05/06/10 Tampa, Florida – I have long maintained that there is, actually, nothing new under the economic sun for (checking my watch for the precisely correct time) the last few thousand years or so, and if you look deep into my Serious Mogambo Eyes (SME), you will see, as the acronym suggests, total sincerity when I tell you that there have always been the usual few things; income, taxes, spending, saving, borrowing and debt, and something along the lines of interest, which is not to forget, of course, money itself.
Everything else financial is, as far as I can tell without doing any research whatsoever or actually thinking about it, just some combination of a couple, or a few, or many, or all of these 7 things, usually presented with some fancy new name that implies, as always, “Invest your money with me! You can’t lose!”
Of course, True Mogambo Historians (TMH) know, or would know if there were any TMH, that I stopped talking about this stuff soon after I discovered that nobody cares, it makes no difference one way or the other about anything, and nobody will argue with me about it because my whole debating style seems to have fallen into the predictable rut of relentlessly tracing all problems back to the foul Alan Greenspan, former chairman of the Federal Reserve 1987-2006, who is directly responsible for creating all the Unbelievably Much Money (UMM) that financed the now-busting booms in stocks, and the now-busting booms in bonds, and the now-busting booms in houses, and the now-busting booms in collectibles, and the (unfortunately) continuing booms in growth of government, the continuing booms in government-provided services, the continuing boom in accumulating debt, and the horrifying continuing booms in astounding, terrifying, suicidal amounts of deficit-spending, making Alan Greenspan solely, and directly, responsible for the inevitable catastrophic, ruinous busts.
Of course, by this time you are saying, “Bah! The same old Tired Mogambo Tirade (TMT)!” thus – thus! – declaring by your own words that it is imperative that we drag Greenspan’s lying, filthy butt out of whatever fetid sewer he is cowering and deliver a punishment of such inhumane, prolonged cruelty that it makes an indelible-and-timeless example of him, so much so that even Hannibal Lector will cry out in pity, “No more!” so that current and future Federal Reserve morons may be instructed, and perhaps other central banks around the world, who are every bit as loathsome as the Federal Reserve, if not more, would be, too.
Usually, mouths drop open in horror when I say this kind of vicious, bloodthirsty thing and pretty soon some quack doctor is “adjusting” my medication regimen, but in my own defense, as a cost-benefit ratio, it is logically imperative that we torture the hell out of Alan Greenspan because the pain suffered by this one man would be insignificant to the immense joyful benefit that would accrue to billions and billions and billions of people due to the immense economic pleasures of having a stable money supply, zero inflation, and where the economy grows blissfully without the use of more money because the costs of producing goods and services gently fall due to productivity increases, which automatically produces a higher standard of living to everyone, especially to the poor.
And isn’t “helping the poor” what all governments always want to do?
Unfortunately, you know by the way my lips curl into a cruel grimace that something nasty and cynical is coming, and you were right, in that the tragic, pathetic plight of the truly poor – thanks to the Federal Reserve creating more and more money – is to suffer a constantly lower and lower standard of living, meaning that, every day of their poor, miserable lives, they get literally poorer and poorer.
This happens because the buying power of the precious little bit of money that the poor can muster is constantly falling because so much new money is being created to “help the poor” by the government spending more money (created by the Federal Reserve), and all of this new money makes prices for everything constantly go up for everyone, even the poor people who are getting the new government money, who will (theoretically) remain at a mere standstill by offsetting the higher prices with their higher government transfer payments, but which makes the huge remaining population poorer, dragging down the middle class towards poverty and tragically further impoverishing the uncompensated-poor! Gaaahhh!
This is the real tragedy of the Whole Stinking Mess (WSM), which is just another euphemism for The Evil Federal Government (TEFG), which is just another acronym for The Idiotic Democratic Party (TIDP), which is the political party of laughable morons who actually think that the purity of their big-hearted compassion, their dreams of “economic justice” and all of the rest of their best intentions will cause the Iron Laws Of Economics (ILOE) to make an exemption in their case. Hahahaha! Democrats! Ya gotta laugh! And I do!
The funnier-yet-sadder thing is that now, after seeing how well this stupid government-giveaway crap works in elections, the Republicans have been doing it for decades, too! Hahaha! Morons all! Hahaha!
Happily, the Tea Party has sprung from the ashes of such an intellectual swamp, who I thought would be most sympathetic to my plan to, you know, never again allow banks to create extra money to finance weird, government-centric distortions in the economy and inflation in prices, by viciously persecuting Alan Greenspan as a, you know, warning.
And, as an afterthought, maybe display his bleached bones outside of the Federal Reserve in Washington, DC as a “visual aid”! Hahaha!
