We reside in occasions the place The Joe Rogan Expertise is extra widespread than CNN. This says lots.
We have now one man and a microphone kicking the crap out of a media conglomerate. Individuals belief a dude who’s winging it greater than scripted and slick newsrooms.
Let’s speak about belief.
Belief in authorities officers and the merchandise they promote is collapsing. One among their worst merchandise is the dishonest paper model of the greenback.
Traditionally talking, the actual greenback is a sure weight in silver, convertible to a sure weight in gold.
However the Federal Reserve notice “greenback” is ONLY backed by the U.S. authorities’s full “religion and credit score.” It’s a debt instrument which, in impact, is everybody else’s legal responsibility.
Via sleight of hand, twentieth century central bankers first handed their “greenback” notes into circulation… after which pulled the sound money out. The ultimate act was President Richard Nixon’s “short-term suspension” of gold convertibility in 1971.
To maintain right this moment’s debt-based foreign money scheme alive and working, many dishonest acts have adopted.
That is why we use phrases like “sincere cash.” It’s exactly as a result of unbacked currencies, by design, are fraudulent.
Some monetary phrases are misrepresented by mainstream media that pulls their information copy from Washington-sourced press releases.
A Rising Economic system Does Not Essentially Equate to Prosperity
Individuals develop up believing that the U.S. thrives as a result of its gross home product (GDP) is greater than in different nations. The elements of the GDP are consumption, funding, authorities spending, exports, and imports.
When federal initiatives like a struggle in Afghanistan price 5 occasions greater than Vietnam, all these salaries and weapons get counted within the GDP. (Keep in mind what occurred in Afghanistan? After 20 years, we changed the Taliban with the Taliban.)
If we have now a federal venture to construct 20 pyramids and the subsequent president orders them to be eliminated, all the trouble in establishing and destroying these pyramids depend within the GDP.
That’s referred to as “make work.”
It sounds ludicrous, however we have now a horde of conflicting, complicated, and overlapping bureaucracies whose actions are largely unproductive.
Keep in mind listening to how the Orwellian-named “Inflation Discount Act” funds the hiring of 87,000 extra IRS brokers? Their salaries are a part of the GDP. However does it make us extra affluent?
And when GDP progress isn’t adjusted to account the true price of inflation, that’s not actual progress both.
In the meantime, the latest try to redefine the which means of the phrase “recession” is one other dishonest act.
The time period “inflation,” nonetheless, is particularly misunderstood as a result of persons are led to imagine that it is “rising costs” as a substitute of an intentional authorities coverage of debasement.
As soon as the federal government steps in to handle the financial system by foreign money manipulation (cash provide enlargement, bailouts, below-market rates of interest), huge bother follows.
Whereas attempting to place vitality producers out of enterprise, President Biden has been draining the Strategic Petroleum Reserve to place a lid on oil costs earlier than the midterm elections.
However what occurs when this draw-down ends and may not assist ease the general public’s ache? Oil costs will soar additional. And the price of oil is the predominant variable within the worth of practically all the things.
Rising Costs Are Merely Signs of Inflation
The way in which the federal government measures the results of inflation is flawed to start with. The basket of products that go into the federal government’s CPI statistic is cherry-picked.
My mother and father’ “basket of products” of their assisted dwelling facility is nowhere close to the identical “basket of products” bought by younger adults (who are sometimes now dwelling collectively in unaffordable residences.)
However irrespective of it’s measured, nobody can deny prices are hovering any longer.
Our authorities deserted the gold normal as a result of a constrained financial system would create strain for balanced budgets. It’s extra politically handy to look to the Fed than to chop federal spending or elevate taxes.
However when the Fed creates new foreign money items and provides them to the trillions already in circulation, it steals worth from the prevailing pool. The politically linked are the primary ones on the trough. Savers and customers aren’t invited to partake… and as a substitute foot the invoice.
Suppose you ask random folks what causes inflation. Most would blame the grocery retailer, restaurant proprietor, vitality corporations, company CEOs, or a international scapegoat (“Putin’s worth hikes”).
Home media deal with inflation prefer it’s some mysterious market-driven financial pressure, not an intentional act by central bankers to switch wealth.
The reality is, as Milton Friedman as soon as mentioned:
“Inflation is at all times and all over the place a financial phenomenon, within the sense that it can not happen with out a extra fast improve within the amount of cash than in output.”
I just lately spoke with a pizza restaurant proprietor in Pittsburgh, a mother in San Diego, and a fuel station operator in New Mexico; all their tales have been eerily comparable. They’re affected by intensifying inflation.
The unhappy factor is they’re saved in darkness as to how inflation turned the ferocious beast that now wreaks havoc of their each day lives.
A return to sound cash is the trail out of the darkness.