is not federal and it has no
reserves, yet it was given the power to completely control our money, despite
it being owned and run by a large, shadowy bunch of greedy people, including
foreigners. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">So, who is to
blame, Congress or the Federal Reserve?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;">Steve Saville of
The Speculative Investor says that "</span>We've speculated in TSI
commentaries that unwavering devotion to bad economic theory (a type of
stupidity) is the most likely reason for the Fed's introduction of a new
inflation program at this time. There are other plausible explanations, but in
general terms it boils down to this: the Fed is either stupid, or evil, or
stupid and evil."</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Later on, he admits "We'll go with evil and stupid."</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
And if the Federal Reserve is evil and stupid, and the
Congress is corrupt and stupid, what is the smart thing to do?</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
I'm glad you asked!<span style="mso-spacerun: yes;">
</span>Buy gold, silver and oil!<span style="mso-spacerun: yes;"> </span>Gold
and silver because that has always been the smart play for the last 4,500 years
when governments behaved so despicably, and oil because it is now so completely
vital, to so many people, that they must pay any price.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
And with the insane overproduction of new money and credit
by the filthy, foul Federal Reserve, the price of oil can go nowhere but up
when the purchasing power of the dollar has nowhere to go but down.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
And you need but look deep, deep into my bloodshot eyes to
see the utter, utter sincerity there to believe me when I say, with the
aforementioned utter, utter sincerity, that it doesn't get any easier, or
smarter, than that.<span style="mso-spacerun: yes;"> </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
That's why I say "Whee! This investing stuff is
easy!"<span class="bodytext1"><span style="font-size: 10pt;"><o:p></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com2tag:blogger.com,1999:blog-989723204686115334.post-30306836464032112522012-09-30T20:22:00.003-07:002012-09-30T20:22:29.905-07:00Too Much Money And Credit (TMMAC)
<br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">September
28, 2012<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Mogambo
Guru<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-family: Arial;"> </span></o:p></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
I put it off as long as I could, and as distasteful as it
was, I finally broke it to the family that I was, alas, being forced to cut
expenses, mostly because I don't have a job anymore, and will almost surely
never get another one.<span style="mso-spacerun: yes;"> </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
"Never get a job," I think, silently chortling to
myself, "until they start advertising for 'Lazy old man to work, when he
is in the mood, for premium pay and generous benefits for doing practically
nothing, if anything, a couple of days per week or month."</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Immediately, the members of the family unit were, as
expected, hostile and defensive, obviously remembering the last time when I
"cut expenses" so that I could, as they never tire of pointing out,
buy something expensive and act really stupidly.<span style="mso-spacerun: yes;"> </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
And they no doubt remember, too, that they got exactly
nothing from me that time, keeping all the money for myself, and I how I rudely
laughed at their pleas for money, telling them, in a snide, snotty and
sarcastic tone of voice, "Get a job, loser!", and they were, as I
remember, really grumpy about it.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Naturally, the first thing out of each of their mouths was
(distilling the essence of their lengthy, and loud, remarks) was "No!<span style="mso-spacerun: yes;"> </span>Don't stop giving me money! Stop giving money
to those other family-unit losers, but not me!"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
The "family meeting," such as it was, immediately
devolved into a weird, ugly fight about who could make my life more miserable,
and thus, apparently, deserving of more money than the others.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Finally, as if at a signal, they turned to me and asked
"So how much money AM I going to get from now on?"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
I could see the fear and panic in their faces.<span style="mso-spacerun: yes;"> </span>Being the considerate, loving father and
darling husband that I am ("He's a real peach!"), I gently replied
"None, you morons! You get nothing! Nothing! There is no more money!
Exactly what part of 'bankruptcy' don't you understand, you lowlife Earthling
halfwits who now get what they deserve because they would not buy gold, silver
and oil with their miserable few pennies?"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Well, at the instant their deafening howls of protest
rattled off the ceiling, I realized that this was the wrong way to say what
was, actually, correct, and I should have said "I am so sorry, but I fear
that you will get almost nothing, and it breaks my heart because I love you so
much and I feel your pain."<span style="mso-spacerun: yes;"> </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
But the shrieking, cacophonous, angry, panicked result would
be the same, no matter how I said it, as I am reminded by riots in Europe. This
is also by angry mobs of panicky, busted-out people who are displeased about
getting what they deserve for spending themselves, decade after decade, steadily
into total bankruptcy, which every other idiot in history knows is a Very Bad
Idea (VBI).</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
So it must be a kind of a karma thing, I guess.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Anyway, since "what goes around comes around," it
will happen here, and everywhere else, too.<span style="mso-spacerun: yes;">
</span>And all for the same reasons, too:<span style="mso-spacerun: yes;">
</span>Imminent bankruptcy and utter ruination of a ridiculous, bloated, mal-invested,
government-centric economy, financed by the evil Federal Reserve creating
excess money and debt to finance it all.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
To gauge how bad it will be in America, an article by
Michael Tanner of the Cato Institute will perhaps prove instructive.<span style="mso-spacerun: yes;"> </span>He writes "The federal government runs
126 separate anti-poverty programs. Altogether, seven different Cabinet
departments and six independent agencies each administer at least one
anti-poverty program."</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Together, these federal anti-poverty programs "cost
taxpayers more than $668 billion last year," but that "if one
includes state and local welfare spending, government at all levels will spend
more than $952 billion this year," or, if you prefer, a whopping 6% of
GDP. Yikes!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
That breaks down to the dismal statistic that "combined
with state and local spending, government spends $20,610 for every poor person
in America - or $61,830 per poor family of three."<span style="mso-spacerun: yes;"> </span>Wow! </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
He continues without even a hint of the irony or the angry,
screaming outrage that it deserves, and would have gotten in a scornful,
screaming, spittle-spewing Mogambo Howl Of Complete Outrage (MHOCO) if I had
written the article, which I did not, both because I don't have Mr. Tanner's
talent writing or obvious intellect, and also because it looks like it took a
lot of work, which doesn't interest me that much. At all. </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
In fact, I am actually repelled by the idea of work.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
So, irony-less, angry-less, screaming-less and outrage-less,
we are left to ourselves to calculate that this government giveaway of $61,830
per poor family of three is a Lot Of Money (LOM), especially "given that
the poverty line for that family is just $18,530, we should have theoretically
wiped out poverty in America many times over." </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Hahaha! I laughed at the sheer, monumental incredulity of
such a thing!<span style="mso-spacerun: yes;"> </span>I am dumbfounded! Hahaha! </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
But there are a lot of weird things in a huge federal budget
that includes a deficit that is already an unbelievable $1.4 trillion, which
alone is an astounding, unbelievable, incredible 9% of the entire economy of
the Whole Freaking Country (WFC)! <span style="mso-spacerun: yes;"> </span>We're
doomed!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
And it's a deficit which will be - hold onto your hats!<span style="mso-spacerun: yes;"> </span>-- higher next year, and the year after that,
and then, apparently, forever after that ! Double doomed!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
If your eyes are bugging out and you think to yourself
"We're freaking doomed!", then you will be happy to know that you understand
the situation perfectly. This explains why your gut is twisted into a knot, and
why your primitive brainstem is itself sending the loud message to buy gold,
silver and oil stocks continuously (dollar-cost averaging), and with a feverish
tenacity.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
As their prices rise through the years, this will allow you
to laugh merrily and heartily -- Hahahaha! -- as you watch in rapt fascination at
the weird, unbelievable things that the government, and the Federal Reserve,
will do in<span style="mso-spacerun: yes;"> </span>raw desperation and suicidal
panic as the economy is destroyed by the inflation, deflation and misery caused
by irresponsibly creating Too Much Money And Credit (TMMAC) on top of TMMAC on
top of TMMAC of top of TMMAC.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
If you do NOT buy gold, silver and oil, however, you won't
have anything to laugh about.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
And speaking, as I do, for all the stupid people in this
world who prefer to watch TV, eat, drink, have fun, or simply stare off into
space like some kind of brain-damaged mental-case rather than have to deal with
boring investing stuff, we are very thankful that simply buying gold, silver
and oil stocks is the smartest investment anyone can make when the money supply
is being increased by so much, for so long.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
That may explain why those who buy gold bullion, silver bullion
and oil stocks, in a desperate, fearful response to the Federal Reserve
creating so much excess money, are known to say "Whee! This investing
thing is easy!"<span class="bodytext1"><span style="font-size: 10pt;"><o:p></o:p></span></span></div>
<br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p></o:p></span></span><br /></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com3tag:blogger.com,1999:blog-989723204686115334.post-44197335319372000282012-09-26T10:58:00.002-07:002012-09-26T10:58:58.381-07:00$2 Trillion in New Money (TNM)
