The Nomadic Nature of Money

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Previously
by Richard Daughty: Investing
in Gold Ahead of the Chinese

 

 
 

I was intrigued
that a guy named David Thurtell, of Citigroup, surprisingly said,
“The liquidity pumped out by central banks means that there
is a lot of money sloshing around that needs to find a home.”

I was so intrigued
that I was tempted to use it as the basis for my first report to
the new supervisor for this quadrant of the galaxy, Karpus Klegg
the Implacable, at his new office at Intergalactic Headquarters
after the “palace coup” and interstellar personnel shake-up
that I just found out about.

However, I
did not want to start off a relationship with some guy I never met
named Karpus Klegg the Implacable by saying that people on this
planet believe that money can find a home, as it sounds so stupid.

After a little
checking, I learned that I just needed to say that the people on
this planet had evolved to the point where they seek pleasure all
the time, and just send him some porno films of earthlings, which
he will like better than anything else I could send him.

So, with that
feather in my cap, I turn my attention to denizens of this planet,
singling out for Mr. Thurtell of Citigroup to receive the Hot Mogambo
News (HMN) that money never finds a home! Never!

Money never
“finds a home” because money, once created, is always
being exchanged for an asset, and then the asset seller has to exchange
the newly-acquired money for another asset, and then that asset
seller has to exchange the newly-acquired money for another asset,
and then that asset seller, and then another, and another, around
and around, up and down, back and forth, with all the new money
constantly being used to add to the money already bidding on goods
and services, causing higher prices, higher and higher prices, even
as the money is being nibbled away, bit by bit and piece by piece,
by relentless and total government taxation at each exchange.

And yet, even
then, as soon as any of the money is taxed away out of the private
economy, it immediately reappears! It is reborn as higher government
spending, and becoming “new money” that needs to “find
a home,” too!

So the idea
of money ever “finding a home” makes me laugh the cruel
Mogambo Laugh Of Scorn (MLOS) at such a benign-sounding phrase,
as all this new money does is to increase prices!

And, if you
want to know my opinion, deliberately increasing prices is a cruel,
mean-spirited, despotic and despicable thing to do to people.

However, cruelty
of an elitist government towards the population is nothing new,
and it is a little known fact that the Elvis Presley hit, “Don’t
Be Cruel”, originally had the lyrics:

“Don’t
be cruel,

“To the
currency of a guy who trusted you Fed bastards to maintain the purchasing
power of the dollar.

“Don’t
be cruel,

“To the
currency of a guy who trusted you Fed bastards to maintain the purchasing
power of the dollar.

“I don’t
want no other cash!

“But the
dollar’s turned to trash!

“Don’t
be cruel!”

Firstly, thank
you, thank you, thank you for your kind applause of appreciation
for my fabulous impersonation of Elvis Presley! Thank you! Thank
you!

Secondly, there
is a moral about the purchasing power of money in there, probably
in the second verse where he had a leash around his neck and being
led around, which is now unfortunately lost, so you have to take
my word for it, where Elvis himself – The King! – was
advising you to buy gold and silver when the Federal Reserve was
creating so much money, which it was doing at the time of his death
in 1977, all because Nixon severed the dollar’s convertibility
to gold in 1971.

If you don’t
believe that Elvis was a gold-bug and Austrian-school of economics
kind of “cool guy,” and/or that these are the original
lyrics, then perhaps you will start to believe me when I say that
the Federal Reserve creating trillions of dollars per year is going
to make Elvis look more visionary than ever when gold soars to the
moon in the terrifying inflation in consumer prices and the destruction
of the economy!

And to think
you can prevent all that by just buying, as suggested by Elvis Presley
himself, gold and silver! Don’t be cruel, indeed! Whee! This
investing stuff is easy!

January
8, 2011

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.

The
Best of Richard Daughty

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