The news is filled with handwringing reports of borderline famine in Gaza and Ukraine, and the current administration has our military scurrying around the world helping fight proxy wars, delivering materiel, and air dropping food aid. Meanwhile the federals, NYC and other sanctuary cities/states are bankrupting their residents by doling out about $400 per day fiat money to feed and house each and every illegal alien, and criticizing our feckless and criminal politicians is now deemed a crime while real criminals go unpunished.
If this isn't utopia enough for you yet, just wait; they have more in store for us. We are not supposed to notice how they are setting us up for the fall.
Maybe you should run as a rep. In your district. Then after you prove yourself there, run for governor. In the latter I would vote for you, in the former I cannot because I do not live in your district.
This is misunderstood by most, but we are facing inflationary headwinds for many reasons.
The first you mention, increased fiscal spending (which is not money printing- our national debt is someone else’s treasury bond) increases the national debt which increases our interest rate (about 20% of GDP is servicing treasury holders). This is is not money printing. This is debt issuance.
Money printing falls into several categories. First category is traditional increases in the monetary supply (literal physical money printing) greatly exacerbated by getting off the gold standard, which from 1971 until 2022
became petrodollars, but that regime is now dead, and they will keep on a printing.
The second category of “money printing” is where almost all of our inflation actually comes from. This is from loan origination. Every time a dollar is deposited into a bank account, a bank’s total reserves increases. The bank will keep some of it on hand as required reserves (set by the Fed at 10%, which means that they get to create 9 dollars for every dollar deposited potentially) but it will loan the excess reserves out. When that loan is made, it increases the money supply. Poof like magic, banks are the real benefactors of this policy. (The big banks are also the legal owners and board members of the Fed. The Fed IS NOT a part of the treasury, it is a corporation owned (by law) by the largest banks).
Other forms of money printing:
Crypto Market Cap - 2.73 trillion worldwide in the last decade (poof- money is created)
Borrowing against equities’ market capitalization (leverage)
Other forms of inflation:
creating wealth without creating value (finacialization, stock buy backs)
-Productivity collapse
Inflation is caused by too many bucks chasing the same (or decreasing) amount of stuff or services
When you have the same number of people producing less physical services and consumables working the same number of hours you have inflation. I think this productivity and competency loss is happening everywhere in society and this produces inflation without any government intervention.
We as a people have lived through a very special and strange time in history. According to my analysis above, we should have been having close to 50% annual inflation for the last 100 years (all the government intervention and finacialization of the economy). So what did I get wrong? First the government lies about inflation. A house is positively more expensive than it used to be (this is not accurately incorporated into the inflation numbers that the FED considers), and the second is that due to technology we have been able to invent our ways to more productivity which has been incredibly deflationary (things are cheaper to make on a per unit basis than they were 100 years ago). The only logic for debt is to invest in something that will increase productivity more than the cost of the debt (ie a saw for cutting wood, a bridge for crossing a river, a press for stamping steel). If we take out debt but don’t get any resulting productivity it just makes everything more expensive because no new value was created.
This is where we are. We are at the end of the productivity curve of the techno-industrial revolution. We are printing money like we are spending on bridges and saws and presses, but we are buying DEI administrators and Chief Environmental Officers , and regulators taking our children away to sterilize and give them cross sex hormones. We are a foolish and stupid people, and as long as we keep spending on things we don’t need we will all continue to get poorer and poorer.
"not money printing- our national debt is someone else’s treasury bond" Fiscal spening that is not funded by treasuries or bonds (because not enough buyers) has resulted in the fed repurchasing many of those debt instruments (I believe -- I'd have to re-check the current status), which is essentially "debt monetization." They either drop the selling price (increasing rate/yield) or just buy and hold their own issues..... Neither is sustainable. Interest rates will climb. Volcker raised them to 20% in, I think, 1979 or 1980. Imagine that now...... Collapse is inevitable, which is why they are plotting the electronic currency (total monetary control) "rescue" from the destruction they have sown.
I bought some skirt steak from the butcher. The cows are raised on ranches so it is always a premium price. But what was normally $15 a pound or less, was $25. Hamburger was $8. I don't know what will wake people up. CA has oil, and we have agriculture but it is all being run into the ground. The Resnicks (Fiji water owners) have a stranglehold on water for their almond crops but they give lots of money way to the right people. With the tech industry's innovations, CA surely could lead the world in developing forward-thinking extraction for oil and water-saving agriculture.
