No Debt Left Behind

Over at Whiskey & Gunpowder, an essay by Don Stott of reveals that we are more alike than we thought, in that he, too, is “astonished at the credulity and unabashed total economic illiteracy of the American and even the world’s public. We’re headed for hyperinflation, with prices of everything going through the roof, and America is buying stocks rather than gold and silver?”

Since Mr. Stott and I are both in agreement that not buying gold and silver is the wrong thing to do, I naturally I assume that he agrees with me, returning the favor, when I say that the stupid federal government is deficit-spending trillions of dollars a year and the satanic Federal Reserve is creating the money and credit necessary to buy all of that new Treasury debt means such huge expansions in the money supply and crushing debt load that consumer price inflation will destroy us all.

Since I assume that we are still in agreement, this can only mean that he further agrees with me in that this can only mean that it is time for the nation to rise as one, take over Congress and the Federal Reserve in a blitzkrieg of mindless stupidity and install me, Emperor Mogambo, as omnipotent supreme dictator, giving rest to the restless and ruth to the ruthless!

This is usually where somebody’s sharp-eyed lawyer sees my comparison and demands an immediate retraction of my public acknowledgment that Mr. Stott and I are nothing alike, we have nothing in common, I never met Mr. Stott, he is not advocating rebellion, he is not going to buy me a pizza, no matter how many times I call him and bother him blah blah blah Restraining Order blah blah blah.

But we both have reason to have this incredulity in common, which I now legally admit I was mistaken to have thought that I have anything in common with Mr. Stott, whom I have never met, and who I officially admit probably had nothing to do with the fact that my garbage can was fine, but the top of my garbage can mysteriously ended up two houses away, and I had to walk down there and get it, and I could feel the eyes of my neighbors burning into me every step of the way.

But they are probably angry because they are, as Mark Steyn at implies with the title of his essay “The Brokest Generation”, completely broke and their grown children are still living with them, or whose grown children are wanting to move back home to live with them, along with their husbands and wives and kids, which explains all the cars parked all over the place, and the sense of gloom that permeates the air as they realize that believing that anyone could retire by investing in stocks, bonds, houses and a benevolent government over the long-term is an idiot, and now they get to spend a lot of time, all cooped up in one house, thinking about how they wish they had bought gold instead of buying all that other crap, like the house, the car, the marriage, the kids, the pets, the endless rounds of golf and endless rounds of drinks while sitting in bars just so that they could get away from their family’s constant yammering and crying, always whining, “Please just come home and love us, daddy!” and how they think that “I need to go to the emergency room because it won’t stop bleeding” is some kind of competent medical advice so that I have to shell out money to a lot of medical quacks.

The good news, he says tongue in cheek, is that “Our kids are the ultimate credit market, and the rest of us are all pre-approved!” which is pretty humorous, and which he says means, “Isn’t it terrific to be able to stick it to the young? I mean, imagine how bad all this economic-type stuff would be if our kids and grandkids hadn’t offered to pick up the tab.”

He goes on by quoting Bernard Shaw, a witty Irishman who said a lot of famous, witty things but who never, perhaps for undiscovered reasons hidden in his surviving papers and mysteriously overlooked, ever said, “We’re freaking doomed if you let the damned government create and spend as much fiat money as it wants, even if it turns over the ‘create the money’ part to the total failure known as the Federal Reserve, and if you are not buying gold, silver and oil against the confiscatory, ruinous, catastrophic inflation in consumer prices that such humongous continuing inflation in the money supply will cause, which is a suffering and misery that is 100%, iron clad, in the bag, take it to the bank, never-fail, ain’t nothin’ you can do about it and you ain’t seen nothin’ yet, completely guaranteed, then there is something Seriously, Seriously Wrong (SSW) with you, you morons!”

Mr. Steyn pretends he has never heard this quote of mine, and says that Mr. Shaw more famously noted, “Youth is wasted on the young”, which Mr. Steyn observes has now presented little obstacle, “So the geezers appropriated it. We love the youthful sense of living in the moment, without a care, without the burdens of responsibility”, which describes me to a T, but made ridiculous by adding that some boneheads wanted “the idealism of youth: We want to help the sick and heal the planet by voting for massive unsustainable government programs.”

This reminds me of a witticism, from where I got an “it’s-funny-because-it’s-true” bit of perspective that “The world will become increasingly polarized between two groups: those who consider government intervention a great idea, and the rest of us who happen to be sane.” Hahaha! Good one!

I figure that Mr. Steyn agrees with me and says that this is what you would expect, as “Like the young, we’re still finding ourselves, but when we find ourselves stuck with a medical bill or a foreclosure notice it’s great to be able to call home and say, ‘Whoops, I got into a bit of a hole this month. Do you think you could advance me a couple of trillion just to tide me over?’ And if there’s no one at home but a couple of second-graders, who cares? In supporting the political class in its present behavior, America has gone to the bank and given its kids a massive breach-of-trust fund.” Hahaha! Exactly! Good one!

And if you think that sounds funny now, wait until that hysterical moment when it starts happening to these low-IQ mutant children when they grow up, especially when they are old enough to get a driver’s license so that they can drive past our houses and shoot at us and call us names in their humorous way.

That is when and you will see their comical reaction to not being able to afford food to feed themselves or their children, much less be able to afford housing, energy, or anything else, when inflation in prices from all of this monstrous inflation in the money supply starts stomping them into financial mush, much less weather the inflationary impact of all of the additional MORE trillions in new money and government deficit-spending from now until then! Hahaha! We’re doomed!

And then, if you think this is funny so far, then you are going to love it when these desperate people see that the government, their trusted government that they think actually exists to heal the sick and support the poor by merely paying for whatever they need or want, can’t do much to help them, except by making inflation in prices worse for everyone in general and for them in particular in a too-little-too-late way, and their eyes are opened that they have been lied to and stolen from.

And they are going to want it back, and they will want to just take it. Perhaps that is when the sheer safety, portability and anonymity of gold makes gold finally hit a price that far exceeds my most greedy, gluttonous dreams! Whee! This investing stuff is easy!

The Daily Reckoning