07/28/10 Tampa, Florida – I get a lot of mail concerning my single-minded fanaticism about how gold, silver and oil are the best investments to buy when your stupid government is deficit-spending and allowing excess amounts of money to be created, in our case by the Federal Reserve, and particularly that part about buying oil, meaning, of course, oil company stocks.
I throw up my hands in exasperation, especially now that China has surpassed the USA in terms of energy usage, ahead of all forecasts! Therefore, with a guaranteed rise in demand for oil, for as far as the eye can see, you would think that my Stupid Mogambo Advice (SMA) to buy gold, silver and oil is the famous-yet-elusive “no-brainer investment” that stupid guys like me are always looking for, since it does not involve any thinking at all at this point, except to remember to buy them, and thus we can save our thinking for thinking about getting a new set of golf clubs and how happy we think we will be.
Instead, I get complaints. For example, I recently received this email from what appears to be an erstwhile fan, who writes, “I saw you at a restaurant recently, but you broke my heart because you did not notice me just because I was not wearing a short skirt like the beautiful Kimberly, the shameless slut who was your waitress. I just wanted to tell you that your taste in women is superficial, your table manners are atrocious, and watching you slobber and gobble your food while you drooled over Kimberly disgusted me.”
Immediately I realized that this has nothing to do with my advice to buy oil along with gold and silver! This was, instead, merely another series of slanderous lies about me, this time concerning my eating habits and my kindly, almost grandfatherly, benevolent interest in the welfare of pretty waitresses.
As I was reaching to delete the email, with the dismissive word “Bah!” half-formed on my lips, with my peripheral vision I saw that the email was about oil after all! It turned out that the foregoing was mere preamble, as she then went on, “It was not until later, when I was at home relating to my neighbor how repellent and stupid you are, that I realized that your appalling lack of even a minimum of social graces was in keeping with your stupid advice to buy oil companies, as the depression that is necessary to wipe away the irresponsible fiscal and monetary excesses of the last half century will take oil companies down, too.”
I notice, of course, that she did not mention that I also recommend that she buy gold and silver, too, which is probably because she agrees with me that everyone should buy them when the government is deficit-spending (now at more than 10% of GDP!) and the Federal Reserve is creating all the new money to pay for such a tsunami of new government bonds, and all of this new money will create consumer price inflation that will destroy us.
But would she mention that? No! Or maybe tell me how my adorable blue eyes twinkle with an inner light? No! Or how my delightful, tinkling laughter is like music to her ears? No! Any compliment at all? No!
And yet she wonders why I prefer Kimberly over her? Hahaha! At least Kimberly brought me things to eat, and giggled, “Oh, stop it or I’ll call a cop!” when I leeringly said, “Hey, baby! Want to sit on Santa’s lap?”
The point is that if a rise in demand for oil is not enough reason to buy oil, then I am surprised at you, and if the rise in the inflation-driven price of oil as a result of the Federal Reserve creating so much money is not enough reason to buy oil, then I am surprised, again.
But if not rising demand, if not rising inflation, will the news of supply problems convince you to buy oil?
If so, then here is a quote from Casey’s Daily Dispatch, which is that “the oil companies must now push the outer envelope of what’s technologically possible in their quest for the oil that humanity requires to maintain forward momentum. That we are forced to drill so deep, or that the Brazilians are contemplating ultra-deep drilling through three and a half miles of water, rock, hot sand, and salt, is a clear sign of how serious the quest for large new oil reserves has become.”
I smile at this otherwise bad news because it is all so easy – as in “Whee! This investing stuff is easy!” – when you know how, and buying gold, silver and oil is, as I have always said, how! Whee!
The Mogambo Guru
for The Daily Reckoning
The Mogambo Guru
Richard Daughty (Mogambo Guru) is general partner and COO for Smith Consultant Group, serving the financial and medical communities, and the writer/publisher of the Mogambo Guru economic newsletter, an avocational exercise to better heap disrespect on those who desperately deserve it. The Mogambo Guru is quoted frequently in Barron's, The Daily Reckoning , and other fine publications. For podcasts featuring the Mogambo, click here.
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Add in the fact that Saudi Arabia is unwilling to tap all of its oil reserves, wishing to save them for future generations to come, add in the fact that Mexican oil production is on the decline, add in the fact that while the US and Europe are supposedly in a recession/depression (completely ignoring the massive increases in US/Euro paper money printed to spend our way to prosperity, like that will work) and add in the new demand for oil from the nouveau riche in China, India, even Viet Nam(!) How can the price of oil go down?
Sounds like this ”erstwhile fan” believes that demand can’t go up during a recession/depression, ignoring the fact that even during an economic downturn mass transit still needs diesel to run busses and trains, US Railroads and trucking firms and cargo ships will still need diesel (oil) to keep goods shipped from one place to another recession or no.
The Mogambo is NOT dumb, those who are not buying gold, silver and oil are.
All Hail the wisdom of Mogambo!
The Magambo is not dumb nor are those that buy gold, silver, and oil. Just greedy little short term thinkers worrying about their own behinds and to hell with everyone else. Its great to think of all the future consumers in China and India and what the little short term thinkers can get out of it. Its the way of the world.
Hey Big MG. How did this woman contact you? I can’t find any way to do it here, or at smithgroupconsulting.com, except by posting comments to your articles, here.
Here’s an article I think you’ll like, by Jim Willie of goldenjackass.com. But take your blood pressure med (you know, that big brown bottle) before you read it ’cause its about the Fed doing slight-of-hand monetization. http://www.kitco.com/ind/willie/jul222010.html
I know you’ll love this line – “Trained and decorated economists in the United States have very little to show for their erudite prose, abstruse doctrinaire, and affluent effluence. They have given wreckage to the USEconomy and insolvency to its financial foundation, as the cancerous outcome to their arrogant financial engineering and complex money & banking charts.”
Did he get that from you?
Hey Devil
I get tired of bailing your ass out and those like you who can’t plan ahead. You don’t need to be a rocket scientist to see that printing quadrillions of new monopoly money lessens the value of existing monopoly money, thus the deflating value of money in existence. The only way to protect yourself in the war of “Them” (the Fed) and you is to buy and own the only real money that ever existed, silver and gold. Read a few books and wise up – one day the John Galts will leave you and your dumb ass governments to fight over the crumbs, and you won’t survive that fight.
Long Live Mogambo and his truths.