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We need to take more of those blue pills

Richard Daughty
...the angriest guy in economics
The Mogambo Guru
February 23, 2005

- The week had a lot of interesting surprises, in my personal Mogambo opinion (IMPMO), which is unique among the universe of opinions, in that it is the only one that comes with the coveted Mogambo Guarantee Of Worthlessness (MGOW), which itself costs ten bucks, plus a shipping and handling charge of another ten bucks, plus tax, tag and title, bringing the total to, let me check that calculator again, fifty bucks, which is such a huge premium over value (zero) that I ought to get some kind of prize.

But if I print on the face of the MGOW certificate the word "fifty" and numerals "50", then you could use them as money if you could find some other dimwitted guy who was ALSO willing to use MGOWs as money to use in a trade, whereby I trade a worthless MGOW certificate for fifty bucks worth of stuff, and then I quickly haul it out of his store and into the trunk of my car and then I beat it out of town.

The problem is that finding guys willing to take MGOWs as money is the hard part, as people are not as stupid as you think, even though you take a look at the socialists and class-warrior dorks that they elect to our governments, and you think to yourself "Whoa! These voters are idiots if they think that such things are sustainable!" And yet nobody in the schools or the media say anything any different, so they all must think that way, too, and so you know right away those morons can't be that smart, either. But (and this a little self-test) if you think that the people who infest the schools and the media ARE smart, then that says something ugly about YOU!

Then I discovered, quite by accident, that if I remind the guy that I am armed and not in possession of all of my faculties, then I can usually get them to go along with me on the MGOW-as-money thing, especially when I remind him of what happened to that Girl Scout troop who were selling cookies and refused to play ball with me on this MGOW scheme of mine, and I distinctly told them how this was a great "opportunity" which implies a risk premium that has to be paid. But I guess they figured that since they were just little girls and it was broad daylight, that nobody would pick on them. Ha! They obviously did not figure on The Mogambo, who has learned his lessons well at the feet of layers and layers of government. Now, my target of choice is ONLY the weak and defenseless. Naturally, they then usually say "OK" and I can usually scarf down a whole box of Thin Mints between the time anybody calls 9-1-1 and the time the squad cars start showing up.

But now I sitting in a holding cell downtown, trying to convince the police to, instead of harassing me, go after the REAL criminals! So I am gently explaining to them, with charts and diagrams, how they should go after Alan Greenspan, as he is the enemy of our money and our country. So I am calmly saying things like, "The Federal Reserve is destroying our money! Can't you see that, you freaking idiots? Or is this the precinct where they send all the morons, the cretins, misfits and the borderline mentally-ill halfwits?"

Of course they look at me with that blank glazed look on their faces and that powdered sugar on their chins. So I say, "Okay, let me show you what I mean. Take a twenty dollar bill out of your wallet. Now hold it up to the light and look just to the left of the face on the bill." So he takes out a twenty, and holds it up to the light, and while he is squinting at some mysterious spot on the bill, I jump out of my seat, grab the twenty, and tear it into tiny pieces with my teeth, snarling like an enraged predator jungle cat as I am doing it, only with more spittle and coughing, and my zipper was down, too, which really spoiled the effect. Suddenly, he is screaming "Why in the hell did you do THAT?" and I say "What? I didn't do anything!" And he says, "Yes, you did! You tore up my money!"

So, once again I have to take some of my valuable Mogambo time (VMT) to explain to these numbskulls that I did not actually destroy his money. I merely destroyed his aggregate buying power by some small amount. But all the rest of his money still has approximately the same buying power. So all he lost was a tiny little bit of buying power! And what is a measly twenty bucks compared to his total net worth, measured in the tens of thousands of dollars, sometimes in the hundreds of thousand of dollars, and sometimes measured in the millions and billions of dollars? It's almost nothing! The fact is that he has been losing more buying power than that every damn day of the week for the last, let me check my watch here, ninety-two years since the horror known as the Federal Reserve was created. And while I only devalued his buying power by one lousy twenty-dollar bill, Alan Greenspan has spent his life devaluing all of your dollars, and especially so since 1998, and this horrible, twisted little man has issued so much money and credit that it has grossly devalued ALL of your dollars, and thus ALL your purchasing power, by an amount that is a LOT worse! The mind reels! And he is whining about one lousy double-sawbuck?

