Price Inflation equates to ECONOMIC DEFLATION: If It Costs More Money To Purchase Fewer Goods and Services, the Economy is DEFLATING – December 8, 2021,

 

We’re entering into an interesting phase, the numbers are showing the economy is on the verge of collapse, by collapse I don’t mean that the market can’t fix this, by collapse I mean their economy is overly regulated and it’s for this reason why consumer price inflation should worry you, because consumer price inflation in this type of government created economy is the result of SHORTAGES.

Prior Abundance and Shortages in the Year 2021

I write a lot about Europe or I should say I write a lot about the EU and how EU countries pay their taxes with REGRESSION taxation, so imagine this for a moment and you’ll understand why most European countries struggle with growth. In most EU countries they punish consumers for spending money, and because of regulations, most European inventors or innovators prefer not to innovate physical things in Europe, it’s simply too costly, especially if you’re a smaller operation.

This in case you’re wondering is why it’s unlikely the EU will overtake the U.S dollar even if the European central bank is better-run than the Federal Reserve. On the topic of the United States, let’s first quickly talk about the economic good Trump did, HE CUT REGULATIONS, but for someone like me it stopped right there. Let me give you the rundown of the economic disasters that Donald Trump caused, the covid-19 disaster is the result of Donald Trump, he decided to pay Americans not to work in order to save the stock market and hopefully buy American voters, this money actually helped to prop up his enemies.

When Trump paid people not to work, this allowed governments LOCKDOWN mandates to flourish, now had Trump won reelection, I think he would have done a far better job than Biden is doing now, but I have to put Trump in his proper economic context, so Trump sends Americans free money, allows debt deferrals to occur, allows Dr. Fauci who is fueling regulations on the U.S economy to ascend to power.

Prior to the virus to avoid the stock market from crashing Trump attempts to public shame Fed Chairmen Jerome Powell to lower interest rates even telling news reporters he was interested in negative interest rates? Trump also championed TARIFFS, which I thought was good if he were president but would be a huge mistake if a Democrat became President. I want to make it clear that under Trump with all of his buffoonery, those were times of “great abundance” for the GLOBAL ECONOMY, simply because he CUT REGULATIONS!

One of The Dumbest President in U.S History

These events paved the way for one of the dumbest presidents in US history to make some of the dumbest economic mistakes in U.S history. By hook or by crook Joe Biden beats Trump in the 2020 election and on his first day he signs a record number of executive orders, Trump cut regulations, Joe Biden not only adds regulations he compounds them to the U.S economy.

U.S States like California and New York both of which have Democrat Governors, that benefited from Donald Trump’s cuts to regulations, add even more regulations, California basically kills their Gig and Private contractor economy and all of a sudden shortages for U.S consumers and the Panama Canal becomes a topic of discussion.

But you see these logistical changes that are coming aren’t really fixing the problem, they’re avoiding disaster and you have to understand that prices are rising while there’s a shortage of stuff. Wage inflation is happening but it’s happening for all the wrong reasons, no new innovation as big as the internet has emerged yet? Wages are rising because there are excessive regulations on the economy, which means that higher wages are going to eventually lead to higher consumer prices.

Well, higher consumer prices are already here during a deflationary cycle and all the indicators are pointing at the Federal Reserve potentially being forced to raise interest rates, because you stop higher prices by raising interest rates, but raising interest rates hurts people in debt who may have made bad spending decisions. Now, you have to remember that raising interest rates doesn’t mean that wage earners will see a cut in their wages, nor will mean that consumer prices go down, in fact, the regulations might force consumer prices to continue to rise, which will equate to interest rates having to go even higher.

Now, some might say, well then cut interest rates? Well, if low-interest rates are causing prices to rise now, what do you think will happen if interest rates rise and prices go up and you cut interest rates? If you guessed prices might still go up, you’d be correct, because you have to understand that the main problem is REGULATIONS.

Government Regulations are deflationary on the economy-There was no recovery in the Obama era

Joe Biden is Barack Obama’s bastard son, Barack Obama got lucky, you have to remember that nobody had seen zero percent interest rates combined with a Wall Street bailout and quantitative easing prolonged before. The assumption was that o% interest rates were a TEMPORARY measure because after all who in their right mind would want fiat money that earns no interest?

Well, companies deep in debt, love fiat money with 0% interest especially when they can export that money overseas to countries like China. So this in case you’re wondering helps China get more powerful and if you follow the Biden family it appears they profit from all of this, the issue is that if it’s tried again now, we aren’t certain the effect it will have

Biden mistakenly assumes that he can regulate the economy and borrow more money without consequence, well the consequences are clear, shortages, higher prices, and economic deflation. You can’t hide shortages? and the new normal appears to be higher wages and higher prices, which is problematic for people on fixed incomes as well as people on welfare, because you have to remember, shortages can’t be solved by printing money, regulations equate to certain business entities that exist prior no longer existing because the profit motive has been diminished.

I’ve been writing about austerity measures for a long time, are we there yet? I’m not sure, because typically economic idiots double down on their bad ideas, “no, the problem couldn’t be as simple as cutting government spending and regulations, the problem has to be those evil rich people?” Well, if the problem is evil rich people and you’re bombarding them regulations, maybe they go on the sidelines until sanity is brought back to the marketplace. We live in a volunteerism society, if the people in charge present the proper working conditions the people will produce, if the working conditions aren’t profitable, more people will opt not to produce, if you think this is unfair, I assume you imagine slavery was a superior option?

 

Interesting times ahead!