Aureus, Argentum Atque Oleum
by Richard Daughty
The Mogambu Guru
by Richard Daughty: True
Wisdom at Fifty Percent Off
Alert: Enemies Everywhere, With Precious Metals Our Only Friends***
Okay, I admit
I was, you know, kind of "over the edge" a little bit
the other morning, but my wife interrupted me just as my raging
madness was peaking, almost out of control, I mean really cranking
loud and long that "Anyone NOT buying gold, silver and oil,
Right Freaking Now (RFN), especially at these bargain-basement prices
when the evil Federal Reserve is creating So Freaking Much (SFM)
currency and credit that inflation in prices will rage out of control,
is a complete and utter butthole who ought to be dragged in here,
kicking and screaming, so that I can yell in their faces that they
are, as previously stipulated earlier in this very same sentence,
That – that!
– was when she gently tapped me on the arm and asked "Dear,
did you take your pills this morning?"
the pivotal moment when I really lost it. Suddenly, in a kind of
weird, out-of-body experience, I could see myself saying "No,
I didn’t take my damned pills this morning! Why else would I be
acting like this, you moron?"
are a couple of things that my wife doesn’t like, and one of them
is me calling her a moron. Although I liked it when the kids snickered
and tried not to laugh, so it wasn’t ALL bad, because usually they
laugh when my wife is reminding me, with overwhelming embarrassing
evidence, how I have, personally, been a moron.
Well, the morning
started out innocently enough, but then I my bloodshot eyes fell
across a quote from Steve Eichler, C.E.O. of TeaParty.org. He said
"The efforts of tens of millions of Tea Partiers have inflicted
a serious blow to the Washington bureaucracy and have helped to
cripple the activities of global communists, slowing their American
Being a proud,
live-and-let-live libertarian, standing in awe of the profound wisdom
of the Constitution of the United States, I am naturally revolted
by the Democratic and Republican Parties. Thus, I am, by default,
a Tea Party kind of guy.
this instantly got me going, abruptly accelerating to warp speed,
spewing forth about Barack Obama, whose parents were both proud
to be communists, and whose grandparents, with whom he grew up in
the USA, proudly and openly called themselves communists.
I wondered aloud with a really deep, nasty tone to my voice, which
is a signal meaning "Don’t dare disagree with me, or you will
regret it, in that way the odious Gene Sperling threatened trustworthy
and noble newspaperman Bob Woodward, only worse!"
Now going hyperbolic
at a metaphorical Warp 8, I bellowed, with all the pent-up venom
and vilest vituperation I could muster, stupid-yet-gratuitous alliterations
notwithstanding, "So of course Obama has communist sympathies!
He wants his mother to be proud of him, like everybody else! Why
else would Obama raise taxes by eliminating the Bush payroll-tax
cuts, and keep insisting on more taxes, now at the worst possible
time? Whoever heard of trying to get out of economic and unemployment
doldrums by raising taxes? Nobody! It’s stupid! As if the huge Obamacare
is not going to be enough new taxes and economy-killing expenses
ripped out of the economy as it is!"
My strong words
rang loudly, echoing off the refrigerator, as my bellowing of outrage
continued "Why now? Why now when the economy is circling the
toilet bowl from years and years of mountains of new fiat currency
created out of thin air to accumulate backbreaking, bankrupting
debt to finance a misshapen, malignant, bloated government-centric
economy not based on real demand, that is now dying of its own idiotic
inflationary excesses, just like what happened every OTHER time
in history when every OTHER dirtbag government and moronic populace
tried this insane crap?"
my voice rising to a clashing, crashing crescendo of anguish and
anger, "why else would Obama permit the Federal Reserve to
monstrously create so much excess currency and credit so that we
are doomed to crushing, terrifying inflation that will produce suffering
and scarcity on a colossal scale that will destroy the USA?"
from my chair in my overwrought heat, gesturing wildly with my arms,
I thundered aloud, "Now you ask me why? Why? Hahahaha! I laugh
So you wanna
know why? Then listen up, and I’ll tell you why! Vladimir Lenin,
one of the inventors of communism, famously said "The way to
crush the bourgeoisie is to grind them between the millstones of
taxation and inflation."
And who is
this bourgeoisie that Lenin hates so much? It translates as the
I must have
been screaming so loud that it was heard at Zerohedge.com, as they
write "as Bloomberg's Richard Yamarone summarizes,
the consumer health picture in January was ‘grim’ and ‘after adjusting
for inflation and taxes, is simply insufficient to sustain the expansion.’"
How much taxes
does it take to make a millstone with which to grind the bourgeoisie?
The government already taxes away, in one way or the other, almost
a full third of GDP. So I figure it is probably around here, someplace.
And how do
you get a millstone of inflation? From increasing the money supply,
as is clearly explained by Milton Friedman, who famously said "Inflation
is always and everywhere a monetary phenomenon."
So how much
money is being created? Tons of it, as seemingly unbelievable
as that sounds, but how else to describe the fact that in
the 28 short days of February 2013, starting with $16,433,791,850,294.04
of national debt on February 1, the debt had grown, by February
28, to $16,687,289,180,215.37, making for a staggering, heart-stopping
difference of a whopping, eye-popping, head-stomping $253.5 billion
of new government debt! In 28 lousy days! A quarter of a trillion
I am aghast!
Another $253.5 billion of new debt, and thus undoubtedly another
$253.5 billion in new currency pouring into the economy to bloat
the money supply, in ONE FREAKING MONTH (OFM)! OFM!!
the use of two – count ‘em, two! – exclamation points which provide
particular emphasis, which is a vital clue that there is something
seriously, seriously amiss here.
you are probably wondering, "exactly how much more taxes and
over-regulation are coming, and how much inflation, which together
are the two millstones to grind up the middle class to crush it?"
For one thing, as the quote goes, "You can’t handle the truth."
Just be afraid.
Ruination is coming because it mathematically must, thus explaining
why every other instance of this "create lots and lots of money"
insanity ended Just That Way (JTW).
– except for! – the people who owned gold, silver and energy. These
intelligent, educated people always made out wonderfully when their
prices rose to astronomical heights, which they did because the
purchasing power of the currency fell so low due to such massive
over-issuance of it by, in our case, the horrid Federal Reserve,
with which they turned around and used to directly buy new government
debt ("monetizing the debt"), which is a monstrous monetary
mistake of such horrific proportions that, as Junior Mogambo Ranger
(JMR) Charles C. reminds me, We’re Freaking Doomed WFD!
is why the ancient Romans said, or could have said, or would have
said, if they used the same English-to-Latin dictionary I did to
cobble something together, "Aureus, argentum
atque oleum", which translates directly as "Gold, silver
Thus one can
argue, with iron-clad logic:
- To buy
gold, silver and oil when your government is allowing the money
supply to constantly increase has been Extremely Good Advice (EGA)
since before the time of the Romans.
- It has
now been proved by the rigors of modern statistical methodology
that if something happens every time over thousands and thousands
of trials, then the probability of it happening this time is 100%.
- Thus, you
gotta conclude "Aureus argentum atque oleum
to the moon, baby! 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 Barrons, The
Daily Reckoning, and other fine publications. Visit
© 2013 Richard Daughty
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