I gotta admit that I am confused by lots of things, like how come if my kids
hate it here so much, why don't they run away from home and save us all a lot
of aggravation?
And then there is my confusion over the Bloomberg.com report that "Brazil and
Russia joined China this week in saying they would shift some $70 billion of
reserves into multicurrency bonds issued by the International Monetary Fund."
Huh?
Instead of using their excess dollars to buy multicurrency bonds, when most of
the world's combined currencies are dollars! Hahaha!
And they want to buy bonds with the money! Hahaha! They want to buy bonds at
the very moment that interest rates are getting
ready to soar, with the effect that bonds will lose a lot, or most, or all of
their money when their precious little "multicurrency bonds" collapse in value,
all because the money supplies of the world are soaring, soaring, soaring
because the governments of the Whole Freaking World (WFW) are printing up such
vast, enormous, incredible, unbelievable amounts of money in their panic.
They are creating sums of money so staggering that such overarching, monumental
monetary and fiscal stupidity has never been seen before, except in times of
war!
I mean, Congress has already deficit-spent the $14 trillion gross domestic
product of the USA into more debt to the tune of another $1.956 trillion in the
last 12 months alone, and is already budgeting that much deficit-spending this
year, and almost that much for every year for the foreseeable future! Yikes!
This is beyond insane!
Worse, Bloomberg.com reports that we Americans are not the only idiots in town,
as "European governments have approved $5.3 trillion of aid, more than the
annual gross domestic product of Germany, to support banks during the credit
crunch," and China and Japan are doing the same thing, too!
Of course, the biggest idiots, the UK, "pledged 781.2 billion euros ($1.1
trillion) to restore confidence in its lenders, the most of any of the 27 EU
members."
I am trying to read the rest of the article as I am bouncing along as I take a
precautionary walk to the Mogambo Big Beautiful Bunker (MBBB) in a fresh burst
of panic at the inflationary implications of this terrifying expansion of
world's money supply, desperate to snugly lock myself in as some pathetic kind
of attempt to save myself from the Bad Times A-Comin' (BTAC) as prices soar,
the economy sours and the people get testy.
I mean, it just sounds so stupid that you wonder what these people are
drinking, smoking, inhaling or eating, because whatever it is, I desperately
want some, too! It apparently puts the user into some kind of pleasant mental
fantasy-land where the problems caused by an excess of pleasure-seeking are
solved with much more pleasure-seeking and the problems of too much debt and
too much government are solved by much more debt and much more government, but
they somehow retain the ability to act straight and sober so they can say this
kind of insane crap with a straight face! Wow!
When I try to attain the aforementioned "pleasant mental fantasy-land",
however, and I finally get smashed enough to contemplate its wonderful
attributes, I do so at the huge cost of losing my ability to act straight and
sober, and I am usually found collapsed on the floor in a puddle of urine,
mumbling incoherently about the horror of inflation in prices, my eyes bleary
and bloodshot, and occasionally crawling over to puke into the wastebasket.
Chris Mayer of the Mayer's Special Situations newsletter writes that "Inflation
- rising prices, or a drop in the purchasing power of the dollar - will soon
rise to the very top of economic concerns," while I think he might as well have
said, "Gold will soon rise to the very top of investors' concerns," by which I
take to mean that "Gold will soon rise to the very top of concerns for greedy,
grubby speculator trash like the Mogambo who are counting on gold zooming, like
it has every other time in history when an idiot government amassed so much
debt that the currency collapsed in buying power, so that he can get so rich
that he can quit his stupid job and just get the hell out of here, tires
squealing on the pavement as he roars out of town, radio blaring and the sound
of a voice saying, 'Hahaha! So long, suckers!' ringing in the warm summer air."
In the meantime, just keep buying gold, silver and oil! 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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