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">September
24, 2012<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">The
Mogambo Guru<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
Ben Bernanke is the panicked and clueless chairman of the evil Federal
Reserve, and he has just shocked the world to announce that, henceforth, the
Federal Reserve will create enough money to buy $40 billion per month of
mortgage-backed securities. <br />
<br />
This comes to a cool $480 billion a year in new money right there.<br />
<br />
And this does not even mention the additional $1 trillion or so that the Fed
is going to have to create over the next year to buy the tons of new government
bonds necessary to pay for what seems to a terrifying $1.4 trillion
budget-deficit of the loathsome Obama administration.<br />
<br />
So I figure that we are looking at close to $2 trillion in new money this
year! That's a 20% increase in the money supply! In One Freaking Year
(OFY)!<span style="mso-spacerun: yes;"> </span>Gaaahhh!<br />
<br />
Now, people who are even vaguely familiar with Austrian School economics, or
Milton Friedman's famous quote that "Price inflation is always and
everywhere a monetary phenomenon", are running around in fear, probably
also shrieking "Gaaahhh!" when they should be buying gold, silver and
oil with that same terrified abandon, horrified at the certain prospect of
ruinous, calamitous inflation in prices that all this new money will cause.<br />
<br />
Mr. Bernanke, for his part, has declared himself an expert on the Great
Depression, and has concluded that it was caused by -- get this!<span style="mso-spacerun: yes;"> </span>-- the Federal Reserve not burying America
under an avalanche of new money and credit. <br />
<br />
If it had, he solemnly pontificates, everything would have been, in a word,
peachy.<br />
<br />
Thus, it is easy to see how he would decide that he, armed only with this crazy
idea and his arrogant conceit, can easily prevent the regrettable repeat of the
Great Depression that is darkly descending upon us. <br />
<br />
He would do this by the obvious, happy expedient of burying America under an
avalanche of new money and credit!<br />
<br />
Many of you, no doubt, have noticed that twice I used the exact same phrase
"burying America under an avalanche of new money and credit", and you
are saying hurtful things like "This is mere mindless redundancy, the same
kind of Worthless Mogambo Crap (WMC) that I have come to expect, which handily
explains why everyone thinks The Mogambo is stupid and has cooties, and why I
am ashamed to be reading this WMC, and why I am angry with myself for wasting
my time reading that selfsame WMC!"<br />
<br />
Well, mister or miz smarty-pants critic, for your information, I have done
that on purpose for Two Important Reasons (TIR).<span style="mso-spacerun: yes;"> </span>Not one, but two! Two Important Reasons
(TIR)!<br />
<br />
The First Important Reason (FIR) is that I am not very bright, and could not
immediately come up with anything new or original by virtue of my also being
too lazy to even take a lousy second to think about it, and the Copy/Paste
function was right there, begging me to use it, saying to me "Oh, so
you're a real tough guy who's brave enough to write that the Federal Reserve
creating so terrifyingly much new money and credit that is going to destroy us
with an inflation in consumer prices, a roaring price inflation that will,
percentage-wise, match the monstrous monetary inflation of the evil Federal
Reserve, but you are too chicken to copy one lousy little phrase, which wasn't
very good to start with?<span style="mso-spacerun: yes;"> </span>Is it because
you aren't very bright and you probably have cooties? Huh? Cootie-man?"<br />
<br />
And then it Copy/Paste function made squawking noises at me, like a chicken,
mocking me! How could I not rise to the challenge?<br />
<br />
The Second Important Reason (SIR) is that it is my clever way of saying that
the outcome of burying America under an avalanche of new money and credit is
The One Damned Thing (TODT) that actually caused BOTH the Great Depression and
the current inflationary "recession" that will soon, in case you were
wondering, turn into a terrifying stagflationary depression. <br />
<br />
So creating more money sure as hell will NOT be a cure! Hahaha!<br />
<br />
Hey! Maybe I can turn this into a classic joke, and the people will say
"The Mogambo isn't very bright, but he writes a funny joke! <br />
<br />
The doctor says "The tests show that you have cancer" and you say,
aghast, "How are you going to cure me, or am I going to die a horrible,
lingering death while you and the healthcare system bleed me dry?" <br />
<br />
The doctor says "No! I'm going to cure you! I'm going to cure you
'Federal Reserve Style', which is to give you MORE of the cancer that is
killing you!<span style="mso-spacerun: yes;"> </span>I am only sorry to say that
I cannot bleed you dry, because that's not the way Medicare works, although if
someone finds a way, I'm coming after you.<br />
<br />
"I'll be coming for you because I know that you have a lot of gold,
silver and oil, and thus you have a lot of money.<span style="mso-spacerun: yes;"> </span>I know this because you have been coming into
my office, year after year, lying to my face about how much you smoke, lying to
me about how much you drink, lying to me about how much you exercise, and lying
to me about how you eat only healthful food with lots of vegetables and fruits,
but expecting me to cure whatever it is that you are whining about, or actually
suffering from, by prescribing some magical pill or something."<br />
<br />
Well, that sounds like me, alright, but what does any of this have to do
with the joke? This was supposed to be a joke of some kind! My new career as a
joke-writer is going down in flames! <br />
<br />
Before I could say anything, the doctor goes on "And the part that
irritates me the most is the way you were constantly telling me, with your
irritating nasal voice, to invest in gold, silver and oil, like I am going to
listen to some grumpy old man who is obviously an idiot and who lies to me all
the time. And who probably has cooties, too."<br />
<br />
Exasperated, I explode "That's not funny! None of this is funny! I
thought this was supposed to be a joke, and jokes are supposed to be
funny!"<br />
<br />
And the doctor says "Yeah, well, drop dead then! Is your doctor telling
you to 'drop dead' funny?"<br />
<br />
I reply "No, it's really not. However, the idea of you actually knowing
that you should be buying gold, silver and oil stocks because the Federal
Reserve and other central banks are creating so much money, but you are not,
makes me laugh.<span style="mso-spacerun: yes;"> </span>Is that funny?"<br />
<br />
The doctor says "No, I don't think so.<span style="mso-spacerun: yes;">
</span>So, is there anything funny about this whole mess?"<br />
<br />
That's when I say "Well, you can accumulate gold and silver so easily,
and so cheaply, that it makes you squeal 'Whee!' with a kind of childish
delight, which is kind of funny, coming, as it does, from an old, stupid man.
Maybe with cooties!"<br />
<br />
Alas, the punch line of the joke is that's about as funny as it gets.<span style="mso-spacerun: yes;"> </span>If you don't have gold, silver and oil,
however, you don't even get that. <br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
And that's just sad.<span class="bodytext1"><span style="font-size: 10pt;"><o:p></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com3tag:blogger.com,1999:blog-989723204686115334.post-1603807120318862452012-09-13T13:38:00.002-07:002012-09-13T13:38:46.965-07:00 Email from Junior Mogambo Ranger (JMR)
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">September
13, 2012<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Mogambo
Guru<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
I was immediately intrigued with a particular email I recently received when
I noticed that it was, for a pleasant change of pace, not venom-spewing hate
mail or a death threat, like, for example, this other one from this morning.<span style="mso-spacerun: yes;"> </span><br />
<br />
It reads "Dear Stupid Mogambo Idiot (SMI), I think you should just shut
up your stupid loud mouth, like your wonderful wife tells you.<span style="mso-spacerun: yes;"> </span>And help out around the house sometimes, too,
but you never do because you are just an irritating, lazy old man who spends
his time complaining about the stupid Federal Reserve creating so much excess
money that We're Freaking Doomed (WFD) to be destroyed by inflation in consumer
prices, like I care about any of that monetary crap when I am up to here in
laundry."<br />
<br />
The writer, obviously a blubbering nutcase, continued "If I was your
wife, what I would really want is for you to take the garbage out and wash the
damned car, and maybe stop being such a distant, ineffective father and an
annoying, worthless husband who only did one good thing in his whole life,
which was to buy gold, silver and oil because the evil Federal Reserve was
creating so much money, and the prices of gold, silver and oil zoomed just like
you said they would, and they will surely continue to rise, just like you said
they will, but which has nothing to do with your being such a lousy father and
crappy husband.<span style="mso-spacerun: yes;"> </span>(Signed) Anonymous
Person."<br />
<br />
You can see the kind of abuse I get from total strangers, which is, now that
you mention it, highly reminiscent of the crap I take around here, too. <br />
<br />
Instead, I am happy to say that the better email was from Junior Mogambo
Ranger (JMR) Burt L., who sent some interesting news.<span style="mso-spacerun: yes;"> </span><br />
<br />
Beginning with the standard salutation of groveling subservience "Magnificent
Mogambo Master", he went on to write "I went to the Enterprise
Florida web site and found the attached 2009 through 2011 chart of (primarily
gold) exports to Switzerland," which he dutifully included so that I could
see for myself.<br />
<br />
Sure enough, the Florida-Origin Exports to Switzerland show that "Gold
(Incl Plat Plated), Unwr, Semifr Or Powder" increased from $42.2 million
in 2010, to $201.6 million in 2011, almost a five-fold increase in one year!
One state to one country! And little ones, at that!<br />
<br />
Now, $201.6 million in exports, of what appears to be gold, is certainly a
lot of money, and it is just about enough to get me the through the weekend,
anyway. I laugh at my own joke "Hahahaha!"<br />
<br />
Perhaps you noticed that I am laughing through my tears, as, in fact, in no
year did anyone ever give me $201.6 million, while almost every year nobody
gave me anything but a hard time and/or a Royal Screw Job (RSJ), which is kind
of like an ordinary "hard time," but with an additional punishment
that you pay out lots of dollars, that you don't believe you needed to pay, but
there is nothing that you can do about it, and nothing that you can prove.<br />
<br />
All you can do is go down there, storming in, blabbering incoherently in an
indignant rage and yell at the manager "Well, you gave me a Royal Screw
Job (RSJ) that time! But the joke's on you! Hahaha!<span style="mso-spacerun: yes;"> </span>All those dollars you choked out of me are
losing purchasing power with each tick of the clock -- tick, tock, tick, tock!
