That is when they turn to Plan B, which is the stupid idea to create an “aggregator bank” to buy up all of the debt extant, so that those who bought coconuts on credit, and whose loans for them have suddenly gone bust since they can’t pay any longer. Pretty soon, they start looking at the horizon and anticipating the arrival of the boat bringing more money, and then they remember that they sent The Mogambo to get it with an all-girl crew and an Internet uplink to download cheap pornography, so they soon realize there will not be a boat returning with more money. Now, fast forward a few years as Gilligan and the crew of the Minnow run up enormous debts to buy coconuts, which must be ample because we find that a coconut diet has allowed the captain to be a fat lard-butt, but now the islanders can’t pay the interest on all the money the owe, their retirement accounts are wiped out, and everybody is broke because they borrowed so much money to buy coconuts on credit that they can’t now borrow more. Still, there are only 10 coconuts and 10 bucks.
There are still 10 coconuts, but only $1 in cash is needed, and the bank creates $10 to loan to people who want to buy coconuts, and out of necessity everybody bought coconuts on credit. Now, the scene changes, and the island is in an age of fractional-reserve banking. Someone showing up with a motor boat and a printing press and creating another $10 on the island won’t make any more coconuts, but will certainly make the price of coconuts go to $2.” Gerbino & Company summarize… “The laws of economics are very real and the mumbo jumbo from the Fed and Washington and the well known economists will mean nothing when once again a logical cause creates a logical effect”.Īnd what is this effect? Inflation! He explains, “An island that produces 10 coconuts and has $10 in circulation will see each coconut valued at $1. Of course, I have plenty of charts and graphs that show this, but perhaps I will let Ken Gerbino of Kenneth J. This reminds me of Junior Mogambo Ranger (JMR) David K., who sent a quote from Ludwig von Mises that I had not seen before, which is “Economic history is a long record of government policies that failed because they were designed with a bold disregard for the laws of economics.” This “aggregator bank”, in case you were wondering, is where taxpayers will be forced to pony up the Treasury capital for a new bank that will buy worthless securities from other banks, and is being pushed as some kind of bizarre “savior” of the economy, which is now predictably suffering from the outrageous stupidities of Alan Greenspan, former chairman of the despicable Federal Reserve. My head suddenly cleared, and that is when I knew that my nightmare visions of the proposed “aggregator bank” were correct, in that it is stupid and disastrous because it will expand the money supply by unknown trillions of dollars. On the other hand, hallucinations or not, I know exactly what an economy needs, which is a stable currency and zero inflation, but, again, no lascivious leering and lip licking. I should have known I was hallucinating, as I have no idea what women want, except that I discovered that they don’t like it when I salaciously leer at them and lick my lips. I thought that a pretty girl at the end of the bar was flirting with me, but that turned out to be wrong when I heard her tell the bartender that she thought I was “creepy.” I was halfway through a pitcher of cheap beer when I began to have visions. Debt-Addled Coconuts on Gilligan's Island
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