Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
GOLD BULL RUN TREND ANALYSIS - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19
Central Banks Move To Keep The Global Markets Party Rolling – Part III - 14th Aug 19
You Have to Buy Bonds Even When Interest Rates Are Low - 14th Aug 19
Gold Near Term Risk is Increasing - 14th Aug 19
Installment Loans vs Personal Bank Loans - 14th Aug 19
ROCHE - RHHBY Life Extension Pharma Stocks Investing - 14th Aug 19
Gold Bulls Must Love the Hong Kong Protests - 14th Aug 19
Gold, Markets and Invasive Species - 14th Aug 19
Cannabis Stocks With Millennial Appeal - 14th Aug 19
August 19 (Crazy Ivan) Stock Market Event Only A Few Days Away - 13th Aug 19
This is the real move in gold and silver… it’s going to be multiyear - 13th Aug 19
Global Central Banks Kick Can Down The Road Again - 13th Aug 19
US Dollar Finally the Achillles Heel - 13th Aug 19
Financial Success Formula Failure - 13th Aug 19
How to Test Your Car Alternator with a Multimeter - 13th Aug 19
London Under Attack! Victoria Embankment Gardens Statues and Monuments - 13th Aug 19
More Stock Market Weakness Ahead - 12th Aug 19
Global Central Banks Move To Keep The Party Rolling Onward - 12th Aug 19
All Eyes On Copper - 12th Aug 19
History of Yield Curve Inversions and Gold - 12th Aug 19
Precious Metals Soar on Falling Yields, Currency Turmoil - 12th Aug 19
Why GraphQL? The Benefits Explained - 12th Aug 19
Is the Stock Market Making a V-shaped Recovery? - 11th Aug 19
Precious Metals and Stocks VIX Are About To Pull A “Crazy Ivan” - 11th Aug 19
Social Media Civil War - 11th Aug 19
Gold and the Bond Yield Continuum - 11th Aug 19
Traders: Which Markets Should You Trade? - 11th Aug 19
US Corporate Debt Is at Risk of a Flash Crash - 10th Aug 19
EURODOLLAR futures above 2016 highs: FED to cut over 100 bps quickly - 10th Aug 19
Market’s flight-to-safety: Should You Buy Stocks Now? - 10th Aug 19
The Cold, Hard Math Tells Netflix Stock Could Crash 70% - 10th Aug 19
Our Custom Index Charts Suggest Stock Markets Are In For A Wild Ride - 9th Aug 19
Bitcoin Price Triggers Ahead - 9th Aug 19
Walmart Is Coming for Amazon - 9th Aug 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Help the Poor by Stopping the Money Printing Press

Politics / Money Supply Apr 14, 2010 - 04:08 AM GMT

By: LewRockwell

Politics

Best Financial Markets Analysis ArticleRichard Daughty writes: I am happy to note that the Tea Party, which appeals to me personally, is gaining traction and power, which adds more political overtones to my life and gets me, a shameful Republican, away from the loathsome Republicans (except Ron Paul), which have acted almost as despicably as the Democrats.


I cheerfully denounce them all with a snotty, disrespectful tone in my voice and a condescending sneer on my lips, also an indicator of disrespect, because I am a guy who has spent a lifetime reading about what happens when governments try this “increasing the money supply” crapola that, since the 1960s, the Democrats made into a political mainstay and the Republicans went “grudgingly” along with it, and I am, in a word, horrified and disgusted.

The truth is that I am now continuing to write, as after writing that last horrific sentence about “increase the money supply,” I took the rest of the morning off to think about it, hopefully to calm my shattered nerves. Now I am back at work after discovering that I am more, much more than horrified, and instead am in a Raging Mogambo Snit (RMS) because, according to Fox News, “Sen. Max Baucus, D-Mont., chairman of the influential Finance Committee” said that the “overhaul” of the healthcare system was “an ‘income shift’ to help the poor,” which is not what I am angry about because it’s exactly true, else why do it? So you can’t fault him for saying what is true! Hahaha!

However, I can fault Senator Baucus for just being a typical laughable-yet-loathsome modern Democrat, entirely emblematic as he is of the egotistical big-hearted people who love, and live to love, and love to live to love, and who think that the Beatles were right when they sang “All you need is love,” and use their arrogant “more-compassionate-than-thou” conceit as a bloody bludgeon to beat into submission common sense, economics, the entire history of fiat currencies, and the eternal problem of what to do with the poor people, the crippled people and the old people.

The part that really makes me despise Democrats slightly more than I despise Republicans is that Democrats ridiculously try to “help” the poor by tearing down the only system that has been shown to actually help the poor; namely, supplying them with jobs and keeping consumer prices from rising, but instead – wonderfully! – prices gently come down so that the poor have a rising standard of living because their money buys more.

“And what could such a wonderful system be?” you ask, unable to believe your ears. I reply, “It’s what you automatically get from a system of free enterprise powered by a stable money supply. It works like magic! It always has! It always will!”

Instead, the Federal Reserve will be forced to create so Monstrously Much Money (MMM) to finance a cancerously enlarging government to drown us in total debt, and thus continuously, massively enlarge the monetary base, which must make prices rise and rise continuously, prices which the poor can’t afford to pay and which makes them poorer, which makes Congress borrow and spend more money, which makes the money supply rise and rise, with prices always rising and rising as the monetary base gets larger and larger, round and around, whirling and twirling, spinning, spinning, spinning until you fall to the ground, crying out, dramatically, “Noooooo! More money only creates, paradoxically, more poor working people to add to the huge existing population of poor people because wage increases always lag price increases!”

Senator Baucus does not acknowledge my scorn or compliment me on my fine acting performance, and I hope everyone noticed how he would not meet my gaze, either, and instead lamely talks about “income mal-distribution” by saying that “Wages have not kept up with increased income of the highest income in America,” like this is some kind of news to him or something.

To this I say, “Hahahaboohoohoohahahaboohoohaboohaboohaha!” which shows that I am laughing and crying, and then laughing, and then crying, and then laughing, and then crying while laughing at the sheer idiocy of it, which proves that it must be idiotic for me to be laughing that way, QED.

Then, to show that he is a true Democrat, he says, “This legislation will have the effect of addressing the mal-distribution of income in America,” although he did not elaborate by saying, “by taking it away from somebody richer and giving it to someone poorer” and he did not say, “it will be paid for with fiat money created by the Federal Reserve so that Congress can borrow and spend it” and he did not say, “this unprecedented avalanche of new money will monstrously drive up prices paid by the poor, making them much, much poorer and angrier” but he could have and he should have.

Apparently, though, Senator Baucus is kind of stupid, as he does not understand that when a government deficit-spends, it does so by borrowing the money, but since the poor don’t have any money to loan to the government, the rich end up borrowing the money to loan to the government, whereupon the rich, over time, get all their money back, plus interest, making them richer, while, unfortunately, the poor get poorer because prices have risen.

All of these things he could have said, and he might as well have said, as it is all there in black and white at Mises.org, or it should be, and might well be!

And while neither he nor Mises.org said to buy gold, silver and oil as protection against this sheer economic idiocy and insanity, they might as well have, and while I cannot imagine either of them saying, “Whee! This investing stuff is easy” I certainly will! Whee!

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 Barron’s, The Daily Reckoning, and other fine publications.

Copyright © 2010 Daily Reckoning

© 2010 Copyright LewRockwell.com - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules