08/31/09 Tampa Bay, Florida
Floy Lilley at the Mises Institute, in her essay at LewRockwell.com, notes that the gold-standard dollar “provided us with nothing less than relative peace and prosperity over a span of 136 years” until that fateful year, 1913.
So how does she quantify “relative peace and security”? Well, one good way is to look at the value of the dollar, which would be strong if the country was a good investment, which it was, and in fact, “It had not only retained one hundred percent of its value, it had gained eleven percent. That’s right. The dollar we started with in 1776 bought us eleven percent more after almost seven generations.”
Then, on the “quiet 23rd of December in 1913”, J.P. Morgan and buddies got Congressional quislings to pass legislation authorizing the creation of the Federal Reserve, and to which I add that the jerk Woodrow Wilson then signed it, thus going down in history as the disastrous guy who set in motion the destruction of the dollar by the Federal Reserve creating excess money and credit.
She doesn’t make a point of it, but back then, the dollar was still gold, and thanks to the loathsome Federal Reserve creating the money to finance the bubbles of The Roaring Twenties that resulted in the Great Depression, the despicable Supreme Court infamously ruled in 1933 (and upheld by every traitorous Supreme Court case since then) that, contrary to what the Constitution said, the dollar did not have to be made of silver or gold, and that a paper “fiat” currency could be created, without limit, for any reason, even at a mere whim, anytime, day or night, 24/7, including holidays, not realizing that they were the idiots that REALLY destroyed the dollar! Gaahhh!
With this kind of disastrous stupidity, I dryly and humorlessly ask that you don’t talk to me about any “wisdom” emanating from the Supreme Court.
I was hoping that Ms. Lilley would spontaneously pick up on the theme of “heap scorn on the Federal Reserve for creating too much money and credit out of thin air and the despicable Supreme Court for letting them.”
I was going to suggest that she could, you know, maybe even put in an endorsement for the Mogambo Mindless Mob (MMM) brand of products, like the popular Mogambo Pitchfork (very effective when brandished threateningly) and the classic Mogambo Flaming Torches that will be so hard to get when the proletariat bozos start forming mindless mobs bent on revenge after so much hurting from the horrifying inflation in consumer prices, the pervasive, lingering economic depression, ruination, bankruptcy and the embarrassment of realizing that it was caused by the people we elected to Congress, who picked the people to run the Federal Reserve, which is the biggest failure one can imagine and should be immediately abolished, how Ben Bernanke, its chairman, should be turned over to me for some sessions at my new Mogambo Re-Education Center, where our muscular, trained technicians will slap the hell out of his stupid face, and the stupid faces of Congresspersons (except Ron Paul), and the stupid faces of anyone who still believes in getting, or giving, a free lunch to, or from, anyone, especially the government, which is so corrupt that it once gave smallpox-infected blankets to the American Indians, which is only marginally worse than destroying the currency of the country and makes you reflexively scream in horror every time you see the money supply go up.
Well, it does me, anyway.
Instead, she goes on that the result was that since then, “the purchasing power of a dollar has plummeted over 95%”, which means that “We now pay twenty times more than J.P. Morgan did for any item.” Yikes!
Suddenly, my ears pricked up as she said, “Few have written on the mechanics of getting back to sound money”, which I immediately noticed makes me a genius, meaning that people should worship my gigantic brain, my wife and kids should stop calling me “idiot” and saying how much they hate me and maybe I should get a Nobel Prize.
The reason I am suddenly so enamored of my intellect is that achieving a “sound money” is the easiest thing in the world! Just stop creating more of it! That’s all you need! It’s simple! It is my Profound Mogambo Genius (PMG) that has solved the puzzle!
Okay, I am embarrassed that I got carried away there, and I admit that I am not very smart, and that is why I stole the whole idea from the fact that this is all the gold standard did; it prevented increases in the money supply, and the only thing that Congress had to worry about was doing smart things so that gold came into the country (increasing our money supply) and not doing something so stupid that it went someplace else better (decreasing our money supply).
