Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
8 Stock Market Indicators in 1: Here's the Message of the Panic/Euphoria Model - 19th Apr 21
Gold - You Can Win a Battle, but Still Lose the War - 19th Apr 21
Will Interest Rates Rally Further Push Gold Price Down? - 19th Apr 21
Gold Fireworks Doubt the Official Inflation Story - 19th Apr 21
YuanPay Team Discuss The Process Of Crypto Diversification - 19th Apr 21
Central Banks May Ramp Up Gold Buying - 18th Apr 21
How to Get Rid of Driveway Weeds With Just WATER! 6 Months later NO Weeds, Ultimate Killer! - 18th Apr 21
State of the European Markets - DAX, FTSE, CAC, AEX, SMI, IBEX 35, S&P/MIB, Euro Stoxx 50, RTS - 18th Apr 21
Einvestment Fund: What You Need To Know About Investments - 18th Apr 21
Google Alphabet (GOOG) AI Deep Mind Stock Trend Analysis - 17th Apr 21
Stocks and Bonds Inflationary Slingshot - 17th Apr 21
Best Smartphone Selfie Stick Tripod Review by ATUMTEK Works with Samsung Galaxy and Iphone - 17th Apr 21
How to Give Budgie's First Bath | Easy Budgie Bathing and Water Training with Lettuce - 17th Apr 21
Record-breaking Decrease in New Passenger Vehicle Sale in Europe - 17th Apr 21
US Stocks Climb A “Wall Of Worry” To New Highs - 16th Apr 21
Gold’s Singular Role - 16th Apr 21
See what Anatomy of a Bursting Market Bubble looks like - 16th Apr 21
Many Stock Market Sectors Are Primed For Another Breakout Rally – Are You? - 16th Apr 21
What Skyrocketing US Home Prices Say About Inflation - 16th Apr 21
Still a Bullish Fever in Stocks? - 16th Apr 21
Trying to Buy Coinbase Stock on IPO Day - Institutional Investors Freeze out Retail Investors - 15th Apr 21
Stocks or Gold – Which Is in the Catbird Seat? - 15th Apr 21
Time For A Stock Market Melt-Up - 15th Apr 21
Stocks Bull Market Progression Now Shows Base Metal Strength - 15th Apr 21
AI Tech Stocks Buy Ratings, Levels and Valuations - 14th Apr 21
Easy 10% to 15% Overclock for 5600x, 5900x, 5950x Using AMD Ryzen Master Precision Boost Overdrive - 14th Apr 21
The Current Cannabis Sector Rally Is Pointing To Another Breakout - 14th Apr 21
U.S. Dollar Junk Bond Market The Easiest Money in History - 14th Apr 21
The SPY Is Nearing Resistance @ $410… What Is Next? - 14th Apr 21
The Curious Stock Market Staircase Rally - 14th Apr 21
Stocks are Heating Up - 14th Apr 21
Two Methods in Calculating For R&D Tax Credits - 14th Apr 21
Stock Market Minor Correction Due - 13th Apr 21
How to Feed Budgies Cucumbers - Best Vegetables Feeding for the First Time, Parakeet Care UK - 13th Apr 21
Biggest Inflation Threat in 40 Years Looms over Markets - 13th Apr 21
How to Get Rich with the Pareto Distribution - Tesco Example - 13th Apr 21
Litecoin and Bitcoin-Which Is Better? - 13th Apr 21
The Major Advantages Of Getting Your PhD Online - 12th Apr 21
Covid-19 Pandemic Current State for UK, US, Europe, Brazil Vaccinations vs Lockdown's Third Wave - 12th Apr 21
Why These Stock Market Indicators Should Grab Your Full Attention - 12th Apr 21
Rising Debt Means a Weaker US Dollar - 12th Apr 21
Another Gold Stocks Upleg - 12th Apr 21
AMD The ZEN Tech Stock - 12th Apr 21
Overclockers UK Build Quality - Why Glue Fan to CPU Heat sink Instead of Using Supplied Clips? - 12th Apr 21 -
What are the Key Capabilities You Should Look for in Fleet Management Software? - 12th Apr 21
What Is Bitcoin Gold? - 12th Apr 21
UK Covd-19 FREE Lateral Flow Self Testing Kits How Use for the First Time at Home - 10th Apr 21
NVIDIA Stock ARMED and Dangeorus! - 10th Apr 21
The History of Bitcoin Hard Forks - 10th Apr 21
Gold Mining Stocks: A House Built on Shaky Ground - 9th Apr 21
Stock Market On the Verge of a Pullback - 9th Apr 21
What Is Bitcoin Unlimited? - 9th Apr 21
Most Money Managers Gamble With Your Money - 9th Apr 21
Top 5 Evolving Trends For Mobile Casinos - 9th Apr 21
Top 5 AI Tech Stocks Investing 2021 Analysis - 8th Apr 21
Dow Stock Market Trend Forecast 2021 - Crash or Continuing Bull Run? - 8th Apr 21
Don’t Be Fooled by the Stock Market Rally - 8th Apr 21
Gold and Latin: Twin Pillars of Western Rejuvenation - 8th Apr 21
Stronger US Dollar Reacts To Global Market Concerns – Which ETFs Will Benefit? Part II - 8th Apr 21
You're invited: Spot the Next BIG Move in Oil, Gas, Energy ETFs - 8th Apr 21
Ladies and Gentlemen, Mr US Dollar is Back - 8th Apr 21
Stock Market New S&P 500 Highs or Metals Rising? - 8th Apr 21
Microsoft AI Azure Cloud Computing Driving Tech Giant Profits - 7th Apr 21
Amazon Tech Stock PRIMEDAY SALE- 7th Apr 21
The US has Metals Problem - Lithium, Graphite, Copper, Nickel Supplies - 7th Apr 21
Yes, the Fed Will Cover Biden’s $4 Trillion Deficit - 7th Apr 21
S&P 500 Fireworks and Gold Going Stronger - 7th Apr 21
Stock Market Perceived Vs. Actual Risks: The Key To Success - 7th Apr 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Keynesian Phrenology - Our Rulers Are Nutty as Well as Evil

