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Help the Poor by Stopping the Money Printing Press

Politics / Money Supply Apr 14, 2010 - 04:08 AM GMT

By: LewRockwell

Politics

Best Financial Markets Analysis ArticleRichard Daughty writes: I am happy to note that the Tea Party, which appeals to me personally, is gaining traction and power, which adds more political overtones to my life and gets me, a shameful Republican, away from the loathsome Republicans (except Ron Paul), which have acted almost as despicably as the Democrats.


I cheerfully denounce them all with a snotty, disrespectful tone in my voice and a condescending sneer on my lips, also an indicator of disrespect, because I am a guy who has spent a lifetime reading about what happens when governments try this “increasing the money supply” crapola that, since the 1960s, the Democrats made into a political mainstay and the Republicans went “grudgingly” along with it, and I am, in a word, horrified and disgusted.

The truth is that I am now continuing to write, as after writing that last horrific sentence about “increase the money supply,” I took the rest of the morning off to think about it, hopefully to calm my shattered nerves. Now I am back at work after discovering that I am more, much more than horrified, and instead am in a Raging Mogambo Snit (RMS) because, according to Fox News, “Sen. Max Baucus, D-Mont., chairman of the influential Finance Committee” said that the “overhaul” of the healthcare system was “an ‘income shift’ to help the poor,” which is not what I am angry about because it’s exactly true, else why do it? So you can’t fault him for saying what is true! Hahaha!

However, I can fault Senator Baucus for just being a typical laughable-yet-loathsome modern Democrat, entirely emblematic as he is of the egotistical big-hearted people who love, and live to love, and love to live to love, and who think that the Beatles were right when they sang “All you need is love,” and use their arrogant “more-compassionate-than-thou” conceit as a bloody bludgeon to beat into submission common sense, economics, the entire history of fiat currencies, and the eternal problem of what to do with the poor people, the crippled people and the old people.

The part that really makes me despise Democrats slightly more than I despise Republicans is that Democrats ridiculously try to “help” the poor by tearing down the only system that has been shown to actually help the poor; namely, supplying them with jobs and keeping consumer prices from rising, but instead – wonderfully! – prices gently come down so that the poor have a rising standard of living because their money buys more.

“And what could such a wonderful system be?” you ask, unable to believe your ears. I reply, “It’s what you automatically get from a system of free enterprise powered by a stable money supply. It works like magic! It always has! It always will!”

Instead, the Federal Reserve will be forced to create so Monstrously Much Money (MMM) to finance a cancerously enlarging government to drown us in total debt, and thus continuously, massively enlarge the monetary base, which must make prices rise and rise continuously, prices which the poor can’t afford to pay and which makes them poorer, which makes Congress borrow and spend more money, which makes the money supply rise and rise, with prices always rising and rising as the monetary base gets larger and larger, round and around, whirling and twirling, spinning, spinning, spinning until you fall to the ground, crying out, dramatically, “Noooooo! More money only creates, paradoxically, more poor working people to add to the huge existing population of poor people because wage increases always lag price increases!”

Senator Baucus does not acknowledge my scorn or compliment me on my fine acting performance, and I hope everyone noticed how he would not meet my gaze, either, and instead lamely talks about “income mal-distribution” by saying that “Wages have not kept up with increased income of the highest income in America,” like this is some kind of news to him or something.

To this I say, “Hahahaboohoohoohahahaboohoohaboohaboohaha!” which shows that I am laughing and crying, and then laughing, and then crying, and then laughing, and then crying while laughing at the sheer idiocy of it, which proves that it must be idiotic for me to be laughing that way, QED.

Then, to show that he is a true Democrat, he says, “This legislation will have the effect of addressing the mal-distribution of income in America,” although he did not elaborate by saying, “by taking it away from somebody richer and giving it to someone poorer” and he did not say, “it will be paid for with fiat money created by the Federal Reserve so that Congress can borrow and spend it” and he did not say, “this unprecedented avalanche of new money will monstrously drive up prices paid by the poor, making them much, much poorer and angrier” but he could have and he should have.

Apparently, though, Senator Baucus is kind of stupid, as he does not understand that when a government deficit-spends, it does so by borrowing the money, but since the poor don’t have any money to loan to the government, the rich end up borrowing the money to loan to the government, whereupon the rich, over time, get all their money back, plus interest, making them richer, while, unfortunately, the poor get poorer because prices have risen.

All of these things he could have said, and he might as well have said, as it is all there in black and white at Mises.org, or it should be, and might well be!

And while neither he nor Mises.org said to buy gold, silver and oil as protection against this sheer economic idiocy and insanity, they might as well have, and while I cannot imagine either of them saying, “Whee! This investing stuff is easy” I certainly will! Whee!

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 © 2010 Daily Reckoning

© 2010 Copyright LewRockwell.com - 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.


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