Why The value of the U.S Dollar in the Foreign Exchange Markets Might Rise While U.S Consumer Price Inflation accelerates #LateStageSocialism – December 20, 2021

So there are a lot of government regulations in the world today, prior to the Pandemic that I believe began in 2019, I was writing about cutting regulations or else the economy would reach a point of stagnant growth. Well, nearing the end of 2021, there are a whole bunch of new government regulations on the economy, while at the same time the governments are not only sending unproductive people and private entities money, governments are also putting restraints on labor and how money can be invested.

As an example, if you’re not a government-approved employee, depending on where in the world you work, you might be prevented from working. People unwilling to get government-approved vaccinations are now banned from being productive members of the economy. People are also being disincentivized from investing their money into certain industries as an example the government has prioritized solar and wind energy and if you’re a productive person or company that doesn’t see the same value in solar and wind the government sees, your investments might have limited growth.

Lastly, in order to hide economic deflation from the economy, the government is doing everything in its power to get money into as many people’s hands as possible, thereby obviously sending the wrong pricing signals. Now, what I mentioned is mostly happening in America, however, America has the world’s reserve currency, and most countries and private industries outside of America have built their own socialist utopias by propping up the U.S Dollar.

Although all currencies are back by stuff because the U.S dollar is held in the highest regard, prices in the global marketplace are currently valued in U.S dollar terms. This even includes oil. So regardless of the country, the thinking is to base their currency on the U.S dollar, which as I like to point out is good if you’re hoarding or spending U.S dollars outside of the United States but a potential nightmare if you’re living in the United States.

What people tend to forget is that in the United States, the taxes, the regulations, etc, the U.S population has to live under it. Now, if the U.S dollar wasn’t a fiat dollar, bad government ideas would be quickly exposed as bad ideas, but because U.S citizens enjoy having the world’s reserve currency, bad government ideas can be made solvent by the U.S government borrowing more money from the Federal Reserve.

This is one of the reasons why as an example Communist China in many ways has become more capitalistic than America. Now, obviously, America is freer, respects human rights, etc, but in regards to the U.S economy s becoming more clear that the Staes that have taken the opposite approach the U.S federal government has taken clearly have more prosperous economies.

 

With that said, U.S Federal policy is still affecting freer U.S States, because Federal taxes and Federal regulations are still a thing. I say this so the reader is aware of the differences between the U.S dollar in the foreign exchange markets and the U.S dollar domestically. The government doesn’t work for free. The FX markets are merely fiat currencies trading with each other, in fact, the U.S dollar might be getting stronger in one currency while the cost of living in that country might actually be coming down.

 

Policy matters and currently the regulations on the U.S economy along with the Federal Reserve policy is going to cost inflation for U.S consumers. Now, to prevent their currency from rising, other nations will also have a managed central bank policy that might not meet the demands of their population. But nations foreign to the United States won’t necessarily mirror the U.S Federal government’s regulator policy. if this sounds confusing it shouldn’t, just think of the U.S dollar as king of currencies and the U.S federal government as a bunch of idiots who don’t understand that their left-wing policies have economic consequences.

Late Stage Socialism is a phase that I use to describe inevitable austerity measures! How long will it take for people to realize government needs to shrink? I can’t answer that question, what I do know is that as it becomes apparent that the Federal Reserve has lost control of inflation IN THE UNITED STATES! More and more Americans will eventually see what I’ve seen for years now, which is unless Americans want a return to a Gold Standard, the Federal Reserve better NORMALIZE Interest rates!

Interesting times ahead!