As long as the world accepts fiat money, why are all of us participating in a game of fiscal policy or LEDGER money? When it comes to a ledger money system, Japan is PROTECTIONIST; the Japanese government has destroyed a lot of Japanese lives by NOT allowing COMPETITION to flourish in Japan.
The Japanese people are responsible for some of the greatest innovations in modern history, and had it not been for their government’s protectionist ideals, Japan likely would have innovated much more than it did.
Innovation as everyone knows, is why CAPITALISM works, in order for REAL money/real value to be created, something innovative has to hit the markets. If you know anything about socialism or communism of all branches, they REJECT market change; the only change socialists want has to come from the CENTRAL PLANNERS.
Japan revolves around protecting industries that the Japanese government imagines are TOO BIG TO FAIL, and if we’re being honest, the private sector isn’t Japan’s problem; it’s their public sector, which is more efficient than most public sectors around the world, however, it’s protectionist, and protectionism, requires CENTRAL planning, and central planners are SLOW to react to the ever-changing market conditions.
Joe Biden, the current U.S. president, is big on REGULATIONS and in general, growing the size of the U.S. FEDERAL government, and this is ofcourse, DEFLATIONARY for the economy; with that said, there’s a possibility that Joe Biden wins a second term and based on Joe Bidens first term, one has to anticipate that there will be more deflation to the global economy.
Now, most people imagine that national debts equate to an inflationary economy, and these people are conflating inflationary PRICES with an inflationary economy. The whole purpose of rule by fat money is to MANIPULATE the markets.
If the world were on a gold standard, there would be no inflationary pricing; the opposite would occur when the government overspends and overregulates. If the currency is backed by Gold, for example, and the government spends beyond its means, the ECONOMY contracts, and not only does it the economy contract, so does the money supply.
So even if a socialist government wants to spend money it doesn’t have, it has limits under a Gold Standard. However, under a fiat monetary system, you have to start looking at governments on a LEDGER because under a fiat monetary system, governments can SPEND as much as they want; the problem with doing that is you’re accelerating the wealth of people with CASH PRODUCING assets, and ruining the people who don’t have cash producing assets.
Japan, has a lot of CASH PRODUCING ASSETS; however, it denies it’s people the right to create more cash-producing assets because you see on a ledger, if the Japanese government allowed the Japanese people to have a more market-friendly economy, the Japanese Yen would rise in value, why is that a bad thing you ask? Well, a lot of countries have CAPITAL CONTROLS because the wealthier a nation gets, the smaller and more irrelevant a government can become.
Economically, I lean more towards the Anarcho-Capitalism model, and why most people fear folks like myself is because it’s obvious what happens: as people get SMARTER about the economy, the people in power become IRRELEVANT, and the dream of humanity is realized.
Liberty, Freedom, and the pursuit of PROPERTY/Happiness. When most people think of PROPERTY, they’re thinking of land; no, the property is not only about land, the property is about removing CENSORSHIP from life.
The way most people think revolves around what they’re NOT allowed to think about. Most people are told NOT to think about money or FISCAL policy; why? If more people understood the financials, they’d, for example, be better suited to interpret market behavior, which means more people would better comprehend PRICE CONTROLS.
The Yen is indeed falling because, the markets know how the Japanese governments typically react to a DEFLATONARY economy. Everyone knows the GLOBAL economy is in recession; if you don’t know that, it’s because you believe that the U.S. government printing money is the equivalent of more INNOVATIONS coming to society.
On a ledger money system, if I print money and don’t have to change my FAILING business model, that means I’m actually bankrupting my company/nation. What I’m getting at is yes, the U.S. government and other governments around the world are indeed printing money to make for their NEGATIVE cash flow statements.
But try to remember that these Big Federal WESTERN governments are not being more efficient with resources, nor are they cutting regulations, are shrinking the size of their workforce instead the opposite is happening: western governments are spending more and even REGULATING their energy sectors, to make their energy sectors LESS efficient.
Japan as a nation, even with it’s questionable fiscal policies, is still a cash flow POSITIVE nation, but if it produces stuff that the rest of the world is now struggling to AFFORD, the markets are going to follow the historical data of what the Japanese typically do during DEFLATIONARY economic periods… ABANDON THE YEN!
We can play “pretend we’re not in recession” all we want, the evidence is there, and the market has spoken.
Interesting times ahead