The news is filled with handwringing reports of borderline famine in Gaza and Ukraine, and the current administration has our military scurrying around the world helping fight proxy wars, delivering materiel, and air dropping food aid. Meanwhile the federals, NYC and other sanctuary cities/states are bankrupting their residents by doling out about $400 per day fiat money to feed and house each and every illegal alien, and criticizing our feckless and criminal politicians is now deemed a crime while real criminals go unpunished.
If this isn't utopia enough for you yet, just wait; they have more in store for us. We are not supposed to notice how they are setting us up for the fall.
An important poignant topic. Thanks for bringing it up. Local food is local resiliency in many ways.
Maybe you should run as a rep. In your district. Then after you prove yourself there, run for governor. In the latter I would vote for you, in the former I cannot because I do not live in your district.
This is misunderstood by most, but we are facing inflationary headwinds for many reasons.
The first you mention, increased fiscal spending (which is not money printing- our national debt is someone else’s treasury bond) increases the national debt which increases our interest rate (about 20% of GDP is servicing treasury holders). This is is not money printing. This is debt issuance.
Money printing falls into several categories. First category is traditional increases in the monetary supply (literal physical money printing) greatly exacerbated by getting off the gold standard, which from 1971 until 2022
became petrodollars, but that regime is now dead, and they will keep on a printing.
The second category of “money printing” is where almost all of our inflation actually comes from. This is from loan origination. Every time a dollar is deposited into a bank account, a bank’s total reserves increases. The bank will keep some of it on hand as required reserves (set by the Fed at 10%, which means that they get to create 9 dollars for every dollar deposited potentially) but it will loan the excess reserves out. When that loan is made, it increases the money supply. Poof like magic, banks are the real benefactors of this policy. (The big banks are also the legal owners and board members of the Fed. The Fed IS NOT a part of the treasury, it is a corporation owned (by law) by the largest banks).
Other forms of money printing:
Crypto Market Cap - 2.73 trillion worldwide in the last decade (poof- money is created)
Borrowing against equities’ market capitalization (leverage)
Other forms of inflation:
creating wealth without creating value (finacialization, stock buy backs)
-Productivity collapse
Inflation is caused by too many bucks chasing the same (or decreasing) amount of stuff or services
When you have the same number of people producing less physical services and consumables working the same number of hours you have inflation. I think this productivity and competency loss is happening everywhere in society and this produces inflation without any government intervention.
We as a people have lived through a very special and strange time in history. According to my analysis above, we should have been having close to 50% annual inflation for the last 100 years (all the government intervention and finacialization of the economy). So what did I get wrong? First the government lies about inflation. A house is positively more expensive than it used to be (this is not accurately incorporated into the inflation numbers that the FED considers), and the second is that due to technology we have been able to invent our ways to more productivity which has been incredibly deflationary (things are cheaper to make on a per unit basis than they were 100 years ago). The only logic for debt is to invest in something that will increase productivity more than the cost of the debt (ie a saw for cutting wood, a bridge for crossing a river, a press for stamping steel). If we take out debt but don’t get any resulting productivity it just makes everything more expensive because no new value was created.
This is where we are. We are at the end of the productivity curve of the techno-industrial revolution. We are printing money like we are spending on bridges and saws and presses, but we are buying DEI administrators and Chief Environmental Officers , and regulators taking our children away to sterilize and give them cross sex hormones. We are a foolish and stupid people, and as long as we keep spending on things we don’t need we will all continue to get poorer and poorer.
"not money printing- our national debt is someone else’s treasury bond" Fiscal spening that is not funded by treasuries or bonds (because not enough buyers) has resulted in the fed repurchasing many of those debt instruments (I believe -- I'd have to re-check the current status), which is essentially "debt monetization." They either drop the selling price (increasing rate/yield) or just buy and hold their own issues..... Neither is sustainable. Interest rates will climb. Volcker raised them to 20% in, I think, 1979 or 1980. Imagine that now...... Collapse is inevitable, which is why they are plotting the electronic currency (total monetary control) "rescue" from the destruction they have sown.
I bought some skirt steak from the butcher. The cows are raised on ranches so it is always a premium price. But what was normally $15 a pound or less, was $25. Hamburger was $8. I don't know what will wake people up. CA has oil, and we have agriculture but it is all being run into the ground. The Resnicks (Fiji water owners) have a stranglehold on water for their almond crops but they give lots of money way to the right people. With the tech industry's innovations, CA surely could lead the world in developing forward-thinking extraction for oil and water-saving agriculture.