The worst part of the problem is, of course, that people seem, astonishingly,
to agree that the purpose of government is constantly to enact new laws and
expand entitlement spending. I don't know where they got that stupid idea, but
what has happened for half a century has been, as we see, disastrous.
The cost was mostly disguised by the fraud of off-budget accounting tricks,
supplemental appropriations scams, un-funded mandates (such as "All persons who
present themselves in need of medical care will receive that care upon demand,
regardless of ability to pay, although government will only pay part of the
cost if they don't, and you guys are going to have to get the rest of the money
someplace else"), which is not to deny the deadweight loss of government
agencies promulgating more rules and regulations, like how they interpret a
city-wide prohibition against
people putting loaded "cannons" on their property to include "loaded
anti-aircraft guns", which is a gun, not a damned cannon, you morons, so your
stupid laws are discriminating against me and cannons as my choice of a
beautiful and functional lawn ornament! You bastards!
So, after a half century of this crap, we now have politicians who can look at
the problem of our incomes going down, unemployment rising, price inflation
rising, asset prices falling, a generalized systemic economic decline and
growing social discord, and then come up with a "solution" of raising taxes!
Hahaha! Insane!
We have economic knot-heads in the Florida state government down here who
defend the concept of raising taxes during a recession, saying, "It is the
right thing to do!" And I am sure that you have them, too, wherever you live,
which is a concept that I hope never applies to medicine, as I humorously
dramatize in the following vignette:
Doctor (entering the examining room): What is wrong with this patient, nurse?
Nurse: He has anemia and has lost a lot of blood, doctor.
Doctor: Then drain a pint of blood from him and give it to poor people.
Nurse: But doctor! The man is already anemic and has lost a lot of blood, he is
obviously in serious distress, and you want to drain more blood from him?
Doctor: Yes! So shut up! It is the right thing to do! And charge the price of
the transfusion to his insurance carrier.
Nurse: But doctor! That's not only reprehensible behavior, but healthcare
fraud, too!
Doctor: Shut up and kiss me!
Nurse: Okay!
We must now interrupt this thrilling hospital drama (which is a shame, too,
because this is the part in the plot where Dr Screwhandle and Nurse Pantyliner
get into the X-rated segment of the show) to bring you the news that the member
nations that went this month to the Group of 20 meeting in London decided to
triple the budget of the satanic International Monetary Fund (or IMF -
popularly known as "the central banker's central bank") to US$1.1 trillion!
Wow!
Now, immediately I am suspicious, and I want to know where the IMF is going to
get all of this money? And if not from My Freaking Pocket (MFP), then exactly
who is going to pony up the cash, which they will doubtlessly convert into
Special Drawing Rights (which is the "currency" of the IMF that was first
bankrolled by the US giving them a lot of our damned gold!), so that the IMF
can bail out a bunch of foreign scumbags, flooding the world with the money,
which increases the money supply, which increases prices, and which will end up
costing me a bundle, which is why I begin all correspondence with the IMF by
addressing them as "Dear Satanic Scumbags".
So "thanks", G-20 lowlife morons! Dan Denning, at The Daily Reckoning
Australia, does not actually say that the G-20 are a bunch of lowlife morons,
but I can tell, with my Sensitive Mogambo Senses (SMS), that we both think they
are all a bunch of laughable moron and genetic-mutant poseurs who bizarrely
believe that they are smarter than everyone else who ever lived, and that they
can take a preposterous neo-Keynesian, econometric theory and turn everything
into a success with monetary and fiscal power, even though the results of
everything else they have ever done decisively proves that they are not and did
not, as has every other country in history that has tried to buy their way out
of bankruptcy.
And because they think that they are so much smarter than everyone else who
ever lived, they think they can repeat the one mistake made by all the other
morons, in all the other moronic countries in all of the rest of history;
over-expansion of the money supply with vast expansions of a fiat currency,
nowadays made mostly of electronic digits and found most everywhere except in
my bank account, which, now that we are talking about it, proves me right when
I told my wife that having kids would be a net-net-net loss, which doesn't
mention my disenchantment with the whole "father and family" thing about the
1,000th time I was told that I was "stupid", that I "didn't understand", and
how much they hated my (to paraphrase) stinking, everlasting guts ... To put it
mildly.
But nobody is smarter now that at any other time, and all of the money and
credit created by all the central banks of the world will only cause inflation,
suffering and misery for most people, and untold riches for those people who
own gold, silver and oil.
And all you gotta do is decide what kind of people you are going to be! 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 2009, The Daily Reckoning.)
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Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
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