And thus I was particularly interested in how the Fed increased Total Fed Credit by $7 billion last week, which isn't a lot, but is a long way from any supposed "tightening." And I was also very, VERY interested, registering a 5.7 on The Mogambo Richter Scale (TMRS), which is a precise measurement of how out-of-line something seems to be, in Total Public Debt, which means that John Snow's Treasury Department issued a whopping $55 billion of new debt in one week (insert video footage of a balloon being blown up), $44 billion of that issued in (insert video footage in fast-forward mode to show a balloon being quickly blown up) ONE DAMNED DAY! (Insert video footage of me with head exploding and getting all over the walls. NOTE TO SELF: erase the soundtrack of wife screaming in the background "Oh, for the love of God! Can't you do any damn thing that doesn't make a damn mess? You clean that up! I'm NOT cleaning that up!" and I am yelling back "Well, I'm not going to clean it up either, as I am the artist! I am an artist, do you hear me? AND the producer and the director, and I call the shots around here, and somebody else cleans up the set after a shoot!" But I gotta remember to save the part where she says "You want a shoot, do you? You want a shoot? Well, I'll give you a shoot, you hateful little bastard!" and then there is the sound of running and yelling and doors slamming and glass breaking and me screaming, and then a lot more running and doors slamming and gunshots and more screaming, way off in the background, sirens).

But as I was saying, Gross National Debt ballooned to $7,701,022,542,261.61 (seven trillion, seven hundred and one billion and change) as of 10:00 Tuesday morning. A week ago, on 2/14/2005, the figure was only $7,630,849,109,540.36. This works out to $70.3 billion in new debt in eight days, which is about six times par (the average increase in national debt is about $2.2 billion per day) for those jerks. As if we don't have enough to worry about, what with Alan Greenspan and his ridiculous Federal Reserve destroying our money by their insane over-issuance of money and credit, blatantly encouraging us to plunge farther into un-payable debt, but George W. Bush and his bunch of economic lunatics are smothering us with MORE debt.

But I don't even mention this stuff to these moron cops. In professional Mogambo mode (PMM), I keep gently explaining, explaining, explaining, in simplified terms that even they can understand. I say "It's happening right in front of your eyes! Or are you so stupid that you can't even read numbers printed on a page, you moron fascist pig cops? Watch my lips, and maybe it will sink into your thick cop heads: Alan Greenspan is destroying your money! And when your money is being destroyed, then the buying power of your money is destroyed. And when the buying power of your money is destroyed then, then it manifests itself chiefly in price inflation. And when you get price inflation, then you buy less goods and services with each paycheck, month after month, and then you start looking for ways to cut expenses." Which is bad enough, but it gets worse when pretty soon everybody is looking at MY expenses, and the next thing you know everybody wants to know is why I am spending so much time in run-down bars, getting drunk as a skunk and complaining about the Federal Reserve, and how if it wasn't for them we'd still have nickel beers, and you can bet that as soon as I start talking about getting a tall, frosty mug for five cents, suddenly everyone is all ears.

But while I am secretly longing for the quiet and darkness of that seedy little bar and its all-Hank Williams jukebox, I realize that will have to wait, as I am still trying to explain to these policemen about the debasement of their money. "And then you, and your families, and the whole economy and society will be destroyed, because this is", I leap onto the desk as part of my big Mogambo moment (BMM), "the Mogambo Iron Lesson Of Economics (MILOE)! Namely, that when your money is destroyed, then the next item on the agenda is YOU getting destroyed. But you are arresting ME? Are you naturally stupid, or do you get that way by sitting on your fat butts all day, eating donuts and ignoring the Crime Of The Century!" Suddenly I am struck that this is kinda catchy, and maybe I'll work that into a new book! Yeah! I'll write a best-selling book! "The Crime of the Century!" Yeah! That's my ticket outta this hellhole! All about how the Federal Reserve issued so much money and credit, which means that they financed the creation of huuUUUuuuuge amounts of debt, lots of which went into seedy bars, proving that there is always a
silver lining somewhere!

