Gold News

If Action Isn't Taken

Even CNBC knows the US finances can't go on like this...

SO I WAS KINDA amused at the CNBC headline that read "Welfare State: Handouts Make Up One-Third of US Wages," as if this is something new, writes the Mogambo Guru from his compound in Tampa, Florida for The Daily Reckoning.

I mean, where have these CNBC weenies been for the past decade? Their complete cluelessness was immediately evident when they started out with the phrase, "Even as the economy has recovered," which made me laugh and laugh and laugh, and then I tried to stop laughing because my stomach hurt from all that laughing, and then I got grumpy and fussy because my stomach hurt, and so I put the blame squarely where it belongs; with the clueless CNBC saying, "even as the economy has recovered," which still makes me want to laugh at its utter stupidity, and I would laugh, too, if my stomach didn't hurt so much.

Instead of apologizing though, or even offering me a nice pizza and a six-pack to help settle my upset tummy, CNBC breezily went on to explain that "social welfare benefits make up 35% of wages and salaries this year, up from 21% in 2000 and 10% in 1960, according to TrimTabs Investment Research using Bureau of Economic Analysis data."

The article went on, sort of hammering it home, "Government payouts – including Social Security, Medicare and unemployment insurance – make up more than a third of total wages and salaries of the US population," which they ominously follow up with "a record figure that will only increase if action isn't taken before the majority of Baby Boomers enter retirement."

"If action isn't taken" is such an ominous phrase when you stop to think about it, and which, if you do stop and think about the government "taking action", makes you want to frantically run, screaming, to Buy Gold and silver bullion since the history of the results of government "taking action" is almost uniformly Bad, Bad News (BBN).

Apparently in an effort to calm me down, CNBC goes on to cite a comforting parallel, in that "At the very least, we can take solace in the fact that we're not quite at the state welfare levels of Europe. In the UK, social welfare benefits make up 44% of wages and salaries," as if that makes it better! Hahaha!

Unfortunately, instead of calming me down, it makes me more scared and outraged, if not at least infuriated and paranoid delusional, and predictably makes me want to frantically run, screaming, to Buy Gold and Silver Bullion, even more than before, which was only two lousy paragraphs ago.

And with lightning reflexes like that, there is nothing left to do except say, "Whee! This investing stuff is easy!"

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The angriest guy in economics, the Mogambo Guru is Richard Daughty, general partner and COO for Smith Consultant Group, serving the financial and medical communities. The Mogambo Guru economic newsletter – an avocational exercise to heap disrespect on those who desperately deserve it – has been quoted frequently in Barron's, The Daily Reckoning and other fine publications.

See the full archive of Mogambo Guru articles.


Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

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