04/09/10 Tampa, Florida – I am happy to note that the Tea Party, which appeals to me personally, is gaining traction and power, which adds more political overtones to my life and gets me, a shameful Republican, away from the loathsome Republicans (except Ron Paul), which have acted almost as despicably as the Democrats.
I cheerfully denounce them all with a snotty, disrespectful tone in my voice and a condescending sneer on my lips, also an indicator of disrespect, because I am a guy who has spent a lifetime reading about what happens when governments try this “increasing the money supply” crapola that, since the 1960s, the Democrats made into a political mainstay and the Republicans went “grudgingly” along with it, and I am, in a word, horrified and disgusted.
The truth is that I am now continuing to write, as after writing that last horrific sentence about “increase the money supply”, I took the rest of the morning off to think about it, hopefully to calm my shattered nerves. Now I am back at work after discovering that I am more, much more than horrified, and instead am in a Raging Mogambo Snit (RMS) because, according to Fox News, “Sen. Max Baucus, D-Mont., chairman of the influential Finance Committee” said that the “overhaul” of the healthcare system was “an ‘income shift’ to help the poor”, which is not what I am angry about because it’s exactly true, else why do it? So you can’t fault him for saying what is true! Hahaha!
However, I can fault Senator Baucus for just being a typical laughable-yet-loathsome modern Democrat, entirely emblematic as he is of the egotistical big-hearted people who love, and live to love, and love to live to love, and who think that the Beatles were right when they sang “All you need is love”, and use their arrogant “more-compassionate-than-thou” conceit as a bloody bludgeon to beat into submission common sense, economics, the entire history of fiat currencies, and the eternal problem of what to do with the poor people, the crippled people and the old people.
The part that really makes me despise Democrats slightly more than I despise Republicans is that Democrats ridiculously try to “help” the poor by tearing down the only system that has been shown to actually help the poor; namely, supplying them with jobs and keeping consumer prices from rising, but instead – wonderfully! – prices gently come down so that the poor have a rising standard of living because their money buys more.
“And what could such a wonderful system be?” you ask, unable to believe your ears. I reply, “It’s what you automatically get from a system of free enterprise powered by a stable money supply. It works like magic! It always has! It always will!”
Instead, the Federal Reserve will be forced to create so Monstrously Much Money (MMM) to finance a cancerously enlarging government to drown us in total debt, and thus continuously, massively enlarge the monetary base, which must make prices rise and rise continuously, prices which the poor can’t afford to pay and which makes them poorer, which makes Congress borrow and spend more money, which makes the money supply rise and rise, with prices always rising and rising as the monetary base gets larger and larger, round and around, whirling and twirling, spinning, spinning, spinning until you fall to the ground, crying out, dramatically, “Noooooo! More money only creates, paradoxically, more poor working people to add to the huge existing population of poor people because wage increases always lag price increases!”
Senator Baucus does not acknowledge my scorn or compliment me on my fine acting performance, and I hope everyone noticed how he would not meet my gaze, either, and instead lamely talks about “income mal-distribution” by saying that “Wages have not kept up with increased income of the highest income in America”, like this is some kind of news to him or something.
To this I say, “Hahahaboohoohoohahahaboohoohaboohaboohaha!” which shows that I am laughing and crying, and then laughing, and then crying, and then laughing, and then crying while laughing at the sheer idiocy of it, which proves that it must be idiotic for me to be laughing that way, QED.
Then, to show that he is a true Democrat, he says, “This legislation will have the effect of addressing the mal-distribution of income in America”, although he did not elaborate by saying, “by taking it away from somebody richer and giving it to someone poorer” and he did not say, “it will be paid for with fiat money created by the Federal Reserve so that Congress can borrow and spend it” and he did not say, “this unprecedented avalanche of new money will monstrously drive up prices paid by the poor, making them much, much poorer and angrier” but he could have and he should have.
