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Words of the Mogambo Guru

Just finished reading some of the interesting comments (maniacal ravings?) put down to electronic paper by Richard Daughty, aka the Mogambo Guru. Daughty, the self described "angriest guy in economics", is a bit unsettled at the prospect of our having to rely on the inflationary machinations of the world's central banks/financial institutions to keep the world financial system afloat. Here's a taste of the Mogambo's ire:

we have an economic system where the definition of debt = money, then thus less debt= less money. This is not so chilling until you realize that less money = losses.

But the decline in the value of the dollar is currently being met with an equal, and off-setting, infusion of credit into the banking system. The idea is (and follow along closely here), that this new credit will be borrowed, used to buy stocks and bonds and dollars, which drives their prices higher (thanks to the new demand), and this increase in money-wealth offsets your losses in real wealth (inflation-adjusted dollars) plus the cost of the new debt! Hahahaha! They actually believe this! Hahaha!

This mind-blowing sop to the owners of assets is at the inflationary expense of those who cannot afford to live day to day as it is, much less accumulate assets, is the cause of the huge disparity of wealth evident in the world.

Read all of it here.

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