04/10/09 Tampa Bay, Florida Some readers helpfully write that they have detected a new pessimism in recent Mogambo Guru newsletters, not to mention a serious decline in writing quality and a big increase in Valueless Mogambo Stupidity (VMS), which they cheerfully enlighten me about with emails such as “Dear Exalted Mogambo Master (EMM), Why are you so negative and critical all the time? And you seem to be hyperirritable, too, according to some intercepted communications from the CIA unit that is spying on you that I happened to, you know, run across. (Signed) Junior Mogambo Ranger (JMR) Jane.”
Naturally, I suspect a trap, since I have always been suspicious, paranoid and angry as hell about what the Federal Reserve has done to the USA. So, obviously, JMR Jane does not know me at all!
So, instead of getting upset, I courteously reply and politely ask, “Dear JMR Jane, Why don’t you shut up and kiss my fat butt? Yours truly, Mogambo” which is (and you can get out your Mogambo Decoder Rings (MDR) and check it out, if you want to) actually a coded message that says, “There are many reasons for deep depression and dark, dismal despondency, perhaps like contemplation of our own approaching death, or the loss of a loved one, or the actual death of your freaking currency because some stupid central bank created too many of them so that that the government could borrow them and then spend them.”
But all the rest of the reasons for despair are all about not having enough money and, figuratively and literally, starving to death and/or freezing to death, thanks to an idiotic over-spending government that lets an insane-yet-compliant bunch of bankers (which rhymes with “wankers”, a novel little bit of poetic charm that I include for no extra charge just because it sounds so gratuitously rude to a real bunch of scumbags who at least deserve scorn and ridicule since we can’t seem to throw them into prison) create so much extra money and credit that the sheer increase in the money supply destroys the buying power of the dollar, which makes food and energy cost more, which gets us back to “starving and freezing to death” which is, when you stop to think about it, the whole point of the thing.
But there is nothing we can do, since, as appears on the masthead of Bill Fleckenstein’s Daily Rap, “In a social democracy with a fiat currency, all roads lead to inflation.”
And, although I did not tell this to JMR Jane, how can one NOT be depressed when thinking of how badly this whole “stimulus” deficit-spending will work out, because “badly” is how this kind of monetary and fiscal insanity ALWAYS works out?
And how can you NOT be angry when you realize that this is exactly what you would expect to happen? All of that new money adding to the money supply eventually sinks the buying power of the dollar so low that food and mere means of survival soar in price! That’s the way it works! That’s the way it has always worked!
And how to prevent all of this? I’m glad you asked! Without a word, my Mogambo Pointing Finger (MPF) manually directs your attention to the Constitution, which literally requires that money be gold and silver, so that neither the traitorous Congress nor the Federal Reserve can increase the money supply. Ergo, no booms to bust!
But in 1934, the Supreme Court said that money did NOT have to be only of silver and gold like the Constitution seems to say, setting us on the path that has led us to this place of economic horror, about which we can do nothing.
But as individual paranoid malcontent greedy little bastards, can always buy gold and silver for ourselves so that we can profit by the stupidity of the government which, judging by their performance in control of a fiat currency, means that it’s in the bag!
Whee! This investing stuff is easy!
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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Some information to add to The Mogambo Book of wisdom-
Half forgotten monetary history
from half forgotten authors whose wisdom has been, well, half forgotten.
…………
After the constitution was ratified…
States, under the Constitution, no longer could issue bills of credit (Fiat money like the Continental).
But states could charter banks
and banks could issue notes.
Twenty eight banks existed in 1800 and by 1820 we have (sic there were) 307.
…Paper money was issued by municipalities, by bridge turnpike companies, and by other enterprises. These paper monies were called “scrip” or “shinplasters“. Paper money inflated prices and the inevitable collapse came in 1819 with the ensuing depression.
………………
This information came from page 20 from the book titled
Coin Collectors’ Guide
(Old Coins for Profit)
By Deane Sears and Martin Rywell.
Pioneer Press
************************************
And we get this…
A History of Money from Ancient Times to the Present Day
by Glyn Davies, rev. ed. Cardiff: University of Wales Press,
1996. 716p. ISBN 0 7083 1351 5.
1809-1831 Ohio State government issues paper warrants as currency
Warrants for 5, 10 and 20 dollars are used as currency in Ohio because of the shortage of coins.
! 1837 US States acquire legal power to issue paper money. This reverses attempts to uphold the Constitutional denial of the power of the states to emit bills. !
1837 US banking crisis
The uncontrolled, chaotic expansion of banking in the US is slowed, then partly reversed by a financial crisis in which every bank
is forced to suspend specie payment of notes.
Through it all, gold and silver coins kept their owners from going broke, unlike paper money did or does.
Oh Mogambo,
Thank you! You cheer me up when i am depressed, or mad. Thanks
How do I become a JMR? I have always wanted to send you an email Richard, from time-to-time, but have never actually figured out how. Anyway, this probably meens I am a moron – have followed your column for years, and have actually made money from your advice, as well as from the advice from Butler, Boner et al. Thanks for all you do…Scott
Oh mogambo, mongambo, What to do with a guru who is always in a stew, if only I knew then I would be in a stew too, while dealing with a half baked guru in a stew I threw my lot in the stew too now I am as nutty as you.