The Great Depression Online

Great Depression Online Archive Issue:

Diego's Rebellion

Great Depression Online
Long Beach, CA
January 15, 2008

Inside This Issue You Will Discover…

*** The Opposite of Goldilocks
*** Diego’s Rebellion
*** The WAG and SWAG of Price Fixing
*** And More

The Opposite of Goldilocks

We scanned the financial headlines for news to comment on and found more of the same…

Asset prices are deflating.  Prices for goods and services are inflating.  All while the economy is stagnating.  And we see too that gold has eclipsed $900 per ounce for the first time ever – another sign of rampant money supply growth.

The Federal Reserve has found themselves in quite a pickle.  For this is the exact opposite of what occurs during the much elated ‘goldilocks’ scenario.

But we won’t dwell on it today…  Because in our rummaging we came across a brief – yet endearing – article we could sincerely appreciate.

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Diego’s Rebellion

“A 10-year-old Mexican boy glued his hand to his bed to avoid going back to school after Christmas break…”, begins the AFP story out of Monterrey, Mexico.

“‘I thought it I was glued to the bed, they couldn’t make me go to school,’ the boy, Diego, told AFP.  ‘I didn’t want to go, the holidays were so much fun.”’

We agree with Diego.  For we never wanted to go to school either.  Not that we’re lazy, or that we don’t like to learn.  But we always found school to be a remarkable waste of time. 

After role call and all the horseplay going on…and all the state mandated standardized tests…any real learning was fantastically marginal.

Too, we could never understand how school could take an interesting subject – like history or biology – and make it tedious…unexciting…and so painfully dull.  And all the petty rules like no hats in class or gum chewing – what did they have to do with anything.

Poor Diego.  It gives us the shivers to think about.  But his plan was not without some reward…

“Diego watched cartoons while they [paramedics and police] worked to unglue him…

“‘I don’t know why this happened.  He is a good boy,’ said his mother”

Sounds like a resourceful kid, we’ll add.  He’ll probably grow up to be the president – if not a financial journalist.

The WAG and SWAG of Price Fixing

As an aside, we see some Federal Reserve officials oppose further rate cuts as Bernanke signals a rate cut is coming.

What does this mean?  We don’t know what this means.  Do you know what this means?

We presume this means that the dirty deed of fixing the price of money is a WAG or at best a SWAG.

If you’re not familiar with these acronyms, we’ll forever end your bliss.  They come from the engineering consulting profession…where a WAG is a Wild @$$ Guess…and a SWAG is a Scientific Wild @$$ Guess.

Economics is called the dismal science.  But we think this is too much admiration.  Dismal, we agree.  Science, we have our doubts.  For is psychology or chiropractory science?  What about witchcraft?

In that respect, we view fixing the price of money to be more of a WAG; not so much a SWAG.


M.N. Gordon
Great Depression Online

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