Cheap Gold! Cheap Silver!
by Richard Daughty
The Mogambu Guru
Previously
by Richard Daughty: Aureus,
Argentum Atque Oleum
I was innocently
watching TV with the family, suffering only a tolerable minimum
of constant, simmering anger and paranoia about the horrific economic
cataclysm that is descending upon us like a devouring plague because
the world’s governments spent themselves into bankrupting debt,
people and businesses of the world borrowed themselves into bankrupting
debt, and central banks around the world created the irresponsible,
impossible, incredible amounts of fiat currency and credit to finance
it all.
But all that
seemed so blissfully far away from the amusing antics of Andy of
Mayberry when my face is suddenly, yet figuratively, slapped alert
to the sad, sorry state of economics these days as my eyes fell
across The Economist magazine, where it had flipped open to a page
that had an article by David Autor of MIT, who postulates that computers
and are robots replacing human labor and thus, all mysterious and
Keynesian-like, shifting “the production function.”
As the Economist
puts it, this “need not be bad news for workers” when
they are laid off and abandoned to die of starvation and exposure
because nobody needs strong-back/weak-mind workers these days at
these labor prices when a robot can do it better and cheaper.
The funny part,
if you like your humor veering to the dark “We’re Freaking
Doomed (WFD)” vein, is when the simpleton dork who wrote the
article says “Firms may find it more attractive to invest in
technologies that boost the productivity of less-skilled domestic
labor, pushing up their wages”! Hahahaha! It’s beyond hahahaha!
HAHAHAHAHA!
Taking a but
a brief pause from laughing scornfully while making rude comments
about everyone concerned with this travesty, hoping to catch my
breath, I laugh anew – hahaha! – when I remember that the whole
point of the exercise was to save the business money by replacing
expensive labor with inexpensive robots, and yet the redundancy
of excess labor is going to cause the companies to raise wages,
making it MORE compelling to replace more labor with more technology?
Hahahaha!
Well, it would
be too, too funny if it were not so, so sad and dismaying.
I was likewise
dumbfounded to learn, surfing through the news channels, that the
actual statistic that the new Republican proposed budget “only”
grows government spending by 3.5% per year, while the Democrats
want 5% spending growth per year.
You can tell
by the look of horror on my face that I am aghast that this minimum
of 3.5% growth means that, at the end of ten years, the budget will
be a whopping 41.5% higher than it is now! Almost bigger by half!
In ten lousy years!
And, even more
horrifying, since there is nowhere else from which that incredibly
much currency and credit can come, the already-huge money supply
and the already-bloated national debt will both be a LOT higher
than that!!
The more astute
of you will have, no doubt, noticed the use of the two exclamation
points, a clever literary device I used to denote particular emphasis
because the writer – me! – or, perhaps, the editor – surprise! Me
again! – thinks that this is very significant, perhaps in the sense
that the best we can do is monstrously increasing debt and the money
supply by almost half again in Ten Lousy Years (TLY), resulting
in huge, huge, HUGE inflations in the prices of some things, then
in the prices of most things, then in the prices of all things,
which is the horrific thing that makes it all fall apart, with much
wailing and gnashing of teeth in addition to the widespread suffering,
deprivation and misery caused by rapidly rising prices against relatively
static (or falling) incomes.
But there is
a bright side of the problem of the economy and the whole country
being ruined, devastated by bankrupting price inflation that always
follows such irresponsible monetary inflation. And that “bright
side” is for you to buy gold, silver and oil now! As much as
you can!
Even I, the
Wonderful Mogambo Font Of Investing Genius (WMFOIG), am always impressed
with the incandescent brilliance of this timeless investing advice.
So I was strutting
around the place, real proud of myself, when I saw that Mike Maloney’s
terrific “The Hidden Secrets of Money, Episode 1” was
released at his GoldSilver.com website, and I was in it! Me! I had,
as we conceited Hollywood stars say, arrived!
