07/21/10 Tampa, Florida – It was raining outside, and so I was stuck inside the house, listening to my family remind me that I was just a worthless, penny-pinching, hateful old man who loves gold, silver and oil more than I love them, which I hasten to add is not exactly true in all respects, but you gotta admit that gold, silver and oil will treat me very nicely as they soar in price along with inflation in prices because of the insane levels of money creation by the Federal Reserve so that the loathsome Obama administration can deficit-spend us into hyperinflation, whereas spouses and children will be just a heavy millstone around my poor, aching neck, dragging me down, down, down by forcing me to spend money on them for their food and medical care and all the rest of that expensive crap.
So I was thinking that my economic situation had gotten a lot worse, and that I am probably the only guy in the whole world whose life Really, Really Sucks (RRS), when I saw a new survey by AlixPartners showing that 71% of Americans report that their economic situation is “the same,” “somewhat worse” or “a lot worse” than this time last year. Wow!
Being one of those guys who thinks his economic situation is “a lot worse,” I instantly see that only the people who think their situation is “a lot worse” are correct, as we are the only ones who actually understand how this “economics” thing works, or at least think we do, or at least say we do, or at least wish we did.
If AlixPartners had called me with this question, I could have told them that everybody’s economic situation is “a lot worse” because the foul Federal Reserve has created too much money over the past few decades, and then one despicable Congress after another borrowed and spent it, disguising it with off-budget accounting and other slimy trickery to create a large, terrifyingly over-intrusive system of governments and their legions of beneficiaries that are now half the population, with the inevitable result that we have been destroyed by inflation in consumer prices and strangled by a cancerous economy that is composed of massive government taxation and spending, and, like poor old Sisyphus pushing a big rock to the top of the hill only to have it roll again to the bottom, busily complying with ever, and evermore, government regulations.
And, alas, it will all get a Lot, Lot Worse (LLW) from now on with the panicked idiocy of the Obama administration deficit-spending a couple of trillion dollars per year, every year until you are old and the sheer insanity and smug arrogance of Ben Bernanke in charge of the despicable Federal Reserve creating the jillions and gazillions of dollars to make it happen.
So, since we are all in this together, I think I have proved that everybody is “a lot worse,” and those who think differently do not understand inflation, as their usual-yet-laughable 1% and 2% wage increases, reported by the Labor Department, are a lot less than the real rate of inflation for a decade that has been running consistently north of 6%.
Of course, my Big Mogambo Plan (BMP), designed to capitalize on this idiocy, is to buy gold, silver and oil so that my situation will soon improve dramatically. For those who don’t, it won’t. And it is the former who can declare, “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
“So, since we are all in this together, I think I have proved that everybody is “a lot worse,” and those who think differently do not understand inflation, as their usual-yet-laughable 1% and 2% wage increases, reported by the Labor Department, are a lot less than the real rate of inflation for a decade that has been running consistently north of 6%.”
But how can this be? I believe everything my government says and they say I should be concerned about deflation! haha
A lot worse now that the death-tax will kick in. The government has hidden a nice gold tax in the healthcare bill. Otherwise, the smart old people would liquidate into gold and pass that onto their heirs, without uncle sam being the wiser.
Hey, great and allmighty hero (GAAH) Mogambo, I am asking you the following, little, not too difficult, in fact very simple question: if everybody had say 100000 ounces of gold, 500000 ounces of silver and a few million barrels of oil, do you really believe the size of government as well as its devastating influence on people would stall or even decrease over the course of time?
We Buccaneers love this talk. People have used gold for centuries and we pirates have taken it away from them for just as long. This will also never change because gold is untraceable. Good luck with holding on to it. Here is a quote from a pirate in the 1600′s “Gold was the bait that tempted a pack of merry boys of us, near three hundred in number, being all soldiers of fortune.” 1684. Ahh the good old days are returning.
So, you actually believe that Obama is operating free of the influence of Corporate power. Why hasn’t the private sector created any jobs in a decade? Because the rich are robbing everybody else blind.
Well, all of the above, plus the fact that we’ve off-shored tens of millions of jobs, eroded our educational system so fewer people have worthwhile skills and let our physical infrastructure badly deteriorate.
The past 30 years we’ve failed to invest in ourselves as a society. So over the next few generations we’ll reap the rewards.
At times it seems that nearly all Americans cannot grasp the simple truth that whomever controls the money supply controls the country and at times even the world (in the case of a reserve currency). The money perverts every decision that people make right down to the poorest individual. Raise interest rates, people save and make more careful decisions, plan for the future. Lower them and people spend now and wildly… making RSD (really stupid decisions). Many of our founders understood this and tried to make sure our money was gold and silver, but like every fallen civilization we’ve gone from reality to fantasy. Washington tries to make their paper prettier and more official looking over time, yet I would rather have a gold receipt written in crayon. Hell, even primitives knew to pick up those chunks of gold they found so many eons ago.
“Hell, even primitives knew to pick up those chunks of gold they found so many eons ago.” True and they would cover their bodies with it. Even they knew you couldn’t eat it. As far as receipts written in crayon any fool can write one of those.
SO DID MY 100 TO ONE LEVERAGED BET THAT CRAP DOES NOT STINK WIN OR WILL I GET A BAIL OUT AS IM TIRED OF FEEDING THE POOCH PERFUME AND HAVING SHEEPLE WITH THEIR NOSES OUT OF JOINT
Dear Mogambo,
I totally agree with your Enlightened Mogambo Advice (EMA) that we buy gold, silver and oil. I would like, however, to request that you add something to that: FOOD. I’m talking about stored food… I’m talking maybe 3-6 months’ worth. The price inflation hasn’t shown up yet, but it probably will this fall. “Money” will have decreasing purchasing power as all that “money” floating out in the world comes back to the U.S. to buy everything possible before it loses value. Once the hyperinflation hits, it may take 6 months before supermarket shelves are halfway stocked, and you may wind up having to “shelter in place” in the meantime. Think: a protracted hurricane season.
For this same reason, I also recommend lots of ammo.
Big Ben Bernie-nanke can just print $1 Zillion “Note” for USAll, citizens & illegal aliens… Then we’re All Zillioinaires!!!
Crisis Solved. (And I’m not even an economist)
I say they print several $1 trillion dollar notes backed by citi, and pay off china with them. After that they can go ahead and liquidate citi as planned once the sell all the us governments holdings.