The blast-proof doors of the Mogambo
Fortified Bunker Of Blessed Solitude (MFBOBS) were
not able to muffle the sound of my screams of
anguish when I read that the Producer Price Index
in January showed prices at the wholesale level
rising 1% for the month, and that was just for
January alone!
Even worse, over the past
12 months prices rose by 7.4%! This was, they say,
"the biggest one-year rise in 26 years", which is,
if you are 26 years old, the highest in your
freaking life. And if you are simultaneously 26
years old and a beautiful girl with self-esteem
low enough to be seduced by a disgusting man old
enough to be your grandfather, then let me add,
"Hello, cutie-pie! My name is Mogambo! Want to go
for a ride in my car?"
Even more
horrifying, mostly because my throat was sore from
all
my
screaming, was the Financial Times report that
"The Reuters/Jeffries CRB spot index, a historic
global benchmark that tracks the price of
commodities such as crude oil, copper, corn and
coffee, jumped 12% in February, its biggest
monthly gain since 1974", and it "gained 15.2%
during January and February, the strongest rise in
any year since 1956." 1956! The most price
inflation in 52 freaking years!
And
inflation is creeping up everywhere, and JMR David
K asks, "Have you noticed that the
'inflation-adjusted' price of gold to match the
'80s high keeps getting higher and higher? It used
to be $2,000 to match the equivalent price, now
it's $2,300." The embarrassing truth is that I did
not notice, but I constantly note that the
"inflation-adjusted prices" of everything are
going up, which they are because the dollar is
going down in purchasing power, which is because
the Federal Reserve is creating so much money and
credit, which is impoverishing everybody whose
incomes are not going up, like me, which explains
why I drink so much, which in turn explains why I
am surly and incoherent most of the time.
And lest we forget that higher prices are
the result of the dollar falling in buying power,
let me introduce Martin Weiss of
MoneyandMarkets.com, who says, "with inflation
already surging and the dollar already plunging,
it's now likely that their grab-bag of housing
market bailouts, stimulus packages and
interest-rate cuts are likely to accomplish little
more than push the dollar over the brink, drive
commodity prices through the roof, propel
inflation beyond control and, ultimately, deepen
the crisis." Damn! He's right! It looks like it's
time for another drinkie-poo!
I hadn't
even started putting the bottle to my slobbery
lips as a prelude to glug, glug, glug before Jack
Crooks, also at MoneyandMarkets.com, looks (like I
do) at history and concludes that "there is ALWAYS
a limit to the policy of never-ending credit
expansion. And history has told us that when this
limit is reached, it always ends badly."
And it will continue to end badly, as we
can clearly see from the Bloomberg.com report that
Charles Evans, president of the Federal Reserve
Bank of Chicago, said, "Officials can make clear
their commitment to stable prices by 'promptly'
reversing interest-rate cuts when 'insurance'
against growth risks is no longer needed."
Hahahahahaha!
This is beyond laughable,
particularly since there has not been a moment in
the last 21 freaking years when the Federal
Reserve has not been providing "insurance" against
a lack of growth! Hahahaha!
And lowlife
morons like this are everywhere, as we learn from
hsibaltimore.com that "the FDA announced a
permanent injunction against two food companies
that were making claims such as: 'Chemicals found
in cherries may help fight diabetes'" as the
result of two different studies that have shown
that "anthocyanins (antioxidant compounds found in
tart cherries) may help reduce the risk of type 2
diabetes. But the FDA has ordered the companies to
stop making the claims about cherries 'until the
products are approved by the FDA as new drugs'"
Hahaha! An apple a day may keep the doctor away,
as the saying goes, but you had better not say
that anymore, either, because Big Pharma has yet
to invent a drug that emulates apples, either!
But the incidence of morons and blowhard
halfwits is not confined to the Fed or the FDA, as
we learn from Geocraft.com, which says "President
Clinton and others cite a letter signed by 2,600
scientists that global warming will have
catastrophic effects on humanity. Thanks to
Citizens for a Sound Economy, we know now that
fewer than 10% of these 'scientists' know anything
about climate. Among the signers: a plastic
surgeon, two landscape architects, a hotel
administrator, a gynecologist, seven sociologists,
a linguist, and a practitioner of traditional
Chinese medicine."
And speaking of morons
in government, the mouth-breathing lowlifes in
Congress (except Ron Paul) don't care that their
irresponsible spending and their irresponsible
lack of supervision of the Federal Reserve has
produced so much inflation that it has destroyed
the value of the coins, and now HuffingtonPost.com
reports that, "The administration is pushing an
effort that would give the government the
authority to change the metal content of all the
nation's coins as a way to save money. That
proposal, which was introduced in Congress last
year, was prompted by the sharp jump in the price
of copper and other metals in recent years."
Hahaha!
I laugh aloud at the incompetence,
as instead of stopping the damned Federal Reserve
from producing all the money that produces all the
inflation that makes the metal in coins worth more
than the face value of the coins, they want to get
rid of the metal in the coins! Hahahaha!
In case you were wondering who these
insouciant, lowlife Congressional losers are,
their names are Representatives Barney Frank,
D-Mass, and Luis Gutierrez, D-Ill, and Senators
Ken Salazar, D-Colo, and Wayne Allard, R-Colo.
It's enough to make you scream!
Arrrggghhh! See? Don't say you weren't warned
about Random Mogambo Screaming (RMS). And the
dulcet tones of an outraged lunatic are the best
part of the whole mess, too. We're freaking
doomed!
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 2008, 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