There was,
of course, some heated controversy whether I sounded more stupid
than I really am, or vice versa, or equally stupid-looking and sounding,
although the majority eagerly agreed that I came across as some
old man who has lost both his marbles and his hair.
Of course,
perhaps because I AM just some old man who has, indeed, lost both
his marbles and his hair, I steadfastly believe everything that
I know is true, such as letting the Federal Reserve create so impossibly
much currency and credit (monetary inflation) will produce terrifying
increases in consumer prices (price inflation).
Now, couple
that timeless truism with the known fact that gold and silver, the
only true historical monies, have always gone up in price when the
currency involved in the transfer of ownership of the aforementioned
gold and silver has lost purchasing power due to the likewise aforesaid
over-issuance of currency and credit.
Thus after
viewing the episode, my standard high level of enthusiasm for buying
gold and silver, with which to capitalize, richly, on the coming
high price inflation, was suddenly launched into overdrive, propelling
me into a whole new dimension of terror, actually transcending urgency
and panic, in some weird kind of wild, psychotic episode.
I figure that
I got all “psycho” because, for one reason, that’s what
people keep calling me because of my pronounced fear of price inflation,
thus explaining my gold-bug and silver-bug proclivities, which compel
me to wax ever more, and probably evermore, outraged about how the
evil Federal Reserve is absolutely destroying the purchasing power
of the dollar by creating too much fiat currency and credit with
which to finance a bloated, cancerous, debt-addled, government-centric
economy dying of morbid obesity and abject stupidity.
And for another
reason, I would REALLY have to be a psycho screwball to even consider
suggesting to my wife that we mortgage the house to the limit, sell
the kids’ belongings on eBay, and hit up her friends and her parents
for loans to get a big bunch of currency to buy more gold and silver
– lots more! – because it is such a guaranteed, can’t miss, sure-fire,
dead-bang winner of an investment!
I mean, look
at the amounts of currency and credit that the foul Federal Reserve
is creating so that the horrid federal government can spend it!
And all the other large central banks of the world are doing the
same thing! Horrors!
If gold and
silver do NOT rise in terms of a devalued dollar, it will be the
first time – the first time! – In All Of Freaking History (IAOFH)
that the ruination of a currency by over-issuance did NOT result
in roaring inflation in prices, with gold and silver rising supreme,
soaring majestically over an economic landscape of destruction,
ashes and suffering caused by the resultant terrifying inflation
in prices, such that people starved to death, and froze to death,
because the prices of food and energy were so high, and all the
people got all real honked-off about it, and were rioting in the
streets, and this time hopefully storming the Federal Reserve, taking
over in a glorious bloodless coup to instantly put the USA back
on the gold standard, to immediate effect as the dollar would probably
instantly be so strong that we could import as much food and energy
as we want at low, low, low prices, while the throngs gleefully
shout “The Wonderful Mogambo (TWM) was right! We should have
done this years ago!”
And the best
part – the best part! – is that the gold and silver markets are
corrupt and manipulated to keep their prices down! What a godsend!
Cheap gold! Cheap silver!
Now, there
are many things you can say about corrupt markets and the corrupt
regulators who allow such corruption, and I have said most of them
most of the time, but one you probably never thought of is “Thanks,
corrupt market manipulators, and your regulator lackeys, for keeping
the prices of gold and silver down so I can buy more at these laughably
low prices!”
And that is
just one – ONE! – of the many, MANY reasons why savvy investors,
like you and Junior Mogambo Rangers (JMRs) everywhere, buy gold,
silver and oil, and say, whilst doing do, “Whee! This investing
stuff is easy!”
April
22, 2013
Richard Daughty (Mogambo
Guru) is general partner and COO for Smith Consultant Group, serving
the financial and medical communities, and the writer/publisher
of the Mogambo Guru economic newsletter, an avocational exercise
to better heap disrespect on those who desperately deserve it. The
Mogambo Guru is quoted frequently in BarronÂ’s, The
Daily Reckoning, and other fine publications. Visit
his website.
Copyright
© 2013 Richard Daughty