More Signs of Economic DEFLATION: Dow Jones drops 394 points as Filings for unemployment insurance rise to 373,000 last week! More Government Borrowing for Artificial Inflation coming Soon – July 8, 2021,
If you’re still one of those goofballs who value your wealth in Fiat dollars, you’re clearly not paying attention to the uninspired and unmotivated Proletariat. Its only been a few months and fiat price inflation is rising, this is the worst type of fiat derived price inflation because big government is unlikely to shrink and the costs for the private sector to be in business continue to rise.
Recently the Venezuelan government announced that they would chop a few ZEROES off of their fiat currency. In Western Nations, things are a bit different, because the rest of the world EXPECTS that America will eventually get things right.
A lot of private businesses long ago purchased packaging machines that allow them to hide inflation, you have noticed nice new fancy boxes at the grocery store that are hiding fiat price inflation in plain view. Well, typically what happens next is price inflation with the smaller size and then the company will come back with a “Larger” sized box for 2/3 more fiat currency than it was a year prior.
Why does the private sector do this instead of raising prices? To avoid government-enforced price controls! Anyway, smaller is smaller and it’s deflationary for the consumer, as they will inadvertently find themselves consuming less.
People on WELFARE DO NOT PAY FOR INFLATION
If you’re a government dependent you’re not paying the inflation tax, this is a hard concept for most people in finances to understand. If you’re on the morons who value your wealth in Fiat dollars, you will inadvertently assume that price inflation is economic inflation.
REAL MONEY is nothing more than a convenient form of bartering, in order for the oil cartels to give into the U.S dollar standard, not only did the United States have to raise interest rates, it also had to promote the U.S dollar all over the world, via as many of us know their military bases.
Former President Trump told NATO allies to pay their fair share, well as I like to point out one of the reasons most governments are okay with the U.S dollar as the world’s reserve currency is that they don’t have to PROPERLY fund their own militaries. Canada is a prime example of a country that constantly cuts military spending because, well, the stupid Americans will do their fighting for them.
I bring this up only to illustrate that the Dow Jones is valued in U.S dollars and if it barely reacts to an increase in joblessness claims, it shouldn’t be a barometer of what’s happening in America’s Mainstreet economy. The real question to ask is when does the U.S MAIN STREET economy start to deflate?
Well, based on recent history, the U.S economy deflates when ENERGY prices start rising. Because Joe Biden is talking about raising taxes, if he gets the okay to borrow more money and spend it into the economy, if you’re smart, you’d buy assets likely to appreciate in fiat dollars and sit on them.
Now, if Joe Biden creates a wealth tax, that’s also deflationary, because asset prices are fugazis
I think it’s hilarious that Leftists think a wealth tax is going to screw over the rich. What a wealth tax is going t do is accelerate poverty. If governments force people with money to liquidate their fugazi wealth it’s inviting a plethora of different asset classes. A few years go as an example, people began to buy up laundry detergent because laundry detergent doesn’t have an expiry date and it’s almost always in demand.
For every government action, there’s a private sector reaction,Government Welfare is fugazi wealth, it lasts for a long as the MAIN STREET markets are willing to support it. Currently, Mainstreet doesn’t want to work in this environment.
Interesting times ahead!