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AGING DOLLAR VS.YOUNG AMERO

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  • Frog Farmer
    With all the news about the pending disqualification of the FRN (may it rest in peace) and the sell out of the people again and again in connection
    Message 1 of 2 , Dec 31, 2006
      With all the news about the "pending disqualification" of the FRN (may
      it rest in peace) and the sell out of the people again and again in
      connection therewith, I thought the list members may appreciate this
      timely message I received:

      AGING DOLLAR VS.YOUNG AMERO
      by The Mogambo Guru

      If you are one of those people who bizarrely think that The Stupid
      Mogambo
      (TSM) has enough smarts or education to have an opinion about anything,
      I laugh at you in scorn, and I laugh at you again when you ask for my
      Idiotic Mogambo Opinion (IMO) about the euro, now that you are getting
      scared of the dollar, as you should be. Being kind and charitable, as in
      "just before Christmas I'm as good as I can be", let me politely tell
      you, for the record, "Don't Make Me Laugh, Jerkface! (DMMLJ)".

      You may not know it, but this bizarre economic scheme of having one
      monetary policy and multiple fiscal policies is as popular around the
      Mogambo household as it is in Europe. The wife and kids have banded
      together into the Mogambo Union (MU), and their official position is
      that, since there are five of us, then all the money ought to be divided
      up equally, and everybody get a fifth of the money. My wife is siding
      with the kids in this idiocy because, I guess, she has formed some kind
      of "bond" with them over the last 15 years or something. Or she's just
      being hateful. Who knows? Who the hell cares?

      But anyway, they are serious about this single monetary policy thing.
      And if you can contain your laughter for another second, you will
      realize that this is the exact same situation with the euro, and they
      are serious, too.

      The only difference, what I call the "Crucial Mogambo Difference (CMD)",
      between the two systems is that in dealing with the Mogambo Union (MU),
      I control rogue members by bursting into their rooms and screaming like
      a banshee with a baseball bat, in order to knock some sense into their
      thick heads (which, fortunately so far, always miraculously occurs about
      halfway through my initial windup backswing), while in the European
      Union (EU), they don't. A crucial difference to be sure - although the
      stupidity is exactly the same.

      Susan asks, "With the collapse of the dollar on the horizon and the
      'Amero' lining up to take its place, how will this new currency affect
      our gold and silver?"

      For one thing, the Amero is supposedly a proposed new common currency
      for (at least) Canada, the United States and Mexico that will replace
      our individual moneys, including the dollar, and morph us all seamlessly
      into one big, happy, multi-lingual, multi-cultural family with vast
      income and wealth disparities, which is funny enough in itself that
      rational people would even contemplate such preposterous stupidity.

      But the economic mess that is engulfing us, precipitated by the dollar
      getting destroyed by the actions and inactions of the Federal Reserve
      and Congress for so many years, has to be resolved somehow! Why not the
      Amero?
      And if not the Amero, my Darling Mogambo Cherub (DMC), then what?

      And with a worthless dollar, soaring inflation and a grumpy electorate,
      what better solution than to (like most other countries in history have
      done in times of their own well-deserved economic crises caused exactly
      like ours) expropriate the resources and assets of some other countries,
      such as Canada and Mexico? Hahaha! America at its finest hour! We have
      evolved to the point where we Americans can now, literally, conquer
      other countries, and acquire their assets and resources to bail us out
      of the economic mess we created (which is the impetus for all wars), all
      without firing a shot! Or even threatening to! A miracle of modern
      politics and
      corruption!

      As to whether or not it is true, there surely are people who desperately
      want it to be true because they are all lining themselves up to make a
      big profit from it somehow.

      And for how it affects gold, it will have, at worst, no effect, as that
      is the beauty of gold; it is impervious to currencies and their
      depredations, and its buying-power value over the last 4,000 years is
      almost a constant, which is the whole point of how gold "preserves
      wealth"!

      In the best-case scenario, gold (and silver, and all commodities) will
      soar like they always have in the inevitable bust at the end of long
      booms, which are always financed by the massively excessive creation of
      money and credit, via the historically timeless and brainless expedient
      of a fiat currency, a reckless banking system and a complicit,
      intellectually-corrupt government.

      And with the absolute, 100% certainty of a bust happening again, just
      like it always has, without exception, in thousands of countries, to
      thousands of currencies, for several thousand years, gold will rise
      triumphant, just as gold has always risen triumphant! And that one fact,
      alone, explains why I am always strongly suggesting, in a very loud and
      irritating voice, for you to get silver and gold right (pause) freaking
      (pause) now, if not sooner.

      And it is because of the disdain of the ridiculous dollar, which is
      actually spreading, as we gather from an email from Christian S., who
      was kind enough to send an English translation of a posting from
      Argentinienaktuell.com, which is that, starting mid-2007, "Argentina and
      Brazil do not plan to use the U.S. dollar" for commercial exchange
      between themselves. They will use their own currencies, the Argentine
      peso and Brazilian real, and the article hinted that abolishment of the
      dollar to effect commercial exchanges between Argentina and Brazil could
      be next.

      But, apparently, people are surprised that the debasement of the dollar
      has impacted coins, in that the metal in our pennies and nickels is
      worth more than the face value of the coins. So the government, instead
      of "doing the right thing" to permanently eliminate inflation by
      stopping its own cancerous growth and by preventing the Federal Reserve
      from constantly creating more money and credit, has instead simply made
      it illegal to melt or export quantities of coins!