And I am not the only one thinking about the dollar. Addison Wiggin, of the site, writes, "Just consider that the dollar has 'only' fallen 8.3% the past year... but it translates into a $124 billion loss for foreign stockholders!" I know what you are thinking. You are thinking, "Who the hell cares about a bunch of foreigner stockholders? Screw them!" It is one thing for us Americans to be really stupid and think that we can borrow and spend our way to Utopia. Only idiots can believe that is possible, and so if you see a country trying to do that, then you know that they are a bunch of idiots. It's simple! Therefore, since we are doing it, we are idiots! We proclaim it to the world "We're idiots!" It's not like we are trying to hide anything, or that we had broken any laws, or cooked up some bogus business plans to borrow money under false pretenses! And yet these foreign morons are buying into our economy? Hahahaha! And then they wonder why we laugh at them! And I am supposed to get suicidal because they lost money investing with idiots! Hahahaha!

He goes on to say, "But if history is any guide, this dollar crisis could last seven to nine years." With my Patented Mogambo ESP (PMESP), I see these little question marks appear in your minds, and while Mr. Wiggin is far too busy and important to answer questions from common riff-raff like you and me, I will anticipate your question. "What is the result of losing 15% of your purchasing power per year over a period of only nine years?" Well, it looks like a dollar will still possess twenty-three cents of purchasing power at the end. In other words, it would mean that your standard of living has dropped by 75%. It will then take four dollars to buy the same basket of goods and services that you could buy for a dollar nine years ago, which is, paradoxically, today. Hahahahaha! Welcome to the world of price inflation that follows a long and big jump in monetary inflation, which we have had in spades under Greenspan!

And all of this increase in money is due to an increase in debt, because that is how money springs into being. Again quoting Mr. Wiggin, "Personal spending shot from $3.8 trillion in 1990 to $6.6 trillion in 2000 - a $2.8 trillion jump. Between 1990 and 2000, personal debt zoomed from $3.6 trillion to over $7 trillion - a $3.4 trillion increase." Now, an increase in debt is bad enough, but it can be ameliorated by an increase in income, right? So did income increase? Well, no really. Then why did people go into so much debt? As usual, The Mogambo is scratching his head, tying to come up with an answer when he doesn't have a clue. But Mr. Wiggin thankfully comes to my rescue and says, "People borrowed the money because they expected their stocks to go up forever. They certainly weren't expecting better pay. Salaries had only increased $2.1 trillion over the decade."

So Alan Greenspan rammed interest rates into the toilet so that people could go farther into debt, and thus afford to buy stuff, and thus save the economy and the world. The upshot is provided, again, by Mr. Wiggin, whom I am starting to really get peeved at because I can't seem to get a word in edgewise here, "But Greenspan made a big mistake. The problem wasn't that Americans weren't borrowing or spending enough... the problem was that they'd already borrowed and spent too much!" Exactly!

Jim Puplava at sees me and Mr. Wiggin yakking it up about inflation, which reminds me that he as written one of the more popular essays in recent weeks, and it is entitled "The Three Faces of Inflation". He writes, "Inflation, which is caused by excess money and credit, has three ways of expressing itself through: rising consumer prices, rising asset prices or a rising trade deficit." Sensing an opportunity to run my own big fat mouth for a change, I say "And sometimes all three at once!" I can tell by the looks on their faces that they are not thrilled at my rude interruption, so I sit back down in my chair and try to act like it wasn't me who interrupted them.

