Passing the buck

The Chief REALLY, REALLY wants to comment on this offering from the feared and esteemed Mogambo Guru, but words fail…this is truly indescribable…it stands on its own…but is enough to alarm anyone rational to notice that the financial emperor – The Federal Reserve – has no clothes.

To quote an applicable song title from Warren Zevon: “It ain’t that pretty at all”

If you want to know the reason why America is freaking doomed, it is because of lowlife losers like St Louis Federal Reserve president William Poole, who is being quoted at MarketWatch.com as saying that nothing is his fault, as, “Investment professionals’ ‘shortsightedness’ led them to make fundamental errors that led to the mortgage crisis and credit meltdown.” Hahaha!

MarketWatch.com reports that, “In a speech to financial planners, Poole detailed five key mistakes that borrowers and lenders made that have pushed the economy to the brink of recession.” These “mistakes” were, according to Poole, that “Borrowers took on mortgages they could not afford,” which sidesteps the issue that nobody would have taken out a mortgage if the damnable Federal Reserve, of which he was a part, had not created all the money. Which created inflation, as it always does, in housing.

After detailing the sorry circumstances of the above mentioned “mistakes”, (which is well worth reading) things get worse…

Poole is obviously implying that everyone should know by now that the Federal Reserve and its banking system is a stupid, lying pit of vipers who cannot be trusted, and that the ratings agencies are even worse, and that only an idiot would trust either of these despicable organizations to tell you the correct time of day, much less rely on them to know what they are doing in establishing risk or telling you the truth about it when they are all raking in the big bucks by being incompetent.

…and still worse yet…

Mr Poole, obviously embarrassed by my rude comments, says that, “A reach for yield with inadequate attention to risk is another basic lesson that apparently cannot be relearned often enough,” when he actually means, “To never, ever trust the word or competence of the Federal Reserve is a lesson that cannot be relearned often enough.”

And not only is the Fed a bunch of laughably incompetent morons, but they never learn, and in Poole’s own words, “There are no new lessons here. The mistakes that brought us to this point have been made before.” Indeed they have! And that is why the US constitution has the requirement that money be only of gold and silver; to keep bank morons and government morons from creating so much money that they produce inflation and busts!

…but wait! There’s more:

…the government’s promises for future benefits payable under the Social Security and Medicare programs are now estimated to be at $53 trillion, in current dollars. This is up from about $20 trillion in 2000. Naturally, I whip out the old HP12C calculator, and in a matter of just a few moments I had produced several contradictory answers to the question, “What in the hell is the hyperinflationary horror, in percentage terms, of liabilities increasing from $20 trillion to $53 trillion in 7 years?”, most of them clustering around 15%, which is so terrifying a number that I instinctively repeat the calculations, hoping I am wrong. But I am not.

So a LOT of money has to be created, and for those who wish to know the eventual outcome of a central bank constantly creating excess money and credit over the long term, the Reserve Bank of Zimbabwe (the worst of the worst) calculates that their inflation in consumer prices was 24,059% (!) in 2007. In other words, if a loaf of bread cost $.01 in January, it now costs $240.59 in December.

Actually, it is Much, Much Worse (MMW) than that, as the Voice of America reported that “Recent estimates of Zimbabwean inflation by independent economists have tended to run quite a bit higher, ranging from 50,000% to 100,000%”, and “Zimbabwe’s Central Statistical Office stopped providing data on inflation in September, saying it could not find prices for key goods because they were not on store shelves.” Hahaha!

In America (the place where lying with statistics achieved official government status, thanks to the loathsome Alan Greenspan, the worst central banker in the history of central banking, and the despicable Michael Boskin of Stanford University, his willing henchman), a complete absence of goods on store shelves means that “everything costs zero”! And then Greenspan and Boskin could, with their new method, claim that this proves that inflation is falling! Hahaha! Time for a rate cut! Hahahaha!

Read the whole thing and weep!