Pick A Big Ol' Juicy Mogambo Booger (BOJMB) Out Of My Nose (Mogambo Guru)

[Tace]

Richard Daughty, the angriest guy in economics -- World News Trust

Dec. 12, 2006 -- Surprisingly, Total Fed Credit, which is the magical fairy dust of economics, went down last week, if only by a measly $1.6 billion. But the Federal Reserve helped make up for it by buying outright another $1.3 billion in U.S. government securities.

The banks, always eager to please, placed another $37 billion in new loans last week, about a third of them mortgage loans, believe it or not, proving again that blind optimism still trumps fundamentals and statistics in America, sort of like my wife thinking that I am going to change one of these days.

The big news is that the Treasury Secretary and the chairman of the Federal Reserve are in China to hopefully make some deals, in which they will plead ("Please, please, please save our American economic butts!") with the Chinese to use their massive reserves, mostly dollars, and their growing political clout to keep this whole ridiculous economic mess from collapsing, and in return we will agree to give them missiles, weapons, fighter aircraft, war materiel, nuclear technology, supercomputers, a compliant Congress, our land, our businesses, our women, our children, barbeque sandwiches with a side of fries and anything else they want, as much as they want, anytime they want, which they will want because they are on their way to dominating the world. And now it is just a matter of negotiating how, and how much.

I say that we get the same thing in microcosm from Jim Willie and his Hat Trick newsletter, where we learn the sorry news that a lot of previous GDP growth was caused by people spending money that they got by borrowing against the artificially-increased equity in their houses, a dimwitted process known as Mortgage Equity Withdrawal (which should be known as A Stupid Idea To Increase The Size Of Your Mortgage Debt), that was created by the housing boom, which was created by a lot of desperate people who needed to make a lot of money in a hurry (mostly to make up for their stock market losses in 2001), which was facilitated by the loathsome Federal Reserve creating the money to finance it all, and allowed by an irresponsible Congress and government that routinely "looked the other way" at such reckless irresponsibility in the banks because so much money was to be made. But let me sneak off behind the garage to have a lousy cigarette, and it's some kind of big felony case or something. Go figure!

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