I am suing because this is identical – identical! – to what I said a long time ago, which I am sure you will readily see when you compare his obviously-plagiarized remarks to my original, “If you think that you can find a way to stop the inflationary suicide caused by the over-creation of money and credit, especially when used to finance massive government deficit-spending over the long-term, then you are in the category we professionals call Stupid-Plus-Insane (SPI), because the Entire Freaking History Of The World (EFHOTW) is one long, discontinuous, sad story of how one idiotic government after another cheapened its money by massive over-creation of money, or going into un-payable debt, or both, and thus destroying the economy until the idiots in charge found an excuse to declare war on someone either smaller and/or more lightly armed, and merely steal their stuff with which to pay debts.”

I am sure that you can already see the obvious similarities with just that little introductory bit, but which is brought into sharper focus when I continued, “And if you DO find a way to painlessly deflate these horrid monetary bubbles, then you will go down in history as the Smartest Person Who Ever Freaking Lived (SMWEFL), since all the smartest men who EFL before this all tried, with emergency governmental powers unfettered by man or gods, to find a way to bail dirtbag countries out of their bankrupting debts and associated government idiocies, and they all failed miserably.”

If there is any doubt left in your minds, ladies and gentlemen of the jury, that this Yu Yongding (if that is his real name, which I doubt because it sounds like he made it up to me!) plagiarized the official Remarks Of The Mogambo (ROTM), then explain the devastating similarity between his comments and my concluding remarks, which are “All of them failed, completely, to achieve this very thing, and which makes me laugh uproariously – hahahaha! – at anyone who still thinks it is possible, and if that is you, then I extend my promise to devote the entire rest of my life to bringing your Fabulous Big Plan (FBP) to the world if you succeed in finding a way to bail out a heavily-indebted, bankrupt, something-for-nothing welfare country that abuses a fiat currency and unlimited fractional reserve banking, coming as it does after all these many, many centuries of everyone looking, looking, looking to desperately find a painless solution to this Same Stupid Problem (SSP), which means you won’t succeed, but thanks for trying, moron!”

I plan on using the big cash award from the jury’s verdict to buy gold, silver and oil, which will not solve anything other than my own future well-being, since these things will soar in price because of the inflation in prices from all of this inflation in the money supply from all this inflation in government spending.

Maybe this ease of investment decision-making is why the Chinese are buying gold, the Russians are buying gold, all the smart people are buying gold, all the good-looking people are buying gold, and why Bloomberg.com reports that “Northwestern Mutual Life Insurance Co., the third-largest U.S. life insurer by 2008 sales, has bought gold for the first time in the company’s 152-year history to hedge against further asset declines.”

In case you were wondering, they bought about $400 million in gold, which is interesting in that later, the article quotes CEO Edward Zore as saying that “In the Depression, gold did very, very well.”

The ominous reference to a Depression aside, what he did not say is that over the long-term, gold has always done very well. Neither did he comment on my lawsuit against Yu Yongding, nor did he squeal like a happy pig in his joyful glee that “Whee! This investing stuff is easy!” when you can so easily bet against government stupidity!

Source: Purchasing Gold as a Product of Plagiarism

After combing through the past 25 editions of the “Monthly Treasury Statement of Receipts and Outlays of the United States Government,” which is compiled and published by the Treasury Department’s Financial Management Service, we created the following chart.

Here’s what’s going on:

Tellingly, for the first time since 1983, the U.S. government posted a deficit in April. That’s a big swing in the wrong direction, as the bump in personal tax collections in April historically results in a big surplus — on average about $68 billion.

What are the implications of this tanking tax revenue?

For starters, it means the federal government deficit is going be as bad or worse than the $2.5 trillion Bud Conrad, chief economist of Casey Research, projected it to be last year.

If the shortfall in individual and corporate tax revenue persists — and we expect it will — then the deep hole the government is already digging for itself will be that much deeper.

Using the government’s own expense projections, the revenue shortfall, even if it doesn’t worsen further, would push the fiscal 2009 budget deficit up to about $1.958 trillion. For reasons we’ve discussed at some length in The Casey Report, those expense projections are likely to be significantly understated.