Mr. Puplava goes onto say that history DOES sometimes repeat. He writes, "What we are seeing unfold today is an all too familiar pattern in history. All great inflations have a common characteristic to them. We see the same sequence in development, same price patterns, and similar movement in wages, rents, and interest rates. They all begin in periods of prosperity and they all end tragically. You can't debase money without consequences. Like previous price revolutions, the most rapid price increases appear in the price of energy, food, shelter, and raw materials. These are the items most in demand during periods of population growth and expansions in the supply of money. Demand starts at the bottom of the consumption chain and then works its way upward. Basic necessities are the least inelastic in their supply."

So where is he leading with this? Reading on, we discover where. HE says "We are heading towards the terminal and final stage of this price revolution that began in the 20th century. In the final stages of price revolutions there are greater imbalances, which create greater instabilities." He then provides us with a quote from The Great Wave, by David Hackett Fischer. "Prices surge and decline in swings of increasing amplitude. Markets of many kinds-capital markets, commodity markets, labor markets-become dangerously unstable. Production and productivity decline or stagnate, while prices continue to rise; together these trends create stagflation. Political instability increases, and with it comes social disorder, internal violence and international war. The cultural system becomes dangerously unstable; internal conflicts of value and identity grow more intense." So, would it be a good trading point to play the VIX? Apparently so!

- Over at Kitco we see that
gold lease rates have risen dramatically, and have apparently bottomed. Hmmmm. But before you declare the onset of the gold bull, Paul van Eeden says "This rise in the gold price, as has been the case for the past three years, is mostly a dollar phenomenon. It's a bear market in the dollar, not a bull market in gold." To which I add, "Not yet, anyway. But with all the countries on the face of the freaking planet expanding their money supplies with heart-stopping insanity, it soon WILL be a global bull market, as price inflation will follow their monetary inflations, too!"

Speaking of inflation, I know that you are tired of me talking about it. Now let's take a look at it up close and personal. The latest report shows that the January monthly prices for imported consumer goods (other than automobiles) increased 0.4 percent, the most since January of last year.

The cost of ALL imported goods last month was 6 percent greater than in January 2004. Excluding petroleum, they were up 3 percent from the same month last year. The price of oil jumped 27% t in the last twelve months! And today (Tuesday, 2/22) the price of a barrel of crude jumped by over two bucks, to over $50 a barrel! And while we are at it, let's take a look at producer prices. As Bloomberg puts it, "The 0.8 percent increase in the Labor Department's producer price index, excluding food and energy, was the most in more than six years."

Eerily similar, the Yahoo! News report said, "The producer price index, which measures prices received by farms, factories and refineries, moved up 0.3 percent in the month, the department said. But the core index, which strips out volatile food and energy prices, shot up 0.8 percent, the biggest gain since December 1998."

For those of you who cannot bear the thought of being labeled a
gold bug or having any similarity to The Mogambo for that matter, but still want to participate in the price inflation, a reader code-named Shepardess notes that "The MOST prized possession in post WWI Germany [and post WWII] was cooking oil, cigarettes and booze."

- The Christian Science Monitor writes that, "Foreigners worry about the stability of the dollar because Americans are overspending. There's the growing budget deficit, of course. But of equal importance for currency traders is the $617.7 billion imbalance between what the US buys and what it sells abroad. Americans are spending about 5.7 percent more than the nation itself produces. At the moment, the US must borrow $55 billion a month, $1.8 billion a day, to finance its massive deficit in international payments. Over time, the decline in the dollar should readjust that balance, since US exports will become more competitive and imports more expensive." Which is exactly what we are seeing!

- Thomson Financial, an information firm in New York, says that "A boom in foreign purchases of US firms, now seen as a bargain, may have started. Last year, 1,126 US businesses were sold to foreign buyers, up from 1,032 in 2003 and 980 in 2002." This is how Thomas Jefferson came to say something about how fiat money will ruin us and that we will, and I am quoting from memory "Wake up homeless on the continent their forefathers gave them." They will have strong money and we will have weak money, and thus they can buy us, lock, stock and barrel.

