RichInWriters.com

Marketing Information One Blog Post at a Time

Menu
  • About
  • Contact Us
  • Work From Home
  • Paid Surveys
  • Privacy
  • Articles
  • Posting Rules
Menu

Current Consumer Price Inflation has very little to do with an expansion of the Money Supply, which equates to Economic Deflation in the very near future #LateStageSocialism – March 8, 2022,

Posted on March 8, 2022 by RichInWriters

Current Consumer Price Inflation has very little to do with an expansion of the Money Supply, which equates to Economic Deflation in the very near future #LateStageSocialism – March 8, 2022,

I’m not sure of the long-term results of these environmental policies being pursued by mostly Progressive politicians, but in the here and now, environmental socialism is wreaking havoc in the marketplace and one of the main problems with environmental socialism is that it seeks to limit energy production options, which similar to FDRs NEW Deal could prolong economic hardships indefinitely.

Franklin D. Roosevelt inherited what was being called a great depression, which oddly enough happened soon after the creation of the Federal Reserve, which was created to give the government more tools to battle DEFLATION. Without rule by fiat money, the problem in the economy isn’t INFLATION, the problem is deflation.

When an economy revolves around REAL money instead of fiat currency, participants, including the government have to give people a reason to spend money, because prolonged inflation can’t exist in an economy void of central banking and fiat money. As an example Gold is a scarce resource, if I spend all of my gold, it’s gone. When money is gold, the government nor the private banks can make FOOLS gold without the consequence of bankruptcy.

Under this current monetary system, fractional reserve banking, for the most part, has created an abundance of wealth WITHOUT the help of government. Could fractional reserve banking work under a Gold Standard? Ofcourse it could, so what’s the problem with a gold-backed fractional reserve banking system? The problem would be THE FEDERAL GOVERNMENT and promises made by politicians desperate to get votes.

Most of the debt and regulations in any economy exist primarily because of Government interference in the marketplace. In the modern era, whenever the government makes stupid laws or dumb spending programs, the government can reward itself by raising its debt ceiling, spending more money, and creating more regulations.

Now, when the government taxes and regulates the economy, it expects the exact same results it got when the economy was freer, voters ignorant that laws and regulations tend to make society worse off, cheerlead for their government to do more even in the face of economic destruction because most people tend to imagine that economic destruction is inevitable. Society typically has little knowledge regarding financial education and it’s for this reason that they’re reliant on political leaders to “educate” them.

Not everything is the Governments Fault- there was a Demand for Minimum wages and Social Security Before FDR

If you feel like I’m doing too much government bashing in this post, you’d be right, because I should point out the history of the labor union movement and why FDR won his elections in a landslide. Organized labor was very destructive prior to the minimum wage and social security laws, labor groups used to engage in terroristic activities prior to the worker’s rights movements.

Were the laborer justified in doing this? Maybe, the Capitalists had little incentive to make workers’ safety a priority, and the goal of any capitalist is to make the most money possible by spending the least amount of money possible, so if you’re going to bash governed regulations, you have to also be aware of the other side of the argument.

Now, the truth regarding the labor movement, is that humanity would have been smarter to avoid being wage employees and instead worked as private contractors. Even in the modern era, private contractors make more money and have far more flexibility than waged employees, so had there been financial education, the cheap labor problem would have eventually been solved by common sense.

Certain jobs are indeed entry-level jobs, and if a person is looking for experience in the workplace an entry-level job is a great place to start, well, the minimum wage law is actually an attack on education and entry-level jobs. Now, when the people were engaging in terrorist acts to create a minimum wage and social security law, it’s unlikely they were able to comprehend the stupidity of their actions, but this all occurred because a group of PEOPLE wanted to grow the size and influence of the government.

I bring this up so you’re aware of the realities as to why stupid government programs flourish, it’s often the politicians meeting the demands of their voters. This is why it’s not common to see politicians killed, politicians are usually only killed or made examples of if they do something unforgivingly bad. But for the most part, politicians do the bidding of the people who put them in power.