Case in point, in January the government projected a $1.2 trillion deficit for fiscal year 2009… in March, just three months later, they upped the projection to $1.8 trillion. That $600 billion “adjustment” alone totaled more than any full-year budget deficit in the nation’s history.

Yet, the real fly in the ointment is that the actual borrowing by the Treasury is likely to be at least half a trillion dollars more than the deficit.

That’s because the Treasury is buying toxic paper (mortgage, credit card loans, etc.) and putting them on the books with a higher value than the market is willing to assign. While that makes the budget deficit appear smaller, it doesn’t negate the fact that the government still must borrow the money needed to buy the toxic paper in the first place. The additional revenue shortfall means they have to raise that much more money. Based on the struggle they had pushing the $14 billion in long-term notes at the latest auction, it becomes increasingly apparent that when push comes to shove, the only way the government is going to come up with the money needed to meet its aggressive spending is to print it up.

In other words, events are rolling out almost exactly as we have been anticipating. Below, for example, are some useful excerpts from an April 3 article titled “Widening Deficits” by Casey Research CEO Olivier Garret. To quote…

In the midst of the Great Depression, the 1931 federal tax revenues had fallen by 52% from their 1929 highs. While we do not expect anything that dramatic in 2009, it would not be unrealistic to see a 20% to 25% reduction in cash flow from tax collections this tax season. Such a drop would pose significant challenges given that spending commitments are off the charts and climbing.

Later in that same article, Olivier continued,

In the absence of sizeable increases in tax revenues, it is quite clear that the lion’s share of the planned sales of Treasuries in 2009 cannot be met by demand from the market. Either the Treasury will have to raise interest rates significantly, or the Fed will need to step in very aggressively to support the planned auctions. Our expectation is that both will happen. Auctions will fail and the Fed will step in. The market will react to more printing by anticipating inflation and demanding higher interest rates. Once the cycle starts, it will be very hard to pull interest rates back.

We continue to stand by our December forecast that the 2009 budget deficit is more likely to widen to levels between $2.5 and $3 trillion rather than the CBO’s $1.8 trillion forecast. We also believe that inflation could start setting in as early as Q3 of 2009 and will accelerate sharply by 2010. Treasury Rates will start climbing and the era of cheap money will end, making it harder for overleveraged consumers, businesses, and governments to service their debt.

Olivier’s forecast of failed auctions and rising interest rates on Treasuries proved more prophetic as a May 7th story from Bloomberg reported:

Treasury 30-year bonds fell the most in four months as investors demanded higher-than-forecasted yields at today’s auction of $14 billion of the securities with the U.S. slated to sell a record amount of debt this year.

“This is a problem,” said Chris Ahrens, head interest-rate strategist at UBS AG in Stamford, Connecticut, one of 16 primary dealers required to bid in Treasury auctions. “The market required a fairly significant discount to buy the bonds.”

Thirty-year bonds have lost investors 20.9 percent this year, Merrill Lynch & Co. indexes show, as the Treasury increases securities sales to help fund a swelling budget deficit. Yields climbed to a six-month high today as the auction drew a yield of 4.288 percent, higher than the 4.192 percent average forecast in a Bloomberg News survey of seven primary dealers. Demand was below average, judging by total bids.

The benchmark 30-year bond yield climbed 23 basis points, or 0.23 percentage points, the most since Jan. 5, to 4.316 percent, at 5:25 p.m. in New York, according to BGCantor Market data. It was the highest yield since Nov. 14. The 3.5 percent security due in February 2039 dropped 3 15/32, or $34.69 per $1,000 face amount, to 86 3/8.

The 10-year note yield increased 16 basis points to 3.345 percent, the highest since Nov. 24.

Two-year notes yielded 1 percent for the first time since March 18, while the rate on the three-month Treasury bill was 0.18 percent.

So, what does all this mean?

As per above, the rock-and-the-hard-place scenario we have been predicting is unfolding before our eyes. At this point, other than sharply changing course and letting the free market cope with the crisis through a brutal “survival of the fittest” scenario, the government is left with no other option than to accelerate its buying up of its own debt.

Which is to say, it must push even harder on the levers of its printing presses, further setting the stage for the massive period of inflation we continue to see as inevitable… and for the stunning rise in interest rates we are now positioning ourselves for in The Casey Report (and, you can too… learn more).

