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Awaiting the 'Zero Hour' of Available Credit

Interest-Rates / Credit Crisis 2011 Apr 15, 2011 - 10:23 AM GMT

By: Richard_Daughty

Interest-Rates

Best Financial Markets Analysis ArticleI watch expectantly as the national debt again nears the debt limit, and Zero Hour is just a few weeks away, a term I cleverly used to indicate that available credit will be zero. Maxed out.

I let it go at that, as I am not inebriated enough to get up on my high horse to loudly and rudely note that nobody in the corrupt government (including the Federal Reserve) apparently needs any stinking permission from anybody to do anything anymore, including any number or frauds and corruptions, to keep the government wallowing in the oceans of cash it so desperately, desperately needs to keep, you know, wallowing.


Of course, my own Zero Hour is fast approaching, too, as the pitifully few dollars that I was able to extricate from my wife's purse without her catching me are almost gone, which turned out to be too few to get me drunk enough to do any serious pontificating about the horrors of the Federal Reserve creating so much money, so that the government can spend so much money, that creates so much inflation in prices everywhere and so much corruption everywhere, too.

I have perhaps struck a chord in Peter Schiff of Euro Pacific Capital, who notes that "Very few people have either the time or patience to sift through the data released by the Treasury Department in the wake of its bond auctions. But the numbers do provide direct evidence of the country's current financial condition that in many ways mirror a financial shell game that typifies our entire economy."

And the reason is, I figure, because of the bloated, malignant nature of the economy itself, as Grandfather-Economic-Report.com notes, with ill-concealed horror, that "51% of the economy now depends on government spending," while another chart, labeled, "Relative Share of Economy Prior to 1930," shows the government's share of the economy back then was only 12%. In 1947, a mere two years after the gigantic wartime command-economy of WWII, it was 22%.

Noticing that many of you are drifting off out of boredom, I decide to add a little drama to my presentation by using the eye-catching cinematic technique of dropping the pages of a calendar, one by one, letting them fall into a disgusting, dirty toilet, now stuffed to overflowing with old calendar pages, both as a way of indicating the passage of time and as a rude commentary on the stinking life that you have to lead, day after day, year after year, because you always need more and more money to always pay the higher and higher prices for the things you buy, thanks to the evil Federal Reserve creating so much money that price inflation is ever-present and ever-irksome, to say the least.

Fortunately, there is a point to this "falling of the calendar pages" thing other than, for some reason, a stinking, dirty toilet that is very childish of me. Then you realize that the last page of the calendar to fall was the page for yesterday, meaning that today is today, where the government's share of the economy is a massive 51%!

And I don't know if the Grandfather Report shows it somewhere on its massive site, but another Mogambo Economic Horror (MEH) is that 5 out of 10 - half! - of the employees in America work either for a local, state or federal government, or for the education system, or for a tax-supported private agency, or work for a non-profit organization. Half!

"So," you may be asking yourself as I continually ask myself, "who in the hell is left to pay taxes to the government out of profits, when half of all employees in the Whole Freaking Country (WFC) make no profit at all, and who must get it from those who do earn a profit, and/or solicit charitable donations, which is, in essence, asking people to tax themselves?"

Unfortunately, I have no answer that does not involve screaming obscenities at the Federal Reserve and summarizing the horror as, "We're Freaking Doomed (WFD)!"

Fortunately, there is an easy answer to the question, "What in the hell can we do to save our butts from the horrible inflation that is guaranteed by the massive over-creation of money by the evil Federal Reserve to feed a fat, bloated, corrupt Congress and their myriad social engineering programs that are half the economy?"

And the answer is, obviously, "Buy gold and silver under those circumstances," as the entire history of mankind shows that they do Very, Very Well (VVW) when the morons in control of the government and/or the banks are creating excessive amounts of fiat money to attempt to bail themselves out of bankruptcy.

Since nothing can be easier than simply buying gold and silver when the money is being abused, perhaps that is why I say, "Whee! This investing stuff is easy!"

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 © 2011 Daily Reckoning

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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.


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