-- because the horrible Federal Reserve keeps creating so much excess money and
credit, which dilutes each one of those dollars! Hahahaha! Chump!<br />
<br />
"And," continuing in hysterical outrage, "the only
satisfaction that I get from this whole disagreeable episode is the knowledge
that you are obviously too stupid to understand the need to buy gold, silver
and oil when the money supply is being so terrifyingly expanded by the foul
Federal Reserve like this, and so you won't buy any, and you will end up broke
and busted-out like all the other losers. Loser! Then I shall laugh at YOU!
Hahahaha!"<br />
<br />
As you can probably tell, after getting another Royal Screw Job (RSJ) in
what seems to be a long line of RSJs, I could use $201.6 million right about
now, but, unfortunately, we are not talking about me.<br />
<br />
And we are not even talking about the $201.6 million in Florida gold exports
to Switzerland, but we have moved on, and are now talking about the category of
"Waste & Scrap of Prec Metal Or Other Cont Prec Mtl" which was #1
on the list of exports out of Florida to Switzerland.<br />
<br />
I am not exactly sure what "Waste & Scrap of Prec Metal Or Other
Cont Prec Mtl" is, but I figure it seems to be the "We Buy Gold"
people registering a staggering $6,811 million ($6.811 billion!) in precious
metals-related exports to Switzerland, which alone represent almost all the
Florida 2011 exports to that country, which totaled $7,291.0 million ($7.291
billion). <br />
<br />
And this $7,291.0 million in "2011 total Florida exports to
Switzerland" was up massively from a paltry $5,011.6 million in 2010, and
up more than double from the $3,244.0 million total exports in 2009, two years
previous! Wow! What is going on here?<br />
<br />
This chart from eFlorida.com is full of interesting stuff, like about
silver, exports of which increased to $10 million in 2011, up from (according
to the chart) literally zero dollars in 2010.<span style="mso-spacerun: yes;">
</span><br />
<br />
This is all pretty amazing, as JMR Burt realizes, too, and says
"Amazing, since Florida has no gold or silver mines."<br />
<br />
"Well," I was tempted to say, "If you think THAT is amazing,
then what do you make of exports of <span style="mso-spacerun: yes;"> </span>'Silver
(Incl Prec Plated), Unwr, Semimfr Or Powder' increasing from literally zero in
2010 to $10 million in 2011, yet which is, according to this report, an
increase of an odd 45,494.4%?<span style="mso-spacerun: yes;"> </span>You would
think going from zero to 10 million would be an infinite increase, wouldn't
you?<span style="mso-spacerun: yes;"> </span>Not 45,494.4%! <span style="mso-spacerun: yes;"> </span>Pretty odd, huh? Huh? Pretty odd, wouldn't you
say?"<br />
<br />
And this is not the only odd thing!<span style="mso-spacerun: yes;">
</span>To prove such a provocative statement, listen as I say "Oddly
enough, silver exports from Florida to Switzerland in 2009 show a dash ('-')
instead of a zero! Oddly enough, a dash! What is a dash supposed to mean,
except as some secret, coded message, probably from a sinister, secret
government agency watching your every move, or maybe spies at the corrupt
commodity exchanges are communicating with alien space creatures from beyond
the solar system?" <br />
<br />
And the next two biggest percentage-increases in Florida exports to
Switzerland are chump change, being "Lifting, handling, Loading &
Unload Machines" (although only $800,000 in 2011, but up an odd 1,755.5%
from the zero exports in 2010) and "Screws, Bolts, Nuts, Washers Etc, Iron
Or Steel" ($1.1 million in 2011, up 505.9% from 2010 and zero in 2009,
which is pretty odd, too).<br />
<br />
And oddly enough, Florida exports to Switzerland of "Citrus Fruit,
Fresh Or Dried" was only $1.1 million, despite citrus products being The
Thing for which Florida is supposedly known.<br />
<br />
As a guy who is naturally paranoid and sees conspiracies everywhere, I am
instantly on the nervous alert at these odd, and thus scary, goings-on.<span style="mso-spacerun: yes;"> </span>I find myself constantly re-evaluating my
situation in terms of the nearest exit and where to take cover in the event of
a full-scale, all-out, guns blazing, urban-warfare, us-versus-them, dog-eat-dog
shoot-out, if it comes to that, and it probably will, if any of those dark,
Hollywood post-apocalyptic movies or invasions of space monsters are even
REMOTELY true.<br />
<br />
Fortunately, one thing I know --for a fact! -- to be true, and not odd, is
that gold, silver and oil stocks are the place to be when the government is
doing such massive deficit-spending and allowing the Federal Reserve to create
so incredibly, impossibly, catastrophically much money and credit.<br />
<br />
And, in light of that, for a last bit of "oddly enough" incidents,
it is odd that very few people are buying gold, silver and oil at these
absolute bargain prices, here at the beginning of the inflationary horror that
awaits us.<br />
<br />
But for those who do, however, it is "Whee! This investing stuff is
easy! And not the least bit odd!"<br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com1tag:blogger.com,1999:blog-989723204686115334.post-12935688695024732222012-09-06T14:29:00.001-07:002012-09-06T14:29:16.465-07:00Mogambo Nontraditional Policies (MNP)
<br />
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">September
6, 2012<o:p></o:p></span></span></span></div>
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Mogambo
Guru<o:p></o:p></span></span></span></div>
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<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
I was startled to read Reading Ben Bernanke's remarks, made at Jackson Hole,
about using "nontraditional policies" at the Federal Reserve.<span style="mso-spacerun: yes;"> </span>Nontraditional policies, indeed!<br />
<br />
By "nontraditional policies" he no doubt means his current
policies of 1) the inflationary horror of monetizing of debt by the simple
expedient of simply creating the money to buy new government debt, and 2) the
bizarre idea to purposely create inflation in consumer prices.<br />
<br />
Apparently, Mr. Bernanke is unaware that both of these sublime idiocies have
been consistently denounced as moronic and suicidal for thousands of years
(usually after they have failed miserably), and exist nowhere in the economic
literature except as bad examples of traditional economic policy.<br />
<br />
He actually made this alarming admission in public, in front of witnesses,
hundreds of them, in fact, while addressing the annual conclave of economic
halfwits, lunatics, liars, hangers-on, goers-along, and mainstream media
nitwits at Jackson Hole, Wyoming, all of which I rudely refer to as "The
A-Holes at the J-Hole."<br />
<br />
Suddenly, I realized that I may have been too harsh in condemning him and
his moronic colleagues for this obvious insanity. I can use this! <br />
<br />
Instantly energized, I nimbly hopped into the Mogambo-Mobile, started 'er
up, screeched out of the driveway and, engine roaring, careened down the street
with the radio blaring and a big ol' smile on my face, happily rolling through
pesky traditional stop signs and blithely exceeding posted (and thus
traditional) speed limits, which are so tragically traditional and thus at odds
with the new "nontraditional policy."<br />
<br />
I was soon at the grocery store, parking in an oh-so-handy Handicapped-Only
parking space as further nontraditional policy, and then having a heated
conversation with the store manager, where I was breathlessly telling him all
about the new Mogambo Nontraditional Policies (MNP) now in effect.<br />
<br />
I asked him, with mock earnestness, "Didn't you get the memo about
nontraditional policies?"<span style="mso-spacerun: yes;"> </span><br />
<br />
He replied, with a hint of exasperation in his voice, "What memo? You
don't even work here! You're just that crazy old man who is always coming in
here and upsetting the customers by telling them that We're Freaking Doomed
(WFD) because of the inflation and ruination caused by the satanic Federal
Reserve creating, and which is still creating, so much excess money and credit
so as to fund the growing, bankrupting stupidities of a constantly enlarging,
suffocating Marxist and thoroughly fascist government, over the last
half-century, and the teeming hordes of government-dependent people that has
now grown to over half the population." <br />
<br />
Wow! I was surprised and delighted at this unexpected knowledge about things
economic!<span style="mso-spacerun: yes;"> </span>He must have listened to me,
all these years, while spying on me with the security cameras! I was so proud
of him that I excitedly and happily blurted out "Yeah! THAT memo!"<br />
<br />
Then he says, obviously getting irritated and growing tired of dealing with
me, sneeringly asked "What?"<br />
<br />
I looked him straight in the eye, and as if speaking to some stupid
Earthling child, earnestly said "Mogambo Nontraditional Policies (MNP) is
what!<span style="mso-spacerun: yes;"> </span>If you are looking for a
definition of Mogambo Nontraditional Policies (MNP), it's just like the
'nontraditional policies' of the Federal Reserve!<span style="mso-spacerun: yes;"> </span><br />
<br />
"Thus, MNP are also arbitrary actions of an especially nonsensical,
