Gold News

Drowning the US in Dollars

"I am not a cream-filled pastry. I just keep Buying Gold..."

I admire remains Dr. Ron Paul, who 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", writes the Mogambo Guru for The Daily Reckoning.

Everybody knew what Kennedy 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. So go figure. Idiots!

Regardless, the state of my mental faculties – and the fact that I sound, look and act exactly like an idiot – is not the point. The point is about the importance of Buying 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 Dr.Paul's latest 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 $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 quick-sand 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, nor how to figure it out, but I don't even care. I will never care about it because if I was ever actually on a train that was leaving Chicago going towards Los Angeles, 2,000 miles away, and travelling at 60 miles an hour, and I knew that another train was leaving Los Angeles going to Chicago and moving at 70 miles an hour, I wouldn't get on the damn train in the first place. 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, say "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 Nixon refused to exchange Dollars for Gold Bullion, and doubly especially since 1997 when 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 barbeque 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 yes, once again...Whee! This investing stuff is easy!

Looking to Buy Gold and silver today? Make it simple, secure and cost-effective by using BullionVault...

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.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals