Money Printing Is a Myth: The Federal Reserve Raising Interest Rates a few Basis Points Won’t Stop The Inflation Created By The Biden Administration, Higher Costs – February 23, 2022

In time the markets will figure out that I’m right, first and foremost the only money printing in the U.S economy comes from the Federal Government. For-profit financial institutions, that might be overleveraged, risk DEFLATION to the economy, not inflation. Private banks enegaed in fractional reserve banking do so with a profit motive in mind and if those private financial institutions are wrong, they go BANKRUPT, which is deflationary for the economy, because if there are fewer financial entities lending money into the real economy, there’s less money in the economy.

Now, if a bunch of financial entities go bust, chances are the Federal Governemnt will save them, but the Federal Government would have to BORROW money to do that, adding to the national debt. All of that BORROWING isn’t money printing, because that money is actually being BORROWED into existence. What most people ignore about the Government borrowing money is that most Government investments go bust, and when they go bust, they don’t go bankrupt, instead this bankrupted governemnt ideas become permanent costs on the governments balance sheet.

Because the U.S government imagines that it has all of it’s debts under control, the Federal Government will often go on spending and regulations sprees, buying everything it can buy and regulating everything it can regulate, well the regulations on the economy, lead to inflation and because money printing in the modern era is a myth, these regulations in America have reached a breaking point.

Fossil fuel energy is the life blood of the economy and Joe Biden has effectively destroyed the fossil fueled energy economy in America, meaning that there will be NOTHING to stop consumer price inflation, even if the price of gas comes down, I suspect there will be more government regulations to force them back up again. Once you understand that Biden has declared war on fossil fuels and once you also understand that these political climate change activists will not stop complaining, no matter who is in power, you’ll soon see, why until austerity measures are implemented, consumer price inflation will not stop rising.

Most of the people in charge of the economy in the modern era, hate Western values, they want to reshape the world in their own image, these social-climate political movements will lead to more tyranny and it ends in catastrophe, once you get it through your head that higher costs of doing business are GUARANTEED moving forward regardless of what the Federal Reserve does, then you’ll comprehend how better to invest.

Quality investments is the only way to go moving forward, higher consumer prices are going to squeeze out the poor and middle class, whose incomes won’t be able to keep up with inflation. If you imagine a UBI will fix this problem? You’re wrong, UBI will accelerate inflation and may cause an increase in SHORTAGES!

If you’re being paid NOT to contribute to society, many will opt not to work, which will be more favorable as the cost of living rises, people who are financed NOT to work become competition for people who do work, this is the problem Venezuela had, Venezuela to date still has a lot of UNPRODUCTIVE people, why? Because their brand of socialism encouraged people to work only when they felt like it.

So that’s what most people did, and this also fueled the the Venezuelan governemnt to be more tyrannical, often nationalizing and slapping price controls on private businesses, that the governemnt imagined was price gouging consumers. This worked out great when oil prices were high, it stopped working when oil prices dropped.

In this economic climate, when businesses feel like they’re being harassed by governemnt, business will change their behavior and seek out customers who are likely not to be as problematic as people with low incomes. When you comprehend what’s going on, you can make better investments for the future.

Interesting times ahead!