- One of the big arguments for privatization of Social Security is that Chile has had personal retirement accounts for quite awhile, and that "Established in 1981, Chile's personal savings account system has yielded an average of 10 percent return on investments. The primary investment vehicles are stocks and corporate and government bonds." This is statistical quackery, and do not listen to anybody who parrots this nonsense.

- A reader named Darrin sent an interesting little bit of research that he has done. He writes, "Here's a little something that I noticed a few months ago. Pennies dated 1981 and earlier are 3.11 grams of 95% copper, or about 2.95 grams of copper. Expressed in units that the rest of us understand, there is 1 pound of copper in 153.5 pennies. "The latest copper price from is $1.51 per pound. It is nearly worthwhile to take the change jar and the kid's piggy bank to a scrap metal dealer. "The people around me don't quite grasp currency debasement, inflation, world markets, and all of that economic stuff, but when I show them that even pennies aren't what they used to be, it looks like they begin to get the message."

- A lot of people were watching Alan Greenspan testify at the House Finance Committee, and like a lot of us, most thought it was a laugh-riot. Peter Schiff of EuroPacific Capital is one of them, and in an essay entitled "Greenspan Tells More Whoppers" writes "Like a kid in a candy shop I don't know where to start in refuting these claims. Perhaps the most memorable moment of the entire spectacle was Congressman Ron Paul quoting Greenspan to Greenspan, requiring the chairman to admit that his younger self was wrong. Unfortunately, Greenspan the younger was not wrong, just early. It seems only fitting that in a testimony fraught with contradictions, Greenspan's greatest critic was in fact himself."

Personally, I missed most of it, as I was caught up in the clutches of the American healthcare system, and while I missed almost all of the testimony, I am able to lend credence to the reports that there are a lot of people on Medicaid and Medicare, because let me tell you that it is the damn truth, as the only other patients I ever saw, the whole damn time, were old and/or poor, although all of them were better looking than me, and better dressed than me, and smelled better than me, which none of them seemed to tire of pointing out.

Apparently, I was the only guy in the whole system that had private insurance. And if you think that puts you in the front of the line, think again. Normally, it SHOULD give you a certain advantage, as you, the epitome of all that is good and beautiful in America and one of the few guys who actually shells out money for his own health insurance, should be encouraged to move ahead in the long queue for limited life-giving services, and you should be allowed to step in front of deadbeat losers like them anytime you want. And yet (and this is MY experience anyway), when you make some stupid skinny old lady with her stupid IV bottle sit on the damn floor so that YOU can take her nice, comfortable chair in which to wait for the doctor to stop sexually harassing the nurses, then everybody gets all huffy like I've done something wrong! I mean, it's not like I'm hurting her! I even say to her, "Hey, babe! Since you're down there, if you polish my shoes, I'll pay you a quarter!" but she turns me down! She's old and poor, and my taxes and my high fees are paying for her damn "free" medical care, and yet she refuses to accept gainful employment and maybe make a few bucks and maybe pay for her own damn health insurance! And yet, somehow, she thinks SHE is the victim here! It doesn't make any sense to me!

But I get a few minutes to quickly catch some of the testimony. As soon as I walked in and turned on the TV and turn off the VCR which is still in "pause" mode from where I was screening a how-to video on making a machinegun out of old washing machine parts (and believe me when tell you that the future, the price of THAT particular videotape beauty is going to skyrocket in price as we begin to pay for our economic sins!), my stomach convulses into a knot, as there is Alan Greenspan listening to a question and he licking his lips, with his beady, rat-like eyes darting from side to side in panic, and I know that he knows, although I don't know HOW he knows, but he knows that I am suddenly watching him, and he senses that I am using my Secret Mogambo Vision (SMV) to stare into the foul darkness of his soul, a soul so corrupt that is going straight to Hell when he dies for sinning against the Eleventh Commandment, "Thou shalt not debase thy money", which is one of the little-known and long-suppressed Missing Commandments, recently discovered by me, The Mogambo, while using a variation of the Da Vinci Code search algorithm to find hidden messages in the Bible. The theory is that God gave Moses more than Ten Commandments, but the others weren't very popular, and so the tablets were put into the basement of one the government buildings and forgotten.

