DEFLATION is coming, More USD will purchase fewer Goods and Services: Jerome Powell Redefines The Words “Transitory Inflation” The new meaning equals Prices may NEVER come down in U.S dollar terms – July 29, 2021,

It’s extremely important to recognize the language being used by Jerome Powell, in his recent news conference, Jerome Powell NORMALIZED current inflation while claiming that prices aren’t going to come down, but he expects the COST OF LABOUR to go up, what this means is permanently higher consumer prices.

Because I’m in the retail space, how this works typically is things don’t expire like maybe plain clothing that isn’t aligned with fashion wear might see limited if any pressure to go upward, whereas things like food will be forced upwards as labour and other costs are forced up.

As I’ve been saying since Joe Biden became president, Joe Biden is signaling the markets to invest outside of America. The U.S dollar is the currency of choice internationally, but domestically, a permanent rise in the cost of living will have a DEFLATIONARY effect on the American consumer, especially if existing welfare programs remain in place.

Because current welfare spending in the United States, can’t be supported even if we confiscated the wealth of everyone on the planet now and into perpetuity, additional costs are going to be priced into the new risk of borrowing.

As an example, a lot of commercial banks have replaced interest rates with FEES, and included in these costs for some of the banks I’m invested in is the potential for political upheaval I can’t speak for all banks because I’m not invested in all banks, but some banks, are almost exclusively lending to businesses that have proved they can cashflow, during economic downturns, but they’re avoiding lending to the retail investors, who may potentially become a political problem.

With that said, there still are nefarious actors, who on the surface appear to be flush with cash, but who are actually broke and I’m talking about Billion dollar institutions. By this I mean, they’re heavily invested in price appreciation and their business model does not produce any cash flow.

This malinvestment, by a lot of entities, is going to be increasingly problematic as the ECONOMY deflates. It’s hard for most people to wrap their minds around deflation. The so-called Hyperinflation in the Weimar Republic was the government attempting to hide DEFLATION by printing money.

In the modern era, The Federal Reserve DOES NOT PRINT MONEY, it provides liquidity to the markets it purchases physical things puts it on its balance sheet and allows the borrowing binge to continue. The problem with the Federal Reserve purchasing physical stuff that often DOEs NOT CASH FLOW POSITIVE is that it elicits legal entities to repeat the same pattern

This becomes a problem because money is TIED TO LABOR and when something is built in a free market, the concept behind building anything is for it to be cash flow positive and if that thing that is built is NOT cash flow positive it becomes a liability, the land it’s occupying becomes a liability, the people it employs becomes a liability, it’s very existence becomes a house of cards and eventually, people realize what’s going on.

Jerome Powell is losing credibility day by day, however, because profit-driven private banks are in charge of GLOBAL cash distribution, the only idiots that don’t appear to know what’s going on are the Progressives in Government. Why the U.S economy crashing becomes a problem is because most of the economies of the world are heavily dependent on strong U.S CONSUMER. If U.S consumers are having to spend more to buy less, and America to date has nearly 330 million people, that’s a MASSIVE shock to global markets.

It would not surprise if the U.S economy crashes first followed by a domino effect of other countries’ economies also crashing. Now, if the response by most global governments is do to what was done in the Weimar Republic, what they’re actually doing is further decoupling their currencies from the cost of labour.

In this modern era of digitization hyper-inflation can be hidden for longer, because there still is a lot of confidence in the Greenback, but what can’t be hidden are PUBLIC SECTOR UNIONS as well as Pensions that have pay scales that keep pace with inflation. As consumers lose their purchasing power and private labour gets stuck with the bill, there comes a time when either a financial reset(HIGH-INTEREST RATES) or bankruptcy is the only way out!

Sure a digital dollar is a possibility, but historically, people like money because of the FREEDOM it gives them. Being ignored, right now are the protests happening in China, Communism has this way of crashing when people least expect it. China is currently in the phase of COMPLETELY politicizing their money, I friends outside of the United States, and why they like the U.S dollar is that it frees them of the politics of their nation.

As long as they don’t shop at a government-approved private establishment, their U.S dollars can buy them things others can’t buy. When the government gets involved in anything, humans react, it’s human nature to reject authority, even if the government is big and overbearing, people will find a way. Even in Nazi Germany people found a way to defect while still living in the country.

So sure a central dollar could become a reality, but don’t think society stops there.

At a news conference later Wednesday after the central bank’s two-day July meeting, Powell acknowledged inflation has been “running well above our 2% objective” in recent months. It is “expected to run certainly above our objective for a few months before we believe it’ll move back down toward our objective,” he added.

Even so, the Fed chief said the labor market still has “some ground to cover” before the central bank would feel enough progress has been made in the economic recovery.

Here’s why businessman Ken Langone thinks the Fed is wrong and inflation is here to stay |

Interesting times ahead!