stupid, or suicidal nature that are bizarrely contrary to every bit of
experience, evidence and theory of the last 4,500 years, enacted entirely at my
insane whim, so as to desperately try to reverse the horrible effects of my disastrous
mishandling of traditional policies, but now with a new policy of pursuing A
Huge Guaranteed Failure (AHGF), thus hopefully benefiting from two wrongs
making a right!"<br />
<br />
Again he said, with even greater exasperation in his voice,
"What?" <br />
<br />
By this time, he is looking at me with a really dumbfounded blank look on
his stupid face.<span style="mso-spacerun: yes;"> </span>So I impatiently, but
gently, said "Enough theory, moron! In practice, henceforth MNP will
include, but not be limited to, me marching in here like I own the place,
taking all the groceries I want, any time I want, even if I have to call you at
home in the middle of the night to make you come down here and open the store
up especially for me.<br />
<br />
"And a further huge, stinking load of Mogambo Nontraditional Policies
(MNP) is that I do not have to pay for anything.<span style="mso-spacerun: yes;"> </span>Everything is free to me.<span style="mso-spacerun: yes;"> </span>You will make it up on increased
volume."<br />
<br />
At this, he is suddenly laughing at me, saying "You're trying that old
joke in real life? What are you, some kind of crazy person?" <br />
<br />
Naturally, I said "I'm The Mogambo Guru! You tell ME! Hahaha!" <br />
<br />
Well, we both had a good laugh at that, him thinking that I was just trying
to be funny, but could not be funny, like the time I tried to look handsome and
could not, and like the time I tried to be intelligent and could not, and the
time I tried to be romantic but could not, and the time I tried to raise an
unstoppable army of undead brain-eating fiends to invade Washington, D.C., kill
them all, and install me on a throne where I would be Omnipotent Emperor
Mogambo (OEM), taking complete dictatorial control, putting the US dollar back
on a strict gold standard and a banking system with no fractional banking.<br />
<br />
Thus, the economy would always be fine, everything would be fine because the
money would always be fine, and the poor would fine as they enjoy zero percent
inflation in prices, and indeed they would probably pay only gently falling
prices, thus receiving the fabled "more for less," along with rising
quality as a result of dog-eat-dog producers and suppliers competing for a
limited supply of consumer money in a Darwinian marketplace where the best
survive and the worst are weeded out.<br />
<br />
Verily, children would happily laugh and sing in their play, and puppies
would wag their cute little tails all day, which I think rhymes this particular
time, so you know it must be true, don't you?<br />
<br />
Anyway, Bernanke told his colleagues, "I hate puppies, and I hate
Darwin, and I hate The Mogambo for exposing me as the desperate, panicked,
know-nothing little twit that I am!"<br />
<br />
Okay, I admit that he did not say that, but he might as well have, as he
actually DID say "<strong><span lang="EN" style="font-weight: normal; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-bidi-font-style: italic;">it is also
true that nontraditional policies are relatively more difficult to apply, at
least given the present state of our knowledge</span></strong><span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-style: italic;">."<o:p></o:p></span><br />
<br />
<span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-style: italic;">Hahaha!
This proves what a complete doofus he is!<span style="mso-spacerun: yes;">
</span>Hahaha!<span style="mso-spacerun: yes;"> </span>Applying nontraditional
policies is the easiest thing in the world, dude! Nothing is as easy as
effortlessly creating unlimited amounts of money out of thin air to buy
unlimited amounts of new government debt!<span style="mso-spacerun: yes;">
</span>Stupid and insanely suicidal, of course, but also very, very easy!<o:p></o:p></span><br />
<br />
<span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-style: italic;">Well,
it doesn't take a Junior Mogambo Ranger Decoder Ring (JMRDR) to figure out that
this laughable comment of his proves that he is just making up this stupid crap
out of his lunatic, neo-Keynesian econometric head.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-style: italic;">Following
that, one can only shake one's head and truly wonder about Bernanke's mental
state when he lets slip that he is completely ignorant of the effects of his
disastrous "nontraditional policies" when he says "Estimates of
the effects of nontraditional policies on economic activity and inflation are
uncertain," which makes me laugh even more, laughing even as my Mighty
Mogambo Heart (MMH) is breaking about the future of the dollar and America.<o:p></o:p></span><br />
<br />
<span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-style: italic;">Well,
memo to Ben Bernanke: The disastrous effects of creating too much money and
credit are VERY well known, you dolt! And they have been very, VERY well known
for thousands of years!<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-style: italic;">Apparently
Bernanke was stung by my rude remarks, and, realizing that they are true and
that he really IS a lunatic neo-Keynesian econometric lowlife loser, tries to
weasel around and give himself an out ("It wasn't my fault!") by
lamely warning that "the use of nontraditional policies involves costs beyond
those generally associated with more-standard policies."<span style="mso-spacerun: yes;"> </span>Higher costs? No foolin'? <span style="mso-spacerun: yes;"> </span>Hahahaha!<o:p></o:p></span><br />
<br />
<span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-style: italic;">So he
is creating (along with the European Central Bank and the International
Monetary Fund (both run by socialists!) massive amounts of money so as to monetize
massive amounts of government debt, thereby doing something that has failed
every time it has been tried in all of history by whole economies collapsing as
their money was devalued to worthlessness? Hahahaha again!<span style="mso-tab-count: 1;"> </span><o:p></o:p></span><br />
<br />
<span lang="EN" style="mso-ansi-language: EN; mso-bidi-font-style: italic;">Of
course, this pales in comparison to terrifying reality of his actually,
unbelievably, tragically, horribly, and nontraditionally using monetary policy
to "target inflation" to be at least more than 2%, and with rumors of
his wanting 5% price inflation, instead of the traditionally-desired zero
percent (or less!) price inflation. Yikes! We're Freaking Doomed (WFD)!<o:p></o:p></span><br />
<br />
<strong><span lang="EN" style="font-weight: normal; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-bidi-font-style: italic;">And why is he doing
this?<span style="mso-spacerun: yes;"> </span></span></strong><strong><span lang="EN" style="font-weight: normal; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;">As </span></strong>Tyler
Durden of zerohedge.com writes about Ben Bernanke and Alan Greenspan, they are
"<span lang="EN" style="mso-ansi-language: EN;">directly responsible for a
crisis, which over the course of 30 years of 'great moderation' pulled over $30
trillion in future demand to the present (benefiting almost exclusively the
banker class), and which will guarantee pain and suffering for generations of
Joe Sixpacks."<span style="mso-bidi-font-style: italic;"><o:p></o:p></span></span><br />
<br />
Although Mr. Durden does not mention it because he is too polite, I will say
that those selfsame Joe Sixpacks will suffer for generations because they
consistently bought sixpacks of beer instead of consistently buying gold,
silver and oil with that little bit of chump change.<br />
<br />
Perhaps you will find it instructional that if they HAD bought gold, silver
and oil instead of beer all these years, they are already able to buy beer by
the case. By the truckload! By the trainload! And soon, thanks to their prices
exploding thanks to the evil Federal Reserve continually creating So Freaking
Much Money (SFMM), they will able to buy their own freaking brewery, for crying
out loud!<span style="mso-spacerun: yes;"> </span>Dozens of them!<br />
<br />
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That's when they would really, really, REALLY realize the
full implications of "Whee! This investing stuff is easy!"<span class="bodytext1"><span style="font-size: 10pt;"><o:p></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com2tag:blogger.com,1999:blog-989723204686115334.post-37423743840154610792012-08-30T14:13:00.000-07:002012-08-30T14:13:05.009-07:00The Mogambo Speaketh!
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">August
30, 2012<o:p></o:p></span></span></span></div>
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Mogambo
Guru<o:p></o:p></span></span></span></div>
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<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-size: small;"> </span></o:p></span></span></div>
<br />
I noticed that I don't laugh as much as I used to, but I curse a lot
more.<span style="mso-spacerun: yes;"> </span>I figure it's because things
economic are so serious and insistently suicidal lately.<span style="mso-spacerun: yes;"> </span><br />
<br />
I still laugh at funny jokes, however, like the classic "Knock knock.