But those days are all over now, and the only people who are buying gold, along with silver and oil, are the people who know what happens to an unsound, fiat currency (like the dollar) in the hands of a government composed of a bunch of socialist, commie-think yahoos (like the US Congress) that willingly deficit-spends insane amounts of money thanks to a central bank (like the Federal Reserve) creating it and a population sitting around saying, “Duh! Okay with us!” Hahaha!
We’re freaking doomed!
Until next time,
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.
The Daily Reckoning is your premier source for making sense of the news Washington and Wall Street generate. Each business day, The Daily Reckoning calls on its stable of world-class writers and thinkers to show you how to get ahead.
Start your 100% FREE subscription to The Daily Reckoning today and you’ll get a free research report, “How to Survive the Fall of Social Security.” Simply enter your email address below to get your free report and join over 495,000 worldwide Daily Reckoning subscribers!
We Respect Your Privacy and We will
Never Share or Sell Your Email Address
Well said Mogambo!
Silver & Gold will shield our wealth…..but what will shield us from the tyrannical, over-intrusive, ever-controlling government?
Maybe its time to export ourselves along with our wealth…. while we still have it!
seems to me the audit the fed won’t be allowed to happen.National security issue.The Federali/morgan/goldman/fed rez/military-industrial/corporate oligopoly gummint of the usa just aint gonna let it happen till they crash and burn.Then…they’ll hold a highly paid enquiry. trade the trend.
(disclosure: i am not an american and I have no pecunary interest in america)
It is naive to think that the decision made by the Supreme Court in 1933 was made by idiots! Or that the people running the Federal Resever are stupid!
Their actions were done deliberately!
These people serve the elite.
The question you shoud be possing Mogambo is… “Why are they doing this? What do they expect to achieve by destroying the dollar? Is it just creed? Is it just corruption?”
Or is their another motif altogether…such as a process of destroying the dollar and the U.S economy to bring about an Elitist World Government?
The myghty mogambo knows that this insanity (fiscal and monetary) is aimed at destroying the US. It is orchestrated by a supranational elite composed mainly of bankers, big miners and oil companies, who wish to bankrupt USA and the world economy with it, so that they can by everything at discount prices all over the world: resources, arable land, water deposits, oil, etc. This is not conspiracy theory, just put 2 and 2 together and use your brain. The writing is ALL over the wall… (how about the 3rd tower in 9/11 that colapsed without being hit by a plane?? Try explain that for a start…)
How i pity poor manking…Dark ages await…
Is there enough physical gold and silver to divvy up between the world’s population today? I suppose there will be after TEOTWAWKI, when and if, but now? That’s the question my Dad keeps asking me when I try to get him to see the wisdom of Mogambo and it has me stumped.
Okay,
Bernenke IS stupid. I’ve seen him try to speak and let me tell you, he can’t even answer the simplest questions that ANY FOOL could answer. He always thinks there must be a second part to a question, or a trick to it, or maybe he’s really on drugs.
And there IS an ulterior motive to destroying the dollar. It IS an effort to have corporate controlled one world government as envisioned by President Bush I, another idiot.
Mogambo, you have it right, but we don’t need pitchforks. We the people just have to STOP ACCEPTING the funny money from the Fed as any form of legal tender, because it’s not. If people refused to accept fiat paper money, the government would have no choice but to get back to gold and silver. The people are the only real power in this country, they just have to be enlightened as to how they should USE their power.
Obviously, if you print and distribute an infinite supply of money its value will go down. But I think there is still a need to print money, and the need doesn’t vary with gold supply. As world population grows, more people produce and consume goods (trade volume increases). Also, durable goods are accumulated faster than they are lose value, which means the total value of goods in the world continually increases. If the amount of money in circulation does not increase, then prices will go down dramatically. The amount of money in circulation must increase just to keep prices the same.
Maybe this is simplistic, but no more simplistic than saying that we need to limit the supply by tying it to gold. The supply should be limited based on how much is produced and consumed, instead. Gold, IMHO, should not be as a currency anchor, but a commodity, like oil.