Economics Is Dead
August 3, 2017
By:
The Mogambo Guru
Alas, all my dreams of achieving immortality through my Staggering Mogambo
Brilliance (SMB) in economics are turning to bitter dust.
This is probably because I am not very bright have never had an
original thought in my whole life. For the record, though, I am officially
blaming this outrage on everybody but me.
Yet, in my deep despair, I can still delight in childishly upstaging real
geniuses, like Albert Einstein, who said something to the effect that
compound interest was a miracle.
Here is where I haughtily say, with a delicious hint of condescending
disdain in my voice, “Einstein? Ha! What does a theoretical physicist know
about economics? If he was so smart, he would have known that the biggest
miracle is a fiat currency! Taa daa! Who’s your daddy now, chump?”
I breezily say this, like I toss off stellar bon mots like this all the
time, is because to acquire wealth through compound interest, like
Einstein says, unfortunately takes a long, long time.
Too long, in fact. All during this protracted period of your Hobbesian
nasty, brutish and short life, you are busily squirreling away every dime
you can get your grubby hands on, feverishly buying gold and silver
because those are the only two classical hedges against rampant monetary
insanity, every day being scared out of your mind about the horrible
outcome of Federal Reserve monetary lunacy started by the demonic Alan
Greenspan, and then thrown into high gear by Ben Bernanke, and now Janet
Yellen.
Alas, you are not lauded as a hero by your adoring family for your wise
reaction to the Federal Reserve blithely creating dangerous scads of cash
and credit, day after day, week after week, month after month, year after
year, decade after unbelievable freaking decade. And is now actually
acquiring common assets, committing the ultimate monetary sin!!!!
Four exclamation points! Yikes!
Instead, you have, as your reward, to listen Every Freaking Day (EFD) to
your family constantly whining “Please, daddy! Spend money on us! We need
food and clothing and urgent medical attention!”
So, trust me when I say that Einstein’s “miracle” of compound interest,
then, comes bundled with the constant irritation of complaining
malcontents, spending most of their time plotting against you (and
probably robbing you of fame for your Staggering Mogambo Brilliance
(SMB)!) which, you have to agree, is NOT a customary part of your
everyday, genuine miracles.
But with a fiat currency? Now, THAT’S a miracle! You can have unimagined
wealth, instantly, and totally pain-free!
And more, wonderfully more, more, more!
Anytime you want it!
Well, rudely wresting your attention away from degenerate daydreams
involving the forbidden delights afforded by instant wealth, thanks to the
evil Federal Reserve, banks and governments gorging themselves on an
abused fiat currency, I bring this up because of the Founding Fathers,
Einstein and Janet Yellen (chairwoman of the evil Federal Reserve.)
The Founding Fathers were, of course, Thomas Jefferson and the rest of the
smart guys who wrote the Constitution of the United States.
As an aside, they could have saved a lot of time if they had looked at the
Mogambo Scrolls Of Cosmic Truisms (MSOCT), there to find such pearls of
wisdom as “It’s about the money, jerks. Everything is ALWAYS about the
money. So make money from
gold and/or silver, which makes control of the growth of the money supply
easier, which makes controlling price inflation easier, and makes it
harder for the greedy, corrupt banks to screw things up, although they
always end up doing it anyway.
It’s always the banks, ya morons!”
Another little-known historical fact is that this exact quote would have,
believe it or not, actually been IN the Constitution, except that I wasn’t
even born for another 170 years, and none of these hotshots wanted to
wait, which shows what bunch of impatient, preening hotheads these
Founding Fathers actually were.
The good news is that, even without me helping them along, they got the
requirement that only gold and silver could be money into the
Constitution, so as to limit the money supply, so as to limit inflation in
prices, so as to prevent the destruction of the economy because the people
can’t afford to buy anything, where it (believe it or not!) sits to this
day.
Unfortunately, the demonic Franklin Delano Roosevelt found himself in the
economic depression that he and Keynesian madness insured. What he
desperately wanted was an expanded money supply, so as to “buy
prosperity.”
So he extorted compliance from the Supreme Court to allow money to be, not
gold and silver per the Constitution, but paper.
And every Supreme Court since 1937 has upheld this treasonous
decision at every challenge.
Now, here is where it gets interesting, as even I have to admit I’ve been
rambling more than usual, and things have been a boring snooze so far.
