Monday, July 04, 2005

The Mogambo Guru

You've got to read this guy for straight up analysis presented in a humorous style. Go Mogambo!

The Puke Point
by The Mogambo Guru
June 28, 2005

-I am in full lock-down mode here at the Mogambo Bunker, and I gotta tell ya that I look pretty sharp in my camouflage Speedo and these bandoliers of ammo across my chest. The reason that I am so frantic is that the growth in Total Fed Credit has gone to zero for over a month now. This is, for me, the ultimate in bad news.

The lack of growth in Fed Credit is bad news because, as Peter Zihlmann of P. Zihlmann Investments explains, "The present expansion is the longest running expansion on record. It has surpassed all other economic expansions before it. The driving force behind it is the rapid growth of the money supply and the explosion of credit that has accompanied it." Many people are saying that the money supply is anemic, too, but that is not exactly true. In fact, M3 has accelerated over the last month above its trend for the last few years, although the monetary base has pretty much leveled off.

And later…

And if that wasn't enough, in the last week foreigners have suddenly stopped buying our debt through their accounts at the Fed. And the banks have suddenly divested themselves of $74 billion in government debt. In one week! One! And the banks got rid of another $11.5 billion in "other securities", to boot!

And further on…

And so the people are upset? Hahahaha! The state has debased and destroyed their money, but they are not upset about that. The state has grown itself to be, literally, half the entire economy, but they are not upset about that. The state has now installed so many taxes on so many things that they have driven up prices, but they are not upset about that. The state has indebted every citizen alive, and citizens who are not even born yet, so heavily that the debt cannot ever be paid back, but they are not upset about that. The state has encouraged that all the retirement accounts of everyone be put into the stock and bond markets, and they have lost money for years, but they are not upset about that. The state has gradually eaten away at every liberty, piece by piece by piece, but they are not upset about that. They have allowed the Constitution to be gutted, bit by bit by bit, but they are not upset about that. But maybe force them to move out of their houses, and they are, all of a sudden, upset about that! Hahahaha!

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