The Mogambo Guru on the Fed, Inflation, and Gold

when the supply of money grows faster than the stock of goods and services, the money will diffuse through the stock of goods and services with the result of higher prices for goods and services.

Seems simple to me! But then I am not a Federal Reserve hotshot with a PhD in economics from an “acceptable” university to wave in anyone’s face, and neither do I subscribe to the idiotic neo-Keynesian econometric crapola that fascinates the Federal Reserve and mainstream academia, a theoretical monstrosity which has resulted in the horrific economic mess we are in, and from which there is, alas, no escape.

In fact, I am absolutely sure that there is No Freaking Way (NFW) to prevent the collapse, being, as it is, just the collapse of yet another of history’s dismal experiments with boom economies built on fiat money and huge debts, because if there WAS a way out of the mess caused by too much money and too much government spending, then there would be no such thing as economics!...

They, unfortunately, start right out with a glaring need for some Serious Mogambo Editing (SME) when they write, “Assuming Fed chairman Ben Bernanke succeeds in reverting the US economy to full employment and rapid growth,” which my keen editor’s eye clearly sees should more correctly say, “If, against all odds, common sense and 4,500 years of history, clueless Fed chairman Ben Bernanke actually succeeds in reverting the US economy to full employment and rapid growth, then it will truly be a miracle, especially since The Fabulous Mogambo (TFM) just spent several introductory paragraphs saying it was freaking impossible.”...

I love these puzzles because they don’t take long, and so you can soon get back to doing important things, like writing hate mail to the Federal Reserve (“Dear Monetary Halfwits, I hate you because you have been so consistently wrong about everything and now we are freaking doomed with your stupid expansion of the money supply!”)...

I am sure, however, that deep down inside me there is a cynical, paranoid part of me that interprets the joke as a reminder to buy as much gold, silver and oil as you can, which will protect you against the terrifying and economy-rending inflation in prices that is sure to come as a result of such insane over-creation of new money by the Federal Reserve and the equally-insane borrowing-and-spending by the Obama administration, which is not really funny, either...

read the entire essay