Who's there? Mogambo Guru.<span style="mso-spacerun: yes;"> </span>Mogambo Guru
who? That's what everybody says!"<span style="mso-spacerun: yes;">
</span>Hahahaha!<br />
<br />
Well, I am embarrassed to see that you are not laughing at what, I admit, is
kind of an "inside joke", referring, as it does, to the fact that I
am so unknown, despite having delivered the best investment advice (which is to
buy gold, silver and oil) for the last 20 Years In A Row (YIAR), and I remain unknown
despite being the most paranoid, angry, cynical, suspicious, trigger-happy,
gold-bug, Democrat-hating and completely wonderful guy that I (or anyone else)
have ever known.<br />
<br />
And to tell you the truth, I am not sure the joke is actually funny at all,
but I really get a kick out of the stupid looks on people's faces when I tell
them that stupid joke.<br />
<br />
Then, after waiting for them to ask "Who is this Mogambo Guru,
obviously a fellow of intelligence, education and wit, of whom you
speak?"<span style="mso-spacerun: yes;"> </span>I take a deep, sweeping bow
as I proudly say "I am The Mogambo Guru!" <br />
<br />
Then I raise my head to give them a raised-eyebrow look, like I am waiting
for them to finally -- finally! -- recognize who I am, and realize that they
should know me, and love me, and stop calling me "annoying pinhead",
because I am famous or something.<br />
<br />
If they at least fake some insincere reply, perhaps something along the
lines of at least smiling kindly to the crazy old man calling himself Mogambo
Guru standing in line at the supermarket, then I will gently say to them
"Yes, I am The Mogambo Guru! Live, and in person!<span style="mso-spacerun: yes;"> </span>Yes, The Mogambo, sent to Earth from a planet
far, far away to tirelessly yammer, yammer, yammer his big, fat mouth to
Earthlings such as yourself about the Gospel Of The Mogambo (GOTM), which
specifically dictates the buying of gold, silver and oil when the money supply
is being increased rapidly, and to build elaborate underground fortresses as a
defense against the raging and looting by hordes of desperate, zombie-like
leftist morons who think that 'There is such a thing as a free lunch if the
government borrows and spends enough money to fund enough government programs,'
and who are thus deservedly bankrupted and destroyed by inflation in prices,
suffering mightily in the general destruction of the whole stinking, stupid,
bloated, cancerously mal-invested economy, based, as it is, on massive government
deficit-spending to force American will down the throats of<span style="mso-spacerun: yes;"> </span>the rest of the world, and to require
universal equality of outcomes, per the completely-discredited Marxist idiocy
by leftist morons who believe such ridiculous commie crap, and all financed by
the foul Federal Reserve blithely creating the outrageously huge amounts money
and credit out of, literally, thin air."<br />
<br />
Usually at this point, for reasons that I don't fully understand, they are
not in the mood for conversation, being too busy gathering up their children
and herding their precious tots around behind them, like protective barnyard
chickens, their pleading eyes searching wildly for somebody to protect them or
(with a little gratuitous disrespect) maybe score a nice, juicy worm to eat.<br />
<br />
Being distracted like they are, this is when I cleverly add the caveats that
always surface sooner or later. "And yes," I say to them, "I
have noticed that the Gospel Of The Mogambo (GOTM) is a direct rip-off of my
vague-yet-superficial understanding of the Austrian School of Economics, which
I do purely in my quest for higher efficiency and efficacy, and which has
nothing to do with my not being very bright and hence cannot come up with
anything even vaguely original of my own, even though I have tried and failed
so many times that I don't even like to think about it anymore, and I am
certainly not going to admit to it to some dumb-ass like you in the check-out
line at some damned grocery store!"<br />
<br />
By this time, someone is usually crying and bleating "Please don't hurt
me or my kids, mister!" and the cashier, who has usually completely
misunderstood the whole situation, is repeatedly pressing some stupid
"panic button" to summon the manager, or somebody has called 9-1-1,
or something. It's always something.<br />
<br />
The point is that I know, by experience, that my time to help these people
is growing short.<span style="mso-spacerun: yes;"> </span><br />
<br />
So I quickly finish up by adding "And the indelible lesson of history
is to buy gold, silver and oil, today, and every day, as much as you can, and
for as long as you can when so much money and credit is being created! And then
you, too, will happily say 'Whee! This investing stuff is easy!', as all else
around you is going to hell!"<br />
<br />
But if they are NOT -- at least! -- polite to me, then I simply tell them
"Go to hell, moron!<span style="mso-spacerun: yes;"> </span>You are
obviously too stupid to understand the importance of buying gold, silver and
oil when your own stupid government is allowing the evil Federal Reserve to
create so insanely much money that We're Freaking Doomed (WFD) to be destroyed
by inflation in prices and total bankruptcy when interest rates rise! Go to
hell! To hell with thee, I say, and thy Fruit Loops, too!<span style="mso-spacerun: yes;"> </span>HELL!"<br />
<br />
You have probably noticed two distinctly different references to hell. The
reason for that is, of course, simplicity itself: Once the inflationary
depression caused by all this new money being created by central banks really
starts hitting, it will be truly hellish for everybody who does not own gold,
silver and oil.<br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
For those who do own them, however, life will be much, much
more pleasant.<span style="mso-spacerun: yes;"> </span>So much so, in fact, that
they will be known to periodically smile enigmatically and softly say, for no
particular reason, "Whee!"<span class="bodytext1"><span style="font-size: 10pt;"><o:p></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com3tag:blogger.com,1999:blog-989723204686115334.post-43191561793983395252012-08-29T13:57:00.001-07:002012-08-29T13:57:40.391-07:00Ultra-Famous Mogambo (UFM
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">August
17 2012<span style="mso-spacerun: yes;"> </span>Mogambo Guru<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-family: Arial;"> </span></o:p></span></span></div>
<br />
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<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Because I really am, personally, the Ultra-Famous Mogambo
(UFM) who thinks he's famous, who thinks he knows everything about everything
economic, and is quite arrogant about it in an unpleasant, sneering way, people
think they can ask me questions about things I know nothing about, yet get a
correct answer. Weird.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Sometimes, though, they luck out by asking me a question
where I, for some unknown reason, actually know the answer!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Like, just this morning at breakfast, when my wife asked me
"Okay, UFM who thinks he's so hot, do you know that you are supposed to
eat with your damned mouth closed so it doesn't disgust the other people around
you?", and I correctly answered "Yes."</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
I am suddenly and proudly hitting one-for-one when my son
immediately asked me the question "And did you know that, besides eating
like a pig with your mouth open, you are insane about how the Federal Reserve
and the other central banks of the world are creating so much excess money that
it will destroy the world with inflation and ruination, just like it has
destroyed every other currency and economy in the history of the world that had
a government so abysmally stupid that it actually allows the Federal Reserve to
do this kind of suicidal crap?"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
I gotta tell ya, I was impressed!<span style="mso-spacerun: yes;"> </span>Astonished!<span style="mso-spacerun: yes;">
</span>So, I said to him "Yes and yes! Very, very good, my darling
son!"<span style="mso-spacerun: yes;"> </span>His face beamed in
self-satisfaction.<span style="mso-spacerun: yes;"> </span>I was the proud
father at last!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Of course, the cynical, suspicious part of me wanted to ask
him "Did you just extemporize that because you really understand it, or
did you memorize it so as to impress me for some nefarious reason, you sneaky
little bastard?"</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
On the other hand, I get questions that I can't answer, such
as those about technical analysis, and I admit that I am no longer a trader,
zooming in and out of investment positions, long or short, to make a
profit.<span style="mso-spacerun: yes;"> </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Now showing so little interest in it, and handicapped by
being naturally stupid, I am, admittedly, not up-to-speed on any of these newfangled
analyses, using calculus on obscure derived equations and running in a computer
language that I do not understand.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Or even recognize what in the hell they are talking about,
for that matter! Hahaha!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
My current blah attitude towards charting the markets is
because I discovered that it is virtually impossible to consistently make
money, or make any money at all, trading any market, especially using just
yesterday's price and volume data, as per the usual technical analysis.<span style="mso-spacerun: yes;"> </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
It was a memorable lesson that I learned The Hard Way (THW),
which seems to be the only way I ever learn anything, usually with painful, deep
emotional scars, a seething, angry bitterness, an unhealthy fixation on revenge
with muttering under my breath, and (in this case) tax-loss carry-forwards.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
The revelation (to me, anyway) was made obvious when, one
day, I suddenly said "Hey! Where did all my money go?" and realized,
in a moment of transcendent enlightenment, that traders, like me, have no
chance. Alas.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
The market-makers, and the exchanges themselves, are allowed
to make a guaranteed profit (with government assistance, if need be!).<span style="mso-spacerun: yes;"> </span>Governments make "profits" with
taxes and fees. A lot of middlemen make a profit just passing things along. </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
And the buy-and-hold investors make a profit when they are
on the right side of a long trend, although they, too, will be, alas, wiped out
in The Long Run (TLR) by the inflation in consumer prices and the deflation in
asset prices caused by such insanity in expanding the money supply.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Then, there, standing alone and frightened, abandoned out in
the cold wilderness, feeling helpless and angry at being lied to, manipulated
and cheated, are the only people left to pay all of these people. The
traders.<span style="mso-spacerun: yes;"> </span>Me. Maybe you.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
I realized that since investing is, in the macro sense, a