Well, I am still waiting for their reply to my request for an endorsement, and in the meantime I tried to interest the folks at Prudentbear.com into backing my candidacy for Emperor of the United States, which would give me the Raw, Unchained Power (RUP) to order the Federal Reserve to not increase the money supply.
I am sorry to say that Prudentbear.com is ignoring my Mogambo Plan Of Vengeance (MPOV) and my candidacy for Emperor, but had, instead, on their site, a quote of John Kenneth Galbraith’s from his book A Short History of Financial Euphoria, which validates, I think, my assertion that “there is nothing new under the economic sun.”
Mr. Galbraith said, “Financial operations do not lend themselves to innovation. What is recurrently so described and celebrated is, without exception, a small variation on an established design . . . The world of finance hails the invention of the wheel over and over again, often in a slightly more unstable version.”
Naturally, I was going to enthusiastically say, “I agree! I don’t understand why anyone would want a more unstable wheel, either! I mean, there you are, going down the interstate, the radio blaring and it’s a beautiful day, but your wheel is bouncing up and down and in and out, and the whole car is jumping up and down, and it is hard to steer at today’s highway speeds, but I figure he is saying to forget about buying unstable wheels, but to buy gold, silver and oil, and actually investing your money in them with a sense of dread and panic as your guiding hand.”
If not, at least we both agree on the “nothing new under the economic sun” thing, although I notice that I, who advocates buying gold, silver and oil, am alive to write about it, whereas Mr. Galbraith (1908-2006), who perhaps did not, is dead.
Ponder and be instructed.
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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Dear Mogambo Guru,
Since You like official insanity more then Any Other Guru Like You (AOGLY). I present to you this Bloomberg news item for this Guru’s pleasure only.
”Fed Faces Deflation With Few Weapons, Rosenberg Says: Tom Keene (FFDWFWRSTK), Wow that sounds like a ‘GO’ for Print Money Even Faster (PMEF)
http://www.bloomberg.com/apps/news?sid=adSzBb_3bHkU&pid=20601087
Haha you Amercans are So Freaking Doomed (SFD). Sure we Europeans are doomed, indeed just doomed. We Have Gold (WHG)!
Americans are utterly totally doomed (UTD) if they dont own gold privately.
Let me Quote For Fun (QFF);
The central bank will likely reintroduce quantitative easing measures because the other stops are already pulled, according to Rosenberg.
“The Fed will be expanding its balance sheet even further,” he said.
The Corrupted Rating Agencies (TCRA) downgraded Portugal. Why, because they don’t own the dollarpress as collateral?
Hahaha the Dollar Is A Joke (DIAJ).
Another quote;
‘Deflation will push gold prices to record highs, Rosenberg said. He forecast the precious metal will reach $3,000 in the next several years.’
I as a nitwit ofcourse can’t understand that deflation means gold inflation. Yes There Are Other Guru’s (YTAOG).
I keep an eye out for more but so far I buy gold and silver and not oil since I cant store it. So Freaking Much Money Everywhere (SFMME) makes live a lot harder. A little foodsupply at home can be handy if The Horrible Inflation Hits (THIH). It will be everywhere!
Good show! Dig so deep. You shall easily accomplish the job of FBI, CIA or the police detective. By the way, the whole related agencies should be thrown out of the universe as they are anticipating their monthly salary only.
But, I do not agree on curtailing money supply, instead, it should be maintained at the present trend of exponential growth. Why? Simply that is the only way.
The world is on the road of no return. Simply irreversible. Moreover, peace and harmony prevail only after crushing calamity. After world war, giant war?
Hopefully, all comment posted are accepted, as commenters bear common sense.
They normally comment in such subtle manner as not to cause damage or tarnish anybody, while, reflecting a whole true picture. We are seeking the truth. Truth is the vital nutrient for healthy economic growth. False pretences only lead us to hell.
in a just world perhaps greenspan would have been tossed on a pile of all that worthless green paper and burned in it!
instead, all the democrats and republicans think he’s a friggin’ libertarian (AFL)! haha! they’d pretend they were doing away with libertarian fiscal policies! ahahaha! get that!
One of your better essays OMG (Oh Mogambo Guru). Besides with these new initials you are blessed to post up (PU) many more articles on torture, mayhem and death-before-dishonor.
Be careful, however, not to attract the attention of the FRGS 9Federal Reserve Goon Squads) who are capable of unspeakable acts such as burying you neck deep in utterly worthless dollar bills – and then adding the bucket they were carried in to the pile!
