So, I've just recently started reading this book. I'm not even done with the first chapter. I haven't even gotten to the part that actually deals with the Great Depression itself. So far it's just outlining the basic general theory of the "business cycle". And yet...
Mind.
****.
Blown.
Understand that I already had a least a basic grasp on the cause-and-effect of monetary inflation. Even so, when I really start digging into the specifics of how that inflation manifests itself in the various supply/demand relationships and equillibriums...
It is entirely fair to say that every action and aim of this administration, like the many that came before it are totally wrong. I don't mean merely "incorrect", either. That would be bad enough. No, I mean they are doing (and will almost certainly continue do) the exact opposite of what should be done to bring the economy back into a healthy equilibrium.
What's more, I'm starting see that rampart consumerism and negative savings aren't just an unintended consequence of the Fed **** around. It's absolutely intentional. Let me spell that out for you: the only way that the "powers that be" can hide their ineptitude in blowing up the *supply* of money is to also blow up the *demand* for money. That is, inflate both sides of the equation and hope no one notices. And here's an interesting thought: what can you do if you've already pushed that model as far as it can go -- that is, you managed to maximize consumerism to the point that people simply can't spend any more money because they don't have any (which is where we are today)?
If you can't make the people you already have demand more money, then you only have two options:
1) Get more people. But oh, wait -- we're just barely languishing at replenishment rate as is, so we can't count on making new people. And that takes too long anyway. We need a fix *now*. So what do you do? You start importing people, any way you can. But importing people who already have money won't help. No, you need these people to be as penniless as possible.
*wait for it*
"Oh fffuuuuuuu-"
Oh, it gets better. What do most illegal immigrants do with the money they earn here? That's right, they send it back to their families in Central and South America. It doesn't get any better than that for the Fed -- not only do they drive up demand for the dollar, most of the demand is towards exporting it out of the country.
Ever wonder why there's no political will to stop illegal immigration?
2) You need to export all that extra cash to anywhere that isn't here. When the administration ***** about trade imbalances with China because they manipulate the Yen, it's not only hilariously hypocritical when you consider how much we manipulate the dollar through the Fed, it's a blatant lie. The Fed and its coherts love massive trade imbalances. They *need* them. They don't give a damn what the exchange rate is just so long as people keep selling dollars to China.
And if the people won't do it, the government will. People are understandably quite upset about how much U.S. government debt is held by the Chinese, but our government truly gives no ****. The important thing to them is keeping up the shell game by piping as much worthless currency as we can out of the country.
