U.S. Taxpayers: The Few. The Proud. The Unprofitable.

by The Mogambo Guru

I keep looking at the $1.5 trillion increase in the national debt in the last 12 months, due to the Congress deficit-spending and the Federal Reserve creating the monstrous amounts of money and credit so that somebody could end up buying all that Treasury debt, and then I keep looking at the measly 100 million private-sector jobs that can show a profit by their labors, and thus the only ones who can pay taxes out of profits, instead of being government jobs or taxpayers-paid jobs that can’t and don’t.

So I keep punching those numbers into my calculator and I must keep screwing it all up because it comes out to the government spending $15,000 for everybody that has a profit-making job! And this was all before the “economic stimulus” package passed by Congress! Yikes!

At least when I am drunk, I can understand why I don’t understand how this could work out, but I am stone-cold sober right now and I STILL don’t understand how in the hell all of those people can each possibly MAKE another $15,000 in profit for themselves and their employers! This is insane! This is beyond insane!

At this point, I am raving and hysterical, and although I am screaming at the top of my lungs in outrage, I am actually saying, “And it goes up to $50,000 each in the next year! We’re soooOOooo freaking dooOOOooomed!”

Actually, it reminds me of that time when I was desperately experimenting with my medications and various intoxicants in varying commingled amounts to try and stop being in Mogambo Panic Mode (MPM) about what the Federal Reserve and the Congress are doing to us, and then maybe I could get some sleep, blissful, peaceful sleep, or at least stop my trigger finger from shaking so damned much.

Unfortunately all of the permutations of dosage eventually had the same two results; for one, I get weirder and weirder, and for two, I am still outraged at the stupidity and despicability of the Federal Reserve in creating so much money and credit so that the traitorous, corrupt Congress could spend so much money to change the economy into a bloated, misshapen, cancerous, government-centric piece of corrupt socialist trash, bit by bit, year after year, and now (in case you are new around here and haven’t heard me bellowing that we’re freaking doomed), the federal government is going to deficit-spend upwards of $2 trillion next year! On top of the $3 trillion it is already budgeted to spend!

Spontaneously, I shout, “You should be buying gold, silver and oil with both of your greedy, grasping hands because we are – in case you ain’t heard – freaking doomed!” just to bring everybody up to speed.

Well, nobody is impressed with my rude outburst, and TheBurningPlatform.com says, “some perspective is in order. If we use $2.5 trillion as the estimated deficit that means we’re adding $6.85 billion per day to the National Debt” which, when I divide by the 100 million private-sector workers in the country, comes to each one of them carrying another $65.86 a day in debt! Unbelievable!

Of course, this sets me off again, but before I can work myself into a Real Screaming Frenzy (RSF), they note that things have been worse, as, “Government debt as a percentage of GDP was 122% during World War II, versus only 78% today” which kind of calmed me down since we obviously survived that ordeal.

So I was just about to use that happy factoid as a handy excuse to celebrate by ducking out early and maybe grabbing a burger and brew, when they ominously go on “When government debt reaches 110% of GDP next year, will we be in better or worse position as a nation than we were in 1945 as the only remaining power in the world?”

There are many things that scare me in this world, but none is more horrendous than the short extrapolation that came out a few years after government debt went from 78% of GDP in one year to 100% the next.

Fortunately, nothing is more soothing than the security of gold, time-tested for over 4,000 years and going strong!

Whee! This investing stuff is easy!

March 5, 2009

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.

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