AGING DOLLAR VS.YOUNG AMERO

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 God! 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