Junior Mogambo Ranger (JMR) Phil S sent me an essay titled "Government: A
Successful Failure" by Robert Anderson, erstwhile professor of economics at
Hillsdale College and posted at LewRockwell.com.
He writes, "What is ignored throughout all this political posturing has been
the core cause of today's financial difficulties. The singular cause has been
the manipulation of interest rates and expansion of fiat money by the Federal
Reserve Bank" which he agrees created waaAAAaaay too much money and credit for
waaYYYaaay too long, and that all of our problems can be "causally" related to
these Fed weenies doing it for decades, in
direct contrast to classical/Austrian economics and sheer common sense.
A more terse explanation is provided by James Turk of the Free Market Gold
& Money Report, who says, "Crises occur for one simple reason - excessive
credit expansion."
Of course, by this time I am pretty drunk from trying to drown my fear and
panic about what is going to happen because of the idiocy of the US Federal
Reserve and Congress, although he doesn't mention it, and in my drunken tirade
I want to make sure that everybody knows that the moronic Alan Greenspan,
Federal Reserve chairman from 1987 to 2006, is directly responsible for the
mess we are in, he got away with it because the moronic Congress allowed it,
and the moronic Congress got away with it because the despicable Supreme Court
- in 1933, and in every appeal since then - ruled that the dollar would NOT be
"only of gold and silver" as the Constitution requires, and instead ruled that
the Fed could use a fiat "paper-promises" dollar. Gaaaahh! We're freaking
doomed!
But this "we're freaking doomed" stuff is not new to me, which handily explains
my drinking problem, but doesn't offer any solutions, which Mr Anderson seems
to acknowledge by adding, "Is there any solution to today's economic problems?"
Good question! It depends on whom you ask! Hurriedly, I wipe the drool from my
chin with the sleeve of my shirt, stand up and say, "Of course not! If there
were a solution to the problem of an idiotic government plunging the country
into an inflation of excess money and credit to finance a cancerous, bloated,
government-centric economy of mal-investments and economic absurdities, then in
the entire of history of mankind, where one idiotic government after another
did this exact same thing, somebody would have thought of it before! And
everything that they tried has failed! Failed! Hahaha!"
Mr Anderson, on the other hand, handily dismisses me and says, "Of course"
there is a solution, which makes all the other kids in the class look at me
with cruel, mocking looks on their faces, making obscene gestures and saying
hurtful things like, "Hahaha! You are wrong again, you Ugly Mogambo Idiot
(UMI)!" and, "Quit staring at my boobs!"
I was feeling pretty low at this turn of events, but heartened to know that I
would, after all these years of looking and failing to find even a hint of a
solution, hear a solution!
Unfortunately, he admits, "it won't happen", because we would have stop doing
all the stupid stuff we are doing! Hahaha! Like THAT is going to happen!
So while there is no macro, systemic solution to our problems, you will be
happy to know that a solution exists on the personal level, which is to buy
gold, silver and oil, as these will positively soar when the inflation in
prices inevitably follows such an explosion in government spending all this new
money and credit created by the Federal Reserve just for this horrifying
spectacle of governmental orgiastic gluttony.
Whee! This investing stuff is easy!
Richard Daughty is general partner and COO for Smith Consultant Group,
serving the financial and medical communities, and the editor of The Mogambo
Guru economic newsletter - an avocational exercise to heap disrespect on those
who desperately deserve it.
(Republished with permission from
The Daily Reckoning. Copyright 2009, The Daily Reckoning.)
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