by Richard Daughty
The Mogambu Guru
by Richard Daughty: The
Bold and Beautiful Mogambo Days of Our Lives
I am breathing heavily, my mighty heart racing boom, boom boom.
My eyes dart nervously, seeing frightful dangers in every shadow.
Trigger finger is twitching. Brain thinking about pizza.
The world outside
of the Fabulous Mogambo Bunker (FMB) seems so sinister and scary,
but only somewhat less so here inside it. This dismal disparity
is proved, QED-like, by the fact that, despite the safety of steel-reinforced
concrete, heavy firepower, stores of gold, silver, and cases of
yummy frozen burritos and pizza (thin crust, with everything!),
I am nevertheless still scared Out Of My Freaking Mind (OOMFM) by
the unfolding horrifying economic collapse caused by the insanity
of Keynesian economic theory, a ridiculous attempt to control the
economy using incestuous equations without any acknowledgment of
the concept of having too much debt, disastrously used for most
of the entire last century to justify the creation of monstrous
amounts of fiat money and credit, an idea stupidly adopted by the
evil Federal Reserve and all the other lowlife central banks of
the world, to finance a gluttonous, bankrupting orgy of government
expansion and moronic private-sector mal-investments not stemming
from true, self-sustaining demand and a stable money supply.
cause of my snarling, paranoia? Peter Coyne of DailyReckoning.com
writes “In this year’s edition of their ‘10,000 Commandments’
report, the Competitive Enterprise Institute estimated that the
cost to comply with federal regulations totaled $1.8 trillion last
year. That’s more than the GDPs of Mexico or Canada and more than
the receipts of all corporate and personal income taxes combined.”
a trap, I sarcastically note that he doesn’t mention the cost of
complying with state and local regulations, which the Grandfather
Economic Report reports, as of August 2011, as “$446 billion
state & local government mandates.”
the same rate of increase as federal regulations, the burden of
state and local overregulation must have expanded to around $505
billion by now, adding to a total cost of $2.305 trillion.
Mr. Coyle blithely
ignores my mounting suspicion and deft calculator wizardry, and
goes on to look at government spending, writing “If you add
in the $3.53 trillion Congress spent last year, it makes the federal
government account for more than 1/3 of the economy,” where,
again, I note that he neglects to mention that total federal, state
and local government spending in 2012 was $6.2 trillion last year,
which does not include the $800 billion spent by the public schools,
which adds to a tidy $9.305 trillion in One Freaking Year (OFY)!
This is certainly
a lot of money, and I would almost certainly have a lot of trouble
spending that much cash over a long weekend, although I seem to
be very good at it.
But, as you
probably noticed by my sudden shift into Shrieking Paranoid Overreaction
Mode (SPOM), it becomes even more, more, MORE outrageous when one
considers that the entire GDP of the USA is only about $15 trillion!
that total government spending, school spending and cost of regulation
is 62 percent — more than half! — of everything this country makes,
buys and sells! More than half! Approaching two-thirds!!!
sniveling discombobulation by this revelation and overuse of exclamation
points, I am looking at my pathetic stash of gold and silver, thinking
“Oh, no! I spent too little buying gold and silver! And I spent
too much on guns, pizza, and golf, and spending way too much on
the wife and kids who are still bleeding me dry with their current
whining about needing new clothes when there is nothing – nothing!
– wrong with their clothes that a little duct tape, or a stapler,
my weary, bloodshot eyes fell across a quote from a guy named Andrew
Maguire, and my mood instantly elevated, meaning either that the
morning’s medications finally kicked in, or that I was going to
be very, very rich despite my pathetic under-investment in gold
It was probably
the latter, as the pills never really worked that well (just like
I told my wife and the doctor, who both insist that I take them
as prescribed and shut up about it), but mostly it was Mr. Maguire
telling King World News that “Eastern Central banks have purchased
a staggering 580 tons of physical gold in just the last 7 trading
days. This means Eastern Central banks just purchased a stunning
25% of the world’s annual gold mine production in just 7 trading
days. This was the largest purchase of physical gold during any
7 trading day span in history.”
A history of gold that stretches back thousands of years, yet never
a lowbrow kind of dullard who just wants to be a very irresponsible
rich guy, and drive some really snazzy car with a great paint job
and powerful stereo, I know how supply and demand are equilibrated
by price. Especially when considering this startling increase in
demand for gold.
as is usual in history at the end of long monetary booms, fraud,
corruption and sleazy manipulation are rampant in the commodities
market (just like in all markets and governments), but especially
gold, which is why the price of gold has fallen so far so fast,
taking silver down with it.
that gold and silver are grossly, fraudulently, impossibly undervalued
to start with, but now with a startling statistic like “the
largest purchase of physical gold during any 7 trading day span
in history,” I shout with joy! “Gold and silver are going
to the moon, baby! To the moon!”
it’s not for nothing that I say “Whee! This investing stuff
is easy!” 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. Visit
© 2013 Richard Daughty
Republished with permission from: Lew Rockwell