So, it doesn’t take someone with ESP to know that you are thinking “I am
sooOOOoo bored! To perhaps pique my interest and keep me from switching to
another channel, Mister Smarty-Pants Mogambo (MSPM), tell me what can I,
and I’m talking me personally and yours truly, can do with this
information to quickly make a humongous butt-load of money, with minimal
investment, and zero risk?”
I’m glad you asked, because it bring us back to miracle of
un-Constitutional fiat currency that can be created, in any amount, at
will, by any lowlife central bank stupid enough to do it.
This brings us to Janet Yellen. As a lifelong critic of the evil Federal
Reserve and a pesky blowhard about the treacherous Keynesian lowlifes who
infest it, I am surprised, as you surely are, to find myself agreeing with
Janet Yellen when she said that we have learned a lot about monetary
policy.
The main thing we learned, as far as monetary policy is concerned, is that
that no matter how many hundreds of millions people we graduate from high
schools, colleges and universities across the nation, smugly erecting
expensive bastions of expensive education from sea to shining sea, amber
fields of grain and all, nobody is going to raise a peep about this
suicidal, bizarre bastardization of Keynesian economics, a monstrous
monetary death-cult that preaches “More money and debt for everyone!
Everywhere! All the time!”
Except for gold and silver, of course. All the world’s central banks, and
the criminal International Monetary Fund, have admitted to actively
suppressing the prices of gold and silver to keep you from investing in
these “dead assets” to instead force you to invest in “productive assets”
like stocks, bonds and houses.
To underscore the illegality of this, scores of their henchmen have been
forced to admit their crimes and have been convicted by the very
governments that have thus far turned a blind eye to it, which shows how
surreal it all is.
And with the government already buying houses and debt, and now, and now,
and now, AND FREAKING NOW (AFD) buying common equities, it is but child’s
play for the Fed and the government to create enough cash and credit to
stave off any market downturn, anywhere, in anything, by simply buying the
things that are going down in price.
Thus, with a guarantee of always having more buyers than sellers, we can
reasonably expect no more real, lasting crises for the Rest Of Our Lives
(ROOL) as measured by the prices of assets; they can always be made to go
up. Seemingly.
I figure that this is probably measured in a couple of years or decades,
tops, which will be about how long it will take until the hyperinflation
in the prices of goods and services outstrips the government’s/Fed’s
abilities to create enough hyper-inflating fiat dollars and get them
pounded into the economy to pay the old prices, which makes prices go up
even more, which will call for the evil Federal Reserve to create more
fiat currency and buy more assets, going around and around and around.
To the central banks, it’s a fabled “And they lived happily ever after”
economic expansion lasting, yea, even unto the sun going supernova a few
billion years from now, exploding in a sudden fiery flamethrower of fate,
instantly burning the Earth and the solar system to a cinder, but wiping
debts clean and giving everyone a chance to “start over.”
So, as another of my famous last-gasp attempts for ill-deserved fame, let
me be the first to declare, right here and right now, that the laws of
economics are (drum roll, please) dead.
They drowned in an inexhaustible flood of money.
Nothing matters now except that, thanks to the evil Federal Reserve and
the rest of the world’s central banks sinking to the lowest levels of
Dante’s hell by creating evermore money and credit to buy assets and thus
buoy markets, there will always be more buyers than sellers, and that
prices will, on average, always go up.
The reason? To keep all those trillions of dollars in retirement assets
and investment assets, all invested in stocks, bonds and housing, from
losing most of their current market value, wiping everybody out and
completely ruining your weekend and everything.
Well, that is, until the miracle of fiat money is made impossible by some
tipping point during hyperinflation.
The good news, and the part that is bound to finally make me famous, is
that “Whee! This investing stuff is easy! Buy gold and silver, as
suppression schemes never work in the long run, and a lot of this new
magical fiat money will get into the hands of people who are smart enough
to say ‘Hey! That Mogambo idiot was right! These assets markets are
insanely overpriced! I gotta buy gold and silver!’, and who will do so in
such overwhelming numbers as to make further suppression impossible!”
The only bad news concerns, of course, timing. Who will actually benefit
when gold and silver prices explode to real, market-clearing prices? You
or your heirs?
Let’s hope it’s you! And me! Whee!