Let’s Talk Petroleum and Price Controls: Federal Reserve Raises Rates by 0.25%. Key Interest rate range 5% to 5.25% – May 3, 2023,
Unlike the government, private businesses can not PRINT MONEY, so when VOTERS decide to vote for politicians like Joe Biden and Justin Trudeau, whether these VOTERS are aware of it or not, they’re voting for HIGHER PRICES.
Because I live in North America, I’m using Joe Biden and Justin Trudeau as examples of why consumer price inflation, which is DEFLATIONARY to the economy, is FORCING the Federal Reserve to raise interest rates.
Higher consumer prices are DEFLATIONARY to the economy, and what you’re getting a lot of with higher CONSUMER PRICES are people LIQUIDATING their holdings in banks.
Because of CONSUMER PRCIE INFLATION, investors are changing their investing behavior. Now, in the minds of many, the assumption is well, why doesn’t the government do another round of STIMULIS spending, well, the problem with stimulus spending is that it’s MALINVESTMENT.
a FOOL and their money are one big party, so let’s imagine Joe Biden and Justin Trudeau just start sending free cheques in the mail to anyone who wants one; well, first, let’s state the obvious, you’d be incentivizing people NOT to work.
Existing cradle-to-grave welfare programs have equated to record numbers of people NOT working, and a lot o the people who do work are the BENEFICIARIES of government welfare programs such as MINIMUM WAGE laws or RENTAL CONTROLS.
Price controls don’t allow prices to deflate past a certain level, so every time you hear a price control law passed, that equates to specific consumer prices never retreating downward again.
Not sure how long this corporate welfare wealth redistribution scheme that’s called “climate change” will last, but this law in PRACTICE equates to countries who don’t adhere to climate change REGULATIONS on the economy being the financial beneficiaries.
At one point, OPEC was losing its control over the energy markets, but VOTERS, by voting for a climate change agenda that excludes OPEC countries and a bunch of other countries disinterested in the climate change scam, allows countries who ignore “Environmental, social, and corporate governance”(ESG) to benefiting GREATLY financially.
How this ends is anyone’s best guess, but at the very least, those of us who study history are getting a front-row view of how great past civilizations were destroyed.
All the warning signs are here, yet the voters appear hell-bent on destroying the greatest recorded civilization the world has ever known. In the meantime you’d be wise to prepare yourself accordingly.
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Interesting times ahead