The Difference Between Stagflation and Economic Deflation: Prices Rising Not Because Of unemployment Prices Rising Because of The UNSUSTAINABLE Cost of Government – September 28, 2021,

In the modern economy, as the world pushes further towards a progressive dystopia, many are calling what we’re experiencing in the modern western world “Stagflation” when it’s really not. Unemployment is not the problem in 2021, the real problem is the cost of government. Currently, the government is paying people more to sit at home than they’ll earn being employed, this clearly is NOT stagflation.

Stagflation consists of persistently high inflation combined with high unemployment and stagnant demand in a country’s economy. With lending being as easy as it’s ever been in the history of mankind there is still high demand for a plethora of things, furthermore never has the world had this much stuff, the problem with all the PROPERTY humans have been able to acquire is that it’s becoming more and more difficult to DISTRIBUTE the stuff we’ve acquired.

The reason DISTRIBUTION and supply chains have been interrupted is because progressive Governments all over the world have decided that they should micro-manage the economy and pick ECONOMIC and SOCIAL winners and losers. This is a very expensive undertaking and it’s something none of us have ever experienced. before.

This BIG GOVERNMENT experiment similar to FDR’s “New Deal” his fueling economic deflation, the difference now that didn’t exist under Franklin D. Roosevelt is that the world is no longer burdened with a Gold Standard, instead, the financial new burden on society is the central banks, which are very accommodative to Progressive governments. But as many of us know, calling the U.S Federal Reserve a central bank is not the correct term to use, because the Federal Reserve currently doesn’t PRINT money, it simply allows money to be printed, which equates to the blame of economic deflation being pointed squarely on the politicians and the policies they seek to employ.

The economic deflation in the modern economy is so bad, that there calls for a reset have been replaced with a demand for Modern Monetary Theory, which allows all political ideals to become a potential reality. Now, modern monetary theory to many of us is not modern, it’s merely a rebranded form of Marxism, our current quasi-Marxist financial system makes the private banks a very important distribution channel of fiat money, Modern Monetary Theory hopes to make government the sole distributor of money.

In most countries all across the globe, there is no perceived independence of the central bank from the Government, one of the reasons Latin America is often plagued with hyperinflation problems is that it’s not even a secret that the politicians in power will dictate all the rules of that countries central bank and because Latin countries tend to be Socialist, the markets merely observe to what the politicians are devising and attribute the rhetoric to the expectation of the central banking policies.

Most people in the markets understand that tariffs-higher taxes, more regulations, and the demonization of the private sector will lead to an economic downturn, but the fiat monetary system which is a confidence game via the Foreign exchange markets(forex markets) will prop up certain currencies to avoid a dreaded gold standard which would force fiscal responsibility, but regardless of what we want to use as a medium of exchange, stupid political policies are stupid political policies and if the private sector can’t turn a profit, the private sector will often raise their own company standard in anticipation of where it believes government policies will be heading in the future.

This self-governance of the private business along with Government welfare is not only deflationary it’s actually hyper-deflationary and hyper-deflation for the economy requires more fiat money to prop it up. Deflation via regulation equates to higher prices, so as the government under its current regulatory frameworks opts to stimulate the economy by infusing it with more money, that money will lose its purchasing power, which will be deflationary, but because the government is in control of how inflation is calculated, it will find a way to calculate the data in a manner that doesn’t make the reality look so dire.

Am I making the claim that inflation is transitory? No, nor am I making the claim that we’re experiencing stagflation, I’m making the claim that we’re in a hyper-DEFLATIONARY economic cycle, meaning that I expect that all currencies will be debased while forex markets reward the U.S dollar. As I’ve been saying for years, as long as this confidence game lasts, people discover that U.S dollars are better spent OUTSIDE of the United States.

Interesting times ahead!