Posted on 05/24/2022 4:07:15 AM PDT by MtnClimber
No communist was ever as dedicated to economic suicide as the current class of idiots who rule us.
igh inflation, overregulation, and a general sense that things are going in the wrong direction remind us of the late 1970s and early ’80s. But today the underlying problems that were responsible for our woes in that time are vastly worse. The coming reckoning for Washington’s insanely irresponsible monetary policy may dwarf the troubles from all recent recessions and periods of inflation.
The Federal Reserve has created a doom loop between the housing market and inflation. For years it has printed tens of billions of dollars each month to buy sketchy securities meant to subsidize the housing market and favor bond traders. This continues even now, in spite of inflation and a red-hot housing market. But the housing market has become dependent on unearned, newly printed money, and stopping the flow might cause a catastrophic correction. If it doesn’t stop, however, inflation will explode.
Let me walk you through some of the math.
Inflation closes the gap between money earned and money spent. Since the financial crisis of 2008, the Federal Reserve expanded M2 money supply from just under $8 trillion to around $22 trillion today. During that time GDP has increased from around $14.6 trillion to around $24.5 trillion today. We’ve gone from a ratio of one dollar chasing $2.75 in goods in services to an almost 1 to 1 ratio today. Inflation during the same period, according to the government, has eroded the dollar by a mere 33 percent.
You think 8 percent inflation is high? Prices need to double, almost triple to restore any semblance of balance between currency and the things you can buy with currency. We have a long way to go.
(Excerpt) Read more at amgreatness.com ...
And only Sen Manchin kept them from spending more money that they don’t have.
“And only Sen Manchin kept them from spending more money that they don’t have.”
He should run in 2024 with Gabbard as his VP. Still lefties, but at least they aren’t dyed in the wool Marxists like this current batch of idiots.
Fiat money depends on laws to enforce, rather than to forbid, usury.
Usury is a sin and it used to be a crime. And a crime it will be, again.
Even communist countries have resorted to my suggested reforms when markets smash their utopian plans. But no communist was ever as dedicated to economic suicide as the current class of idiots who rule us.”
Pretty much sums it all up. America Last.
The damage is done. It will take decades for all of this fiat money to work it’s way through the system.
When a welfare recipient or a government employee returns some of their money to the government in the form of ‘taxes’, that money is not revenue.
Those responsible will hang long before then.
“Closing the gap between money earned and money spent means cutting government spending, raising interest rates, reducing regulation, and lowering taxes.”
I’m sure the DC regime will get right on that. The only thing we’ll get from the White House or halls of Congress will be fiddle music as the whole country burns to the ground.
That’s optimistic.
Deep State isn’t stupid.
If somehow we manage to restore the republic, Deep State fully intends to leave our ship of state a wrecked, smoking hulk for whomever is at its helm.
That’s not stupidity.
It’s evil.
There are two ways to permanently enslave a man.
One is by debt, the other is by the sword.
Which one did the deep state choose?
The red-hot housing market might be a good thing if you’re a seller, but for homeowners who plan to stay where they are, huge property tax hikes are taking increasingly larger bites out of the family monthly budget.
Both.
It would be difficult to come up with a more complete list of things that the government criminals would NEVER do. This guy is dreaming.
That’s true. The housing market, like stocks are great for some. But, for others, especially the ‘youth’ if the prices are so high, they can’t get in. Cycles are a natural process in our markets, .gov propping up and picking winners and losers makes the destruction more vast.
I was a science major but had to take an economics class. I thought it was a bit of a soft science more like an art. I remember they would put these long almost incomprehensible complex equations up like:
V (x(0))=f((xˆ(t),yˆ(t)))∆t+o(∆t)+exp(−ρ∆t)V (x(∆t)).
and I’d think of where is the proof this advanced theory even works? Unlike science where the proof is supposed to be in the pudding so to say—you propose a hypothesis and test it, if you are right it works.
It occurs to me the terrifying possibility that these economists at the Fed making more money per month than you and I can make in a decade…have no idea what they are doing.
(For example at that time our class took a field trip to St. Louis and we talked to Fed economists who were so excited and talking about all the great benefits NAFTA was going to bring us. Yea I kid you not.)
One of my degrees is in economics.
Very easy concept. It all comes down to supply and demand.
Other than that, everything else is all theory.
The "crime" of usury was defined long before the appearance of fiat money. With official inflation approaching 9% and unofficial, but more realistic, inflation at close to 20% there are very few willing lenders at lower interest rates.
The laws of economics will always trump the laws of man.
It’s all non-testable theory.
Just remember, from the bad old days (update as needed): “With the Russians in Frankfurt, the Deutschmark is toilet paper”.
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