Furthest Right


You are probably hearing a great deal now from the press about “inflation,” and wondering why they use the term so much. We heard a lot of the same in the 1970s and late 1990s when the Left last adopted fast money policies.

Conservative economics consist of supply-side economics, or the idea that if you increase supply you drive down cost and everyone lives better. This generally involves avoiding egalitarian tax-and-spend schemes and instead forcing government to stop taxing, regulating, and enforcing civil rights to the point of crashing the economy.

Leftist economics consist of demand-side economics, which state that if you make your currency more in demand it is worth more. It turns out that this is true …to a point. At first they want more of your currency, but then the fact that it is cheap makes it less valuable. Speculators love the currency, but this makes it a risky bet as well, so smart money goes elsewhere.

If one analyzes Leftist economics, it becomes clear that the entire framework consists of rationalizations for taxing more, enforcing centralization through regulations, and using civil rights to demand collective reward, a system in which every worker gets rewarded even though most of them do a mediocre job. The whole point of Leftism is to avoid a system where the best get more reward because that makes the rest feel afraid for their own lack of performance. The core of Leftism is existential fear and moral laziness, and their economic systems are designed to shelter that.

Like Carter and Clinton, Biden managed an economic stimulus… to a point. The point for him came early because he was afraid to open up the economy from restrictions against the mail-in ballot virus. Had he done that first, his stimulus checks would have driven a stimulus, but instead he was merely subsidizing people who were trying to dodge the economic disaster, so no new investment actually occurred. Who invests in an economic that is being strangled by government panic over a virulent flu?

In addition, of course, Biden like Clinton and Carter really damaged the American brand. The world claims to like weak American leaders, then whines when it gets them because instead of behaving as a superpower should, beating down the selfish and cruel while raising up those who are at least attempting to better themselves, Democratic America avoids real struggles while engaging in ideological ones that will sow the seeds for future war.

This means that we have two reputational damages, the giant freak out over COVID-19 that simply showed us that government was incompetent, and the new and weak America that cannot stand up to China while it beats on Russia for being poor, incompetent, corrupt, and stupid. This does not project power; like the nineteen candidates who got up for the GOP convention in 2015 and recited Reagan-era dogma, the Biden throwback to 1980s Cold War riffs feels like Boomer nostalgia and a complete lack of direction. Add to that over-taxation and over-spending, and you have worthless currency.

As said above, demand-side economic policies work… to a point. At that point, they not only stop working but actively become harmful, as the sad parable of the Clinton-Rubin Fast Money Syndicate tells us. These policies destroy the middle class, which politicians adore because it means they can gatekeep the path to prosperity and award it only to uncritical conformists and goodthinkers. At first, fast money makes happy speculators but over time it erases value and replaces it with debt spending as people try to escape the horrific tax burden. Note: Europe killed its economy the same way, but had the wit to allow lots of corporate tax loopholesand preserve personal investment for the wealthy. The UK never had this intelligence, and instead used property taxes to drive the wealthy from its shores, at which point foreign shopkeepers took over, but at least they have the NHS! snort

Those who tax hard ignore what it is spent on. For them, pumping more money into the economy the Keynesian way seems about as close as they can get to the Leftist ideal of redistributing all money.

In part, it also reflects their own ambitions. Leftists are born speculators. They want to seduce everyone with visions of altruistic egalitarian centralization so that the Leftist leadership can seize and gamble with the money.

They do not become emotionally bothered by losses the way normal people do, since their psychology more resembles that of the compulsive gambler, religious fanatic, or drugs addict. They want the next high from taking chances and possibly defying nature!

When they do this with your money however, what results is not inflation per se or increased demand for the currency driving up prices, but the second stage of inflation, which is decreased value of the currency because it is too easily available and therefore, the smart money avoids it.

Ask your wealthy neighbors what they are doing during this time. The answer will probably be buying stocks instead of bonds, since bonds involve government paying money to you which may have become worthless in the meantime. They are most likely investing in multinationals in order to dodge the almost certainly horrifically idiotic decision-making that will occur in the US and EU over the next eighteen months.

In any case, the important message to pass on regarding “inflation” is that we are really seeing devaluation. Our currency is worth less because we as a nation are worth less because we picked insane leaders who would rather redistribute wealth for kickbacks than make a functional economy.

Devaluation means that while it is now easy to get our money, the first cycle of that investment process has passed and now, our money is simply cheap. That means that it buys less because people prefer other forms of monetary reward. Every time we get a Democrat president, this seems to happen. Funny, that.

Tags: , , , ,

Share on FacebookShare on RedditTweet about this on TwitterShare on LinkedIn