When I saw that Illinois cleverly solved its budget crisis by just not paying
its bills, I knew that the end is near, or would be, if we still had a dollar
that was not a stupid fiat currency, because nowadays it would be child's play
for the Federal Reserve to just create as money as any state wanted! And they
can do it in less time than it takes to tell you about it, too!
And then the Federal Reserve can turn right around and use that money to buy up
all the state debt out there! Wipe debt completely out! And flood the economy
with money!!!
The more astute Junior Mogambo Rangers (JMRs) out there noticed the rare triple
exclamation point, which is a Secret Mogambo Code (SMC) for, "We're freaking
doomed, and you need to buy gold and silver with all the money you have left
over from
building a fortified bunker in the backyard to protect yourself from the
starving, rioting, desperate people who did not!" because all this new money
created by the Federal Reserve and spent by the Barack Obama congress will
cause prices to rise in a horrible inflation that will probably destroy us
forever, or as long as you live, whichever comes first."
Actually, this "death by inflation" thing is the only reason why they don't do
more of this create-money-and-borrow-money-and-spend-money crap than they do!
Hahaha!
So, it is obvious that Obama and the US Congress, either this one or the next
one, will bail out Illinois, California, and all the other dirtbag states that
are literally or technically bankrupt, and then all the other states will want
to jump on this "free money to pay off our debts" bandwagon, and the Federal
Reserve will simply create the fiat money that Obama and congress want to,
thus, give away.
Oh, I know that there are those who think that I am now going to launch into a
Howling Mogambo Outburst (HMO) of anger and outrage about how all this new
money is going to create roaring inflation in consumer prices, which history
has shown to be the One Thing To Be Feared Above All Others (OTTBFAAO).
Normally, I would do exactly that, except that my throat is already raw and
sore from all the previous HMOs of late, from the foul Federal Reserve
destroying the dollar by creating so much more money, to the corrupt congress
deficit-spending, over-regulating and micro-managing the economy into the
Wretched Rat Hole Of Doom (WRHOD) in their panic, their desperation, their
stupidity and their arrogant sense of omnipotence.
And, too, I am already so battered and beleaguered by my fear of the
unstoppable, imminent collapse of the economy that all I can do is whimper and
sigh in weary resignation, hugging my teddy bear a little tighter, not even
rising to the bait of ridiculing Illinois's comptroller, Daniel W Hynes,
ludicrously saying, "Only the most delusional people think you can solve this
without raising taxes," as if there is Any Freaking Way (AFW) to "solve" any of
this because if there were, I certainly think I would have heard of a plan to
"solve" economic ruin by raising taxes, which sounds so ridiculous that I, in
spite of my dark outlook and homicidal mood, laughed out loud! Hahaha!
Whew! That little laugh made me feel better! Thanks, Mr Hynes!
Maybe this has something to do with how the federal House Democrats (all
Republicans voted against it) passed a "deemed as passed" non-existent US$1.12
trillion budget. The effect is, as one said, "to allow congress to start
spending money for Fiscal Year 2011 without the pesky constraints of a budget."
The federal government, on the other hand, has also decided that what this
country needs, despite my snorting in Rude Mogambo Derision (RMD) at the
concept, is more taxes, and to that end, Claude Sandroff, writing at
americanthinker.com, reports that "In 2011, one of the largest tax increases in
American history goes into effect. Not only do capital gains rise, but so too
does the payroll tax, the income tax, and the estate tax." Yow!
As if my constant-yet-irritating advice to buy gold, silver and oil in response
to the unbelievable fiscal and monetary insanities around the world were not
enough, but now I am howling louder and longer than ever that we Americans are
committing the ultimate fiscal folly; raising taxes in response to a
recession/depression!
When one is past yelling and screaming in fear at such economic insanity, and
one is collapsed, spent and exhausted, on the floor, drawn up into a fetal
position and choking on one's own bile at the mere contemplation of the
economic horror of what is unfolding, what can one do except buy gold, silver
and oil, and what can one say except, "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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