The increase of prices in our daily lives is representative and symbolic of the greater total collapse soon to occur. The increase among 'the parts' is symbolic of the crash of the greater 'whole,' aka the entire American Empire. The great economic collapse is a function of metaphysical cyclical history, the eternal recurrence as Nietzsche wrote, where we are now seeing and feeling the breakdown of decades and decades worth of gross over spending and debt accumulation. No one or nothing can stop the inevitable financial collapse. The only questions is when?
I know this is an old post but I just have to chime in on your misunderstanding of macroeconomics. Yes, printing lots of money can cause inflation, but not necessarily. If all the new money goes right to all the billionaires who own all the politicians how would that increase prices? Even those mild one time checks they sent out aren't capable of generating sustained inflation. The mainstream / libertarian view is that inflation is because average people have been able to consistently negotiate higher wages to keep up with inflation. Does that sound realistic in this dystopian hellscape with pathetically low union membership?
The real reason is that covid shutdowns and Russia sanctions messed up supply chains causing shortages, which results in higher prices. Then once inflation started getting news coverage every single company realized that they could raise prices even more. We know they did this, they bragged about it on shareholder calls. Record profit margins. https://mattstoller.substack.com/p/corporate-profits-drive-60-of-inflation
So as usual the policy response is to increase the fed funds rate with the deliberate intention to throw people out of work.
You are correct on the government spending = 'printing money'
But that is always true, and taxation destroys money. There is no such thing as the national debt, the (consolidated) government can create bonds or cash at will. The only limits are the goods and workers that are available for the spending.
"Yes, printing lots of money can cause inflation, but not necessarily. If all the new money goes right to all the billionaires who own all the politicians how would that increase prices?"
Because printing money subtly steals value from everyone using the currency in order to consolidate that value in your coffers. This is true of the Fed, and of counterfeiters (who do the same thing, except illegally). Prices go up to adjust for the weakened value of the dollar; price controls don't work because they cut into profit margins, causing downsizing and shortages. Inflation would only be fair if the seized value were redistributed, even then it should be kept within limits, or you end up with a system like ours, in which the ruling class steals money from the people in order to pay them for their goods/services with their own coin, which is akin to a subtle form of slavery.
A healthy economy should be balanced between deflation & inflation. Deflation leads to excessive value on each unit of currency, and thus cumbersome use and little circulation (eg gold ingots); inflation leads to what I described above, and eventually a collapse as it hemorrhages value and everyone switches over to a stable, functional currency (the only benefit here is wiping out debts). While the US dollar still functions despite the past 50 years of inflation, GAE's economy is ultimately unsustainable.
Explain to me exactly how adding an extra 0 to the end of Bezos's and Gate's bank accounts causes the price of food or gas to increase..
The Quantity Theory of Money (QTM), which appears to be how you understand inflation, has been widely discredited. There isn't a fixed amount of money out there that the government has control over. The money supply is endogenous., meaning it is a dependent variable. Every time you take out a loan or use a credit card you create money, banks get to treats debts owed to them as assets and so does whoever you payed with the money you borrowed. Conversely, repaying loans destroys money. There is more detail here if you are interested. https://neweconomicperspectives.org/2016/04/money-banking-part-11-inflation.html
The increase of prices in our daily lives is representative and symbolic of the greater total collapse soon to occur. The increase among 'the parts' is symbolic of the crash of the greater 'whole,' aka the entire American Empire. The great economic collapse is a function of metaphysical cyclical history, the eternal recurrence as Nietzsche wrote, where we are now seeing and feeling the breakdown of decades and decades worth of gross over spending and debt accumulation. No one or nothing can stop the inevitable financial collapse. The only questions is when?
Im amazed the stock market recovered somewhat in July, its bound to crash hard any day now.
I know this is an old post but I just have to chime in on your misunderstanding of macroeconomics. Yes, printing lots of money can cause inflation, but not necessarily. If all the new money goes right to all the billionaires who own all the politicians how would that increase prices? Even those mild one time checks they sent out aren't capable of generating sustained inflation. The mainstream / libertarian view is that inflation is because average people have been able to consistently negotiate higher wages to keep up with inflation. Does that sound realistic in this dystopian hellscape with pathetically low union membership?
The real reason is that covid shutdowns and Russia sanctions messed up supply chains causing shortages, which results in higher prices. Then once inflation started getting news coverage every single company realized that they could raise prices even more. We know they did this, they bragged about it on shareholder calls. Record profit margins. https://mattstoller.substack.com/p/corporate-profits-drive-60-of-inflation
So as usual the policy response is to increase the fed funds rate with the deliberate intention to throw people out of work.
You are correct on the government spending = 'printing money'
But that is always true, and taxation destroys money. There is no such thing as the national debt, the (consolidated) government can create bonds or cash at will. The only limits are the goods and workers that are available for the spending.
They level of unemployment is a dependent variable that the government can set. If you want to know why they consistently choose to keep unemployment high you should read this. (I think you will actually like it. https://www.nakedcapitalism.com/2012/08/kalecki-on-the-political-obstacles-to-achieving-full-employment.html
"Yes, printing lots of money can cause inflation, but not necessarily. If all the new money goes right to all the billionaires who own all the politicians how would that increase prices?"
Because printing money subtly steals value from everyone using the currency in order to consolidate that value in your coffers. This is true of the Fed, and of counterfeiters (who do the same thing, except illegally). Prices go up to adjust for the weakened value of the dollar; price controls don't work because they cut into profit margins, causing downsizing and shortages. Inflation would only be fair if the seized value were redistributed, even then it should be kept within limits, or you end up with a system like ours, in which the ruling class steals money from the people in order to pay them for their goods/services with their own coin, which is akin to a subtle form of slavery.
A healthy economy should be balanced between deflation & inflation. Deflation leads to excessive value on each unit of currency, and thus cumbersome use and little circulation (eg gold ingots); inflation leads to what I described above, and eventually a collapse as it hemorrhages value and everyone switches over to a stable, functional currency (the only benefit here is wiping out debts). While the US dollar still functions despite the past 50 years of inflation, GAE's economy is ultimately unsustainable.
Explain to me exactly how adding an extra 0 to the end of Bezos's and Gate's bank accounts causes the price of food or gas to increase..
The Quantity Theory of Money (QTM), which appears to be how you understand inflation, has been widely discredited. There isn't a fixed amount of money out there that the government has control over. The money supply is endogenous., meaning it is a dependent variable. Every time you take out a loan or use a credit card you create money, banks get to treats debts owed to them as assets and so does whoever you payed with the money you borrowed. Conversely, repaying loans destroys money. There is more detail here if you are interested. https://neweconomicperspectives.org/2016/04/money-banking-part-11-inflation.html