Politics / Economic Theory May 20, 2013 - 03:13 PM GMT

By: Richard_Daughty

Politics

I am getting more and more upset about the future of the economy, especially the part where I will probably still be alive to suffer through it, instead of being safely dead and gone, laughing disdainfully from whatever circle of Dante’s hell that is reserved for us lousy fathers, worthless husbands, lackluster employees and all-around lazy bastards.

“Hahaha!” I will bellow. “Now suffer! Suffer, you morons who actually believed that the idiocy of Keynesian economics would NOT end in disaster! From the heart of hell I strike at thee!”


As immensely satisfying as that schadenfreude will certainly be, the dismal fact is that I am still alive, and will live to see the horrendous price inflation, bankruptcy, misery, hunger, ruination and deprivation that always – for the last 2,500 years, anyway – follows episodes of idiotic countries running up unpayable debts, especially those who do so by gigantically increasing their fiat money supplies to pay for massive government deficit-spending.

Thus, being alive, I figure that I have to do something to make some cash while I am waiting for my little pathetic stash of gold, silver and oil (the famous Top Three Mogambo Picks For Wealth (TTMPFW)) to finish the cycle of criminal corruption and monstrous market-manipulation that is currently keeping their prices down, whereupon their prices will soar, allowing me to kick my natural lassitude into high gear by hiring legions of comely servants to cater to my every transient whim, as communicated to them by the mere raising of an eyebrow (“Bring me pizza!”) or subtle waggling of my little finger (“And a beer!”).

Alas, since I have no relevant education, personal initiative or hidden talents other than arrogant superciliousness and a towering-yet-completely-unwarranted conceit, I knew I was perfect for something in the vein of doofus Keynesian economists like Ben Bernanke of the Federal Reserve, or the laughable Paul Krugman of Princeton University and the New York Times.