Source:  Tax Revenues Tanking

Even more horrifically, I have seen other people calculating that the budget deficit will range upwards to $2 trillion, and maybe more. Maybe much more!

I say this because I thought I had become a hardened veteran of the government and the Federal Reserve acting like morons, and I had bravely resigned myself to the collapse that such idiocy deserved. As a result, I had a swagger in my step and a sneer in my voice to prove it, but now, this prospect of a multi-trillion dollar budget deficit caused me to have a little “accident” in my pants at the news that the federal budget, which was already scheduled to be $3 trillion before any of this stuff happened, is now going to have a deficit of trillions of dollars, all in an economy that is only about $13 trillion! Gaaaahhhh! I am freaking out here!

I keep thinking to myself that this is so Freaking Much Money (FMM) that it would only cost $2 trillion to give $10,000 in cash to every one of the 200 million adults in the whole damned country! Gaaahhhhh!

I seem to remember, and police reports confirm, that this horrific news sent me screaming into the night, shouting not only, “Gaaaahhhh!” but also, “We’re freaking doomed, you morons! Buy gold and protect yourselves from Mother Nature’s Backlash (MNB) against your constantly acting stupid by electing spendthrift, promise-them-everything morons to government office, who have allowed the Federal Reserve to create so much money and credit to accommodate government deficit-spending that that government has now spent you into debtor’s hell to support a government So Freaking Huge (SFH) that the total of government spending constitutes half – half! – of all spending in the freaking country! Half!”

Somewhere around 52nd Avenue I am heard saying, “And you have spent yourself to a debtor’s hell as well, you morons, by buying your own debt to fund your own stupid retirement plans, which is akin to trying to make money by eating one’s own, ummm, poop, you morons!!”

Fortunately, I calmed down before the police could actually arrive and catch me in the act of disturbing the peace or actually making threats against my neighbor who is so stupid that he will not buy gold, no matter what I do, or even shut up long enough to listen to me when I am trying to politely explain to him what a moron he is for not doing as I tell him.

And the reason that I calmed down was because I suddenly thought to myself, “Whoa! I sure as hell could use $10,000 for myself, and a nice $20,000 for being married; filing jointly for a wad of lovely, lovely cash would be lovely, too!”

And then, as another benefit of giving money to people, I thought of older people who’ve had their damned grown children move “back home” to live with them, all crammed into the one house, sometimes dragging their kids along; but if you kick them out to live in their stupid car like they deserve, even offering to let them use the garden hose outback to clean up, everybody yells at me and calls me names, like I did something wrong!

But with a $20,000 windfall between them, you would feel vindicated, and indeed righteous, to kick them the hell out of your house! “Get lost, parasites!” Hahahaha! Sweet!

But apparently the “shocking” quality of this $1.186 trillion budget deficit has given the CBO a sudden clairvoyance, because they figure that the budget deficit will, somehow (they don’t explain how, or why), “decline to $703 billion in FY10″, which I mention only because I thought I could turn it into some scathing sarcasm of some kind before I lost interest in it, but, then again, a $703 billion budget deficit is still nothing to sneeze at!

Even so, the article goes on, “The CBO report almost certainly understates the severity of the nation’s fiscal woes”, because. “For example, the CBO report does not account for the emerging fiscal stimulus bill that may cost more than $800 billion over two years” which brings us up to a budget deficit of $1.98 trillion!

And while you are gasping for breath at the horror of it all, it certainly does not even take into account the inevitable hundreds of billions of dollars in “supplemental appropriations” that Congress routinely authorizes all year, every year, and which in the last 12 months amounted to more than an incredible $1.4 trillion dollars of additional public debt, and which now stands at the unbelievable sum of $10.635 trillion, in an economy that is only $13 trillion, where now these weenies are proposing to borrow and spend another $2 trillion freaking dollars! Gaaahhh! We are so freaking doomed!

Those who are paranoid enough, smart enough or lucky enough to be sitting on piles of gold, silver and oil are no doubt sitting cool right about now, while those who are not similarly paranoid enough or well-stocked with gold, silver and oil must be going freaking nuts and their hearts are hammering boom, boom, boom as they watch their own destruction approaching.

And as a guy who has some of all three, I say, “Whee! This investing stuff is easy!”

Source: A World of Financial Freeloaders