Posted on 04/08/2022 6:40:49 AM PDT by arthurus
The main reason is that the Federal Reserve and the European Central Bank created trillions of dollars and euros out of thin air during the Covid panic. Throwing everyone out of work would result in food riots, so they showered the public with free money as a form of riot insurance. The trouble is the money did not magically go away, so we have the classic problem of too much money chasing too few goods.
Then there are the systemic troubles created by a generation of outsourcing and the general incompetence of the ruling class. They allowed the supply chains to become fragile by letting business chase the cheapest labor rates. This means everyone is now dependent on the least organized countries. Ukraine, for example, is where half the world’s neon used in making computer chips is produced.
(Excerpt) Read more at takimag.com ...
The question again remains unanswered, except by asking other questions as if a debate tactic. I asked of the massive 3.4 trillion dollar debt: The article's title argues "the party's over." Are you saying it is not?
30.4 trillion dollars. A rather sizeable debt.
[Sounds like our nation is on the deficit side of the column regularly, and not on the earnings side, in spite of your prose “that foreign customers buy in copious amounts.” ]
Here’s one way to look at this - a bulge bracket lawyer runs an enormous trade deficit with her live-in baby-sitter. She buys the baby-sitter’s services, but the baby-sitter buys none of hers. Will a day come that the chickens come home to roost on this persistent trade deficit? Call me skeptical.
[The question again remains unanswered, except by asking other questions as if a debate tactic. I asked of the massive 3.4 trillion dollar debt: The article’s title argues “the party’s over.” Are you saying it is not?]
[Again the question again remains unanswered, except by asking other questions as if a debate tactic. I asked of the massive 30.4 trillion dollar debt: The article’s title argues “the party’s over.” Are you saying it is not? Leave the parables to another book, please.]
Thanks for a direct reply. "Inflation is good."
Under Biden as "leader of the Free World" or "leader of the New World Order," it is assured that this nation will not "grow" except thrugh inflation. Though assuredly inflation will continue. Weimar holds a lesson here. Zimbabwe. Argentina. Ah, that free new world.
"For America, There Is No Obvious Path Out of the Red"
Source: https://economics21.org/coronavirus-debt-will-be-long-term-burden
Perpetual Debt: From the British Empire to the American Hegemon
Source: https://mises.org/library/perpetual-debt-british-empire-american-hegemon
You may detest the author but I can not fault the logic. The handwriting is on the wall, writ large.
[You may detest the author but I can not fault the logic. The handwriting is on the wall, writ large.]
That sounds like the strategy of Bernie Madoff. It works great.... until it doesn't anymore. And then things start happening very fast.
[That sounds like the strategy of Bernie Madoff. It works great.... until it doesn’t anymore. And then things start happening very fast. ]
What’s your forecast? Zimbabwe? Mad Max? Cannibalism? How long will this take?
[You may detest the author but I can not fault the logic. The handwriting is on the wall, writ large.]
Around 50 years ago we were the largest creditor nation. Then we went off the gold standard and went to a completely fiat currency standard and transformed our country into the largest debtor nation. Prior to that time we were known as probably the greatest industrial nation. Then we chose to move more and more production overseas. Measured by the capital markets, we still looked great though.
I don't believe we can continue expanding our debt levels exponentially indefinitely. It's like blowing up a balloon. There are limits to how long it can be done, even if the balloon has never popped before.
If economic growth and inflation as a way of dealing with fiscal debt has stopped working, someone forgot to tell the capital markets.
People were continuing to hand money to Madoff until the day the curtain was pulled back.
What’s your forecast? Zimbabwe? Mad Max? Cannibalism? How long will this take?
I'm old enough that I'm expecting it most likely won't happen in my lifetime. Wouldn't surprise me if I'm wrong on that though. I'm very doubtful that things won't change drastically in my grandkids lifetimes.
When the situation truly changes, it will probably a Mad Max situation at best. I'd expect the globalist decision-makers to nuke the world and destroy everything possible rather that admit they were wrong.
My forecast? Frankly, I hope things spiral towards the worsening state on all fronts, save major war, so that upcoming elections everywhere...supposed free elections, that is, might yield other than short-sighted fools/fanatics as leaders.
For my own part, I’m ordering large bags of rice, dried beans, cornmeal canned foods and other basic food stocks.
[Around 50 years ago we were the largest creditor nation. ]
When the situation truly changes, it will probably a Mad Max situation at best. I’d expect the globalist decision-makers to nuke the world and destroy everything possible rather that admit they were wrong.]
https://www.cnn.com/2016/05/06/africa/zimbabwe-trillion-dollar-note/index.html
No Mad Max there. A number of countries have, over time, added, then taken 6 zeroes off their currencies, including Venezuela. No Mad Max there either.
The common denominator with these economies is that they continue doing what they did before, just with more zeroes on their currencies. My point is that inflation is not a good thing, but it doesn’t typically create dystopian movie scenarios.
* https://en.wikipedia.org/wiki/Brazilian_currency
https://en.wikipedia.org/wiki/Mexican_peso
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