zero-sum game, traders' nominal losses will exactly equal the nominal gains
made by all those other people, and the profits made by many more people, too,
when considering all the people I did not even count, such as, oh, I dunno,
back-office people. Consultants. Advisors. Banks. Crooks. The usual
opportunists who swarm wherever money is located. You know; other people.<span style="mso-spacerun: yes;"> </span>Lots of them.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
But sometimes the enticement to trade seems too much to
resist. The bond market, for instance!<span style="mso-spacerun: yes;"> </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Bonds, thanks to all the money being pumped out by the
Federal Reserve et al, are now priced at astronomical price levels to produce
yields that are at ludicrous, laughable, historical lows! It's just So Freaking
Obvious (SFO) that THIS ain't a-gonna last!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
I can see that you are suspicious of my analysis, so I will
postpone asking you for $5,000,000 in start-up money, in cash, in small
unmarked, non-sequential bills, to, you know, kind of "get the ball
rolling", and instead provide you with an illuminating example of why I am
entranced by the idea of shorting bonds.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Suppose that interest rates are 6%. The theoretical market
price for a $1,000 bond paying 6% is therefore $1,000.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
So what is the theoretical price of a $1,000 bond with a 6%
coupon when interest rates are 0.1%, which is close to zero (the result of
massive, monstrous monetary inflation running at an astronomical 9% of GDP
while actual, non-manipulated consumer-price inflation is running at over 10%,
which is the very, VERY weird and scary situation today, meaning that bonds are
ridiculously mis-priced)?<span style="mso-spacerun: yes;"> </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
The bond is worth, almost unbelievably, $60,000. Big
difference, huh?</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
So what is the theoretical price for that same $1,000 bond
yielding 6% when interest rates are at 10%?<span style="mso-spacerun: yes;">
</span>A paltry $600.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
With my usual aplomb and Supreme Mogambo Arrogance (SMA), I
am 100% certain that I am perfectly, absolutely correct that price inflation
will soar because of all of this over-creation of money and credit by the
damnable banks.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
I am likewise 100% certain, with quarts of SMA oozing from
every pore of my body, that interest rates will soar, too, and thus the prices
of the bonds will collapse as their yields are forced higher to make them more
attractive to reluctant bond buyers who will be horrified to see roaring price
inflation everywhere.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
If bonds behave classically, as they usually do (until now) and
things go exactly to plan, as they usually don't, traders should now sell-short
a bond, getting the whopping $60,000, paying out that meager $60 per year
interest payment, and then a year later, when interest rates have soared to 10%
-- and probably more! --<span style="mso-spacerun: yes;"> </span>like they
should, acting in response to the horrible monetary and price inflations all
around him or her, the trader would close the short position by buying the bond
for $600, making gross nominal profit of $59,400, less expenses. Nice work!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
On the other hand, this entails a lot of risk, which I hate
because I am a gutless little coward who remembers, with each precious dollar
laid out, how I had to earn each and every dollar of that money by slaving as a
lowly lickspittle piece of employee crap whose bosses were all morons for not
recognizing my obvious genius, and (judging by my annual employee evaluations)
for expecting too much of me in the first place, morons.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
At least things got better when I got to be a lowly
lickspittle piece of self-employed crap, where things were a lot better because
I was never again suffered daily stress because of threats to fire me just
because of being barely qualified, my obvious incompetence or my lazy,
worthless attitude, which I think comes from my natural stupidity.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
And the risk with bonds is very, very real, too, as the
Federal Reserve has repeatedly demonstrated the power, and they repeatedly
demonstrated the odious inclination, to keep pounding interest rates down and
down by creating more and more money and credit, regardless of the inflation in
consumer prices it caused! </div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
In the movie, if there is one, this is where the camera cuts
to a close-up of my face as I, McCauley Culkin-like, slap my own cheek in
disbelief, my mouth and eyes open wide and my eyebrows rise in terrible
surprise, and I say "Un-freaking-believable!" or "We're Freaking
Doomed (WFD)!", I haven't decided which.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
And actually, unbelievably, despicably and tragically, the
Federal Reserve, under the dysfunctional thrall of the satanic Ben Bernanke, is
trying, for the first time in history, to literally create inflation in prices
to achieve some "target "rate of price inflation of more than 2% a
year! <span style="mso-spacerun: yes;"> </span>Gaaahhhh!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
No wonder I say "Un-freaking-believable!" or
"We're Freaking Doomed (WFD)!", I haven't decided which!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
And where does the money go? To buy the flood of new Treasury
bonds, of course! And so bond prices go up and up, simply by the Federal
Reserve creating a LOT of new money which the despicable and treacherous Obama
administration desperately needs for its suicidal deficit-spending madness),
driving bond prices up and the yield down.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
In which case a short-seller of a bond would get financially
slaughtered as each halving of the interest rate, under the deluge of a flood
of money, doubles the market price of the shorted bond. Yikes!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
And there is no telling (as in thick, choking smoke is
blinding you, everything is burning in a searing fire, and people are running
around in flames, screaming into your disoriented ears) what will happen if the
Federal Reserve, as is rumored, actually achieves negative interest rates! Wow!</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
So, assuming that you are, like me, a Gutless Cringing
Coward (GCC), you prefer investments that succeed over the long-term, like gold
and silver, as evidenced by 4,500 years (or more!) of history, instead of
investments that have always failed, which is mostly everything else over the
long-haul, but especially things such as government promises of real,
inflation-adjusted repayment of a loan ( a BIG loser!), and partial ownership
of, or be owed money by, some dumb-ass, highly-indebted mis-managed company
totally dependent upon dumb-ass, highly-indebted people who have no jobs and
are underwater on their mortgages watching food and energy prices continually
going up and up, faster and faster, all to finance a huge excess of inflated final
demand for goods and/or services.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
If you are a GCC who also is, like me, just in it for the
money and you are looking for Big Beautiful Real Profits (BBRP) without doing
any work, doing any thinking or taking any risk, then I suggest that you merely
get into your car, take a drive to some place that sells gold and silver, and
buy some of each.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Then, do the same thing next week. Then the week after
that.<span style="mso-spacerun: yes;"> </span>Over and over, week after week.</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
So what could be (by virtue of 4,500 years of history) more
obvious? And what (by virtue of taking a pleasant drive with the radio playing
and honking the horn at pretty girls) could be so easy?<span style="mso-spacerun: yes;"> </span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
And so what can one say except "Whee! This investing
stuff is easy! And obvious! Whee again!"?</div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><o:p><span style="font-family: Arial;"> </span></o:p></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com1tag:blogger.com,1999:blog-989723204686115334.post-48755650564593962592012-08-14T10:40:00.004-07:002012-08-14T10:40:38.649-07:00The Only True Economic Theory (OTET),
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;"><span style="mso-spacerun: yes;"> </span>I know now, with the huge benefit of
hindsight and a lot time spent with drunken friends explaining it all to me,
how all my problems are somebody else's fault.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">I know
that they are just being kind, of course, as there were a lot of the places
where I personally went wrong along the worrisome, winding way of my worthless,
wasted life, none of which, unfortunately, explains my bizarre use of such
gratuitous alliteration that even I am embarrassed about it. Sorry.<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Anyway,
I thus see crystal-clear that if I had made even one correct decision anywhere
along the way, then today I would be rich, handsome, popular, happy, loving,
respected and trusting, instead of, well, you know, this.<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Of
course, there are the obvious benefits of being a paranoid, cynical, hateful
old man following the Austrian school of economics. <o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Thus
educated in The Only True Economic Theory (OTET),<span style="mso-spacerun: yes;"> </span>I am looking forward to being happily and
embarrassingly wealthy, at least in a relative sense, when gold and silver
shoot to the moon in price and everything else turns into (as they say in
Spanish ) El Crapola.<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">This is
as it must be because the horrid Federal Reserve, the incompetent European
Central Bank, and the corrupt International Monetary Fund are creating so much
money, so impossibly-much money, so horribly much money that burning inflation
in consumer prices must necessarily result.<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">I can
see the skeptical look on your face, questioning my statement that
"burning inflation in consumer prices must result" from so much
money-creation.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">So, before
you say "Are you sure?", or "I think that is debatable, Mr.
Mogambo", or "You filthy, lying, pig bastard!", let me explain
that it is because -- and this is the Very Telling Point (VTP) of the whole
thing! -- prices have always risen when the money supply was expanded! Always!
Over thousands of years!<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">I bring
this up, not just because the current, fashionable-yet-stupid, new-age,
neo-Keynesian econometric monetary inflation crap ("Central banks gone
wild!") scares the hell out of me, and scares all educated people, too,
but because of a little blurb in an article in Bloomberg Businessweek magazine.
