I can tell you the exact date (Saturday, February 13, 2010) that I saw that
TheDailyBell.com had a "guest Editorial" by Dr Ron Paul, whom I admire because
he is the only senator in congress whose economic philosophy is the Austrian
school of economics, which, in fractured German, is ein Austrian economischer,
which I purposely use to paraphrase John Kennedy, who famously said, Ich bin ein
Berliner, which actually translates from German as "I am a cream-filled
pastry", but everybody knew what he meant, which was that he was just another
clueless American Democrat who wanted to save the whole world by taking over
the whole world so that they could change the whole world, and who had the
majority of American voters and congress behind him, all of whom have heads
that, for all apparent intents and purposes, are cream-filled, and that is why
Kennedy said that he, too, behaved as if he
had a head filled with whipped cream.
Oh, I am sure that there are those who disagree with my interpretation of what
a dead president meant when he said he was a "cream-filled pastry", and there
are those who dispute my understanding of the vital role of the taco ("The
prefect snack, any time!") and the candy bar ("Perfect for times between
tacos!") in today's modern, health-conscious world, too, so go figure. Idiots!
Regardless, the state of my mental faculties or the fact that I sound, look and
act exactly like an idiot is not the point. The point is about the importance
of owning gold, silver and oil when the truly idiotic Federal Reserve keeps
increasing the supply of credit and money, especially as it is used mainly to
buy an avalanche of new government debt (monetizing the debt! Gaaaah! We're
freaking doomed!), and how the title of his article, "More Spending is Always
the Answer", is so ludicrously ridiculous that I could not believe my eyes that
Senator Ron Paul, of all the people in the world, is saying that "more spending
is always the answer", because nothing could be farther from the truth, and it
is, instead, waaaAAAaaay out there past the outermost, frigid fringes of Truth,
a place where we find "The promise of True Love" and "The check's in the mail."
It turns out that he was being sarcastic, as I should have known, and he says,
"Continually increasing the debt is one of the logical outcomes of
Keynesianism, since more government spending is always their answer. It is
claimed that government must not stop spending when the economy is so fragile.
Government must act."
The problem is that "when times are good, government also increases in size and
scope because we can afford it, it is claimed." Exactly!
In short, the blockheads in congress, the Federal Reserve, the majority of the
laughably incompetent university economics professors in the country, the
morons of the president’s council of economic advisors, and all Democrats, all
believe that "There is never a good time to rein in government spending
according to Keynesian economists and the proponents of big government".
As a case in point, "Last week, the House approved another increase in the
national debt ceiling", he says, meaning that the idiotic American government
can now legally borrow US$1.9 trillion more, on top of the $12 trillion already
borrowed and owed, "to stay afloat and avoid default", although he did not
mention that this monstrous new load of debt is only expected to last until
just after the mid-term elections this year, at which point congress will take
us farther and farther into a deadly financial quicksand with another extension
of the debt limit! Hahaha!
In this regard, Junior Mogambo Ranger (JMR) Alan L writes, "Call one drop of
water a dollar. Five drops equals one milliliter. Question: What is the volume
of water of $14 trillion?"
Instantly, I am back in high school, feeling panicked and trapped because the
teacher has asked me a question that not only do I NOT know the answer to, or
how to figure it out, but I don’t even care, and I never WILL care about it
because if I was ever actually on a train that was leaving Chicago towards Los
Angeles, 2,000 miles away, going 60 miles an hour, and I knew that another
train was leaving Los Angeles going to Chicago at 70 miles an hour, I wouldn't
get on the damn train! It's that simple!
So I don't freaking CARE how long it would be before they met and they crashed
into each other with a big explosion and there are bodies everywhere and what a
mess, because I won't be there! I'll read about it!
Apparently, JMR Alan saw the panic in my eyes, or perhaps it was the way I was
reaching under my jacket preparing to shoot my way out of here if necessary,
but either way, he was pretty quick coming up with the answer: "Twenty times
the volume of the Great Lakes. That puts the entire area of the United States
50 meters underwater."
Wow! I seem to remember some handsome rascal and clever bon vivant, with a
twinkle in his dazzling blue eyes and a roughish grin on his boyish-yet-rugged
face, saying "We're freaking doomed!" as a result of the abject stupidity of
congress and the Federal Reserve in the last 90 years or so since the Fed was
created, and especially as a result of the stupidity of the last 40 years when
Richard Nixon refused to exchange dollars for gold, and doubly especially since
1997 when then Fed chairman Alan Greenspan really started getting insane with
monetary policy, and triply especially since 2008 when the unbelievably
preposterous Ben Bernanke and his loathsome Federal Reserve doubled the money
supply at a stroke! At A Freaking Stroke (AFS)! Doubled!
This - THIS! - is the worst thing that could happen for those of us whose fear
of hyperinflation, which is guaranteed after a hyperinflation in the money
supply, makes us buy gold, silver and oil with a fearful, frantic frenzy that
precludes even thinking about spouses and children, except maybe about how they
are a big, heavy weight around my aching neck and my only hope is to get more
gold, silver and oil, which, when I do, make the whole problem worse and worse!
I can't win!
And don't get me started on the hassles of having a few defensive
fortifications in the backyard to further protect yourself against the massive
social unrest that inflation causes. Neighbors are always whining about
something, like maybe a couple of accidental shots, probably less than a
hundred rounds all told, allegedly emanating from the Mogambo Bunker Of
Trembling Terror (MBOTT), that didn't even hit anybody, and the only real
damage was Carl's stupid barbecue grill, which was old, rusty and ugly to start
with, and I didn't think he would even mind, and there was some collateral
damage to his stupid water heater, too, which was ditto on the old, rusty and
ugly.
But the point is that the Federal Reserve is going to kill us with inflation in
prices as a result of their relentless inflation in creation of money and
credit as a result of the federal government deficit-spending so incredibly
much money, and you should get some gold, silver and oil right away!
You will be glad you did, and you can fit a surprising lot of them in even the
most modest-sized bunker, yet still have lots of room for supplies of
ammunition, frozen pizzas and pornography. So, 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 2010, The Daily Reckoning.)
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