The U.S Dollar Really Hates Joe Biden: commodity prices rise, U.S Dollar Falls and different form of Inflation is creeping into the System – March 11, 2021,
So, the argument laid forth by stockbroker Peter Schiff appears to be bearing fruit at the moment, in that the markets appear to be heading in a direction that won’t allow the race to the bottom currency war to continue. If American trade deficits aren’t fixed and commodity prices continue to rise, money printing won’t be able to solve the debasement of the American dollar and in fact, other countries which have similar problems might be forced to abandon their race to the bottom currency war.
In Canada as an example, we have a lot of systematic problems in our economy, because not only are governments destroying jobs, they’re making it even harder to create jobs. To tell you how bad it’s gotten in Canada, and how dumb the people in Canada’s financial media have become, they actual wrote a post titled ‘Posthaste: Go figure, the province hardest hit by the pandemic is poised to lead our growth out of it’ that they pointed to an RBC ‘GDP Forecast’ as the basis of their article, don’t believe me read it for yourself.
Most of the Gross domestic product (GDP) made in Canada is sent to America and with a rising Loonie, clearly, the writer doesn’t comprehend what that means for both Quebec and Ontario, furthermore what the increased government costs in energy will do to both Ontario and Quebec.
Making matters worse is of course the American economy, which at the moment has its own problems, as was the case with Barack Obama, the only economic growth out of the Obama administration came via the Federal Reserve lowering and keeping interest rates near zero.
Well interest rates have barely budged since Barack Obama, and Joe Biden is proposing more government regulations on the U.S private sector than Barack Obama could ever imagine, this of course is bad news for Canada. Often is the case that Weather Forecasts are wrong.
Why would RBC ever give a negative GDP forecast? Would it ever be in RBC’s best interest to make the Canadian government appear incompetent? Whenever politicians, create bad economies, and things go wrong, the first entity governments blame is the financial sector and if the financial sector was ever talking or writing negative things about the Canadian government, chances are the government would start auditing that financial institution.
If people wonder why spokespeople for banks are often optimistic, take a long look at what happened to the American credit agency that downgraded the U.S credit rating. Currently, the price of gold is falling, as many people know, Gold is usually hoarded, but Gold is a commodity, so what is going on with the price of Gold you ask?
The global economy is actually deflating, now if money was backed by Gold, austerity measures would be happening right now, because anyone with Gold, could refuse to spend it, to grow the size of an inefficient, incompetent big government.
However, the government can punish hoarders of fiat money by printing more of it, the problem the U.S dollar has at the moment however are their trade deficits, something Peter Schiff points out and if commodity prices continue to rise, it simply becomes an issue of survival of countries opting to remain in this U.S dollar controlled fiat system.
You see when the government makes prices higher for everything, profit margins are squeezed and people start abandoning GOVERNMENT money in any way they can, this spending by the financially savvy, however, won’t benefit the poor and middle class, because the financially savvy, will limit their exposure to areas of the economy in which they can be held liable for Government malfeasance.
I personally like to label this as #LateStageSocialism which is basically the coming end to the Welfare State. Now, I have to tell the story for what it is, because the end of the welfare state will not go away without a fight and the fight is the destruction of a society.
Hitler rose to power because there were people in Germany who wanted to get something for nothing, the Nazi Party found a domestic enemy to destroy and went to war with it, then the Nazi Party took their show on the road, promoting their brand of National-Corporatism.
Already the Economic Forum has promoted the idea of people owning nothing and being happy as a Good thing, the price of Bitcoin which is a digital decentralized cryptocurrency, that is promoting a cashless, Goldless society has reached record highs and just like the classic fiction novel by English novelist George Orwell Nineteen Eighty-Four people are opting to change how they talk to mirror safe political speech.
All of this in my opinion is Late Stage Socialism the classic explanation of Inflation is gone, inflation in fiat terms is no longer an expansion of the money supply, because a fractional reserve fiat monetary system, puts the responsibility f expanding the money supply on the commercial banks, which again should explain to anyone who understands this process as to why The Royal Bank of Canada is careful how it publishes data.
The economies of Quebec and Ontario are reliant on a weak loonie, this is no secret, Canada’s welfare system, is reliant on a weak loonie, as I like to remind people, there was no economic recovery under Obama, there were only race to the bottom currency wars, there was no housing crash in Canada, the loonie was lowered to prevent the Loonie from appreciation.
Canada as well as many other nations SAVED the U.S dollar from collapse and they did this primarily to avoid paying for the Government via TAXES! The inflation silent tax is less intrusive and beneficiaries of government services don’t care how they get their government-sponsored checks, nor do they care if their purchasing power is lost, because they feel like they got something for nothing.
The problem with Late Stage Socialism is the working middle class, this segment of society gets smaller and eventually disappears because the middle class benefits from the MARGINS produced in the free market. The government makes everyone poor, a market economy creates a middle class because of the fluctuations in prices, once the government starts to produce FIXED prices and wages, via regulations that ward of a competitive economy, it’s only a matter of time before the system crashes.
TSX gains as commodity prices rise, inflation fears fade | financialpost.com
Interesting times ahead!