Bad News for Tax Revenues

"Losses on this kind of scale are the worst kind of bad news for tax revenues and those governments and recipients who depend on tax revenues, which rhymes so well that I am going to turn it into a Mogambo Hit Song (MHS)…"

by The Mogambo Guru

Junior Mogambo Ranger (JMR) Main I. asks, "The dollar was at 72.98, but gold went down $16.70/oz., and silver went down 66 cents/oz. more? Was the PPT at work? What's your best guess, Mogambo?"

Naturally, my best guess is that somebody had recently bought a lot of silver and/or gold, and some supernatural power (such as Mother Nature or her idiot son, Dumb Luck) is mad at them for some reason, probably vanity like in the Greek dramas, and so this malevolent supernatural power is punishing them, and other silver and gold investors are simply being dragged down with them.

You will be relieved to know that I know what I am talking about, as I am a guy who has been the victim of vengeful outside forces so, so, so many times before. I mean, every time I tried something I failed, every time I invested in something it would go down, every time I took a girl out on a date I ended up in court, and after I finally succeeded in tricking some girl into marrying me, every time I had another kid, it would be just as ugly, and smelly, and poopie, and loud, and useless as the last one! And expensive! And you can't even sell one or two of them or auction off their organs to make a little money, but which nobody tells you BEFORE you have the damned kids!

Or it could be that the Plunge Protection Team is, as JMR Main hypothesized, actually at work keeping the markets up with their slimy central bank, commercial bank and government bag of tricks, and I say "could be" because I have no way of knowing, but I will tell you that I would be absolutely flabbergasted and stunned to learn that they were NOT intervening in the markets to keep these over-bought, over-promised, over-leveraged, over-the-top idiocies from collapsing in flames and killing everybody! Mighty, Mighty Surprised (MMS)!

It's just too bad it can't work, and it will all end up as more losses. And that is where the REAL trouble begins. Losses on this kind of scale are the worst kind of bad news for tax revenues and those governments and recipients who depend on tax revenues, which rhymes so well that I am going to turn it into a Mogambo Hit Song (MHS) that features loud, over-driven electric guitars, pounding drums with delay effects, a thumping, thundering bass line and me screaming out the lyrics; "Bad news for tax revenues!"

The next line of lyrics is controversial, because the official lyrics on the copyright form read, "And now they're coming after yous", which I understand is bad English and I should be embarrassed, but I am not, because I did that on purpose, and not just because it rhymed. When the song is played backwards, it sounds like "You're freaking doomed, you moron, because you are so damned stupid that you let your precious elected officials let the Federal Reserve create so damned much fiat money and so damned much credit, via so damned much unlimited fractional-reserve banking, and for so damned long, that you must be brain-damaged to even bravely hope that it will not end badly, you stupid lame brain!"

My amazing musical talents aside, there is no end to my contempt for the intellectual prowess of us Americans, who actually believe that something so preposterous could POSSIBLY work out, because to see the utter, utter foolishness of such a thing, all they had to do is ask themselves, "Hey! Duh! Umm, if a government could print money for itself to spend, then, like, you know, why don't all governments do it, and why haven't they always done it? Is there a reason why they don't?"

Exactly. And it's always fatal in the late stages, too.

P.S. To get The Daily Reckoning sent directly to your inbox, sign up for our free email newsletter, or if you prefer to use RSS, subscribe to the Daily Reckoning RSS feed.

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. Click here to visit the Mogambo archive page.