Economic System Goes DTBC
Down The Big Crapper

Richard Daughty
...the angriest guy in economics
The Mogambo Guru
Provided as a courtesy of Agora Publishing & DailyReckoning.com
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Aug 30, 2007

"To be as senselessly rude as I could, I sent them all congratulatory telegrams, ('Dear Buttheads, Congratulations on killing America before any of our many, many other enemies did! Hahahaha! Sincerely, The Mogambo')."

I can hear the wife kicking on the locked, armored door of the Mogambo He-Man Bunker (MH-MB), yelling that dinner will be ready in an hour, and since her parents are coming over, she thinks I ought to start putting my "Mogambo toys away and get cleaned up"! Ha! I expect the world to be in economic flames by then! Then we'll see who's hungry around here and who is the "paranoid whacko nut-job"! I laugh mirthlessly, although I don't know why.

Perhaps it was because Total Fed Credit, which had just previously (the week before) shot up by an astounding $17 billion, this week DECREASED by $16 billion! Yikes! Tsunami in, tsunami out! I find this beyond astonishing! And Very, Very Frightening (VVF)!

In short, despite the creation of more bank credit by the Federal Reserve, Total Fed Credit is not increasing, which means that loan volumes are not increasing at the banks, which means that the money supply is not increasing, which means that our stupid Fed-approved and Congress-sanctioned economic system of "making a comfortable living by going deeper and deeper into un-payable debt" is (to use the official economic terminology) "Down The Big Crapper" (DTBC), a precise term that probably has more to do with the disgust with which people regard your devalued currency rather than the actual revulsion at the stinking filth of the currency itself, although these days, who can really be sure? I shudder to think.

And foreign central banks got rid of a chunk ($18 billion) of United States and agency debt held in their accounts at the Fed last week, too, so that seems significant, although who can tell what foreigners are up do, since they are always running around in foreign countries, speaking in some stupid foreign language that I don't even recognize as being human speech, much less understanding anything they say?

And as frightening as all that is, it is just a prelude to the horror of Fed chief Bernanke and Treasury Secretary Paulson going crawling to the office of Senator Christopher Dodd, who is chairman of the Senate Committee on Banking, Housing, and Urban Affairs. They were there (I assume) to let him know that the jig was up now that the despicable banks and the despicable Congress (except for Ron Paul) have destroyed us.

To be as senselessly rude as I could, I sent them all congratulatory telegrams, ("Dear Buttheads, Congratulations on killing America before any of our many, many other enemies did! Hahahaha! Sincerely, The Mogambo").

I say this because I figure that we are creating enemies faster than we can kill them since the Information Clearing House reports that the number of Iraqi people killed is now over one million. Google says the population of Iraq is 22 million, meaning that almost 5% of the population of Iraq has now been killed!

I naturally assume that the reason that the Fed and Treasury chiefs went to Senator Dodd is that they know, as we all know, that he is the kind of guy who will do literally anything, no matter how absurd, no matter how stupid, no matter how degenerate, and no matter how ultimately destructive. And sure enough, when they emerged from their little "meeting", Senator Dodd, a Democrat from Connecticut, reportedly said, "I asked Chairman Bernanke if he would use all the tools available to him, and he said 'absolutely'."

"Use all the tools available." Ahhh! An exquisite phrase! That takes me back to one of my first jobs as a junior executive when I first asked a pretty little secretary if she would "do anything, using all the tools available." I remember the incident so well because she asked, "Like what, Mr. Mogambo, sir?"

Taken aback at her charming naiveté, I helpfully suggested that we could step into the broom closet where I could show her, you know, a couple of interesting positions that she could, ummm, perform with average acrobatic ability, and maybe with a few kitchen implements from the coffee-break room pressed into service as "adult toys."

That is when I discovered that women on this planet LIKE to kick men in the groin! Even when the poor guy is on the ground screaming and crying, and begging her to stop kicking me (I mean "stop kicking him"), and she is screaming, "Die, you disgusting, degenerate, nasty, filthy trash!" and pretty soon everybody else in the office was cheering her on, chanting, "Nasty filthy trash! Nasty filthy trash!" and laughing at me.

As embarrassing as that was, I am sure that what these weenies are cooking up is something even more degenerate. And what will it be? Well, for instance, Adrian Ash of BullionVault.com quotes Bill Gross of the PIMCO bond fund as saying, "Fiscal, not monetary policy should be the preferred remedy, one scaling Rooseveltian proportions."

I don't know what you were thinking when you saw the reference to Franklin Delano Roosevelt, who is probably the biggest piece of nasty, stinking commie trash in American history, but I was shaken!

And rightfully so, too, as Senator Dodd is (in case you were wondering), chairman of the Senate Committee on Banking, Housing, and Urban Affairs, and he sent a letter to Treasury Secretary Henry Paulson and HUD Secretary Alphonso Jackson telling them that they had better jump to the bidding of Congress and immediately "take the necessary steps to enable the Federal Housing Administration (FHA) to provide more affordable loans to American homeowners in danger of foreclosure due to bad lending practices." Hahaha!

I laugh with contempt as this Dodd character is the bigshot chairman of the Senate banking committee, who is responsible for protecting us from the banks, who is keeping an eye on the banks, who is getting reports on the banks, but that now says that the banks engaged in "bad lending practices"! Hahahaha!!

And now he says that there should be a bailout of the hapless homeowners who now are stretched so thin, who owe so much, and for whom inflation is relentlessly eating away what little bit of money they can scrape up every month that they owe far more than they can possibly pay.

This shameful behavior (although Senator Dodd fails to mention it) would bail out the banks (that he is so carefully regulating on our behalf! Hahaha!), and the hedge funds, and retirement funds, and foreign banks, and people all over the whole freaking globe who are watching this Collateralized Debt Obligation crap go belly-up right into the aforementioned Big Crapper.

And yet some people think America has a chance to get out of this mess when these are the kinds of people we put into power! Hahaha!

Ugh.

Aug 29, 2007
Richard Daughty

email: RichardSmithGroup@verizon.net
Daughty Archives
Provided as a courtesy of Agora Publishing and The Daily Reckoning

Richard Daughty is general partner and C.O.O. for Smith Consultant Group, serving the financial and medical communities, and the writer/publisher of the Mogambo Guru economic newsletter, an avocational exercise the better to 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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