Namely, I will combine the obvious with complete stupidity via mathematical equations to produce an excuse to meddle in things, making things predictably worse.

But what? What could I do?

Scratching my head in befuddlement, I was suddenly hit with inspiration! Phrenology! Yes, phrenology, which is the study of the bumps of a person’s head to determine the person’s personality and character.

Unlike Keynesian economics, phrenology has already been completely discredited, and only a real dimwit believes in either of them, but (I concluded) only because phrenology lacks the mathematical twist and an excuse for meddling!

Now, check this out for Sheer Mogambo Genius (SMG): Firstly, I measure the width and height of the bumps on the head, use calculus to determine their volumes, and combine the numerical results, in novel and mysterious ways, into some huge, bizarre theoretical monstrosity, like Keynesian econometric models.

Now here’s the genius part: Like the Federal Reserve’s corrupt championing of laughable Keynesian economics (instead of the Austrian School of economics, like they should because it is the only true economic theory), I similarly use Quantitative Easing by using a hammer to hit the patient’s head to increase the size of various bumps, or flatten out other bumps, changing their whole phrenology!

Then, it is all sunbeams and rosebuds from then on!

And, best of all, I’ll get The Big Bucks (TBB) for doing it! Fabulous!

Excitedly, I decided to test my new Fabulous Mogambo Phrenology Theory (FMPT). Using charts from the Internet, I located the “intelligence bump” on my own head, noting with dismay that its small size perfectly corresponded with my famously dim wit, perpetual confusion and drooling incoherence.

Now, giving myself a mighty “whack!” with the hammer on the aforementioned “intelligence bump,” I was delighted to see that my intelligence instantly increased! It was amazing!

After falling to my knees, head throbbing, slipping into and out of consciousness, I immediately and intelligently saw that 1) from now on I would experiment on the kids instead of myself, and 2) that permitting futures on financial products is a Gigantically Big Scam (GBS), because while shorting commodity futures, like corn, wheat and oil, cannot go to extreme measures by shorting because the actual supply of corn, wheat and oil are finite and must ultimately be delivered, the supply of financial products is infinite since it is no longer necessary to borrow an asset before selling it, or ever selling it at all!

You can just “make up” – literally out of thin air! – as much stock or debt as you want, and sell it!

And if you want to short a LOT of stocks or debt via selling futures, then you will automatically manipulate the market down, handing you a profit as your shorts go up in price, which is why gold and silver prices are so ludicrously low!

And since there is no limit to this, the financial markets can go to ludicrous heights or depths, especially – in spades! – since the Federal Reserve itself is now creating more and more fiat currency to buy equities, in addition to its already-ravenous buying of debt and financing the shorting of gold! Yikes! What a racket!

Thus I learned a third thing: forget phrenology! The big money, these days, is in running a legal scam in the futures markets because there is nothing to prevent it, and the Federal Reserve is not only providing the financing, but doing the same thing! So, pile on!

I know what you are thinking. You are thinking “Hey! The Mogambo doesn’t sound as stupid as he usually does! Maybe there IS something to this phrenology thing!”

If I wasn’t so stupid, I would probably understand the obvious insults, and maybe come up with some clever riposte.

Alas, I can only offer, for the thousandth time, the two pieces of Fabulous Investing Advice (FIA) that I am smart enough to understand.

Firstly, inflation in the prices of assets caused by a huge creation of fiat currency and credit will end in a bust.

Secondly, buy gold and silver. They are the only things you can count on in this increasingly-corrupt world, as amply evidenced by 2,500 years of history proving, over and over, that increasingly-corrupt markets and exploding fiat money supplies always result in collapse and complete ruination.

And with the commodity markets having no supervision or regulation as regards monstrous short positions in gold and silver, allowing these short-lived manipulations to drive down the prices of gold and silver to bargain-basement levels, one must conclude, with an giggle of glee, “Whee! This investing thing 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. Visit his website.

http://www.lewrockwell.com

    © 2013 Copyright Richard Daughty - 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