a Rising U.S Dollar Won’t Stop DOMESTIC Consumer Price Inflation: Pretend The Petrodollar is a Myth All You Want, A lot of U.S dollar Costs revolve around the U.S dollars relationship with Oil Prices – May 2, 2022,

 

 

The current fiat monetary system revolves around confidence in the U.S dollar, even with the Eurodollar system, there simply are not enough U.S dollars to go around and because a fractional reserve gold system, isn’t in demand as of yet, it appears everyone wants to hoard some U.S dollars just in case a global recession really does happen.

The financial infostructure of the world presently revolves around the U.S dollar, even when people think about cryptocurrencies or Gold for that matter, people imagine the value of these things in U.S dollars. With that said, do not be confused, consumer price inflation revolves around domestic policy, I like to point out that not every country in the world has high gas prices, and no some of the countries with lower gas prices, aren’t subsidizing their oil markets.

Why oil and energy prices, in general, are so high is because of Big Government policies in certain regions of the world, which want a new world order on energy prices in which the government can have more power to redistribute capital to areas of the economy it sees fit. Prior to this Green New Deal, the economy hadn’t recovered, neither former Presidents Donald Trump nor Barack Obama fixed the U.S economy, when both left office, interest rates remained at record low levels.

Joe Biden continues to struggle to formulate complete sentences, so it’s unlikely he or his administration of any knowledge that their policies are having a direct impact on the global markets, after all why should they? If they imagine that having the world’s reserve currency allows them to have a financial emergency plan, to print money to stop deflation, then all is well in their minds, vote-buying works on some voters, right?

Not so fast, consumer price inflation is the result of the private sector having to rediscover prices, to pay for mounting costs. Any business raising pricing indiscriminately can only do so, if it has no competition, meaning that most of the consumer price inflation we’re seeing is the result of the COST
of business going up.

Once businesses are faced with being forced to raise prices or going bankrupt, this is when the topic of SHORTAGES starts popping up. Shortages occur when profit-seeking companies can’t make a profit and the politicians in charge decided to declare war on them anyway. To avoid getting political a lot of companies will either change their business model or go bankrupt if they feel like raising prices will make them a political target.

In socialist countries like Venezuela, when their government began nationalizing private businesses. a lot fo the private businesses that hadn’t been nationalized left the country before the government found them. Now, I don’t think western nations will nationalize industries, but if you become a serf because your business has its earnings capped by the government. you might decide to not hire or keep operations small until you see a clearer path forward.

I bring this up, because some are feeling happy now that the U.S dollar has rallied? When the evidence suggests that the markets had long anticipated this was going to happen anyway. This always happens, the forex markets especially as it relates to the U.S dollar have little to do with domestic policies. The private banks aren’t going to lend recklessly, meaning that economic stimulus will have to come from the White House.

After all, this is what the people in charge wanted right? To have more control over the U.S economy, well, now Joe Biden and company will have put their wealth redistribution schemes into practice and show the markets why Big Government is better suited to decide who wins and who loses in the economy. I like to point out that the term Government spending is a cop-out, it should be called government investing, because when the government takes over certain means of production, they do so with the intent to invest now so the general public can be profitable later? So far that has never worked, but maybe Joe Biden and his administration know something that the rest of us don’t!

Dollar holds near 20-year high, euro struggles | reuters.com

Interesting times ahead!