Once you understand that it’s the people fueling bad government, you’re better equipped to comprehend the modern money supply. As the author of Rich Dad Poor Dad Robert Toru Kiyosaki points out “Money is Debt”. Those words often fly over people’s heads. Why is money debt, instead of an asset? The answer is simple, the government needs you to spend/invest it. If you don’t spend it, it’s harder for the government to tax you, if the government can’t tax you, the government can’t spend money without borrowing it.

If the government is forced to borrow money, it runs the risk of going bankrupt or having debt servicing problems. In the year 2022, central bank interest rates have been stuck at zero for over a decade, one would imagine that interest rates at zero would help the federal government to pay down its debts? But the opposite has happened, the government is now in even more debt? Why is that you ask? because if money is debt, the people spending money should be INVESTING it to make more money in the future.

The government is ruled by VOTERS and special interest groups who want something for nothing. Many of these voters are not interested in sound economics, instead, they want something they imagine will be free from the government, but as you’ll notice, if the government is getting into more debt, it’s not expanding the money supply, it’s actually shrinking the money supply as more money goes into paying down its debts.

This money printing by the government grows with the debt ceiling, but what fuels inflation in the U.S and other western economies, are the regulations on the economy. Regulations make productive people unproductive and regulations force consumer prices upward. If I as a business person HAVE to pay the new government minimum wage law, I’m a for-profit business person, meaning that if I don’t make a profit I’ll either go bankrupt or be forced to raise my consumer prices.

The government on the other hand, when it has to pay its employees more money, simply raises its debt ceiling, raises taxes, which by the way could come in the form of regulation. So let’s say the government regulates the energy sector and now imports energy, well, tariffs exists, so the government might see an increase in tax collections via tariffs, and may even for a period of time see an increase in tax collection, but long term, this is deflationary, because the money supply isn’t expanding, it’s contacting.

So the government once it realizes the money supply is contracting might engage in a new spending program, but you see rewarding people with free money for doing nothing, equates to increasing a country’s reliance on imports and this also fuels consumer price inflation because no hardworking person wants to earn the same amount of money as a person who contributes nothing to the economy. So in the even the government engages in its own money printing, not only are resources becoming scarce, but domestic labor may become scarce also.

All of this equates to deflation in the economy. Once the economy is deflating, what most people will do, is assume printing money is the answer and this is usually when inflation runs rampant. Because you have to remember, that printing money IGNORES the destructive regulatory policies that caused consumer price inflation in the first place and once you comprehend this, you’ll comprehend that consumer price is being fueled by regulatory policies and not money printing.

Interesting times ahead!


Authors Widget

  • Entries RSS

Log In

Recent Posts

  • Husband Makes Wife Pay For Her Own Epidural!
  • Dream-Singles.com Legit or Scam? You Decide Dream Singles Reviewed
  • MishasFormulaNow.com Review Is It a Scam? (MishasMethod.com)
  • TheLuckyDate.com Legit or Scam? You Decide The Lucky Date Reviewed
  • Borrowed $70,000 And Put A Baseball Field In My Back Yard!
  • Take Your Advice Or Listen To My Dad?
  • AsianMelodies.com Legit or Scam? You Decide Asian Melodies Reviewed

Categories

Pages

  • About
  • Contact Us
  • Work From Home
  • Paid Surveys
  • Privacy
  • Articles
  • Posting Rules

Advertisements

Sell Physical Goods and Services Online Beginner-Friendly FREE Online Workshop
Requires $0 Investment and Only 30 Minutes of “Work”

💕 💕 💕
International Matchmaking Service For Marriage Minded Men
💕 💕 💕 💕

Become an Author Today
📚​📖​Publish Your First eBook Without Writing a Single Word


Advertisers Will Pay You For Your Opinion
💸💰Get Paid To Fill Out Surveys and Get Paid In U.S Dollars ​PayPal Cash and Amazon Gift Cards - Click Here

©2023 RichInWriters.com | Powered by Liberty