Doug Noland of PrudentBear.com has found all kinds of interesting things this
week, especially if you enjoy heart palpitations and crushing chest pains,
which is what you get when you read Mr Noland reporting that in the US "M2
(narrow) 'money' supply surged US$39.8 billion to a record $8.343 trillion
(week of 3/9)" which means, "Narrow 'money' has now inflated at an 18% rate
over the past 25 weeks and $766 billion over the past year, or 10.1%"! Yikes!
(See Mistakes
beget greater mistakes, Asia Times Online, March 24, 2009.)
The "yikes!" comment at the end is chosen specifically to indicate that the
preceding section is "Bad, but I've seen worse, and we will see a lot worse
over time as the treacherous Federal Reserve
will continue to be required to create more and more money so that the moronic,
desperate Congress can borrow it so that they, their parasitic entitlement
friends and more and more desperate people can merely survive at this point,
and who are all more and more destitute from the huge inflation in the money
supply, that produced the higher prices, that produced the bubbles in stocks,
bubbles in bonds, bubbles in houses, bubbles in derivatives and bubbles in size
of government, that has now produced the bursting of the aforementioned bubbles
that were caused by the foul Alan Greenspan, insane chairman of the despicable
Federal Reserve from 1987 to 2006, creating all the mountains of excess money
and credit that made it all so, so horribly possible."
Actually, this $766 billion increase in the M2 money supply, normally
staggering and enough to send me dialing "9-1-1" on the phone while gobbling
nitroglycerine pills so that when the police dispatcher answers "Nine one one,
what is your emergency?" I say "Hebba ah uh mmmba!" - now seems quite mundane
compared to the loathsome Barack Obama administration and the despicable
Congress plumbing the depths of stupidity born of desperation with their new
$1.9 trillion budget deficit for next year!!!
Not surprisingly, then, the Economist magazine shows that our federal
governmental budget balance, as a percentage of 2009 GDP, is already a NEGATIVE
13.7%, which can be interpreted to say that just the borrowing to finance the
stunning deficit-spending by the federal government for the next year
constitutes almost one-seventh of the total value of every good and service
(GDP= $14 trillion) that this whole freaking country produces in a Whole
Freaking Year (WFY)!
And this humongous 13.7% of GDP is just the BORROWED part of one year's federal
government spending!!! Astounding!
What can one say except "We're freaking doomed to death by inflation, and that
means that anyone not buying gold Right Freaking Now (RFN) either has something
very, very wrong with them, or they are more victims of the Mealy-Mouth
Mainstream Media (MMMM), who are not "reporters" or "investigative reporters"
anymore, whose original purpose was to expose corrupt government and pursue
justice, but they are now all girly "journalists" who wish to discover the
painful emotional traumas suffered by tragic "victims" of various kinds, yet
turning it into a heroic story of hope, renewal and redemption.
So, even more embarrassing, America used to strut around the world, scolding
countries that got into this deficit-spending-gone-kaput mess, sanctimoniously
preventing them from increasing their government deficit-spending as a
condition of getting bailout loans from the US, the International Monetary
Fund, the World Bank, miscellaneous secret government slush funds and terrorist
goon-squads, and instead we insisted that they increase taxes and cut
government spending! Hahaha!
Now, in a spate of irony, the tables are turned, and we smug Americans are
doing what we tried to prevent other countries from doing when their economies
fell apart after their stupid governments overspent, over-borrowed,
over-leveraged, over-estimated and over-enacted a lot of overly stupid
legislation that forever changed the economy for the worse.
And not only are we doing what we wouldn't let anyone else do, but we now have
a much larger negative budget-deficit as a percentage of GDP than all the
others in the list of top-30 major countries, by size, of the world! We're the
absolute worst! Hahaha!
And although I can hear you whining and complaining about how this is sure to
make me launch a Screaming Mogambo Bellow Of Outrage (SMBOO), I am still going
to make it all worse by noting, during the SMBOO, that industrial production
around the world is getting hammered, too, being down 11% in the US, down 11%
in Britain, down 9% in Germany, down 4% in France, a terrifying 24% in Spain,
(in the whole euro area, industrial production is down a hefty 12%), down a
scary 31% in Japan, and down a terrifying 43% in Taiwan! Yikes!
It's a good thing that we have gold, silver and oil to protect ourselves! 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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