Paul Krugman predicts a return to rock-bottom interest rates: While I believe this is possible, I will also make an argument why the War on Fossil Fuels May Force Interest Rates Higher – October 6, 2022,
Because the powers that be like to create and redefine the meanings of words, I created my own “Late Stage Socialism,” #LateStageSocialism which is derived from Late Capitalism or Late Stage Capitalism in which the Marxist Left Wingers, in a nutshell, imagine that Capitalism is going end. I predict the OPPOSITE will happen when Communism FAILED; what we know as the Chinese Communist Party(CCP) under Mao Zedong is not the brand of communism being practiced in China today; China actually became more CAPITALIST, not more socialist.
When the Union of Soviet Socialist Republics (USSR) FAILED, what we know as Russia became more CAPITALIST, not more socialist; yes, both China and Russia could be better, but EVERY leader, whether they like it or not, know that if they want PROSPERITY, the need more FREE MARKETS. Once you understand that, and you understand the HARD-LEFT leanings of the Biden administration and the Federal Reserve SUPPOSEDLY being apolitical, you can see the opportunity of the Federal Reserve to FORCE the Biden administration closer to the Center of the political spectrum.
In Canada, it was actually the LIBERAL/Left-wing government in the 1990s that first OPENLY engaged in AUSTERITY MEASURES; the so-called Conservative government in Canada that Preceded the 1990s Liberal government of Canada was too TERRIFIED to engage in shrinking the size of government, so instead they merely raised taxes, and did very LITTLE to cut government spending.
Why I bring that up is because, unlike Donald Trump, Joe Biden hasn’t been OPENLY critical of the Federal Reserve raising rates on his watch, and whether you like Joe Biden or not, he’s CONSISTENTLY lied to Americans without MENTIONING the Federal Reserve. Meaning that Joe Biden’s administration would rather redefine recession before they did what Trump did when Jerome Powell began raising rates.
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I say this because although a lot of people imagine the Federal Reserve will pivot and bring interest rates back down to zero, I argue that might not, because I don’t think people understand that consumer price inflation is DELFATIONARY, and Joe Biden’s policy is 100% DELAFIONARY to the economy, and I’m sure the people at the federal reserve know this. Consumer Price inflation is deflationary to the economy, with higher COSTS to purchase, make and manufacture fewer goods and services. The entire existence of the Federal Reserve and central banks, in general, is to FIGHT Deflation.
Joe Biden has put an artificially high price or premium on the cost of labor and being productive. Joe Bidens war on fossil fuels is a war on PRODUCTIVITY, and everyone with half a brain knows this, and the market behavior when the Federal Reserve lowers interest rates is not to buy property, plant, and equipment; at best, what you’re seeing is businesses buying and HOARDING property.
Zero Interest Rate Policy(ZIRP) hasn’t worked; sure, it’s propped up the stock market, but it hasn’t stimulated any growth, and whether it’s Joe Biden or Donald Trump, ZIRP has led to politicians engaging in BLATANT vote-buying schemes. When the pandemic hit, the REPUBLICAN Donald Trump’s first and ONLY idea was to send Americans free checks in the mail; Trump did this to avoid the STOCK MARKET crashing.
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On the flip side to this is what I consider a CLUELESS Joe Biden, who clearly has a limited financial education, but this is actually a good thing because if Joe Biden CONSISTENTLY does NOT point the finger at the Federal Reserve for an economic downturn, and as example blames his predecessor for the economic downturn, it gives Jerome well the green light to raise rates and FIGHT Consumer price inflation.
Now, yes, because of Biden’s war on Fossil Fuels, the economy is going to be sluggish if interest rates rise, but this will also create a DEMAND for a more liberty-minded politician; I argue that I hope Donald Trump goes away in 2024 and exits politics because if people can CORRECTLY comprehend what could be in store for the world if a MARKET FRIENDLY president wins in 2024, austerity could create a BOOMING market.
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Yes, wishful thinking on my part, but AUSTERITY MEASURES with sustained HIGH INTEREST would correct the market in was that put a giant smile on my face. With that said, I can’t excuse what Krugman says; he’s obviously far more successful than I am and probably knows more about the markets than I ever could, but the numbers show an economy READY TO BOOM if the government GOT OUT OF THE WAY!
When do people DECLINE job opportunities? People deny job opportunities when they have something better available, like a GIANT WELFARE check waiting for them. This is why I refuse to budge on my claim that I think Austerity Measures are coming; another term I used to define austerity measures is LATE STAGE SOCIALISM, which is a period in which the PEOPLE had enough of big government.
US applications for jobless benefits increased last week | abcnews
More Americans filed for unemployment benefits last week, the largest number in four months, but the labor market remains strong in the face of persistent inflation and a slowing overall U.S. economy
Interesting times ahead!