Richard Daughty

It is certainly old news around here that terrifying inflation in prices, thanks to the monstrous inflation in the money supply caused by the Federal Reserve creating So Freaking Much Money (SFMM) for the last few decades, has caused me to venture to that dangerous precipice between being merely weird and obnoxious, to being a raving lunatic screaming from the rooftop “We’re freaking doomed!”

Of course, I also thunder, “Buy gold and silver! Buy gold and silver! Buy gold and silver!” until my voice is raspy and my throat is sore, only to have my words of wisdom and financial salvation drowned out by the roar of the assembled crowd chanting, “Jump! Jump! Jump!” and I’m trying to yell loud enough to tell them that they have it all wrong, and that “I have no intention of jumping to my death, you morons! But if you don’t buy gold and silver against the horrific inflation in prices unleashed by the Federal Reserve creating so much money, then you are, ironically, jumping to YOUR financial deaths! Hahaha! Go to hell, all of you!”

I even threw down some leaflets of the essay “A Vale of Dollars” by Joel Bowman, Managing Editor here at The Daily Reckoning, in which he writes, “According to data released by the World Bank, food prices rose a stunning 15% from October through January. The World Bank’s own food index now sits just 3% below its 2008 record.”

This revelation did cause some discussion amongst the, apparently few, literate crowd members, and the calls for me to “Jump! Jump! Jump!” faded, and people started talking about how much more food and gas cost.

But for me, I shut up when Mr. Bowman noted that “the price spike prompted” World Bank chief Robert Zoellick to, I assume, rise up out of the neo-Keynesian fog befuddling his apparently congenital stupidity and to remark that “Global food prices are rising to dangerous levels and threaten tens of millions of poor people.”

Well, first off, I gotta tell say that Mister “They calls me Clueless” Zoellick is, again, demonstrating a stunning, complete lack of any real grasp of the situation by laughably estimating that “tens of millions” of people will be adversely affected by food prices soaring, when the real figure is at least ten times that great, if not a hundred times greater, or (more likely) hundreds of times greater than his ridiculous lowball estimate, as everyone in the Whole Freaking World (WFW) will, to one degree or another, be affected by inflation in the price of food because there are very, very few people, if any, in that aforementioned Whole Freaking World (WFW) to whom a soaring price of food is completely insignificant.

So, again, what a moron! Although, this is what you would expect from him having happily participated in the whole monetary insanity, every step of the way, so as to be a direct cause of the world’s economic misery!

It’s too bad that Mr. Zoellick didn’t anticipate this whole thing, like the Austrian Business Cycle Theory did, years ago by saying something like, “Global money supplies are rising to dangerous levels and threaten tens of millions of poor people,” although, even then, it would have still been a gross understatement, but on the right track, anyway!

And before you think that I have such a low opinion of Mr. Zoellick because I am naturally hateful, The Daily Bell asked John Perkins, author of the best-selling Confessions of an Economic Hit Man, his opinion of the World Bank.

He replied, “The World Bank is a tool of economic hit men, there is no question about it. It’s the tool of big corporations, the IMF and most of what we call intelligence agencies of the United States, CIA and NSA. Essentially the job of all these organizations is to help what used to be just US businesses – now we call them multi-nationals – get themselves established around the world in positions where they can exploit the world’s resources, natural resources and human resources.”

And now Mr. Zoellick is shedding crocodile tears about the poor having to pay higher prices after he, as a head banker, aided and abetted the creation of all the excess money, to finance the takeover of “the world’s resources, natural resources and human resources” that made prices go higher? Hahaha! Too, too much! Hahahahaha!

Wiping the tears from my eyes, I note that this kind of treachery by banks and bankers, I assume, is what prompted George Bernard Shaw to say, “You have to choose between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the government. And, with due respect to these gentlemen, I advise you, as long as the capitalist system lasts, to vote for gold.”

And it is also what makes me say, “Buy gold, silver and oil stocks when your stupid government is allowing the evil Federal Reserve to keep creating staggering amounts of money, week after week, month after month, year after year, decade after decade!”

And so while both Mr. Shaw and I agree that buying gold is the way to go, there is, alas, no evidence of Mr. Shaw saying, “Whee! This investing stuff is easy!” although I think that he would at least agree with it being easy! Whee!

The Mogambo Guru
for The Daily Reckoning

Richard Daughty

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.

  • David Harrison

    Brilliantly entertaining — I loved the rooftop scene. As usual, you nailed it, Mogambo!!

  • George

    I have attempted to no avail to inform friends about the creation of so much freaking money by the evil Federal Reserve and they should buy at least some silver.

    The responses are usually something close to the rooftop scene.

    In most part, people are morons.

Recent Articles

Smart Apps vs. Obamacare

Greg Beato

The Affordable Care Act dumped 2,000 pages of regulations into the health care sector, stifling any innovation that could have brought about real cost savings. But even with these obstacles, there are still people looking for ways to do things better and at a lower cost. These new technologies could be the key to fixing health care in America...


Why Old-School Tech Stocks Are Beating Social Media

Greg Guenthner

While many of the newer social media stocks struggle for gains this year, old-school tech stocks have become some of the best trades on the market. With the rare exception (Facebook is doing well—shares are up 26% year-to-date) the social stocks are in the gutter. They got off to a fast start in January and Februray, but ran out of steam in the spring. Aside from a few feeble attempts, few have posted anything close to a noteworthy comeback. Twitter, LinkedIn, and Groupon are all down double-digits year-to-date. Groupon—the worst performer on this short list—is down 47%. On the other had, the biggest of the big tech stocks on the market are helping traders pile up even larger gains right now. Greg Guenthner explains…


Video
Creditism and the Threat of a New Depression

Richard Duncan

In the 1960s, total credit in the U.S. broke the one trillion dollar mark...and since then, it has expanded over 50 times. But now, as Richard Duncan explains, the explosion of credit that's made America prosperous, threatens to take the entire economy down. And that could mean the return of another depression...


Advance Notice of the Next Market Crash

Chris Mayer

News flash: The future is uncertain. (Gasp!) But given this uncertainty how are you supposed to invest successfully? It would be nice to ride stocks on the way up... and bow out before the crash... but few are able to do it without sheer luck. Chris Mayer, searching for a successful method, looks back to the 1929 market crash for clues...


5 Min. Forecast
What Your Grocery Bill Says About Your Investment Future

Dave Gonigam

Despite rapidly rising food prices, American households still spend relatively little on groceries. And while plenty of factors contribute to lower food costs in the US, that can lead to serious competition... and that means a good investment opportunity is right around the corner. Dave Gonigam explores...


A New Bank that Challenges the US Dollar’s Reserve Status

Liam Halligan

As owner of the world's reserve currency, the US has enjoyed a cushy spot in the global economy. But with the rise of a group of rival countries the dollar's reserve status is under attack. And if it somehow gets knocked off its perch, the effects throughout the world (and in the US in particular) would be disastrous. Liam Halligan explains...