Minimum wages are PRICE CONTROLS: Why are Central bankers worried about you getting a raise? – December 10, 2023
As Jeff Snider of Eurodollar University reminds us, central bankers really aren’t central, and they really don’t do money. My message has always been the old message: pay close attention to DEMOCRACY and FISCAL policies, as they are far more important to your DOMESTIC economy than what central bankers are doing.
Because there’s a FOREIGN EXCHANGE market(Forex Market) that rates currencies and decides on its own what the world’s reserve currency should be, the current monetary system revolves around the PERCEPTION of currency.
The U.S. dollar is the default world reserve currency because out of all the currencies of the world, the U.S. has the LEAST GLOBAL capital controls. Even Switzerland’s central bank has left interest rates at 1.75%, while the U.S. central bank has interest rates at 5.25-5.50%.
Why isn’t Switzerland competing with the U.S. for world reserve currency status? It’s because most countries don’t want that PROBLEM. Although I’m a capitalist, you won’t see me pretending that capitalism is this PERFECT economic system because it’s not.
What capitalism does better than Socialism, Fascism, Communism, and Collectivism, in general, is that it creates a scoreboard of what people ACTUALLY want instead of a scoreboard of what idiot voters vote for or even what silly totalitarians promote.
In practice, humans and their CAPITAL gravitate to freedom, and let’s say your tiny country like Switzerland, the perception by the Swiss government is that if Swiss Francs are hoarded, it introduces a host of new problems, which could include foreigners outbidding Swiss residents for things the Swiss need to survive.
In order to attract capital, some countries will lower taxes or have MINIMAL regulations; this move alone, could create a windfall of capital for any government, the problem with the government receiving a windfall of capital is HOW TO SPEND IT ALL; the other problem is when a government gets a windfall of cash, there’s the temptation for that government to CHANGE fiscal policies.
For example, in the modern era, VOTERS are so stupid that they literally voted for the government to CHANGE THE WEATHER. For a lot of Western governments, they don’t see a future without ESG. Environmental, Social, and Governance(ESG) in practice as currently constructed is actually PRICE CONTROLS, ESG sets the FLOOR for how much energy should cost and the types of energy we should be allowed to consume.
ESG is being pushed as a GLOBAL initiative, and it’s being pursued mostly by DEMOCRATIC nations, which shows you the FLAW in Democracy, now, why countries like Switzerland are having inflow of capital problems, whereas other nations are having the opposite happen during this ESG era, is because of how the Swiss government is STRUCTURED.
The FEDERAL government in Switzerland is very small; it’s so small, in fact, that the Federal government has a minimal role in Swiss society. Off the top of your head, do you know who the Swiss President or Prime Minister is? Their system of governance, which mirrored the U.S. Constitution, was designed to keep the FEDERAL government small.
Economically, this helps to keep FEDERAL price control mechanisms out of the average Swiss citizen’s life. Sure, the cost of living is high in many parts of Switzerland, but so is the Swiss STANDARD of living, and so are the educational levels of their citizens.
In countries like Switzerland, the money could be based on the leaves of a tree, what makes the Swiss LEDGER, more solvent than other nations are their fiscal policies, and the design of their governance.
Central Bankers’ main role in society is their DOMESTIC economy, and in most WESTERN countries that have embraced ESG, they’ve RAISED the barrier to entry to produce cheap, reliable energy.
Currently, Wind and Solar energy are expensive to manufacture, deliver, and maintain, and this is true for all non-fossil-fueled energies. This expensive energy has led to the BENEFICIARIES of price controls demanding a pay raise because, in most countries, the Labour unions have baked into their contracts a PRICE CONTROL/wage that keeps pace with inflation.
Even if the workers don’t have that baked into their labor union contracts, labor unions and individuals will demand a high PRICE for the labor, as ENEGY prices get more expensive,
Now, one of the reasons I do NOT want a GOVERNMENT Gold Standard is because of PRICE CONTROLS; a large chunk of the VOTING PUBLIC has demanded GOVERNMENT price controls, and from my end, what that means is that if we were on a Gold Standard, VOTERS who believe in price controls would have no problem with the government CONFISCATING your Gold currency or confiscating the gold you own.
In the United States, the low-life scum known as Franklin Delano Roosevelt (FDR) went as far as to make Gold bullion ILLEGAL for U.S. citizens to own. That FISCAL policy was EXTREMELY popular when it happened; a lot of AMERICANS thought it was their NATIONAL duty to save the Union by handing over their gold bullion to the government; like it or not, THAT’S DEMOCRACY IN ACTION.
So if you’re dumb enough to imagine that a gold standard is going to MAGICALLY change human behavior and stop government spending, you’re out of your mind. I’m a capitalist, but I look at humans as they are; we’re an imperfect species, and we all have huge imaginations of how we think things SHOULD be.
Even I will admit there are flaws in my way of thinking. However, most people will not admit this; most people have an “it’s my way or the highway” approach to life, and it’s these scumbags that end up in political roles.
So this is why I argue central banks exist in the first place. I argue there was a DEMAND for a central bank, and the madness we have now is simply a reflection of the best we can do with modern Western democracies.
In my opinion, the Swiss and U.S. constitutions have provided us a blueprint of how to IMPROVE the design of future republics. So, to those of you who imagine that life can’t get any better than this, I am here to tell you that we are nothing more than the PIONEERS of the greater world economy.
You have these idiot socialists talking about a day work week; my thinking is that if we lessened the role of government in our lives, we might have a 1 day work week and the rest dedicated to INNOVATIVE volunteerism.
Efficiency drives down ALL prices, the government, and drives prices back up. So, although governments in modern times might be providing FALSE security in our lives, the future, with a smaller government, might actually be far more secure.
Interesting times ahead!