      It was from the New York Times that I got the news, in their article
      "Rising Metal Prices Prompt Ban on Melting and Export of Coins", that
      "The United States Mint, concerned that rising metal prices could lead
      to widespread recycling of pennies and nickels, has banned melting or
      exporting them. According to calculations by the Mint, the metal value
      of pennies, which are made of copper-coated zinc, is now more than one
      cent.
      The metal value of 5-cent coins, made from a copper-nickel blend, is up
      to
      7 cents. Adding in the costs of manufacturing means the Mint now spends
      1.73 cents for every penny and 8.74 cents for every nickel it makes."

      Hahaha! The penalty? Up to a $10,000 fine, and imprisonment of up to
      five years, or both!

      Paul R. sardonically notes, "Notice that I am only allowed to carry $5
      worth of coins out of the country, because they have real value. But I'm
      allowed to take $10,000 of their worthless dollars with me, because they
      have no real value." Hahaha! Exactly, Paul!

      USAToday adds the news that the government has changed the composition
      of coins lots of times ("The penny," they report, "which was pure copper
      when it was introduced in 1793, was last changed in 1982") and always in
      response, of course, to rising metal prices, which is more solid
      evidence of inflation and, thus, more proof of complete government
      incompetence, and if we had any brains at all we would rise up in
      vicious outrage and descend upon Washington as an ugly, drunken,
      mindless mob, unleashing our righteous vengeance on Congress (except
      Rep. Ron Paul) and the Federal Reserve, and then maybe other central
      banks around the world would see the carnage on TV and, glued in rapt
      fascination to the lurid screens, they would say amongst themselves "Oh,
      my [J.]! We had better stop doing that same monetary crap right now!
      Hey! Is that a bag of flaming dog poop he's throwing? Ewww!"

      Well, to be honest, USAToday did not actually say that, but they might
      as well have (and in my opinion should have). But they did say that
      copper averaged about 75 cents a pound in 1982. And how is copper faring
      since then? From ABCNews.go.com we learn "Copper prices are up more than
      180 percent since mid-2003, selling for just more than $3 a pound."
      Almost tripled in three years? And yet there is no inflation? Hahahaha!
      This is insane!

      Until next week,

      The Mogambo Guru
      for The Daily Reckoning

      Mogambo sez: Gold and silver are doing well, as expected when the dollar
      falls, but oil going down like this is such a rich, juicy plum that I
      gotta- I just gotta, I tells ya! -emphasize it as the Mogambo
      Investment-Sector Pick O' The Week (MI-SPOTW).

      Editor's Note: Richard Daughty is general partner and COO for Smith
      Consultant Group, serving the financial and medical communities, and the
      editor of The Mogambo Guru economic newsletter - an avocational exercise
      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.

      Regards and Happy New Year!

      FF
    • Frog Farmer
      ... I have been telling close friends about the free-falling FRNs for a few weeks now - the story is getting out and around the world! It s being kept out of
      Message 2 of 2 , Jan 3, 2007
        Frog Farmer [mailto:frogfrmr@...] transmitted:

        > AGING DOLLAR VS.YOUNG AMERO
        > by The Mogambo Guru

        > explains why I am always strongly suggesting, in a very loud
        > irritating voice, for you to get silver and gold right (pause)
        > freaking (pause) now, if not sooner.

        I have been telling close friends about the free-falling FRNs for a few
        weeks now - the story is getting out and around the world! It's being
        kept out of American media. More is happening right freaking now. I
        just got this:

        Check this out from this website in England. It reports Paulson has
        been arrested in Germany and charged with money-laundering, non-payment
        of the Wanta $4.5 Trillion and for misappropriation and/or diversion of
        colossal $ sums.

        News - PAULSON AND CHENEY SUBPOENAED BY TRIBUNAL
        <http://www.worldreports.org/news/38_paulson_and_cheney_s>

        > And it is because of the disdain of the ridiculous dollar, which is
        > actually spreading, as we gather from an email from Christian S., who
        > was kind enough to send an English translation of a posting from
        > Argentinienaktuell.com, which is that, starting mid-2007, "Argentina
        > and Brazil do not plan to use the U.S. dollar" for commercial exchange
        > between themselves. They will use their own currencies, the Argentine
        > peso and Brazilian real, and the article hinted that abolishment of
        > the dollar to effect commercial exchanges between Argentina and Brazil
        > could be next.

        "Wanta Bet"? ;-) If they wait that long, they'll be left holding the
        Old Maid.

        > Paul R. sardonically notes, "Notice that I am only allowed to carry $5
        > worth of coins out of the country, because they have real value. But
        > I'm allowed to take $10,000 of their worthless dollars with me,because
        > they have no real value." Hahaha! Exactly, Paul!

        Most Americans are still oblivious.

        > USAToday adds the news that the government has changed the composition
        > of coins lots of times ("The penny," they report, "which was pure
        > copper when it was introduced in 1793, was last changed in 1982")

        That 1792 law was never repealed though, like HJR192 was...hmmmm.
        Ramifications, schmamifications! Implications, complications,
        conflagrations!

        Regards,

        FF
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