MOGAMBO GURU: 'Buy Heap Big Oil, Gold, Silver'

[Tace]

Richard Daughty, the angriest guy in economics
World News Trust

I knew something was wrong when I woke up Friday morning. Not only was my Wall Street Journal missing, but my wife was acting real nervous and suspicious, and the damned kid was hiding behind the couch. What the hell is going on? I soon found out, and, as obviously predicted, was highly frightened to see that Total Fed Credit actually declined by $17 billion last week! The ability, or actions, of the banks in creating money out of thin air was, gulp, lowered by $17 billion dollars? In one freaking WEEK?

To be fair, reversing the excesses of the customary end-of-year monetary goosing by the Federal Reserve is pretty par for the course, as it happens every year about this time. But meanwhile, the money supply is still growing quite handsomely, as reported by Bill Bonner at DailyReckoning.com, who writes, "In the latest reported week, more than $25 billion was added to the nation’s money supply. If this were to continue, it would add more new money in 18 months than the present value of all the gold ever mined." Hahaha! The money supply is going up faster than the growth in the economy, which means that prices will increase (to absorb all that money), and the supply of money is increasing, in one lousy freaking year, more than the value of all the gold in the whole world? And now you wonder if gold is going to go up in price? Hahaha! It's not IF gold will go up, my darling little Mogambo larva (DLML), but how freaking MUCH it is going to go up in price! And I am betting gold will go up a LOT! And if it does not, then I will be surprised as hell (SAH) because this would be the first time in all of history when gold did NOT rise mightily in price when faced with the enormous economic idiocies, like the ones that currently bedevil us, especially when using a fiat currency as money!

But we aren't here to talk about gold and how freaking much money is going to be made in gold, although it is one of my favorite things to talk about. Instead, we were talking about the money supply, and almost as if by accident I happened upon the essay "The Fed's Money Supply Armament Is Underway" by Robert McHugh, which was posted on Financial Sense.com. He writes that the money supply figure known as M-3 "has been launched into outer space, up another $56.3 billion last week, up $92.4 billion over the past two. This is some real horsepower. Over six weeks," he says, M-3 is "up $177.8 billion. These annualized growth rates are 28.7 percent, 23.6 percent, and 15.3 percent respectively."

As soon as I read that, I gulped, suddenly nervous and edgy. He then soothingly adds that, "Those are the seasonally adjusted figures." I think to myself, "Whew! That was close! I coulda had a heart attack!" Now I am starting to relax a little, because adjusting "seasonally" and "annually" are two of my favorite statistical tricks. For example, suppose my wife starts up with that same old whining crap of hers, and says, "You are a lazy, mean, worthless slob and I am sorry I married you, blah blah blah! And now I am going to make your life miserable, you smelly, horrible, disgusting creep blah blah blah."

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http://worldnewstrust.org/modules/AMS/article.php?storyid=2180

[oregonindy]

1. For those of you who dont read richard......

Hes a spot on sort of guy. yeah he is a conservative at heart and says somethings that can put a burr under a liberal's saddle but his information is very, very informative and funny too.

I'd like to recomend www.urbansurvival.com as well

[TrogL]

3. He's a gold bug

The solution to everything is to buy gold.

Even with gold at the highest levels since 1981, he finds an excuse to buy gold, completly ignoring that the 1981 price was gold mania similar to Dutch tulip-bulb mania.

[oregonindy]

4. I have to disagree

his view, along with mine and history for that matter is that fiat money systems always crash. Period end of story. Its why the constitution specifically says no tender but gold and silver; too bad the banksters have worked around that. that pesky piece of paper...too bad they keep screwing with it.

To better weather that inevitable crash your investments should be in physical on hand metals. Specifically Gold and Silver which is what our current system of fiat was backed by. Silver was removed first and then we went off the gold standard. The federal reserve; which is not a federal institution but instead privately owned banks, creates money out of thin air. thin air. think about that for a bit. those pieces of green paper 1,5,10,20,50,100 all cost the federal reserve the same..bout 5 cents each. most people dont even think to question this.

anyways bout the gold and silver...been around for thousands of years as a form of barter, trade and money....much much much safer than fiat.

[efhmc]

2. Does this person really have a mate?

[Uncle Joe]

6. I would venture not a happy one, but I agree with his column. n/t

[K-W]

5. Big government = big monopoly.

And the reason gold will increase in value is because the same people who created this big government that drives this crazy economy are going to invest in gold when the economy crashes to the ground. But it isnt the stupidity of some big government that causes this, it is the greed of those powerful holders of great wealth and all the speculators who gamble in their wakes.