RR Phantom
Location : Wasted Space
Job/hobbies : Cayman Islands Actuary
 |  Subject: How Central Planners Corrupted the World  Sat Jan 15, 2022 4:13 pm | |
| On Wednesday, the Bureau of Labor Statistics reported that consumer prices, as measured by the consumer price index (CPI), have increased 7.0 percent over the last year. This marks the largest 12 month surge since the period ending June 1982, when the CPI hit 7.1 percent. And if the CPI was still calculated in the same way it was in 1982, it would be over 15 percent.
President Biden wants to scapegoat rising consumer prices on greedy price gouging meatpackers and oil companies. These industries have come under Biden’s line of fire. He wants to distract and divert the attention of the public from Washington.
You know it. We know it. Biden’s scapegoat storyline is one great big giant lie.
Biden knows, along with Fed Chair Jay Powell and Treasury Secretary Janet Yellen, that Washington’s fiscal and monetary policy collusions are 100 percent responsible for price inflation. Of course, you’ll never hear this from Anderson Cooper. In fact, there’s a lot you won’t hear from the mainstream press.
For example, consumer price inflation is not rising prices. It’s declining money. Because money, like gumballs and tennis shoes, is subject to supply and demand. When the quantity of money goes up, the value of each money unit goes down.
The Fed’s and the Treasury’s fake money policies – somewhere on the order of a combined $8 to $10 trillion over the last 24 months – have wrought raging price inflation (i.e., mass dollar debasement). They’ve also wrought extreme wealth disparity and a grossly stratified society.
During his July 2019 congressional testimony, Fed Chair Powell remarked that the relationship between unemployment and inflation has, “…gotten weaker and weaker and weaker to the point where it’s a faint heartbeat that you can hear now.”
At the time, Powell was providing justification for cutting the federal funds rate when the unemployment rate was just 3.5 percent. The official CPI, in July 2019, was rising at an annual rate of just 1.8 percent. So, apparently, the Phillips curve was dead.
But now, after trillions of dollars of fake money stimulus, and with the CPI at 7 percent while the unemployment rate’s at 3.9 percent, the Phillips curve is apparently no longer dead. Actually, according to several eggheads, it has been hibernating…
In a recent Financial Times article titled, The flaws in the Fed’s approach to inflation, former Fed Governor and Columbia Business School professor Frederic Mishkin stated:
“Research that I presented with co-authors at the US Monetary Policy Forum several years ago suggests that the Phillips curve is not dead, but rather is hibernating.”
Go figure. The Phillips curve is alive, then it’s dead, then it’s hibernating. This model is about as good as flipping a three sided coin.
The point is, central planners are barbaric. They have no business in a civilized society. Their actions are based on garbage and backed by force. And through their money printing and interest rate price fixing schemes they’ve corrupted the world and concentrated wealth and power for the elites.
Meanwhile, they’ve unleashed a wave of price inflation that will soon surpass their late-1970s / early-1980s handiwork, as it rockets towards the 19.66 percent CPI that was hit in 1917.
Are we having fun, yet?
.https://economicprism.com/how-central-planners-corrupted-the-world/?fbclid=IwAR0jCezp3furaYd4xxNptz5SCquVsWohmzJsJicXjtyqhS5OKx8UeiRqiIk
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