But the mystery of the Missing Commandments is now revealed, thanks to the Da Vinci code, which involves going through every page looking for "hidden" words that are written backwards, or diagonally across the page, or something. Unfortunately, as it is being used now, it is a very labor-intensive process, and so therefore very unpopular with lazy guys like me, who want instant fame and fortune for doing as little as possible and who are upset and angry when we don't get them, and people call us childish, and make fun of us, and pretty soon my own family won't sit with me in restaurants because the restaurant always has this convenient "policy" where they can refuse service to anyone, and that apparently includes older men screaming and crying and kicking and whining because he didn't get as much love and money as he wanted.

But in a moment of "Eureka!", I was inspired to hurry things up, and forthwith I invented the Mogambo Method Of Enhancing The Da Vinci Code Search Engine (MMOETDVCSE). It's all very complicated, of course, but in essence I go through the Bible and circle those words and letters that spell out what I want to find, going page by page, and searching for letters only in that area of the page that corresponds to using a roughly sine wave function that goes on page after page, because when you print out my results on a computer, man! It looks impressive as hell! This beautiful regular pattern is going up and down the page, like some undulating wave out on a gently rolling ocean. It screams "Proof!" which in itself screams "Nobel Prize for The Mogambo, because he could sure use the money!"

The essence of this Missing Commandment is "Money shall be only
gold and silver" which is eerily echoed in the Constitution of the United States itself, a point that I will bring up in my next book, "The Mogambo Explains How the Founding Fathers Knew of the Missing Commandments". But you can see that governments, being the dirt bags that they naturally are, would not like the idea of not being able to print up as much money as it wanted, anytime it wanted, to spend on anything it wanted. As for other Missing Commandments, details are sketchy, but one of them seems to be something about "Thou shalt not secretly lust after high-school cheerleaders unless you are likewise a high-school boy or high-school lesbian". To tell you the truth, I find this one to be a little hard to obey, too, and if this is an example of Missing Commandments, then you can see why I have lost interest in pursuing this whole line of Biblical investigation.

But I'm looking at the TV screen and you can see by the expression on his face that his heart has turned to some mutant, stone-like material like the stuff that must be clogging up the arteries in his brain when he realizes that The Mogambo is out there, watching his every move, and it is not going to be pretty, because I am going to criticize his every word, deed and action, tearing his ass up every chance I can. And if I don't get any chances, then I will make up some lies about him that I hope will get him in trouble, and that brings up my brilliant Mogambo insight (BMI) that all our economic problems could have been prevented if we had appointed someone younger to be the chairman of the Federal Reserve, instead of Alan Greenspan, who is a zillion years old, and if we had instead appointed a YOUNGER Fed chairman, then I could call up his mother and tell HER what her idiot son is doing, and SHE could do the rest for us!

But one line that keeps ringing in my head is when Alan Greenspan said that maybe one reason why foreigners keep buying American debt is that our debt is so safe. Well, as far as getting money back and paid, then, yes, I guess it IS "safe." After all, as long as we have paper and ink, we can always print you up as many dollars as you like! And with electronic blip money, the creation of more and more money is even easier.

But this is not the Mogambo definition of "safe", as my definition of safe is that I am saving buying power, and I expect to get all my buying power back, with interest. For example, suppose that I am on my way to the army surplus to get that spiffy self-propelled cannon that I have had my eye on, when I am accosted on the street by a guy who convinces me to take that money, "invest" that money in some American debt, and in a few years I get all my money back, and a little something extra to pay me back for the pain of having postponed the gratification of consumption for those few years, and then I will have enough money to buy the cannon AND a few rounds of that special ammunition that they keep in the back storeroom that they don't tell anyone about.

