MOGAMBO GURU: 'You Got Gold, Silver, Oil, And Mozart

[Tace]

Richard Daughty, the angriest guy in economics -- World News Trust

Total Fed Credit did not appreciably change last week, up a mere $562 million, which is chump change when you have been watching TFC shooting up by a few billion per freaking week for years and years, especially since 1997, which is, for you Mogambo scholars, a special year for me, as clinical records indicate that 1997 was when I officially entered Permanent Mogambo Panic Mode (PMPM), thanks to Alan Greenspan and his horrible Federal Reserve moron buddies suddenly starting to create explosive, monumental amounts of money and credit around the clock, which they have not stopped doing yet, nine freaking years later.

As Sprott Asset Management wrote, "For those keeping track, M3 money supply is up 50% since the beginning of the decade, and has doubled since the beginning of 1997. Alan Greenspan has been a money printing speed demon. Before 1997 it took fourteen years for the money supply to double. Since then it has taken only nine; and if the rate of the past month is any indication, it will double again in four years."

So, money and credit were not being created willy-nilly as much in the last couple of weeks, which is a nice change of pace for those of us who understand how excess money and credit is what fuel booms, and how booms lead to busts, and how busts lead to business slowdowns, and business slowdowns mean relatives getting laid off, and then they come over here crying and pleading and whining and wanting me to pay back the money I owe them, and I laugh so much that I get a sore throat. But mostly I am despondent at the prospects.

My mood is elevated somewhat, as is yours, I am sure, by plans for the big celebration of Mozart's 250th birthday celebration this Friday, Jan. 27. On that glorious day we will all again spend time listening to the music of the greatest and most phenomenal composer in the history of music, eating German pork products, and drinking German beer until we puke. Ahhh! Music appreciation at its finest!

more

http://worldnewstrust.org/modules/AMS/article.php?storyid=2264

[dweller]

1. a bit more -- interesting ...

-- The yield curve has actually inverted, as short-term interest rates are now higher than long-term interest rates. This is always a very bad sign for an economy, as bond players are betting that the economy will be so weak that the Federal Reserve will be forced to drastically lower interest rates, thus increasing the value of their long bonds.

Peter Grandich hears me talking about an inverted yield curve and says, "I think an inverted yield curve, no matter how small of an invert it was, is one of the most reliable indicators around." Reliable indicator of what? Using my amazing Mogambo paranormal abilities (AMPA), I not only know EXACTLY what he thinks it means, in all its far-flung ramifications, but I also know how to shorten it to the pithy "We're freaking doomed!" because an inverted yield curve means we are facing a recession, and with this heaving, bloated, over-indebted, over-leveraged, mal-invested, idiotic big-government economy, we cannot possibly stand the strain.

What in the hell stock investors are so happy about, on the other hand, beats the hell out of me.

And I notice that the dollar is rolling over, as it should, and as befits a currency that is being so devalued by the central bank and the government that it is being literally destroyed in front of my aching, bloodshot eyes. And when the shooting war with Iran gets started, the dollar will fall even farther. And when oil is priced in some currency other than dollars it will fall even farther.

dp