I went to the grocery store today – just a routine “pick up a few things” trip. I left without buying half of what I went in for because the prices had all been upped at least 33% from when I went in last (last week). I have, today, purchased a few more greenbacks worth of gold and silver into a rising market and stuck a few dollar bills into the trash paper box I use to light charcoal fires with – if I could afford to buy the charcoal.
Keep up the good proselytizing (look it up, ok?)..
It happens in every corner of the world. Dams burst. Money supply flooded all irrigated fertile land.
Hamilton wanted a central bank because it would give him what he wanted: eternal welfare and eternal warfare. He wanted to build the US into an empire, and a central bank would fund it by stealing money (through reduced purchasing power of everyone else’s inflated dollars) instead of ‘honestly’ taxing it or even borrowing it from our descendants.
Audit the Fed, then when enough people see the fraud it is, End it!
audit the FED? i hope it will happen soon, there was such an application by ron paul in the congress recently, wasnt there?
btw, pls audit the ECB as well
I’m about as ready for the sh*t to hit the fan as I can be, got the bills paid off, food stored back, a nice chunk of silver buried in the back yard, a little gold, but planning on getting more in a week or two when dollar drops to .00000000000000000000000001 cent on the greenback cause I believe in waiting for the sale… any minute now…
I worry though about all the mooks who refuse to even look to see what is going down, you know the “it can’t happen here” mooks who clearly neglected to read the book that begs to differ…delivery times even for quantities of silver are getting longer and longer, a cue if I ever saw one for a huge gold/silver jump waiting to happen, but with the global gold leases dragging out,keeping gold etc down, even those who started to wake up are falling back to sleep…
how long can the Fed Res. keep those gold leases out before they are required to pull them in so the metals can have their well deserved heyday? I thought that would already have happened…surely they can’t really keep this crap up forever.
all I can say is thank god I’m not one of the little piggies INSIDE the boar trap as the last wall falls…I’m growing my own damned corn out here on the fringe…not even tempted to eat their nasty bait…I am concerned however about all the aforementioned mooks I’ve tried to show the light showing up at my door when the realization hits that they are going to starve if they can’t get here to eat up my food…no good deed goes unpunished after all…
auditing isn’t going to happen…won’t even be a fake one until its far too late for anyone to actually do anything about what they find [or don't find]. Cracks me up when I see people actually believing that the Fed would give an inch after its achieved sufficient autonomy to prevent even congress from getting any kind of info/report on their activities much less a peek in the safe and the books…
Time for a re-release of 1984, and a dose of rampant paranoia, which is our only hope if you ask me…
As it is, “they” aren’t even taking minor pains to hide their illicit and ultimately murderous intentions and activities anymore, which imho should scare the living hell out of all of us…
with hope floating in the shitter, I appreciate your sense of humor even more than usual…
thanks for the smirks, I needed em. ;0)
I’m about as ready for the offal to hit the fan as I can be, got the bills paid off, food stored back, a nice chunk of silver buried in the back yard, a little gold, but planning on getting more in a week or two when dollar drops to .00000000000000000000000001 cent on the greenback cause I believe in waiting for the sale… any minute now…
I worry though about all the mooks who refuse to even look to see what is going down, you know the “it can’t happen here” mooks who clearly neglected to read the book that begs to differ…delivery times even for quantities of silver are getting longer and longer, a cue if I ever saw one for a huge gold/silver jump waiting to happen, but with the global gold leases dragging out,keeping gold etc down, even those who started to wake up are falling back to sleep…
how long can the Fed Res. keep those gold leases out before they are required to pull them in so the metals can have their well deserved heyday? I thought that would already have happened…surely they can’t really keep this stuff up forever.
all I can say is thank god I’m not one of the little piggies INSIDE the boar trap as the last wall falls…I’m growing my own corn out here on the fringe…not even tempted to eat their nasty bait…I am concerned however about all the aforementioned mooks I’ve tried to show the light showing up at my door when the realization hits that they are going to starve if they can’t get here to eat up my food…no good deed goes unpunished after all…
auditing isn’t going to happen…won’t even be a fake one until its far too late for anyone to actually do anything about what they find [or don't find]. Cracks me up when I see people actually believing that the Fed would give an inch after its achieved sufficient autonomy to prevent even congress from getting any kind of info/report on their activities much less a peek in the safe and the books…
Time for a re-release of 1984, and a dose of rampant paranoia, which is our only hope if you ask me…
As it is, “they” aren’t even taking minor pains to hide their illicit and ultimately murderous intentions and activities anymore, which imho should scare the living heck out of all of us…
with hope floating in the toilet, I appreciate your sense of humor even more than usual…
thanks for the smirks, I needed em. ;0)