Dead Money

Who gets ripped off?

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It is not money that funds economic activity, but the saved pool of consumer goods. The existence of money only facilitates the flow of savings. Any attempt to replace savings with money ends in economic disaster.

Indiska valutan kan komma att devalveras mycket kraftigt (det talas om 40%)

Opposition to decentralization in government often arises out of fear. Most people have been indoctrinated into the idea that a large centralized state can better prevent bad things from happening.

Bonds [like stocks] will also be dead money over the next decade. But I don’t expect bonds to crash and I certainly wouldn’t bet against bonds.

The Fed will print money. If necessary, it will nationalize the entire yield curve like it did in WWII, or like Japan is doing now. They call this “curve control.” 

Argentina is only going to prosper when it recognizes that its fiscal and monetary imbalances are not the fault of the citizens and their small businesses, but of the government. 

Shortcomings in the government's handling of monetary matters, of credit expansion, and the disastrous consequences of lowering the rate of interest gave birth to the ideas which finally generated the slogan "stabilization” 

We know, too, that the Fed can’t sit still. Without more inflation, asset markets will deflate… and the economy will go into recession… forcing the Fed to inflate even more.

It is what it is. Inflation is here to stay. And inflation is always and everywhere a political phenomenon. It is intentional, like a street mugging, designed to separate people from their money.

So, today’s question: Who gets ripped off?

In short, the Fed began acting like the central bank of a “sh*thole” country… printing the money to pay the nation’s bills.

Who will be left holding the bag?

Stocks have been rising since 1980, with two major interruptions. In 2000, the dot-com bubble burst. In 2007, the real estate bubble burst. Each time, the Fed came to the market with more money (inflation).

In August 2019, under pressure from Donald Trump, the Fed ceased normalizing interest rates. And on September 17, 2019, overnight interest rates spiked to 10% – a clear sign of too much borrowing and too little savings. The normal thing would have been to let buyers and sellers work it out. That’s what markets are for.

Instead, the Fed stepped up its inflation, feeding new money into the short-term lending markets at the rate of about $60 billion a month.

The underlying problem in democracies is widespread economic illiteracy.

Values of goods are not static things that can be used for central planning. Values apply only to a particular transaction at a particular place and at a given time by human beings. 

Efforts to abolish the US Senate because it's "undemocratic" employ a very crude and dangerous type of majoritarianism. 

If the government were a sitcom family, they would be called the Spendthrifts, and no one would dream of trusting them with credit. 

It is possible to determine in terms of money prices the sum of the income or the wealth of a number of people. But it is nonsensical to reckon national income or national wealth. 

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