Government Regulations Won’t Allow Certain Consumer Prices To Come Down: This economic reality equates to Consumer Price Inflation until Austerity Measures (Turkish Interest rate dilemma explained) – January 9, 2022,

Although it’s pretty clear that the global economy is deflating, prices have not come down, in fact, consumer prices have gone up in most parts of the world. The reason for price inflation regulatory policy, the government is involved in everything and because for some the government rewarding citizens with currency for doing nothing has its benefits, however, the economic realities of giving away money for being unproductive are starting to show signs of wear and tear.

Government regulations have made the economy less productive, but money continues to be poured into the economy, to hide economic deflation, what does this equate to exactly? It’s hyperinflation, but you’ll argue, why hasn’t hyperinflation happened yet? I reply because the ECONOMY IS DEFLATING! But then you’ll reply, yeah, but consumer prices are rising? I reply because of regulations on the economy! Then you argue, but those regulations are necessary, we have to “INSERT REASON FOR GOVERNMENT REGULATIONS HERE”.

Despite what some people think, a controlled interest rate hike will do little to stop consumer price inflation, regulations are what they are, what’s being OPENLY ignored worldwide are government deficits, which is the real reason why interest rates aren’t rising, government deficits in countries like Canada and America are at ridiculous levels and if the central banks are ever fired into a position in which they’re FORCED to normalize interest rates, the entire reality that some people are enjoying today will change almost instantly.

What would cause central banks to normalize interest rates?

I’m not entirely sure what event would cause central banks to normalize interest rates it could be a series of events, but the one thing central banks can’t control are shortages, and what we learn from socialistic failures is that the root cause of SHORTAGES is too much government interventions in the economy.. Excessive Nationalization of industry obviously leads to economic collapse, which is why Cuba has been in the longest great Depression.

But I’ll point out over-regulation can sometimes be just as bad as Nationalization, I’ll use Canadian health care vs. U.S Health Care as an example. Libertarian Rand Paul actually came to Canada to have back surgery? Now, although Canada has Univeral Health Care, foreigners can still pay to use our health care system, and sometimes, it’s cheaper for an American to have surgery in Canada, than it is to have surgery in America, prescriptions in Canada are often cheaper than in the United States, why is that, you ask? Because the U.S Privatized Health Care system is over-regulated.

So in certain pockets of the U.S and Canadian economy, you can observe oddities that are all based on how a group of politicians enacted economic regulatory policy. How this relates to consumer price inflation is that THE COST OF OPERATING CERTAIN BUSINESSES will have higher costs based on the current regulatory environment and no matter how high-interest rates go up, those businesses will not be able to turn a profit.

Understanding Why High-Interest rates in Turkey Are Helping The Lira-Austerity Measures

Making matters worse will be the cost of debt because higher interest rates equate to the cost of debt going up. Turkey is the perfect example of the argument I’m presenting to you here. The projection for Turkey in years prior was that it was going to be more secular, more Liberal, meaning freer, more freedom of speech etc, which from an economics perspective would lead more towards Turkey having more of a Free Market economy.

Unfortunately for Turkey, they decided to become more Conservative and because Turkey is not a Christian country, its dominant religion is Islam, Conservative by Turkish standards equated to more REGULATIONS on the economy meaning that fewer people are willing to invest there, making matters worse was freedom of speech and freedom of movement.

American “Enes Kanter Freedom” born as a Turkish man by the name of “Enes Kanter” is a very talented basketball player, who made it to the NBA, not an easy feat dared to speak out publically against the Turkish government. Now, unlike Communist China, which at the very least allows Free market zones, no such free economic zones exist in Turkey, if you want to do business in Turkey you do business based on how the Turkish government decides you should do business, in this oppressive economic environment, nobody gives a shit how high-interest rates are in Turkey, investors are terrified of the risks involved.

Furthermore, the costs of doing business in Turkey are what they are, there will be no hopes of austerity measures anytime soon in Turkey and therefore higher interest rates are having little to no effect, and being that Turkey doesn’t have the worlds reserve currency it makes matters even worse.

Now, that you understand the part regulations play on the Turkish economy, let’s discuss the U.S economy, which is a tale of two different ideologies, in American, the Democrat-run cities and states for the most part are an economic disaster. Similar to most Big Government hell holes, there are of course pockets of rich people, who can afford the higher costs of living, but it’s the poor who suffer when prices are forced upwards, but the poor to date have been relatively quiet in America, because, well, they’ve been receiving free money for doing NOTHING!

Now, for as long as interest rates remain low, Americans and even Canadians can receive checks in the mail for doing nothing without consequence, until, well, consumer prices are forced upwards, because, well if people are being paid to do nothing, the people who do work will want a pay increase, and making matters worse are the new round of government regulations which require certain productive people be vaccinated in order to participate in the economy.

This regulation, will of course accelerate consumer price inflation, and at the same time potentially accelerate economic deflation. Sounds weird, right? I know, it’s what happened when you use a “rule by fiat monetary system”. Because governments can borrow money that has nothing to do with the people’s ability to produce goods and services, all sorts of oddities can occur in the economy.

The Big Government regulations party always ends the same, SHORTAGES, Rome fell without a fight, because the soldiers didn’t see anything worth fighting for. In modern terms, a lot of people aren’t seeing any reason to be productive in the economy because the government is picking winners and losers. Even in Turkey, as Enes Freedom learned, the government has decided that Enes and his freedom of speech should be banned in Turkey and these types of GOVERNMENT regulations equated to a deflationary economy.

For every action there’s a reaction, if a husband cheats on his wife, the outsider will say, she should leave him immediately, but… Suppose the cheating husband is a great provider, never hits his wife, and takes care of her and her children? She might look at it as, well he has one problem, he can’t keep that thing in his pants, she might have a different perspective on the matter, if she hasn’t worked for years and enjoyed the economic stability the husband provided, maybe she doesn’t want to leave the cheating husband?

Not every woman wants to marry the state, nor does every woman want alimony or an unstable household for her children. Regulations on an economy is a government ONE SIZE FITS ALL solution, but in the real world with real people, humans make choices based on what makes the most sense to them. Government regulations are fixtures on the economy that often limit or even prevent economic output.

So for myself, I don’t see consumer prices retreating until the regulations on the economy are cut drastically! Shortages lead to prices going higher or products or services simply disappearing from store shelves. So it would be wise that you prepare yourself now.

Interesting times ahead!