Apparently, though, Senator Baucus is kind of stupid, as he does not understand that when a government deficit-spends, it does so by borrowing the money, but since the poor don’t have any money to loan to the government, the rich end up borrowing the money to loan to the government, whereupon the rich, over time, get all their money back, plus interest, making them richer, while, unfortunately, the poor get poorer because prices have risen.
All of these things he could have said, and he might as well have said, as it is all there in black and white at Mises.org, or it should be, and might well be!
And while neither he nor Mises.org said to buy gold, silver and oil as protection against this sheer economic idiocy and insanity, they might as well have, and while I cannot imagine either of them saying, “Whee! This investing stuff is easy” I certainly will! 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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that’s right! and you can tell that anything else is socialism, which is state owned means of production, as defined by mises, after whom the website is named, who is the author of the book called socialism, which is appropriate because that’s what we’re talking about here, because if you don’t have a free market in money then you have at least one counterfeiter who by definition can create only an inflationary loss by failing to divide up the latest batch of worthless paper money equally, like this was some kind of fairytale egalitarian candyland, which obviously they’ll do since the whole point of counterfeiting is to give it to only a limited subset of the candyland players, and so there will always be people left over who got nothing and when the losses passed on to them we call it socializing a loss, which is a pretty accurate term, because when you’ve been doing it for 4,500 years you can be pretty sure its part of your culture and not going anywhere, unlike myself, as i am going to mises.org right now to donate them all of my money and buy a copy of socialism by mises.
This is one of the Mogambo Guru’s most insightful articles.
All of these things he could have said, and he might as well have said, as it is all there in black and white at Mises.org, or it should be, and might well be!
As a regular mises.org reader: it is.
Acquiring an understanding of economics is simultaneously a blessing and a curse, because it’s like taking the red pill in The Matrix: it allows you to see the world as it really is. It allows you to see that the Emperor has no clothes, and that the road to prosperity that he is confidently—and in all sincerity—is leading us down is actually the road to serfdom.
But understanding economics also allows you to see that many people—perhaps even most people—do not want to take the red pill. They want to continue to live in the delusional world that’s been pulled over their eyes—a world in which the land of milk and honey is always just another law or policy change or election cycle away. They prefer the bliss that their ignorance brings.
I agree, this is one of Mogambo’s best. I nominate this sentence as the winner, as it best describes the liberal pieces of garbage who live near my bunker in West LA, most of whom are movie industry people so I urge all junior rangers to boycott movies:
…egotistical big-hearted people who love, and live to love, and love to live to love, and who think that the Beatles were right when they sang “All you need is love”, and use their arrogant “more-compassionate-than-thou” conceit as a bloody bludgeon to beat into submission common sense, economics, the entire history of fiat currencies, and the eternal problem of what to do with the poor people
I agree with Omnibus, working people have more to worry about than economics, for instance, house payments, food, clothing, a job, what kind of trouble are my teen agers getting in to, that sort of thing. But I think that the real reason for not wanting to see what truly is happening is that most working people are too tired at the end of the week to put up a struggle. What the heck, let someone else worry about the economy, there is nothing an individual can do about it anyway.
The part I can’t figure out is why the politicians dream on about putting off the inevitable and unavoidable final outcome of this economic catastrophe that we are now approaching. The facts do not lie, unemployment is way too high and getting worse, municipal governments are going broke, inflation in groceries is making it difficult for some families to have enough food on the table. However my solution is to elect the Mogambo Guru for President! Best Regards, CanadaNorth
Today was one of Mogambo’s best, he must have written it while counting his krugerrands!
Mogambo, what the HELL are you smoking?
Come up to speed already with reality will ya?
RH
http://www.msnbc.msn.com/id/36322393/ns/business-businessweekcom/
Oh no, Harry brought his boyfriend. We’re frakin doomed.
And I meant frEakin, frEakin doomed ofc.
Sundance, you do realize this was sarc.
RH
To Rick Halsen: What exactly was sarcasm? Your idiotic comment, or do you think it was the “Guru’s” article. Are you one of the la,la everything is fine people? What is Your reality?