<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">The
article is about Ben Bernanke, a guy for whom I grudgingly put aside my disdain
for him and his stupid brand of economics so as to act professionally in my
role as Big Chief Editor Mogambo (BCEM), I have conservatively and
professionally classified him as a raving neo-Keynesian econometric academic
nitwit, and who is disastrously the current chairman of the evil Federal
Reserve.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">About
his policies, Peter Coy writes "Take this little quiz to see how much you
know about Bernanke's monetary policy derring-do. Have the central bank's asset
purchases since August 2008 increased banks' lendable reserves by a) 25 percent,
b) 50 percent, or c) 100 percent?"<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">He
could probably tell by the way my eyes glazed over that I did not know the
exact figure, and never even thought about it, to tell you the truth.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Thankfully
Mr. Coy did not immediately launch into the usual taunting I usually get,
mostly along the lines of "So, The Great Mogambo (TGM), for once in his
arrogant, overbearing life, doesn't know the answer to a simple question?"<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">If I
don't take action to stop them right there, the average person will continue
"Is this TGM, the snotty guy who thinks he knows everything about
everything, especially how the horrid Federal Reserve creating so unbelievably
much excess money and credit over the last 25 years has destroyed the economy,
is still destroying the country by, and by extension the world, with horrendous
inflation in prices, monstrous un-payable debts, an economy riddled with
cancerous, ruinous mal-investment and an adversarial regulatory
government?"<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">About
this time, I have found that the best way to end this rude line of questioning
is to graciously interrupt by saying "Shut up!", then saying it over
and over until they, you know, shut up. <o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Then I
gently answer their probing questions with "Yes, it's me, TGM, the
blowhard who is constantly shouting how one would have to be an idiot NOT to
buy gold, silver and oil when faced with such an economic calamity, and thus I
call you 'moron', as I am sure that you have not bought them, else you would
not address me in such a rude manner instead of falling to your knees to
worship me, loudly singing my praises, including about how handsome I am and
how wonderfully my darling blue eyes twinkle with a kind of inner light, and
thanking, thanking, thanking me repeatedly for the wisdom of True Mogambo
Enlightenment (TME) that I have given you!"<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Mr. Coy
obviously does not want to get dragged into that whole weird scene, and so
instead of him saying "You tell 'em, Mogambo!", he goes immediately
on to write, surprisingly with not an exclamation point in sight, "It's a
trick question. The correct answer is d) 80,000 percent, from less than $2
billion before the financial crisis to around $1.5 trillion now."<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">80,000
percent! Yikes! Alas, economies will be destroyed, currencies will be destroyed
and everyone will suffer! Notice all the exclamation points!!<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">At that
rate, that's when relatives and miscellaneous people will come wandering in,
staggering as if in a daze, over to my house, carefully standing outside the
clearly demarcated fire-control zone perimeter around the Mogambo Ultimate
Dual-Mode Offensive And Defensive Bunker (MUDMOADB), where they are tearfully
shouting out to me that they want to "borrow" some money that I know,
that they know, that we all know, they can never pay back.<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">They
will finally ask the question "Do you enjoy seeing us suffer?"<o:p></o:p></span></span></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Well,
wondering what I think about people getting what they deserve is a good
question! <o:p></o:p></span></span></span></div>
<br />
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<br /></div>
<br />
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">And
here's a good question for them! "Why do you cluster in a small group like
that, out in the open, where a short burst could take you all out at once,
instead of taking cover and dispersing yourselves around me in a
pincer-movement flanking maneuver, which shows at least a minimum of
competence?" <o:p></o:p></span></span></span></div>
<br />
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<br /></div>
<br />
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Another
good question for them is "Why do you want to borrow money from me when
you could just cash in some of your own gold, silver and oil stocks that you
have accumulated over the years, like to told you to do all through those
selfsame years?"<o:p></o:p></span></span></span></div>
<br />
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<br /></div>
<br />
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">They
will have an answer for that, though:<span style="mso-spacerun: yes;">
</span>They will say they "forgot" to buy gold, silver and oil!
Hahaha! They forgot! <o:p></o:p></span></span></span></div>
<br />
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<br /></div>
<br />
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">It's
like they think I never heard them talking about me behind my back, saying
things like "Mogambo is a stupid-head gold bug!" and "Why is he
always ragging on the Federal Reserve?" and "Does he always smell
like that?"<o:p></o:p></span></span></span></div>
<br />
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<br /></div>
<br />
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Well, thanks
to the inflation in prices that follows an inflation in the money supply, they
will be standing at my door, their savings gone, or almost gone, after always
paying higher and higher prices to maintain their standard of living as long as
they could.<o:p></o:p></span></span></span></div>
<br />
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<br /></div>
<br />
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">And
they kept it up the whole time that prices were rising, their incomes not
increasing (assuming they still had jobs!), taxes were rising, and returns on
assets lagged, assuming they hadn't already fallen to their real-world, and
drastically lower, value, wiping them out.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></span></span></div>
<br />
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<br /></div>
<br />
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Their
few remaining paper dollars almost worthless in terms of buying power,
reflected in the terrible inflation in prices, and they are hungry, and
desperate, and they have nowhere else to turn, and blah blah blah.<o:p></o:p></span></span></span></div>
<br />
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<br /></div>
<br />
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Little
do they know that, if they had read history, they should cheer up, as this is only
the start of the fun part of currency debasement by over-issuance.<span style="mso-spacerun: yes;"> </span>Hahahaha!<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></span></span></div>
<br />
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<br /></div>
<br />
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">Believe
me, it gets much, MUCH worse from here! And for a long time, too!<o:p></o:p></span></span></span></div>
<br />
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<br /></div>
<br />
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">I am
sure you noticed how I bravely laugh in the face of such impending misery and
deprivation, which I bravely do because prospering in such apocalyptic times is
as easy as buying gold, silver and oil!<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></span></div>
<br />
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<br /></div>
<br />
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<span class="bodytext1"><span style="font-size: 10pt;"><span style="font-family: Arial;">And how
can you NOT be carefree and bravely laugh when you are busily saying
"Whee! This investing stuff is easy!"? Whee!<o:p></o:p></span></span></span></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com4tag:blogger.com,1999:blog-989723204686115334.post-28953030260889244472012-08-14T10:40:00.001-07:002012-08-14T10:40:10.341-07:00Hysterical Mogambo Analogy (HMA)
<br />
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With all of the monetary and fiscal insanity running rampant
in the world, you can be sure that I am, more than ever, 100% against almost
everything and everybody, but especially annuities.</div>
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<br /></div>
<br />
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For those who are not familiar with annuities, it's a steady
stream of regular payments from an insurance company paid to you, for as long
as you live, which you purchase in advance by giving an insurance company a big
wad of money now. When you die, they keep what's left.</div>
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<br /></div>
<br />
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My reason for steering clear of annuities and insurances is
because, at the beginning of the Weimar inflation in Germany, 1921-1924, a
1,000 Deutschmark per year annuity was, so they say, a satisfactory retirement
income. </div>
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<br /></div>
<br />
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At the end of the inflation, just a few years later, nobody
in the whole country received an annuity check, but nobody even cared.<span style="mso-spacerun: yes;"> </span>This is because the cost of the postage
stamp, with which to send the 1,000-mark annuity check to the happy recipient,
cost more than 100,000 marks by 1924! </div>
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<br /></div>
<br />
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Now THAT'S some inflation! The stamp cost 100 times more
than the benefit itself!</div>
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<br /></div>
<br />
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So I have never given annuities any thought, other than to
haughtily disdain them in this day and age of rampant money creation, and thus
disdain them in this day and age of continual price inflation, which makes a
mockery of annuities and fixed income streams of any kind.</div>
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<br /></div>
<br />
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I was reminded of them, however, by the essay "The
staggering costs of Bernankeism" by Martin Hutchinson at his Bear's Lair
column at PrudentBear.com.</div>
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<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">He writes that "Baby boomers who are approaching their relatively
late retirement at 67 with $500,000 no doubt feel they are in pretty good
shape. They will awaken from their reverie when they discover that one typical
insurance company quotes that amount as purchasing an annuity of only $2,966
per month ($2,755 for women) with no pension for the surviving spouse or
guaranteed minimum payout period."<o:p></o:p></span></div>
<br />
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<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">In short, it's a bare-bones annuity contract where, at age 67, you must
live another 14 years to "break even" on the cost of the
annuity.<span style="mso-spacerun: yes;"> </span>Whenever you die, remember, the
insurance company keeps whatever is left. <o:p></o:p></span></div>
<br />
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<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">The problem is, according to the Hysterical Mogambo Analogy (HMA)
between the USA of today compared to Weimar Germany 90 years ago, in a few
years your monthly annuity check will still be $2,966 per month, as per the
contract, but the price of a postage stamp will be around $3,559,200!<o:p></o:p></span></div>
<br />
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<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">Actually, since I have obviously been drinking, I will drunkenly
confide in you, my best buddy, my best bud, my BFF, my bestest budderoo in the
whole world. So listen closely, ignoring my stinking breath because, just
between you and me, see, I've been thinking that the current situation
resembles not Weimar Germany, but ancient Rome, which is 10 times worse. Maybe
11 times worse! Or 12! Who knows how much worse it will be?<o:p></o:p></span></div>
<br />
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<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">So remember to keep that "Germany or Rome?" thing under your
hat, especially since it is clear that Mr. Hutchinson does not want to get
drawn into a stupid-yet-pointless debate, and instead of rendering an opinion
one way or the other, writes, with a delicious kind of dry, dark humor that
seems so in keeping with the current situation, "Doubtless, most baby
boomers faced with this shock will opt not to annuitize, hoping that between 67
and 74 or so, when their money runs out, they will graduate from feeling 15
years younger than their actual age to being dead, solving the problem."<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
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<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">At this witty joke, I laughed!<span style="mso-spacerun: yes;">
</span>And it felt good to laugh!<span style="mso-spacerun: yes;">
</span>Laughing again after years and years of screaming in fear, screaming at
family, screaming at neighbors and complete strangers about the painful
inflation in consumer prices that follow, and that must always necessarily
follow, from the huge increases in the money supply for the last quarter of a
century by the damned Federal Reserve, and now into the foreseeable future,
too.<o:p></o:p></span></div>
<br />
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<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">And when they cried out "Begone, crazy man! Vex us no more with
your silly theories!", I would reply "Crazy, am I? Is not the Entire
Freaking Record (EFR) of history the same, sad, stupid story of one
idiotic/corrupt government after another borrowing itself into bankrupting
debt, and the currency debasement/inflationary horrors that always followed?"<o:p></o:p></span></div>
<br />
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<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">In fact, the little inflation-calculator provided by the Bureau of
Labor Statistics, which is the lowest, low-ball, government-massaged "Move
along. Nothin' to see here" estimate of inflation found anywhere, still
calculates that it takes $2.02 in 2012 to equal the buying power of $1 in 1987!
