01/28/11 Tampa, Florida – Chris Mayer was quoted in the 5 Minute Forecast newsletter as having noted that “If history is any guide, inflation will likely get much worse.”
Being the kind of guy who goes absolutely insane about inflation in prices, you can imagine the effect this had on me, although with a modest touch of understatement, he does not take things to the logical conclusion, namely that “We’re Freaking Doomed (WFD), you morons! And now everyone is going to see what happens after an excessive creation of money has distorted the economy, little by little over the decades, into a grotesque, corrupt, cancerous, incestuous economy feeding on government spending that, in the local, state and federal aggregate, now comprises an outrageous 50 percent of all spending in The Whole Freaking County (TWFC), and yet the Federal Reserve keeps creating more and more so that the federal government can borrow more and more and thus spend more and more!”
I would suggest, of course, that he would finish up with, “And now I, Chris Mayer, speaking both for myself and The 5-minute Forecast, and everyone on the planet who has not lost his or her freaking mind, the only logical thing to do is to follow the sage advice of The Mighty Mogambo (TMM) to buy gold and silver, gold and silver, gold and silver, more and more and more until they are stashed in huge piles all over the house and you are stubbing your toes on them all the damned time, costing you as much in doctor bills as the silver goes up in price, which means (with certain simplifying assumptions yet yielding 3-decimal place precision) you have reached maximum utility!”
This is Very, Very Good (VVG) advice, and provides a good place to finally stop buying gold and silver, as taking the next step is the path to insanity, which starts when you find yourself getting peevish about your inability to get a permit to construct a lousy combination precious-metals vault and oil storage facility in your backyard, using land acquired all around my house by buying out the neighbors who thought they were so smart not to buy gold and silver when I told them, “Buy gold and silver, you morons, when the evil Federal Reserve is creating So Freaking Much Money (SFMM), or one day you will regret it, and I one day I will buy your stupid houses for pennies on the dollar and kick you out, just before bulldozing your homes to rubble and having it hauled away so that every trace of you and your ‘no gold or silver for me’ stupidity is gone forever! Wiped out! Hahahaha! Morons!”
Well, apparently everyone has heard of my Strident Mogambo Advice (SMA) to buy gold, silver and oil equities, and it doesn’t even rate a raised eyebrow anymore, as proved when Mr. Mayer went blithely on “Everyone seems to know the US inflationary story of the 1970s. The official inflation rate hit nearly 14% by 1980.”
I am stopped from going ballistic about such horrors of inflation only because the rate of inflation is worse in other countries, where, Mr. Mayer goes on, “it was worse. In the UK, inflation topped out at 27%; in Japan, 30%.” Yikes!
I used the word “Yikes!” in the sense of “ancient history” since, as far as most people are concerned, 1980 was 31 years ago, which was before most people were born, and which is all a sorry result of the aftermath of 1971, which is 9 years earlier, when the dollar’s last tenuous tether to gold was severed by Nixon, allowing dollars to be created “at will” by a whore Federal Reserve, which they were, which is why debt soared and there has been constant inflation in prices and now we are all ruined.
Here is where I forsake the use of, “Yikes!” to use the words, “We’re Freaking Doomed!” in the sense of “current events,” because if inflation in 1980 was 14%, what is the inflation rate when a reader of Chris Mayer’s commented, “He may have cited the Wells Fargo forecast of 4% increase in food prices, but between packaging size reductions and slight price increases, we’re currently running between a 10-15% increase on core grocery items.”
And it gets worse than that, as the reader goes on, “Add that with the upward trend in energy prices, you’re slowly barking up a tree that’s 15-20% higher than what we started with a year ago”!!
Perhaps the link between the creation of money and inflation does not impress you, the casual reader who has wandered across the MoGu newsletter by accident, and who wonders if there is something of any significance or interest beneath the dull veneer of my poor writing and weirdly recurring thinly-disguised threats against the Federal Reserve as revenge for creating their so much excess money that it creates inflation in prices which makes life Very, Very Tough (VVT) for the poor.
If so, let me bring you up to speed: 15-20% inflation is enough to destroy you and everything, and everybody, you love, and your best bets are to get a lot of gold and a lot of silver, which is automatically proved, in a metaphysical, mystical way, in that “best bets” are anagrams, and “silver and livers” are anagrams, and if there is one thing you can’t live without, it’s a liver!
Okay, I admit that I am stretching it with this “silver and livers” thing, but after all the other thousands of reasons to buy gold and silver that I have used over the years to convince people to get up off of their fat, stupid butts to go out and buy gold and silver, I am simply out of ideas.
I am desperate for some new reason to buy gold and silver beyond the first 3,000 reasons, although, fortunately, as far as buying them is concerned, easy is easy is easy, and no more need be said of its ease, expect for, perhaps, “Whee! This investing stuff is easy!”
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
if silver can keep up with dr. bills, the docs’ll be making house calls, again!
er, make that bunker calls
they might even pay you to stay there
GMG,I believe you could have a sliver of silver with your livers or a sliver of livers with your silver. Whee!!!
A sliver of liver is “Whee”? Do I have to eat it? Hahaha!
Just follow the taco wrappers. Oh, delicious crunchy corn shells with a delightful spread of seasoned beef topped with lettuce and shredded cheese with an after thought of a tomato. No liver please, just silver. Get well Charlie Sheen.
Mogambo,
Really hot babes always love guys with gold and silver, especially if they think there is a remote chance that you will share that gold and silver with them. It doesn’t matter how ugly, dirty, or stinky you are – as long as you can keep them hoping to get their hands on your beautiful gold and silver. There’s another reason to buy some gold and silver now.
Gold has declined in price as the gold bears growl in victory, yet their victory is short lived. (they won the battle, NOT the war.)
Back in 2008 gold was nearing $850 and “da bears” swore up and down it gold would never reach that price again. After gold did just that, “da bears” said it couldn’t stay that high for too long, even though it did.
After the meltdown in 08 “da bears” said gold was finished, but gold regained all of its losses and still went higher while “da bears” favorite fiat investments have yet to recover.
Who should we listen to, The Mighty Mogambo who wisely advises us to buy gold and silver which have always been valuable throughout 4,000 years of history, or “da bears” who have been proven wrong time and again?
Got gold?
The Mighty Mogambo in 2012!!!
You are the only stranger on the planet always stay tuned to gold and silver 24 hours a day, 30 days a month, 365 days a year. Either, when you sleep, work, make love, or dream the same theme evolves around is still gold and silver. You will be super rich!!!
Great interview in SilverBearCafe GMG. Long may you write, and thrive.
Am I crazy or do others see the advantage of investing in silver mines like HL? Hecla Mining can get silver from one of there mines for virtually zero money because of the other products included in the ore. There could be a very nice effect of not having to pay for future earnings in stocks like HL and USSIF.
Do you have an investing preference between gold & silver bouillon vs.Numismatic Guaranty Corp. gold & silver
collector coins?
you left out one other precious metal you need to own…LEAD (ammo) !!
you are going to need a lot of it to fend off all those “don’t haves” who are jacking your food & gold &silvers caches.