by The Mogambo Guru
"Rep. Ron Paul is a Representative from Texas who I mistakenly called a Senator in a previous Mogambo Guru newsletter, which I understand is kind of an insult, and for which I apologize to Rep. Paul. The point being not that I am old and get confused, or that my editor is not catching those kinds of errors just because he doesn’t read it anymore because he is apparently sick and tired of reading my Stupid Mogambo Crap (SMC). I emphasize this because Rep. Paul is a member of government and has, I assume, various contacts with all kinds of “insider “people, and has secret sources of information, and thus is “plugged in”, which makes it significant to me that he recently said, “the government estimates that unemployment is over 10 percent. The real number is closer to 20 percent”!!
I am the person that added those two exclamation marks as punctuation at the end of the remarks by Rep. Paul, which I did because it seems significant in a way, like how 20% of all workers in this country work for a government or are otherwise tax-supported (e.g. the school systems), and now 20% of the workforce is unemployed. Eerie! Apparently, it is not too weird for Mr. Paul, as he ignores my remarks and my fabulous punctuation, which I added to “punch up” his remarks so that people would be properly aghast that this country has been so mismanaged by the Congress (which deficit-spent too much money) and the Federal Reserve (which created the money that made the booms, and now the busts, possible in the first place).
Well, the “punching up” worked well for me, and thus agitated, I begin crying in fear and howling in outrage, which I preface for the benefit of Mr. Paul, “I am outraged to The Freaking Maximum (TFM), and can now only howl in dismay and anger! AaahhhooooOOoooo!” This seemed to have an effect on Mr. Paul, too, and he then went on in a similar vein by saying, “Outrageously, the administration claims that they ‘cut taxes’ by reducing withholding, and that they have stimulated the private economy by increasing the amount of money in every worker’s paycheck.”
I know what you are thinking; you are saying to yourself, “Hey! More money! Great!” and I agree that it seems benign until you realize, to your horror, the “catch”, which is that “What they fail to mention is they did not change the total amount of taxes due. This means that all that money not withheld from paychecks will add up to a big unpleasant surprise when returns are filed this year”, and now, “Many tax preparers are already seeing shocked taxpayers having to come up with big checks to the government when they normally expect a refund. Stimulus, indeed!”
I am afraid that I missed the rest of his remarks, as I was overcome by panic and had to go immediately out to buy more gold, silver and oil, as these are the only things that will save my nasty butt when the inevitable consumer price inflation gets here because of the massive, monstrous, insane monetary inflation that is already here, and get some more guns, too, as these are the only things that will save my nasty butt when push comes to shove. And it will."
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.
•"Government Stimulates Private Economy With Thin Air" originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day." http://dailyreckoning.com/