More Signs of Economic DEFLATION: @BenWinck claims “Inflation is cooling”, but the Cost of Government is getting more expensive – August 27, 2021,

One of the most annoying things is reading FINANCIAL posts from people who appear to be politically biased, when it comes to money, the best and brightest call out both political sides for their stupidity.

The U.S is losing its manufacturing base and the United States is becoming less productive, but so far the various levels of government have refused to take a pay cut, in fact, many people in the U.S government want a pay raise, the politics of the day under the current U.S administration is to buy votes with borrowed money.

Now, modern inflation is mostly a creation of government, in a real economy, without fiat money, the only way to achieve inflation is via INNOVATION, the direct deposit was an innovation, wage earners no longer had to be reliant on the mailman to deliver their paychecks, that saves paper, gas and a lot of manpower, this innovation freed up resources that didn’t exist prior and created inflation as now money trapped in the postal service could now go somewhere else.

Now, why consumers may have seen no financial benefit from the direct deposit is because the government grew in size, thereby consuming more goods and services in the private sector which instead of causing deflationary pricing actually caused the cost of living to rise.

 

When the government consumes more and goes into debt to consume, this has a deflationary effect on the economy, so when Ben Winck is forced to point to is GOVERNMENT data, to prove his point, and most of us know the government is incentivized to push a particular narrative, to avoid being viewed as incompetent, one has to ask why Ben Winck is parroting government messaging?

Now, to be fair, there are a lot of economists, who do things by the book and may not even know they’re a government stooge. If government programs worked, the poor wouldn’t be getting poorer, the middle class wouldn’t be disappearing and America’s national debt would be shrinking, not rising.

The reason America’s economy is getting worse, while at the same time making the rich richer is that when the government and the central banks borrow to spend, they’re often wasteful because there’s no incentive for the government not to be wasteful, the US government doesn’t have to balance its books, instead, the U.S government has become a competitor of the private sector and how the corporate private sector often responds this growing U.S government oppression is via lobbying as well as outsourcing, which also makes America poorer, as it becomes more reliant on the global confidence of the U.S dollar.

As the technology of the world becomes more complex, it’s not even a certainty that if manufacturing jobs came back to the U.S that America could efficiently build things. America has become a service sector economy and it’s been decades and decades of America losing manufacturing jobs.

Why I bring this up, is because people like Ben Winck are doing Americans a disservice by parroting government data, which doesn’t tell the whole story. The problem with capitalism under a gold standard has always been PRICE DEFLATION and this is without government intervention, when you combine stupidity like the “New deal” as an example, you accelerate economic deflation.

Luckily for FDR, there was a war, which made a lot of Americans in that era willing to give up their rights and pay ridiculously high taxes, which many didn’t pay, but the fact that their taxes were so high and Americans were very entrepreneurial a lot Americans began to spend/invest which is a way to avoid being taxed, this was all well and good until the U.S government realized it was broke and eventually cut ties with the gold standard.

Being that there’s the Euro-Dollar and people looked at the U.S dollar as good as gold in many respects, the U.S dollar has enjoyed this privilege of being the world’s reserve currency, but… I like to point out that the forex markets shouldn’t be confused with the U.S domestic economy, because American dollars can still buy more goods and services outside of the United States than they can often buy inside the United States and this is the direct result of the cost to run the U.S government being so expensive.

This price inflation to run the U.S government is fixed and if the Democrats have their way, it’s going to rise and this will make the WORKING poor poorer because wages do not keep pace with inflation and this is why quoting government statistics without giving the back story of how and why they manipulate the data is pure evil.

A quick note, I like to separate the working poor from the welfare ‘poor’, because people who consume more from the government than they contribute are not poor, they’re tax cheats! who benefit from an inefficiently run government

Now, again I don’t know if Ben Winck is ignorant to what’s going on, but it’s important people understand economic deflation, and the root causes of why it occurs, because there comes a time when poverty runs rampant and nobody understands why or how to fix it.

There are too many regulations and the U.S fiat dollar is a confidence dollar that’s not reflective of the global economy. Private businesses at some point in the future will either be forced to go bankrupt or raise prices and when this happens there will be shortages of things because raising prices is deflationary for the economy and private businesses going bankrupt because their profit margins are too thin, may equate to no replacement for those businesses when they go bust, this is also deflationary.

When manufacturers leave the U.S and don’t come back, they’re often not replaced, now if this begins happening in other sectors of the U.S economy, this will become a huge problem in the future. Being that dumb ideas derive more dumb ideas, I anticipate that the Ben Winck’s of the world will double and triple down on their stupidity and praise their political masters as they destroy one of the greatest countries in history.

Inflation is cooling off just as economists, the Fed, and Biden expected | businessinsider.com

Interesting times ahead!