I watch expectantly as the national debt again nears the debt limit, and Zero Hour is just a few weeks away, a term I cleverly used to indicate that available credit will be zero. Maxed out.
I let it go at that, as I am not inebriated enough to get up on my high horse to loudly and rudely note that nobody in the corrupt government (including the Federal Reserve) apparently needs any stinking permission from anybody to do anything anymore, including any number or frauds and corruptions, to keep the government wallowing in the oceans of cash it so desperately, desperately needs to keep, you know, wallowing.
Of course, my own Zero Hour is fast approaching, too, as the pitifully few dollars that I was able to extricate from my wife’s purse without her catching me are almost gone, which turned out to be too few to get me drunk enough to do any serious pontificating about the horrors of the Federal Reserve creating so much money, so that the government can spend so much money, that creates so much inflation in prices everywhere and so much corruption everywhere, too.
I have perhaps struck a chord in Peter Schiff of Euro Pacific Capital, who notes that “Very few people have either the time or patience to sift through the data released by the Treasury Department in the wake of its bond auctions. But the numbers do provide direct evidence of the country’s current financial condition that in many ways mirror a financial shell game that typifies our entire economy.”
And the reason is, I figure, because of the bloated, malignant nature of the economy itself, as Grandfather-Economic-Report.com notes, with ill-concealed horror, that “51% of the economy now depends on government spending,” while another chart, labeled, “Relative Share of Economy Prior to 1930,” shows the government’s share of the economy back then was only 12%. In 1947, a mere two years after the gigantic wartime command-economy of WWII, it was 22%.
Noticing that many of you are drifting off out of boredom, I decide to add a little drama to my presentation by using the eye-catching cinematic technique of dropping the pages of a calendar, one by one, letting them fall into a disgusting, dirty toilet, now stuffed to overflowing with old calendar pages, both as a way of indicating the passage of time and as a rude commentary on the stinking life that you have to lead, day after day, year after year, because you always need more and more money to always pay the higher and higher prices for the things you buy, thanks to the evil Federal Reserve creating so much money that price inflation is ever-present and ever-irksome, to say the least.
Fortunately, there is a point to this “falling of the calendar pages” thing other than, for some reason, a stinking, dirty toilet that is very childish of me. Then you realize that the last page of the calendar to fall was the page for yesterday, meaning that today is today, where the government’s share of the economy is a massive 51%!
And I don’t know if the Grandfather Report shows it somewhere on its massive site, but another Mogambo Economic Horror (MEH) is that 5 out of 10 – half! – of the employees in America work either for a local, state or federal government, or for the education system, or for a tax-supported private agency, or work for a non-profit organization. Half!
“So,” you may be asking yourself as I continually ask myself, “who in the hell is left to pay taxes to the government out of profits, when half of all employees in the Whole Freaking Country (WFC) make no profit at all, and who must get it from those who do earn a profit, and/or solicit charitable donations, which is, in essence, asking people to tax themselves?”
Unfortunately, I have no answer that does not involve screaming obscenities at the Federal Reserve and summarizing the horror as, “We’re Freaking Doomed (WFD)!”
Fortunately, there is an easy answer to the question, “What in the hell can we do to save our butts from the horrible inflation that is guaranteed by the massive over-creation of money by the evil Federal Reserve to feed a fat, bloated, corrupt Congress and their myriad social engineering programs that are half the economy?”
And the answer is, obviously, “Buy gold and silver under those circumstances,” as the entire history of mankind shows that they do Very, Very Well (VVW) when the morons in control of the government and/or the banks are creating excessive amounts of fiat money to attempt to bail themselves out of bankruptcy.
Since nothing can be easier than simply buying gold and silver when the money is being abused, perhaps that is why I say, “Whee! This investing stuff is easy!”
The Mogambo Gurufor The Daily Reckoning
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.
THE GURU BACK ON TOP….MUST BE A TYPO
I listen to schiffradio.com most days. Peter Schiff is sharp man.
Peter is great- nice to hear him mentioned.
Dear Fabulous Mogambo Guru,
I never thought I would see the day that I would disagree with you but, like the day that our governments comprise half of the economy, that day has come. The more I learn about economics the stranger and more unknowable it seems. I feel like Alice in Wonderland who exclaims in astonishment that “things are getting curiouser and curiouser!” So here goes:
It would seem that “public” employees would not make a “profit” in the strict sense, except that the states and the feds are all corporations which presumably can profit but simply measure the profit differently. Governments can in fact create wealth without any semblance of a free market, albeit not as efficiently as a free market. Also governments can confiscate wealth (like gold from bunkers). The key is who gets the wealth. It looks like it ain’t gonna be you and me! This is more about freedom vs. slavery than about economics. If we ever were free we should fight to become free again. If we never were free we should stop all this nonsense talk about freedom and just accept that we never were and never will be free.
MG’s theories are often fascinating and exhilarating, contrary to the main stream ideology. Though emphasis on heavy bombardment on ruling elites, but his thesis proves to be eye-soothing without burden of wear-and-tear to readers’ eyes.
Importantly, all MG’s writings are ISO 9000 compliance, fully unleaded and nil current Jap’s radioactive content. Consumers at large should be encouraged to read his fine work.
Can’t argue with your thesis, but you may have forgotten one factor. What happens when the Government finds itself in such dire straits that it comes along and asks you, nicely of course, for all your gold and silver in order to resore the national balance sheet?
For every action there is a reaction. For every cause there is an effect. BB had earlier renewed these celestial law of governance. In such dire condition it would almost tantamount to a warring state. Well, an economic equilibrium will still be struck out of the turbulence. Justice shall prevail.
Creating money doesn’t cause inflation – creating and misspending money causes inflation.
If the Federal Reserve were printing money to put people to work making things people need and want, there would be both more money and more goods and services – no inflation, more wealth. If they print money and it goes to bombs, bankers and airport body scanners, then yes, go get inflation.
The People commenting about goberment and The Fed making profits and creating jobs without increases in prices, whoa boy do they ever need to spend some time at mises.org Start by looking up, profit feedback mechanism.
don’t worry-Bam will seize the gold and silver,but the shares are paper to be redeemed for inflated dollars. those guys in wall st and dc are already figuring how to save their butts.we’ll get gov’t bonds or promises to pay in 10 years at interest which will be minimal due to inflation.I don’t see police searching homes to find the gold,but the ladies’jewelry can be taken as they drive and picture receipt given.Geithner and Bam are sleazes out to get what they think is needed.We should destroy most of the cdt cards and send a msg to dc that all bets are off on our docile nature an good behavior.our colonials did it in 1775
When you've got a room full of 200 oil insiders scratching their heads at current high prices, something's gotta give.
For most investors, it’s weird to think of stocks as their go-to investing option.
The petropoly has bills to pay and setting the price of oil was a simple way to balance their budgets.
Investors don’t seem to care that what's propping up their investments is what will ultimately destroy them: government monetary policy.
For the next decade the energy revolution will be likely confined to the US, displaying the robustness of American entrepreneurship.
Why the Sage of Baltimore’s commentary persists through America’s changing times.
After attending Platt’s oil conference in London I want to relay two important themes you need to know.