MOGAMBO GURU: War With Iran Seems To Be It

[Tace]

Richard Daughty, the angriest guy in economics

email: [email protected]

-- I am in full lock-down mode here at the Mogambo Bunker, and I gotta’ tell ya’ that I look pretty sharp in my camouflage Speedo and these bandoliers of ammo across my chest. The reason that I am so frantic is that the growth in Total Fed Credit has gone to zero for over a month now. This is, for me, the ultimate in bad news.

The lack of growth in Fed Credit is bad news because, as Peter Zihlmann of P. Zihlmann Investments explains, "The present expansion is the longest running expansion on record. It has surpassed all other economic expansions before it. The driving force behind it is the rapid growth of the money supply and the explosion of credit that has accompanied it." Many people are saying that the money supply is anemic, too, but that is not exactly true. In fact, M3 has accelerated over the last month above its trend for the last few years, although the monetary base has pretty much leveled off.

But if there really is no rapid growth in the money supply, and there is no explosion in new credit, then the longest-running expansion in history must be just that; history.

Gary Lammert, who is a practitioner of fractal analysis, writes that even when there is money and credit being pumped out, there is nothing to guarantee that they money will be spent on anything useful. "But without the growing money supply flowing into investments for the production of real and useful items that can be sold in a competitive manner to the global markets, the generated economic activity may be malinvested into cul de sacs of domestic services, speculative financial assets, and purely domestic production items such as housing construction."

So the money may be thrown down some rat hole or another, such as stocks or bonds or houses.

(more)

http://worldnewstrust.org/modules/AMS/article.php?storyid=813

[Rapier2]

1. notes

While always entertaining his full bore reactionary self is in full view this time.

[fasttense]

2. I can't quite get this MOGAMBO GURU.

He hates everything the repukes have done, will do, expect to do, or hope to do with the US economy and yet hates liberals even more. This guy is strange, very strange. Yet there is a bit of truth in his rantings.

[fedsron2us]

3. Beneath the ranting he is an old fashioned fiscal conservative

who is suspicious of fiat money systems and thinks governments should balance their budgets. I believe that in times past the Republican party used to believe in these things but it appears that they abandoned such principles in the 1980's. Now the economic future is divined by looking at chicken entrails and following the sage advice of the White Queen in Alice in Wonderland who could sometimes -" believe more than six impossible things before breakfast " . His sort of dinosaur does not really fit any longer into a western world which has essentially abandoned classical capitalist economic theory for a form of kleptocratic oligarchical corporatism.