“When the Federal Reserve is actively destroying the USA by creating so incredibly much money, for so long, so that idiotic bond buyers are finally reduced to realizing a laughable after-tax 1% yield - if that! - from their investment in bonds, while suffering an 8% loss of buying power of all the money they have, and the value of everything they have, because of inflation, are these bond buying people half-witted lowlife morons or what?”
Fortunately, the woeful travails of bond buyers and the morons buying common equities soon leave me disinterested and bored, as I invest according to the Mogambo Investment Theory (MIT), which is to simply buy gold, silver and oil, which will tromp them all.
And with the Federal Reserve acting like it does, and the federal government acting like it does, profiting from inflation in prices by simply buying gold, silver and oil is so easy that I cannot stop myself from delightedly exclaiming, “Whee! This investing stuff is easy!”
Richard Daughty
http://atimes.com/atimes/Global_Economy/LJ19Dj01.html
It sounds like a startup company in financial trouble. The management tells the investors that they will have to bankrupt out unless they get more money. Well, that has a chance of working for a round or two, but then the investors will demand complete control by throwing out the original management.
Lending us money at 1% might have been presented as the only alternative to Geithner and Bernanke running the magic money machine at Zimbabwe speed and destroying our currency (along with all the bond holders' previous investments). I forsee a time soon when we can not borrow money in dollars, just like we came close to in the 1970s.