Higher Interest Rates Without Austerity Measures: Why Socialist Countries With over-bearing-BIG-Governments Raising their central bank Interest Rates are making their economic problems WORSE – December 1, 2021,

It’s important to remember that when socialist policies are implemented in a free market capitalist country, the economy of said “capitalist” country is no longer “free market”. It would be something worthy of study if we saw laissez-faire capitalism fail, but we haven’t seen it yet. What we’ve observed since American capitalism was first unleashed, was democracy and propaganda using the force of government to INTERVENE in the economy, primarily because the government and the ever-growing private sector had to broker a deal to protect the union from economic TERRORISM.

How Trade Unions Created The Demand For Central Banks

One of the most overlooked events in U.S and world history for that matter are trade unions or the trade union movements, which were the actual causes of DEPRESSIONS in the United States and the world. Many people are aware of “The Haymarket Martyrs” which led to the holiday we know as labour day in America today. But what’s often ignored are the terrorist acts that led up to The Haymarket Martyrs. We don’t know them as terrorist acts because, most of us get a Left-wing education, but even in Canada the Post Office workers were extremely violent and used intimidation tactics to get the force of government to INTERVENE in the marketplace.

This is what protestors do, and the damage they cause is expensive to fix because often is the case that after left-wingers destroy private property, what happens next is some form of government REGULATION on the free market. Now if society has a free market system of money in which overall interest rates are determined by the most productive and innovative members of society, and terrorists use force to demand the government intervene in the marketplace, the end result is DEFLATION.

If the economy deflates and the government has no control over the money supply, that equates to chaos. You have to remember that a FREE MARKET is a form of VOLUNTEERISM and if people have been brainwashed into believing that they’re being FORCED to move to major cities leaving their stable but low paying agriculture jobs behind, well these people will of course UNIONIZE and use whatever powers they have at their disposal to grow their influence in the economy.

But please, do not confuse the modern mistake of imagining the market economy we ENJOY today as free-market capitalism because it’s not

So for some countries, they’ve decided to raise interest rates to combat PRICE inflation, but I like to point out that RULE-BY-FIAT currency is not real money, it’s a currency. Money is nothing more than a CONVENIENT form of bartering. Accrual accounting or fractional reserve banking can exist even in a bartering relationship between individuals, but credit in those instances would only be given to individuals who have the ability to MULTIPLY the money they borrow.

Meaning that if you’re an employee chances are you wouldn’t qualify for credit in a SOUND economy in which money was backed by Gold and/or Silver. In this modern economy of fiat currency, the money is actually backed by your government’s financial and economic IQ. This is why most East Asian countries have been so efficient in growing while western economies appear to be bewildered by the FIAT-Currency fiasco they’ve created. People think they’ve defeated Hitler and Mussolini but in fact, the global economy almost mirrors the economic concepts of fascism.

a reminder that the Nazi Party was officially called “The National Socialist German Workers’ Party” with emphasis on the words WORKERS party. Marxism’s main target was to brainwash the WORKERS and it worked, for an extended period of time most workers wanted a labour union and growing trade unions led to a demand for ECONOMIC change.

So as an example New Deal created a FEDERAL minimum wage in America and social security. It’s rare that you even hear a Republican talking about ending the Federal Minimum wage or ending social security even though neither of these programs would work in an economy void of fiat money. It was the REPUBLICAN who when America was going bankrupt under the Gold Standard officially ended the convertibility of the U.S dollar to Gold internationally.

This is how effective the labor union movement has been, for someone like me, I agree with Ludwig von Mises (I’m paraphrasing here) that a person needs to be educated on the free market to embrace it. I can’t walk up to a random person brainwashed from their cradle and tell them to embrace free-market capitalism, this is why I’ll often come to the defense of Milton Freidman when he appeared to be inconsistent.

When Ron Paul speaks up for the free market, they label him a white supremacist? and the name sticks because the average person is ignorant about liberty. But where this really becomes problematic is when government people do not understand that fiat money has long been detached from the economy. The economy is based on government policy. So as an example, in Brazil or South Korea, Latin America, or the continent of Africa, most investors know and understand that property rights aren’t respected in these countries, so currencies in certain regions of the world are viewed as extremely risky assets not worthy of hoarding.

What good is 10% interest rates on fiat currency if one day the democracy decides that it’s time to nationalize the wealth of the “rich”? This is one of the reasons why the U.S dollar often rises despite what’s happening to the United States economy domestically.

The markets, don’t care about the money, they only care about what the money can buy and if there’s fear that one day the currency can’t buy anything, well then the markets will react. So what then can undeveloped nations do to solve this problem? Teach free-market capitalism. I think it’s healthy to have Marxists in society, but it’s unhealthy NOT TO TEACH WHY FREE MARKETS enrich the world.

With Marxists they’re like a virus, they don’t want you to be able to think objectively, Marxists want you to think the way they think because, in their imaginations, they imagine that by enslaving you, they’re helping you to live a better life. You have to remember that both Karl Marx and Friedrich Engels grew up RICH.

Both Karl Marx and Friedrich Engels in the modern era would be considered rich kids. The communist manifesto was merely, Karl Marx and Friedrich Engels looking to build their army. Both Karl Marx and Friedrich Engels lived reality easy lives, Karl Marx was a very lazy man and Engels was Mr. money bags you’d be wise to read up on the Friedrich Engels family fortune.

I say this because the modern economy is rightfully called a “Market” economy, but it’s not a FREE MARKET economy and the current rule for this market economy is that governments should not over-regulate or over nationalize their economies because if they do there are dire consequences. Even if interest rates were 100% in some of these countries I’m not a buyer. I bought stock in a foreign Gold mine a few years back, well, the government nationalized it soon after my purchase. Now I knew the risks involved prior to the purchase, but that’s what happens in most of these Left-Wing countries and it’s why nobody invests their money there.

Fiat money can’t cure stupid and because western nations have embraced stupid, undeveloped nations would be wise to unleash the free market. I thought what El Salvador did was pretty dumb because if he could get people to accept Bitcoin as legal tender, then he should be able to unleash the free market and cut regulations? Maybe he plans to do that later, but you never know with some of these countries. But to answer the question of why aren’t higher interest rates helping some countries, it’s because of the fear of nationalization and government regulations.

Interesting times ahead!