<o:p></o:p></span></div>
<br />
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<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">Prices have, at least, doubled in the last 25 years!<o:p></o:p></span></div>
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<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">The salient point is that the buying power of anyone's monthly annuity
begun in 1987 (when the average annual family income was $24,350) has, after 25
years, been cut almost exactly in half. Half!<span style="mso-spacerun: yes;">
</span>Ugh!<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
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<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">And if you think that was bad, consider the catastrophic price
inflation coming at us from over the horizon, like a wave of ravenous wolves,
that will surely follow the astounding increases in the money supply by the
Federal Reserve, the ECB, and the IMF, which is to name only 3 central-bank
scumbags doing that disastrous crap! <o:p></o:p></span></div>
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<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">Arrgghh!<span style="mso-spacerun: yes;"> </span>I am screaming in fear!
And then, in mid-howl of outrage, I realized that I admired Mr. Hutchinson's
sunny optimism of people hoping to die soon, because if a postage stamp goes
from 44 cents to $3,559,200, then that now-adequate $2,966 monthly annuity
payment will soon cease being anything of value. <o:p></o:p></span></div>
<br />
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<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">But it is all academic anyway, as I figure that "most baby
boomers" will not have $500,000 to pay for the annuity in the first place,
as estimated by the fact that the average retirement accounts of working people
over 50 is around $50,000, and by the additional fact that $500,000 is more
than TWICE as much as the entire NET WORTH of most people in the Whole Freaking
Country (WFC), especially now that their incomes have not increased, their
taxes have increased, their retirement investment accounts have gone down and
their houses have deteriorated in value, all dragging down their net worth,
making it all worse and worse.<o:p></o:p></span></div>
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<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">At this ugly point I am exhausted and drained, with barely the energy
to thank the heavens that simply buying gold, silver and oil is so easy, and so
seemingly guaranteed successful by 4,500 years of statistical proof.<o:p></o:p></span></div>
<br />
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<span style="color: windowtext; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: normal;">With my last ounce of strength, I lift my head from the barroom floor,
smile and weakly say "Whee!"<o:p></o:p></span></div>
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<br /></div>
Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com1tag:blogger.com,1999:blog-989723204686115334.post-32242758800651042642012-08-07T22:36:00.000-07:002012-08-07T22:36:12.050-07:00Moment Of Exquisite Mogambo Revenge (MOEMR)!<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
August 3, 2012 Mogambo Guru</div>
<br />
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<br /></div>
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<br /></div>
<br />
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I'm obviously the kind of guy who trusts no one, and for
good reasons and for bad reasons. But reasons. Lots of them. Thousands of
reasons! </div>
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<br /></div>
<br />
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Like those phone calls where I merrily answer
"Hello?" and they, mysteriously, hang up.<span style="mso-spacerun: yes;"> </span></div>
<br />
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<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Or when I answer a phone call by saying, "Hello? Is
this the idiot who called, and then hung up when I said 'hello'?", and
then the caller says, "No! You're an idiot!"<span style="mso-spacerun: yes;"> </span>THEN they hang up! Weird!</div>
<br />
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<br /></div>
<br />
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I mean, how do you make sense of ANY of that, except by
first assuming that everybody is out to get you, then it all falls into place?</div>
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<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
In fact, every time I turn around, there more corruption,
more theft, and always someone else not to trust, which is, I am sorry to say,
always "par for the course" at the end of long monetary booms, where
a continual flood of new government money, year after year, enticed more and
more greedy people to commit corruption upon corruption, deal after deal,
decade after decade, until the misshapen economy evolved into a big, nasty spider's
web of debt, lies, thefts, blackmail and worse.</div>
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<br /></div>
<br />
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I am sure that you will agree that this is truly an ugly
part of expanding the money supply with fiat currency multiplied by insane
levels of fractional banking, so that massive amounts of money can be created --
out of thin air!<span style="mso-spacerun: yes;"> </span>-- by the banks for
each dollar of new deposits, which, in this case, was the Federal Reserve
creating the new dollar of new deposits in the first place.<span style="mso-spacerun: yes;"> </span>Insane!</div>
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<br /></div>
<br />
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And that is, as they say, just for starters!<span style="mso-spacerun: yes;"> </span>You can tell by the way my eyes are bugging
out and my voice rises to a loud, shrill crescendo that it gets insanely worse
with the damnable Federal Reserve actually monetizing government debt!<span style="mso-spacerun: yes;"> </span>Creating money to buy government debt!
Arrggghhh!</div>
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<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
And then the acrid smell (sniff, sniff) of brain neurons
frying and sizzling is One Sure Sign (OSS) that it gets unbelievably,
incomprehensibly, mind-bogglingly, staggeringly, into-the-depths-of-hell worse
when you realize that, over the decades, government deficit-spending has grown
to actually BE the American economy!<span style="mso-spacerun: yes;"> </span></div>
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<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
Thus, any miniscule, grudging growth in the bloated,
cancerous, mal-invested, debt-besotted, government-centric economy must come as
a result of massively more and more amounts of governmental deficit-spending,
with everyone participating in it because they HAVE to, which is because they
owe So Freaking Much (SFM) money.</div>
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<br /></div>
<br />
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As a case in point, I particularly remember a scene from the
old Perry Mason television series, where, at the end of the episode, Perry has
(as usual) completely shredded the guilty party's alibi, who is currently on
the witness stand, where we find Denver Pyle confessing to the murder, saying
that a complicated financial scheme had gone awry and his creditors were
pressing for repayment, which he did not have.</div>
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<br /></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
He explains "I just needed a little more time!"</div>
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<br /></div>
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Then he leaned forward in the witness stand and explained that
this -- this! -- was his justification for murder. <span style="mso-spacerun: yes;"> </span>"I HAD to kill him!", he said.
"Can't you see that?"</div>
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<br /></div>
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You can probably tell I am stupidly distrustful and paranoid
by the odd assortment of things I remember from old TV shows, or maybe you can
tell by the way I'm very nervous, almost rat-like, in the way my eyelids are
narrowed to mere slits, my bloodshot eyes darting quickly back and forth,
seeking out enemies and deadly traps, and seeing them everywhere. Mostly
because they ARE everywhere! Look out behind you!</div>
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<br /></div>
<br />
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And it is that exact kind of unreasoning paranoid hysteria
that explains why there is a large bulge under my jacket, obviously doing a
poor job of concealing some kind of oversized pistol, rifle, bazooka,
rocket-propelled grenade, machine gun, anti-aircraft cannon and/or flame
thrower, depending on my mood and ability to remain standing under all that
weight.</div>
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<br /></div>
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Since this is something you don't see everyday, then obviously,
I am the only clear-thinking dude for miles around.</div>
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<br /></div>
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I think it started when I realized that neo-Keynesian
econometrics was mostly a Huge Load Of Crap (HLOC), mostly as a result of
finding and then studying the Austrian school of economics, with thanks to
mises.org, which is the educational equivalent of taking the red pill and
seeing the Matrix.</div>
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<br /></div>
<br />
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This revelation theoretically caused my brain to explode in
outrage and fear, overwhelmed by panic, terrified at finding out that We're
Freaking Doomed (WFD) because the Federal Reserve is an evil institution that
created, and is still creating, so much excess money and credit that terrifying
inflation in prices -- and economic collapse! -- must necessarily result.</div>
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All of this made me, as you would expect, bitter and angry,
a condition not made any better by also being a guy who is absolutely sure,
beyond any doubt whatsoever, that inflation in prices is going to rage out of
control because of the monetary insanity of the Federal Reserve, the European
Central Bank, the International Monetary Fund, et al, still conspiring to
create unbelievable, shocking, disastrous amounts of new money, on top of the
other mountains of new money and debt they have been creating for literally
decades that have led to the economic disaster of the world today.</div>
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If you are one of those who laugh at those who are
frantically buying gold, silver and oil to protect themselves from these
certain perils, and hopefully even to prosper as all other suffer, then "Hahahaha!"</div>
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I have just cut-and-pasted that "Hahahaha!" laugh,
and will carefully store it away until the day (coming soon to a theater near
you!) when I am sure that you realize that those buying gold, silver and oil
were Absolutely Freaking Right (AFR), and you were disastrously wrong.</div>
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And that is when I shall have my Moment Of Exquisite Mogambo
Revenge (MOEMR)!<span style="mso-spacerun: yes;"> </span>I shall bring this
archived laugh out of storage, display it proudly, and thus I will be,
literally, the one who laughs last, and thus the one who laughs best! </div>
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Whee!<span style="mso-spacerun: yes;"> </span>I mean, Hahahaha!
This investing stuff is as easy as fulfilling old sayings!</div>
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<br /></div>Richard Daughty, a.k.a., 'The Mogambo Guru'http://www.blogger.com/profile/03515715251287098693noreply@blogger.com2