Actual cash, in the form of bills and coins which some know as “currency in circulation” – and others know as, “Please, daddy! I need twenty dollars!” like money just appears by magic in my magic wallet or something, and all I have to do is get it out of my pocket and start handing out twenty-dollar bills to anybody who asks me for one – was (unlike me who was down in cash last week), up another $4 billion last week, taking the 12-month total of new physical currency up another $77 billion, bringing the grand total (“ka-ching!”) to $894 billion, which is not a lot when you consider all the tens of trillions of dollar’s worth of stuff out there all based on this little bit of “real” money! Hahaha!
But it is still a $770 increase in the cash money supply, in one month, for everybody in this country that has a private-sector job, with which to make a profit, with which to pay for everything, including remitting taxes.
And in the week when the Federal Reserve increased credit in the banking system by a big ol’ $76.8 billion, of which the Fed itself bought up $56 billion dollar’s worth of Treasury debt, the Gross National Debt increased by a huge $77 billion, taking the nation’s federal indebtedness to a staggering $10.789 trillion, which is so much, and so bad, that it makes you involuntarily scream out loud in your nightmares and then get up the next day and buy as much gold as you can get your hands on, but it is even worse than that, as the damnable Congress has further indebted us, in the last twelve months alone, by almost exactly $1.5 trillion!
In one freaking year! I thought that TheBurningPlatform.com was going to comment on this astonishing fiscal irresponsibility of Congress and the Federal Reserve, but instead they commented on the $787 billion, 1,074 page stimulus bill that was just signed by Obama by noting, “The current ‘stimulus’ package of $787 billion is more than the entire National Debt in 1978 ($771 billion).”
I shook my head in bewilderment, and I thought, “What in the hell does this have to do with the national debt and how the loathsome Congress is spending us into the poorhouse by turning the purchasing power of the dollar into Pure Unadulterated Crap (PUC) by spending so much and requiring that the Federal Reserve produce, out of thin air, all the money and credit necessary for their despicable, corrupt profligacy, which is a word that always reminds me of whipping, and now that I think about it, I think that a mere whipping is too good for Alan Greenspan, former chairman of the tyrannical Federal Reserve, without whom all the inflationary spending and grotesque entitlement excesses would not have been possible and we would not be where we are today, economically bust-wise, although we would still be as old and decrepit since you stupid Earthlings put your inventive minds to developing weapons and bleeding-heart excuses to enlarge government entitlement spe nding instead of creating a youth serum or a pill to give you “six- pack” abs without dieting or exercise.
But it turns out that they are talking about housing prices, and say that “It is now 2009 and the median value should be $150,000 based on historical precedent. The median value at the end of 2008 was $180,100. Therefore, home prices are still 20% overvalued”, which means that “prices need to fall 20%” from here, and maybe more, as “long-term averages are created by periods of overvaluation followed by periods of undervaluation”, by which they mean, and I quote, “could fall 30%” from here, which makes you catch your breath in dismay at the prospect.
The catastrophe of such a thing like that happening kind of dazed me with a sort of petrifying fear, and the next thing I knew they were talking about the federal budget deficit, too, and that the deficit for 2009 “is now estimated at between $2 trillion and $3 trillion, give or take a few hundred billion.”
They go on, “These figures seem incomprehensible to the average person on the street”, and I think to myself, “You said a mouthful there, buddy!” as I am, literally, sitting on the street, having been thrown out of the stupid bar just because I was complaining about how the drinks all cost more these days, and I was blaming the greedy bartender, and he gets right in my face and says the reason that the drinks cost more is that the Federal Reserve creates money and credit, which makes prices go up, which surprised me so much that I blurted out, “This is incomprehensible to me! I always thought you were a stupid moron lowlife ball of garbage who never listened to me, but I see that you are, at least, not stupid about where we get inflation in prices!”, which I thought he would take as a compliment…but he did not.
Until next time,
The Mogambo Guru
for The Daily Reckoning Australia
P.S. As I sit here, I realize that, thanks to the drinks being more expensive, I am not as plastered as usual, and with rare clarity, I see the need to get a pizza and some more gold because I am going to be very, very happy with some of each very, very soon!