The Joe Biden labor shortage, The U.S Dollar, The Forex Markets and why the Private Sector will be FORCED to raise prices for consumers #LateStageSocialism – June 3, 2021,
One of the reasons the Great Depression was prolonged under Franklin D. Roosevelt was because he made life more expensive for businesses and the market had to adjust to the FDR new normal. ‘Luckily’ for FDR he got a World War in which America won and Americans who during that era still manufactured things, started borrowing and spending which temporarily grew the economy.
Of course, this was all a sham and a fraud, and Richard Nixon in order to prevent America from defaulting on its debt obligations ‘temporarily’ ended the gold standard. Many will argue we’re approaching another U.S dollar default, I disagree, but I’m okay with being wrong.
What I think is going to happen is prices are going to go up for Americans and they simply better get ready for it, now I’d also like to add that the Forex markets shouldn’t be confused with the U.S domestic economy. I personally think if the U.S dollar continues to fall, other countries are going to debase their currencies, China already blinked first and has begun debasing its currency, because not even Chinese people hoard Renminbis.
Anyone who works border security in countries like Canada or Australia knows how much fiat Canadian, Aussie, and USD cash Chinese people hoard. No human likes communism, now if I was unfortunate enough to be brought up under a communist government, sure I’d hoard Chinese currency to eat, but I wouldn’t cherish it, the Chinese Communist Party appeared to have kidnapped Jack Ma, now if I’m a regular Chinese person and I saw how the CCP treated one of the richest men in the world, even if I know how evil the CCP regime is, I’m keeping quiet, it’s about survival for most people.
Now, I bring this up because China will do its best to be accommodative ECONOMICALLY to Joe Biden, because despite what most people think, the Chinese Communist Party is BANKRUPT, it’s overextended itself and if the global economy which is dependent on the United States, crashes, China has some serious internal problems that Will IMPLODE!
With that said, Joe Bidens’ policies will equate to the Private Sector being forced to raise prices and this is deflationary on the U.S economy. Now, by deflationary, do not confuse that with central bank liquidity, the Federal Reserve I expect will buy up whatever debt that the Joe Biden admin creates, the issue will be private businesses are going to have to raise prices.
Now, just being honest, I can’t predict government response to rising prices, because in modern times consumer price “inflation” is a good thing. Maybe consumers like paying higher prices? But higher prices often equate to consumers having the inability to spend more and being that consumers are already in debt, I don’t know what that future economy looks like.
Clearly, it’s economic deflation, but maybe the financial wizards can create some magic so that there is some benefit for the low-income WORKING CLASSES to go to work. Because the problem with socialism is that the government incentives low-income earners NOT to work. I like to remind people there are OBESE people in Venezuela.
You know because even if you’re getting less from the government for being unproductive it’s better than going to a job that pays you low wages, right? So how some people look at the equation is I’ll do less exercise and make fewer movements during the day to conserve my energy for this tasty one meal per day.
It’s genius when you think about it, changing your behavior to qualify for government welfare. Anyway, this means wages and consumer prices are probably going up in AMERICA. Now, price inflation in US fiat dollars doesn’t necessarily equate to the loss of purchasing power for the U.S dollar OUTSIDE of the United States. Most people tend to forget that the Forex markets are decentralized.
Yes, yes, I know, the forex markets are manipulated, but if I’m in China, Venezuela, or Argentina, pay me in U.S dollars, please! I get it, I’m a free-market guy too, this sounds ridiculous and unfair, but until the U.S or Eurodollar system fails this is the world we live in.
Just being honest because of all the socialist retards on this planet, I’d prefer this system over a gold standard any day! All it takes is for one Joe Biden to take over your country and these commies, nazi morons will come looking for your gold.
I’ll give them all the paper fiat money they need if they want it bad enough and learn to adapt the unproductive model if that’s what the welfare state wants. I talk to a lot of Venezuelans and they’ve taught me about bartering, anyway, it looks like consumer prices and wages might be going up for Americans in fiat dollar terms.
With that said, don’t be surprised if the price of Bitcoin and the price of gold go down, because higher prices equate to deflation, and a lot of people are OVERLEVERAGED meaning that they borrowed fiat cash to buy Gold and Bitcoin or they’re in a negative cashflow position.
Furthermore, I have no clue what Joe Biden is going to do with the debt moratorium. All of this socialist buffoonery is beyond my comprehension, so I’ll wait until the socialists and their central bank wizards show us the way.
Interesting times ahead!