I thought that I had a pretty good handle on how much "stimulus" money the US
Congress and the Federal Reserve have spent so far, ranging, as it does, in the
zillions of dollars ... So I was taken aback when Addison Wiggin of Agora
Financial wrote, "$7.2 trillion is a lot of money. That's what DC has poured
into 'our' bailout so far." Wow!
Trying to keep from peeing my pants in horror, I think to myself, "Hell yeah,
that's a lot of money ... Because it is roughly half of everything this country
makes in a year! Half of American GDP!" which, unfortunately, ended in "P",
which sounds like "pee", which was just enough of a subliminal suggestion that
... Well, never mind.
But if creating that much money is not enough to scare the piss
out of you, too, then consider it just a Mogambo Warm-Up Test (MWUT) to see if
your heart is strong enough to take the news behind the New York Post headline
"The Fed's Futile Move" - an article by Dick Morris and Eileen McGann, who
report, "the money supply has already expanded by 271% in the past five
months"! Gaaahhhh! That comes out to a money supply expanding by 650% in a
year!
I immediately see that I made a mistake in worrying about YOUR heart, when I
just noticed that my own has taken the news very badly, and as I am laying here
on the floor, wondering if the newspaper reporter will report whether I am
"laying" or "lying" on the floor where I have been killed by the news of the
complete suicidal stupidity of Congress and the Federal Reserve, when it occurs
to me as I was either laying or lying on the floor that the thing that makes it
all so surreal, and which proves that everyone involved in this whole Federal
Reserve/Congressional irresponsibility is both insane AND stupid, is that the
whole ridiculous idea behind all of this "stimulus" money is the laughable
belief that all of this excessive new money and insane amounts of
deficit-spending can be removed once the economy "recovers"! Hahaha!
After nervously laughing at such idiocy to hopefully forestall puking up blood
in terror, or at least screaming in sheer outrage, my lips curl into a snarling
sneer, and with a voice dripping with venomous contempt, I ask, "Recover from
what, morons? Hell, the wildly distorted economy has been a walking zombie for
decades, animated only by the constant infusions of new money and credit from
the Federal Reserve to finance more and more deficit-spending of government, so
that the entire economy gradually evolved into a cancerous, warped,
mal-invested, misshapen, bloated, disgusting socialist/collectivist
monstrosity, built upon the insane economic pillars of government spending for
constantly-increasing entitlements, trading financial assets to each other,
providing health services to each other, and building huge houses and lots of
Starbucks coffee shops! Hahaha!"
In case anybody asked (which they didn't) I would have ended with, "Everything
else that we used, we imported! We stuck ourselves with a trade deficit that
regularly exceeded $800 billion a year" which means that $800 billion a year
left this country and became the wealth of somebody in some foreign country,
who appears to not be very happy to get those $800 billion because he is saying
disparaging things about them, which sounds like, "Wong cho wo hubba bubba go
down crapper?" which means, "What in the hell am I supposed to do with all
these American dollars that get more worthless every damned day because the
stupid American Federal Reserve is creating insanely more of them every damned
day and the stupid American government is insanely deficit-spending more of
them every day, too?"
I admit that eavesdropping on foreigners whining about the dollar is pretty far
from my original complaint, which was that all of this stimulus money will
never, ever be withdrawn from the economy because that would mean that the
money supply would go down, which is the definition of deflation, and this
deflation is what has the Fed and the Congress in such a frightened panic that
they are deliberately creating inflation and risking hyperinflation with their
unbelievably massive explosions of new fiat money and government spending,
which are guaranteed to destroy us a dozen times over, just to make sure that
deflation, and the attendant drop in inflated asset prices, doesn't happen!
Hahaha! We're freaking doomed!
And yet (notice the way my eyes comically roll around in my head) I am supposed
to believe that maybe one day, perhaps after a decade of the government
deficit-spending another $40 trillion or so, they will allow deflation to
happen and let all the prices of assets collapse then? Hahaha!
No, no, my darling Junior Mogambo Rangers (JMRs); all that money, and yet still
more money from other countries and other sources, will be with us for the rest
of our lives, and the inflation in the money supply will show up as higher and
higher inflation in consumer prices, which is what will cause rioting when the
people realize that they are bankrupted and starving to death because they did
not buy gold, silver and oil when their own stupid government started acting
irresponsibly, which is, I am sure you will agree, bad news.
The good news is two-fold in that that 1) I will be a shining exemplar of the
fat, piggish, conceited, self-absorbed, obnoxiously gluttonous rich guy whose
gold, silver and oil have obviously served him well enough to indulge every
gutter-level salacious appetite, no matter how revolting, and 2) It will be a
lesson everyone else will, hopefully, not forget the next time their government
acts like a moron.
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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Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
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