The United States Is Nearly 34 Trillion US dollars in Debt, If Inflation Equates To Expansion of The Money Supply, Why Hasn’t The World Dumped The U.S. Dollar? – August 6, 2023
I’ve been arguing on this blog that inflation revolves more around FISCAL policies than it does the expansion of the money supply.
What is FISCAL policy?
In economics and political science, fiscal policy is the use of government revenue collection and expenditure to influence a country’s economy.
Because the modern era includes FOREIGN EXCHANGE markets, INDIVIDUALS will reward a currency that allows ownership outside of that country’s borders. This is one of the main reasons why EXPANDING the money supply hasn’t hurt the U.S. dollar AS FAST as it expanding the money supply has hurt other countries.
The U.S. and Swiss constitutions are very similar in that their constitutions are built in a manner that is supposed to limit the power of the Federal government. Now, truth be told, had it not been for Swiss DEMOCRACY intervening in it’s monetary system, there’s a good chance, that the word would be a Swiss Franc standard.
Although The Swiss franc is freely convertible, the make sure that their BONDS market is rather unappealing, for example even though consumer price inflation is rampant in Europe, the Swiss 10 Years Government Bond yields 1.171%, whereas the U.S bond yields 4.72%. The Swiss National Bank is the central bank of Switzerland, and a lot of what they do is make sure the Swiss Franc doesn’t get to STRONG.
I could even make a similar argument for Japan, if you’re curious as to why these countries do this, one could argue, to avoid unnecessary attention. Have you looked into the current President of the United States? A lot of evidence points to him being very compromised.
A lot of nefarious actors like to gravitate to where the GOLD is, if the U.S. has the military power and the wealth, you attract a lot of problems that neither Japan nor Switzerland have to worry about.
Although Joe Biden via the INTERNET has been exposed for being the most corrupt President in U.S. history, truth be told, this may have been happening to a lot of past U.S. Presidents, including those that may have been your favorites.
This is the problem when you have all the gold: America has a lobbyist in Washington for everything you can think of, and only if you comprehend the finances can you know who is who. Most of us who simply follow the money tend to place our investment bets, based on the actions of certain OBVIOUSLY compromised politicians, and if you’re saying, why don’t we expose these politicians, the truth is if we did, it wouldn’t matter, whistleblowers often find their lives ruined and nobody cares.
With Joe Biden and a lo of modern politicians, they’ve become derivatives of LAYERS of corruption that they’re basically puppets that are told what to say and how to say it.
I bring this up because the expansion of the U.S. money supply currently doesn’t seem to matter, America’s national debt doesn’t appear to bother markets, and if you’re wondering why, it’s because underneath all of this are HORRIBLE fiscal policies all over the world.
The majority of Europe would be plunged into the dark ages if the U.S. economy crumbles, the EU only started in 1999, and already countries are on the verge of default, France’s fiscal policies are NOT sustainable, they recently had to raise the retirement age, why? Because consumer spending is down and the E.U taxation model is extremely REGRESSIVE.
I like to call the E.U tax model “point of sale” taxation, meaning that EU governments often punish their citizens for consumption, which only benefits the RICH. If you want to raise up the poor from poverty, the last thing you want to do is disincentive business ownership and innovation, which is what point-of-sale taxes do.
In the United States, similar to Switzerland, they have States Rights; Switzerland similarly has Canton Rights(although that’s likely not what they call it). In practice what this does it limits the Federal government from meddling in State affairs, which has the ability to keep point of sale taxation to a bare minimum which allows citizens of non-income tax states for example, to have more purchasing power.
Competition at the retail level equates to retailers fighting for market share, which equates to lower prices for consumers, whereas the European business model often revolves around adding layers of regulations to force retail prices for consumers upwards.
These taxes and regulations in the EU, equate to less demand for Euros and more demand for U.S. dollars. So you’ll often have people outside the U.S. make loans in U.S. dollars, adding to the U.S. treasury. the only entity draining the U.S. treasury are their multiple layers of government, so at least for NOW, the expansion of the money supply is not hurting the U.S., but FISCAL policy is, which is why interest rates are rising.
Because in real-time, via Jpe Bidens fiscal policy, consumer spending in the U.S. is down, which equates to revenue coming down in the U.S., which has created a “demand” for more spending from Washington.
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Now, if you watch most of these financial shows, they won’t explain things to you this way because if you better understood how things happen, you’d become a better investor, which would be bad for a lot of these multinational companies that are usually the recipients of government contracts as well as using the mainstream media to pump up their stocks and brands.
As an investor myself, I always pay attention to these ESG stocks, and how slick many of them are with the mainstream media, often subtly putting themselves in the middle of POPULAR mainstream news media stories.
It’s rare this ever goes bad; Bud Light was a RARE story of Environmental, Social, and Governance (ESG) gone wrong. A transvestite male was used as a mascot for a beer straight heterosexual YOUNG males typically drink, and the backlash was swift and vicious. But typically as an example, entities backing these Climate Change alarmists are REWARDED, both via the stock market and via the government via subsidies and grants for simple marketing and advertising.
So ESG as I’ve been writing for years now is one of the main culprits responsible for EXPANDING the money supply so aggressively that it’s turned into consumer price inflation, because not only does ESG force governments to subsidize, it also forces the government to REGULATE it’s competition into bankruptcy.
In practice, what this means is that via aggressive media propaganda, you have a lot of media SELF-CENSORING itself, and you have a lot of domestic fossil fuel companies going bankrupt, thereby sending those printed U.S. dollars into foreign coughers, which then are disincentivized from dumping U.S. dollars.
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Most countries if you’re unaware, are run by oligarchs who could care less what happens to their country’s national currency, so for example, I think it was Africa, their heads of government had stacks of Euros and U.S. dollars in their closet, while their nation’s currency was rapidly losing value.
Once you comprehend FISCAL policies, the world becomes more clear; the markets aren’t STUPID, ofcourse they know the U.S. dollar is practically worthless, but is NOW the time to sell? Because if they dump the dollar, what comes after it may not be so generous when a country embraces HORRIBLE fiscal policies.
The U.S. dollar allows for a lot of countries to have EXTREMELY badly written constitutions and fiscal policies; one of the things I like to do is read a country’s constitution in English on Wikipedia. Once I read a country’s constitution, it gives me a glimpse into that nations, fiscal policies. So I’m not confused as to why even though the U.S. destroys itself, why the world doesn’t dump the dollar.
I often tell my readers that because of this weird relationship the markets have with the dollar, that, U.S. dollars are better spent OUTSIDE of the United States, which should be common sense, but doesn’t register with people who can’t make the coalition as to why FISCAL policy is more important than CENTRAL BANKS.
This global problem is a DEMOCRACY problem, in time more people will come to realize that and from there, we will make a better world.
Interesting times ahead!