THAT is how it is supposed to work, as interest rates typically are higher than both inflation and tax reduction added together. Nowadays, interest rates are, as hard as it is to believe, less that the sum of these two! People who are idiotically "investing" in US debt are voluntarily losing purchasing power, because the dollars they get back after all those years won't buy squat! Hahahaha! Suckers! They are voluntarily making themselves less wealthy! That IS a conundrum! But as it is REALLY working, the chump who buys American debt will only get back enough money to buy half of a cannon! Hahahaha! So you have suffered the pangs and regrets of postponing glorious, delicious, wonderfully satisfying consumption, but you also lose half a cannon!

In fact, he said as much! He said: "We can guarantee cash benefits as far out and at whatever size you like, but we cannot guarantee their purchasing power." But he can! He is guaranteeing less purchasing power by his every word and deed since 1998!

Ron Paul asked him whether a
gold standard would prevent the government from amassing such huge debts. He replied, "I think we have been remarkably successful, in my judgment mimicking much of what the gold standard does I think in that context so far we have maintained a stable monetary system." Hahahaha! What an idiot! His monetary system has ZERO is common with a gold standard! What does he think we are? A bunch of chumps that we don't know what a gold standard is? Hahahaha!

Then he REALLY goes bananas when he says, "I do not think that you could claim that the central bank is facilitating the expansion of expenditures in this country" Hahahaha! I am laughing so hard in contempt and rage I am spitting up blood! What a lying moron!

- Proving that some people cannot seem to ever learn, I have been invited by David Bond, of, to be the keynote speaker at the 2005 Silver Summit this September, held in Coeur d'Alene Idaho, even though he was the guy who invited me there last year, and so he knows perfectly well how I am, and how I get, and how I was, and how I got, and there is no reason to think I will be any better than that this year, and probably a lot, lot worse. Please do not contact me about how to register your righteous outrage, as justified as it may be, and this includes coming right to my house to register your noisy complaints, as I always end up expending too much expensive ammunition in the course of my polite rebuttals.

And if you DO plan to attend, all I can say is that you will probably never forget it, no matter how much you want to, or how many years of expensive therapy, drug use and heavy alcoholic consumption you devote to trying to erase the memory from your mind. At least that is what LAST year's attendees are whining about.

- AMERICAN ECONOMICS: You have two cows. You sell one and force the other to produce the milk of four cows. You profess surprise when the cow drops dead. You put the blame on some nation with cows, and naturally that nation will be a danger to mankind. You wage a war to save the world, and grab the cows."

Substitute cars for cows, and substitute oil for milk. Then finally, substitute Iran for "some nation with cows," and then you will know why it is only a matter of time before we invade Iran, which was the whole point of Condoleeza Rice's visit to Europe, as far as I can tell.

Don't believe me? Well, I'm proud of you! That shows that you have SOME smarts, after all. But perhaps you will listen to the Aden Forecast: "These big commodity price rises have always coincided with major wars throughout history. And the current rise will probably coincide with the war on terror. In other words, wars and/or geopolitical tensions will likely increase in the years ahead."


***** The Mogambo Sez: - The NYSE Specialists are suddenly now getting very short, and if you think that this a sign to go short, then you are thinking like I think, which usually means that you aren't taking enough of those blue pills.

And did the recent zoom of
gold and silver prices makes you think that maybe you ought to get some of each? If so, then good for you, because it shows you are paying attention! And people who pay attention tend to prosper!

Feb 23, 2005
Richard Daughty

The Daily Reckoning

Richard Daughty is general partner and C.O.O. for Smith Consultant Group, serving the financial and medical communities, and the writer/publisher of the Mogambo Guru economic newsletter, an avocational exercise the better to heap disrespect on those who desperately deserve it. The Mogambo Guru is quoted frequently in Barron's, The Daily Reckoning and other fine publications.

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