The Conference Board's Leading Economic Index for the US declined 0.1% in
April, which was not too bad, especially since it followed a 1.3% gain in
March, which is not to mention a 0.4% rise in February.
Being that it is the Leading Economic Index and is supposed to forecast the
future six to nine months out, this is not very good news, although the
Coincident Index (a measure of current economic conditions) was up a paltry
0.3% in April, following a negligible 0.1% increase in March.
The Conference Board's Lagging Index is the one that keeps me interested, as
this is where inflations and burdens lurk, and which increased 0.1% in April,
following a 0.1% increase in March, and a 0.2% rise in February, which is in a
kind of continual upward
pattern, as far as I can tell just by looking at three numbers and doing no
more work than that.
Bill Bonner here at The Daily Reckoning is apparently unimpressed with my lazy,
lackadaisical ways of looking at data, and asks, "Has the bear market/Great
Correction resumed - as we said it would? Or is this just more 'noise' - with
no particular meaning?"
Of course, always trying to impress Mr Bonner, I jump up and say, "Yes! You are
exactly right, Mr Bonner, sir, no matter which way the market goes! If it goes
down, inflation makes the losses worse, and if the market goes up, then
inflation and taxes will negate any illusory nominal gains! It's all a part of
what I have said all this time, you see, about how the Federal Reserve is
creating too, too much money, for too, too long, so that the federal government
can deficit-spend the too, too much money, basically borrowing and spending us
into bankruptcy and a future full of angry, angry people, one of them being me,
not only about this pure monetary insanity of the Federal Reserve, but about
how some of that money goes to government goons spying on me and shooting
strange energy beams into my head with some kind of ray gun so that I will, I
assume, be silenced, censored from informing people of the inherent insanity of
the Federal Reserve in conducting monetary policy as opposed to adhering to the
Constitution and requiring that only gold shall be money! They're coming to get
me, and they're coming to get you, too, Mr Bonner!"
I looked at him. He looked at me. The silence was, as they say, deafening,
although way off in the distance I thought I heard wolves howling and banshees
wailing, just as you would expect from the collapse of the dollar and the
reordering of the world's economic system.
So I said, "I hear banshees and wolves, probably werewolves! Listen!"
It was all perfectly clear to me that the government is evil and insane, which
explains why they let the Federal Reserve create more and more fiat money,
inflating the money supply which will make inflation in prices go up, which is
The Thing To Be Feared (TTTBF) in economics, instead of insisting that money be
only of silver and gold, as per The Constitution, and how that means that we
should march on Washington DC, throw them all out of office, and install me,
The Marvelous Mogambo (TMM), to rule as a living god whose every wish is a
command.
Mr Bonner is apparently not so sure, and, instead, humorously demurs, and says,
"We don't know. But we intend to be in cash and gold when we find out."
I couldn't, of course, argue with that, and have myself many times said, "Buy
gold when your government is acting irresponsibly by allowing the satanic
Federal Reserve to create So Freaking Much Money (SFMM) that ruinous inflation
in consumer prices is guaranteed!"
And, as the previous paragraph so richly attests, I just did again! 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.)
Head
Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
Central, Hong Kong Thailand Bureau:
11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110
