The Indeflating Sub-Feral Government

"I took the box of porn and pizza mess and put it all over the office of my assistant, and HE got canned when I fired him! You should have heard him scream about how he was innocent! Hahahaha!"

by The Mogambo Guru

Of course, nothing could be more insane than the news from the AP, "Senate panel sets national debt limit at $9.82 trillion, $4 trillion higher than when President Bush first took office".

Now put this together with Goldmau.com, "The debt growth rate is now higher than GDP growth, a recipe for eventual hyperinflationary outcome."

And all this new debt is certainly needed, as my buddy JMR Phil S. sent a chart from some guys that calculate that it now takes $5.53 in debt to create $1 of GDP growth!

And sometimes not even that, as JMR Dan B. sends a pithy little summary saying, "China has increased their money supply 53% while the U.S. has increased it 12% during the same time period. I don't know if that implies some level of corruption, but it must bring tears of joy to the eyes of Helicopter Ben."

Well, I am happy to report that the situation DOES bring tears of joy to the eye, as the same thing recently happened around here! I mean, at one moment, there I was, mentally cleaning out my desk after being canned, and I was imagining that my boss was there ("I've waited a long time for this, you Worthless Mogambo Human Trash (WMHT)") and the security guard ("I've waited a long time for this, you Worthless Mogambo Human Trash (WMHT)") and all the people from the other offices ("We've waited a long time for this, you Worthless Mogambo Human Trash (WMHT)") and how, this one time, I'd like to go with pride and dignity, with my head held up high, instead of being dragged out, screaming and fighting and crying and slobbering all over myself ("Please, please, please don't fire me!"), by cops working as enforcer-goons for the mental health workers ("We've waited a long time for this, you Worthless Mogambo Human Trash (WMHT)".

My keen, analytical mind realized that, if that was truly my plan, I ought to at least clean out all the old pizza boxes and pornography from all the desk drawers. So I gathered up a big box of the stuff out of the bottom drawer of the desk, but then I realized if I did that, then there would be nothing else in the damned drawers, and they would be empty, and then everyone would say, "We were right! He really WAS stupid!", whereas with the pizza boxes and porn everywhere, they would naturally say, "He was, we admit, smart enough, talented enough, even brilliant perhaps, but he was just too distracted and sleepy from eating all that pizza, and maybe we ought to hire him back! And at a big increase in salary and benefits! And a secretary with great legs and short skirts to look at, so that he could at least have some empty desk drawer space!"

Well, that is the way I had it all planned out, but it didn't work out that way after all. I took the box of porn and pizza mess and put it all over the office of my assistant, and HE got canned when I fired him! You should have heard him scream about how he was innocent! Hahahaha!

Anyway, without anyone at the executive level around here to take over, I am still employed and holding my own, just like the dollar against the yuan (CNY)!

Anyway, Dan didn't seem the least bit interested in my crafty career moves as a parable on the changes in the money supply, and instead says "on another note" that foreigners stopped investing in U.S. bonds as sales "dropped from $97 billion to $19 billion in August. That was before the interest rate cut!!" He calls attention to the two exclamation points, which I take as a secret signal to look for conspiracies and corruption everywhere, trust no one, and prepare to take refuge in a bunker of some kind, like the Mogambo Ultimate Bunker (MUB), shooting first and asking questions later.

Probably sensing with dismay the direction the discussion has suddenly taken, he changes course and says, "California is already $750 million in arrears in collections versus commitments. Do you expect foreign pullback to be Sudden Mogambo Death (SMD) for sub-feral…no no no, I mean sub-federal government?"

The answer is, "Yes. Yes, of course", and was preparing to preface my remarks with a long, haunting death-wail, which seemed so symbolically appropriate, when I was interrupted by an email from David K., which began with the customary salutation. "Oh, Mighty Mogambo," it read, "if you will take a moment to go to Lew Rockwell's site, lewrockwell.com, you will notice that there are two articles, one entitled 'The Fed Is Deflating' by Gary North, and the other, 'The Fed Is Inflating' by Murray Sabrin.

"My question to you is: What the French, Toast? Dr. North makes some very good points, and I agree with his conclusion. Mr. Sabrin makes some very good points, and I agree with his conclusion.

"So what in the hell is going on? Is the Fed deflating? Inflating? Indeflating?"

I immediately wondered, "Indeflating? What in the hell is indeflating?" I figured it was a secret message of some kind, so I didn't let on that anything was amiss, and replied, "Dear JMR David, They are both right! Did you think that my wife's love for me, dropping like a stone until one day I can see her, hiding behind the hedge, looking at me through the crosshairs of the telescopic sight of a .30-.30 deer rifle and smiling to herself, means that neither you, nor anyone else, cannot find true, everlasting love? Of course not! You can exult, waxing prosperous, happy and sleek, whilst I sulk and wither and die of a broken heart and a knife in my back.

"Except for the 'everlasting' part which is, of course, a big load of crap, as there is very little of an evolutionary advantage in it after the kids are big enough to be put to work hunting, begging, stealing or working, and yet still too young to legally keep you from stealing them blind, or too little to keep a crazy man bigger than them and with a baseball bat from coming over there and taking any damned thing he pleases, including not only a damned full tank of barbeque propane in exchange for my empty one, but anything else I take a fancy to, because you probably stole it from me to start with."

At this point I realized that I was getting off the track and into one of my paranoid persecution delusions, which never seem to end well. So I hurriedly changed back to the topic and continued "Nevertheless, the answer to your question is that some things will go up in price until you are squealing like a stuck pig, and some other things will go down in price until you are squealing like a pig, too", which summed it up perfectly.

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Editor's Note: Richard Daughty is general partner and COO for Smith Consultant Group, serving the financial and medical communities, and the editor of The Mogambo Guru economic newsletter - an avocational exercise to heap disrespect on those who desperately deserve it.