Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Keynesian Economics, A Halfwit’s Guide to Monetary Inflation

Economics / Inflation Feb 18, 2010 - 11:25 AM GMT

By: LewRockwell

Economics

Best Financial Markets Analysis ArticleRichard Daughty writes: Information Clearing House Newsletter had the quote, “Believe those who are seeking the truth; doubt those who find it” by Andre Gide, which is generally true about most things, except in the case of economics, because the only true economic theory has already been found, and it is the Austrian school of economics, also known as the Austrian Business Cycle Theory (ABCT), and I have nothing but contempt for anyone who says differently, especially since it can be found every day, for free, at mises.org, and so to believe anything else is just a matter of stupidity and/or willful ignorance.


In case you were wondering, I figure that the worst economic theory in history was the one where economists got a chicken drunk and watched to see if it fell first on its right side or onto its left side, one side meaning one thing and the other side meaning, I assume, the opposite, although I am not sure of the details since I just made it up and now I am sorry I did because it seems so stupid now that I see it in print.

Nonetheless, it is all preamble anyway, since I meant it as a literary device to segue seamlessly to my introducing the second-worst economic theory in history, which is the asinine neo-Keynesian econometric stupidity currently being swallowed whole by the vast majority of university halfwits, media halfwits, political halfwits and a host of voters that I variously describe as, for want of a better term because I am peculiar that way, “halfwits”; all of whom actually think that by electing government representatives who will always spend more than the government gets in revenue, by the simple, brain-dead expedient of creating more and more debt, all happily aided and abetted by the despicable Federal Reserve creating the money necessary to buy that much new debt, so that the government can spend this new money, for the childish, Pollyanna-expressed aim of equalizing everyone’s outcomes in everything; they can achieve A Perfect World (APW)! Hahahaha! Morons!

As an American, it’s embarrassing to be in a country that boasts about its emphasis on education, but then is so bewilderingly ignorant of all of human history, the exponential function and simple arithmetic, although I am somewhat cheered by the fact that everybody else, in every other country in the world, is just as ignorant.

And mostly rude, too, as I found out during my early (and few) days as a market researcher, where I would cleverly call, at random, phone numbers in other countries (at 2 AM, their time, to make sure they were at home and my research would probably not be interrupted) where I would ask them, “Do you think that the economy of the USA is getting better, staying the same, or getting worse? And if you think that it is getting better, then explain how in the hell that is even possible, ya moron, when the Federal Reserve, that loathsome piece of treacherous crap which caused all the housing problems by creating too much money and credit, and which caused the derivatives problem by creating too much money and credit, and which caused the cancerous growth of a stifling, suffocatingly expensive government by creating too much money and credit, and which caused interest rates to drop so impossibly low by creating too much money and credit, is still on the job! Still On The Freaking Job (OTFJ), creating too much money and credit, but in amounts that dwarf any of the previously insane increases in the money supply by the loathsome Alan Greenspan, chairman of the Federal Reserve 1987–2006, even though those relatively small, $10 billion per month increases in Fed Credit were responsible for all the umpteen trillions of dollars in phantom gains, all of which are the result of year after year of sizzling inflations in stocks, bonds, houses, derivatives and the size of government that all that the extra money bought and paid for!”

Instead of these foreigners, who think they are so smart, giving me some coherent, thoughtful answer like, “You’re right, mysterious pollster whose insightful questions have given me much to think about! Central banks increasing the money supply will lead to a terrible inflation that will tear society apart!”, instead they angrily and rudely yell something in an unintelligible gibberish, probably in some stupid foreign language even though it is obvious that I am speaking English, which shows how rude they are, and then they hang up!

After being so rude to me, I was always secretly glad that I did not get the chance to tell them to buy gold, silver and oil in response to the government’s stupidity, and now they will suffer mightily, and I will cruelly laugh – hahahaha! – at their misery, as they now go without these three wonders as vital protections against the destruction of an inflationary collapse caused by these insane increases in the money supply, a collapse that is, I am sorry to say, unstoppable.

But if you have gold, silver and oil, then it’s, instead of Armageddon, “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 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.


© 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