Mogambo Guru: "We are Doomed"

I'm still not done reading it, mind you, but good stuff.

I love it.

I totally agree he is quite pessimistic, however most of what he is saying has some truth to it - except the name calling garbage.

We're propping up the dollar with our military and it's costing a fortune. Something has to give.

But there are nuggets of truth in his writings that just jump out and scream at you.

"Getting back to the thing that causes me to have nightmares, inflation, Kurt Richebacher writes "U.S. inflation rates of consumer and producer prices are now at the top in the world, even despite the Fed’s gross understatement. As of September 2005, the PPI was up 6.7% year over year. A year earlier, in August 2004, the 12-month rise was 3.3%. As to the CPI, it showed a rise of 4.7% year over year in September, as against 2.5% a year earlier. Import prices are up 9.9%.

"Annualizing the price increases over the last three months, the numbers become outright frightening. For the PPI, in September, it was 14.8%, for the CPI, 9.4% and for import prices, 20.5%."

A 14.8, 9.4 and 20.5% inflation rate, no wonder he says we are doomed. Yet did the median a household income rise that much?

Here is another one I find interesting:

"Kurt Richebacher has heard that companies are sitting on a huge hoard of money, and remarks "And you know why profits are up in the United States? It has nothing to do with healthy, growing businesses. Just the opposite. These businesses have stopped investing in new plant and equipment. So they have much less capital equipment to depreciate. As depreciation collapses, profitability goes up - especially when they're making money from financing activities. But this can't last."

But, but, CNN, MSNBC and, of course, Fox say the economy is great and that is why Brush's polls went up 5%.

My brain hurts when I try to analyze who is right and who is wrong with economic matters.
Someone could just pop in here and say something like... "Monetary policy will fix it" and being fairly economically illiterate, how would I correct that?
Anyone got a good podcasting 101 of economics site they can refer me to?
My brain hurts!