Even though I have been drinking so that my speech is slurred after testing
some crazy idea that I could drink away my utter horror at the death and dying
of the US dollar and economy, history is, on the other hand, being made crystal
clear that when a country is so idiotic as to ignore its own constitutional
requirement that money be only made of silver and gold (so as to prevent its
over-issuance and thus prevent inflation, The Worst Of All Evils (TWOAE)), and
then to compound that stupidity and perfidy by unbelievable over-production of
the ridiculously-preferred fiat currency by the foul Federal Reserve mindlessly
printing too, too much of it, for too, too long, distorting the economy into an
ugly, cancerous, government-centric abomination, that country and its currency
are soon toast, which is an unfortunate metaphor because I like toast.
I have many pleasant memories of eating toast, actually, mostly lazy weekend
mornings having a few pieces of toast with butter, maybe with some different
jams, jellies, preserves or marmalades, or having toast some evenings when my
wife says, "You're home two hours late, you inconsiderate moron! So make your
own dinner and choke on it!" but I don't choke on the toast, and I like the
toast, increasing my triumph! Ha!
Perhaps the actual metaphor is that the economic toast you were anticipating
has become burned, bread burnt to a hot, blackened cinder, actual flames and
acrid smoke swirling up from it, permeating the house, the smoke alarms
squealing, "Beeeep! Beeeep! Beeeep!" all that noise is getting on your nerves,
and the damned kids are all crying and whining about how the noise hurts their
ears, and then you see to your horror that the toaster has been also burnt up,
and you realize with a voice crying out "Nooooooo!" that you have to put up
with all of this beeping and whining and crying and the smell of brunt toast,
but you still don't get any freaking toast, which was what you wanted in the
first place!
Although Wikipedia doesn't care, there are many definitions of the phrase We're
Freaking Doomed (WFD), and this toast thing may be in there, I don't know, but
it is definitely one more aggravation in your life, as if you needed one more
aggravation in your life that is already swamped with aggravations.
That is why, my poor pilgrim whose life has turned into a long Jeremiad of
heart-breaking painful problems and losses, it pains me to tell you that, I am
sorry to say, there will be many, many more aggravations in your life, because,
for example, the odious Obama proposes yet another stimulus plan!
This time, the stimulus is for $50 billion to allow businesses to expense the
entire cost of capital equipment, which, for tax purposes, saves the companies
an amount equal to the company's marginal tax rate on the entire purchase,
which has the effect that companies get a tax break to replace expensive human
labor with machines, with technology, and with industrial robots which will
evolve into the hunter-killer cyborgs that we learned about in the movie The
Terminator where you thought that when Arnold Schwarzenegger said, "I'll be
back," you thought he meant that he would be back in a few minutes to crash
through the wall with his car and shoot up the police precinct trying to kill
Sarah Connor, but now you are beginning to see, to your horror, that it meant
Much, Much More (MMM).
This "more stimulus" comes at the time that Egon von Greyerz of Matterhorn
Asset Management writes that we will soon see, in his original "all capital
letters" as a literary device to call attention to something that is so
horrific that to miss it is to commit suicide, "UNLIMITED MONEY PRINTING."
Because Chaos Theory shows that all things are connected to all things, and
usually within six degrees of separation from Kevin Bacon, as it turns out, I
am not surprised when he writes, "Every single area of the US economy will need
support or printed money, whether it is the federal government, the states, the
municipalities, banks, pension funds, insurance companies, the unemployed,
corporations, health care, housing market, commercial real estate, individuals,
etc, etc, etc."
Thus, the UNLIMITED MONEY PRINTING that will swell the money supply and cause
prices to rise in a ruinous, long-term inflation! Gaaahhh! We're Freaking
Doomed (WFD)!
The lesson from all of this? Easy: The unholy, nightmare of high inflation will
soon follow such fiscal and monetary madness, so liquidate everything and buy
gold, silver and oil immediately.
Then you can be assured of soon sitting back, financially secure if not filthy
rich, perhaps having a nice cup of tea and a piece of toast, with butter, and
orange marmalade, and maybe a cookie on the side, while watching the rioting on
TV of all those who did not buy gold, silver and oil and who would love to have
some toast if only they could afford it.
And how much toast can you eat with your gains in gold? Mr von Greyerz predicts
that gold will go to at least $3,000, or probably more, in that "Gold and gold
mining shares were an average of around 25% of world financial asset between
1921 and 1981. Today, gold and mining shares are only 0.9% of world financial
assets. If gold and mining shares were to go to 25% of financial assets, gold
would go to over $31,000" - per ounce!
And with outsized returns like that, with an amount of gold that you can
literally hold in your hand, you gotta laugh out loud and say, "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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