Oh...Ye Suckers....

From The Mogambo Guru...

-Paul Hein has a nice essay entitled, "Give No Quarter" on the LewRockwell.com site. He must have been looking at how the metal in coins now cost more than the coins are worth, and he says to relax. "The mint says that the coins cost a nickel to produce. Americans will have to pay 25 cents apiece for them. This is a 'profit' of 20 cents per coin, and the mint, remember, is going to stamp out half a billion of them, for a net gain of 100 million bux. Nonsense! The actual cost of producing the coins is – nothing. If you can pay for money with money, how can it cost you anything?" The Mogambo is delighted with Mr. Hein, and I hop up and down and clap my hands together in childish glee! Exactly! Hahahaha! He goes on to give an example, "How much would a bunch of grapes cost if you could pay for it with a couple of grapes? Suppose you pick up a large bunch of juicy, delicious grapes at the supermarket. The checkout clerk says, 'Those will cost you three grapes.' So you pick off three grapes and give them to her. Were the grapes expensive? Can you continue to afford them, even if the cost doubles to six grapes?"

Then he gets very philosophical, but important, if you think that casting aspersions on fiat currency is important, and I do. "If a slave-owner in the 19th century printed up some nice chits bearing pictures of himself (using his slaves to do the work, and produce the paper and ink) and then distributed them to the slaves as 'payment,' they could exchange the chits among themselves as money. Of course, they would have no claim on any assets of the master, but that wouldn’t occur to them. That is precisely what defined their slavery, even if they thought of themselves as free: their chains were made of paper. So are ours."

-In his essay "The Decline of Paper Currency," Chris Mayer writes, "Inflation, as it is commonly known, has not always been the normal state of affairs." That is because the normal state of affairs is people trying as hard as they can NOT to let inflation get started. And I will tell you that a damned government letting a damned central bank actually try and create inflation ("to prevent deflation") is not normal for people who are not insane, either. But Mr. Mayer doesn't want to talk about that, and instead motions for me to sit back down and take a pill. With me safely out of the way, he quotes James Grant, who is the editor of Grant's Interest Rate Observer, who said, "From George Washington to the A-bomb, prices alternately rose and fell... As Alan Greenspan himself has pointed out, the American price level registered little net change between 1800 and 1929." Now Mr. Mayer extrapolates from that, "It took Rome four centuries to destroy its currency," he said. "Germany and Austria reached that point in just nine years, ending in the famous hyperinflations of the 1920s, and before that, Russia managed it in only five years."

Hahahaha! And if you think that is funny, then you will probably bust a gut to learn that Greenspan has devalued our money by 30% or so in the last few years alone, and the poor old dollar has lost about 98% of its value since 1913 when the filthy Federal Reserve was created! And if you think THAT is funny, then you are will probably fall down on the floor and die laughing to learn that the value of the dollar goes lower and lower every damn day, and will probably continue to do so for the rest of your life!

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