The Catastrophic Problem of REDEFINING Recession: More Borrowers Defaulting On Their Loans Amid Rising Interest Rates And A Slowing Economy #LateStageSocialism – April 15, 2023,
When the “New Deal” failed, they redefined inflation; when “The Great Society” failed, they redefined recession, and now that ESG – Environmental, social, and governance is failing, the Biden administration and many Federal governments in Western Countries are looking to redefine recession.
Whenever I read about Central Bank Digital Currencies, I have to remind readers that Bitcoin, which as a concept is a DECENTRALIZED digital currency, is a derivative of the U.S. FIAT dollar. How do you Price Bitcoin without fiat money? You can’t; you have to remember that the U.S. rule by FIAT dollar is a derivative of a Gold Standard.
The Gold Standard is derived from using Gold and Silver as MONEY, and Gold and silver as money is nothing more than a convenient form of BARTERING. Bartering is merely a form of TRADING. One of the reasons America doesn’t go bankrupt, even with its $30+ Trillion dollars worth of debt, is because money in the minds of most people has apparently evolved.
The U.S. dollar currently is nothing but a confident currency. But let’s not ignore where that confidence comes from; it comes from past MILITARY victories and America’s ability to INNOVATE. America’s ability to manufacture still exists as well; however, Bureaucracy has turned American business into a regulations NIGHTMARE.
America is still the most welcoming country in the world to immigrants, which also equates to America having the ability to change course with the right leadership; with that said, changing America in 2023, would require AUSTERITY MEASURES and selling any political side, whether it’s Democrat, Republican, independent or even Libertarian on Austerity Measures is a REALLY tough sell.
Understanding Late-Stage Socialism
Late Stage socialism begins on this blog; Collectivists imagine that Late Stage Capitalism is inevitable, I, on the other hand say, we haven’t been practicing free market capitalism since the gold standard was removed from the monetary system.
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The entire concept of CAPITAL doesn’t exist anymore; money is supposed to be a store of value; fiat money, which exists to benefit the Federal Government, can now create cradle-to-grave welfare commitments to voters. This is a SOCIALIST concept; central banking is a SOCIALIST concept, and fiat money is a SOCIALIST concept.
In America, which is different from other nations, their central bank, is actually not supposed to be considered a central bank because, according to the U.S. Constitution, central banks are ILLEGAL in the United States, which is why it’s not called the Federal Reserve. Whereas in countries like Canada, Their central bank, which is a LEGALLY a State Owned enterprise, is called the Bank of Canada and is openly a branch of their Federal Government.
What the world does still have is a MARKET economy in which the government ALLOWS certain free market functions to take place, but CAPITAL has been politicized, and therefore, CAPITALISM is not what we’re experiencing now.
I think it’s fair to say that what we have now is neither socialism nor capitalism; it could be considered somewhere in between; however, what happens in socialist countries is QUITE CLEAR.
Socialism, Democracy, and fiat money COMBINED are disasters waiting to happen. In fact, in the modern era, Communist China has a better MARKET economy than the United States; why? Because in communist China, their Federal government doesn’t have to worry about DEMOCRACY.
Idiots and ignorant can’t vote to destroy the Chinese economy using regulations and taxes, thereby allowing Chinese Communist Party officials to make political decisions that will keep them in power.
Now, this doesn’t make the Chinese Communist Party model superior to the U.S. initial CAPITALIST economic model; however, it does equate to China having a superior SOCIALIST model.
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The problem with socialism and Communism, however, is the issue of PROPERTY RIGHTS. This is why Late Stage Socialism refers to Austerity Measures being inevitable. Government regulations and excessive government taxes are similar to the EXPROPRIATION of privately owned property.
As Federal Government presence grows, owning property becomes increasingly difficult, and the assumption by many is that well if life is more problematic for the private sector, fiat money, and central banking can solve the problem by printing more money.
But thinking this way is short-sighted because the more challenging it is to start a PROFITABLE business, the fewer people you’ll get wanting to do it; you have to also remember on the backend that this over-regulation of private businesses and tax the rich culture are the INDIVIDUAL voters and corporate entities who are 100% reliant on government WELFARE CHECKS to survive.
These government welfare check junkies require a politician to buy their vote in order for them to support ANY POLITICIAN. When I listen to both the Republicans and the Democrats, both sides are trying to PROTECT the Welfare State.
With fiat money, persons on welfare and productive members of society can both be making the same amount of money. In fact, persons dependent on government welfare might actually be making more money than people who work for a living.
People tend to ignore how everything is interconnected, but yes, the national debt is a REFLECTION of ALL the trade imbalances, and even in a fiat monetary system, it’s obvious that Austerity measures will be necessary to fix what’s happening to the United States.
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CBDC’s Central Bank Digital Currencies are being presented as a solution to the problem, but again similar to Bitcoin, CBDCs are a DERIVATIVE of the existing fiat monetary system that’s on the verge of collapse. Furthermore, CBDCs will make it easier for people to be LESS PRODUCTIVE.
Politicized money, which is what CBDCs are, equates to all of your HARD WORK being shut down because politicians don’t like your politics. I also think CBDCs are a low IQ argument because people hostile to this existing monetary system, like Iran, for example, demanded payment in CASH; when the Obama administration was brokering a deal to have the money, the U.S. stole from Iran returned to them.
I’m sure people in the West used to the convenience of doing retail business transactions digitally and consider cash a relic of the past, but not everyone is asleep at the wheel, one of the main tools the U.S. has used against its enemies are digital SANCTIONS, well recently to get around those DIGITAL sanctions, China has been building digital financial infrastructure to get around U.S. DIGITAL sanctions.
U.S. property rights are why most people like the U.S. PHYSICAL CASH; if the U.S. transitions to an all-digital form of cash, I’d argue it would be setting itself up for economic collapse.
What I’m getting at here is that CBDCs will NOT save the West from AUSTERITY MEASURES, and that’s why I stand by my claim that the world is headed for LAT STAGE SOCIALISM; redefining recession is a temporary measure, and currently, I don’t see any means to avoid austerity.
Interesting times ahead!