Whip Inflation Now

I was only a child when Gerald Ford was president, and he promised to eliminate inflation with “Whip Inflation Now” buttons. I remember the adults laughing about it. As if the problem of 1970s inflation was caused by ordinary people and a ridiculous p.r. campaign would make it all go away. Then we went from bad to worse with Jimmy Carter. It took Reagan to change everything, and make our lives better for a miraculous few decades.

You had better ask your older relatives if they can find any of those Whip Inflation Now buttons. Because in the absence of 180-degree course reversals in just about EVERYTHING WE’RE DOING, inflation is going to get worse. Probably a LOT worse, even worse than the 1970s.

Inflation is a tax. You pay it so the government can spend into oblivion to advance its power.

Read what economists say (sources below). Rising prices are not inflation; rising prices are a RESULT of inflation. Inflation occurs when a government-run money supply (which we have, via the Federal Reserve) is increased by the government at a higher rate than demanded by consumers. What happened in 2020 and 2021 was government literally spending trillions of dollars as compensation for shutting the entire economy down. It was morally obscene, politically illegal and — as it turns out — economically insane, as well.

It was not necessary to shut down the entire economy for any reason, and it never will be. That’s truly medieval madness happening in the 21st Century. Even if COVID had been as bad as projected — which it wasn’t — many things would have stayed open and no government “rescue bill” would have been necessary. But the government literally created a crisis so that it could run in, be the hero and get rid of Trump all at the same time. It’s the most brilliant scheme of evil since 9/11 — and maybe ever.

And now we’re paying. In the worst case, we may all end up ruined by it, because inflation (unchecked) will destroy the value of money. And that means your salary, your savings accounts and all of your possessions become economically worthless. Think about that. Even the great Joe Biden can’t save you from that; he’ll just snicker and sneer, while his dumb witch understudy cackles at you.

The Bidenistas excuse inflation by saying it’s merely the temporary result of the COVID shutdown. That’s only half the truth; and it’s not the real truth. In fact, it’s a lie. The real truth is that the government (first in 2020, then in 2021) spent more money than any government has ever spent in all of human history. We got inflation in the 1970s because the government spent like drunken sailors on the Great Society (LBJ) and the Vietnam War (LBJ-Nixon). That spending was nothing compared to now. Only when government retrenched on the growth of increase in spending, as well as taxation, in the early 1980s did inflation finally become relatively minimal. Until now.

Inflation has stayed with us because it’s the inevitable byproduct of a government-run currency. If the government didn’t control the currency — and if we had, say, a gold standard instead, where market forces were in charge — then it wouldn’t be possible to inflate or deflate the currency at will. A gold standard relies on human action, i.e., the law of supply and demand. The Federal Reserve relies on — well, on human whim. And, as we all know, the humans presently in charge are all idiots (at best) and tyrannical sociopaths (at worst).

Trump and the Pelosi Congress are to blame for the 2020 spending. Yes, Trump is partly to blame. Trump, to be fair, probably would have stopped with that terrible mistake, but Pelosi and the Bidenistas have taken us into the stratosphere on spending and inflation. And, unchecked by electoral concerns (thanks to election fraud), they are just getting started. The Green New Deal will ruin us financially, to say nothing of returning to the 1850s with respect to transportation and fuel.

It’s very simple: If we give people power to control the money supply, we give them the power to control our prices, our livelihoods, and our very survival. Eventually, that comes home to bite us.

If we give the LEAST morally and LEAST intellectually qualified people the power to control the money supply … well, it’s really, really scary.

And that’s where we are.

Michael J. Hurd, Daily Dose of Reason

Inflation is NOT Good for Us

In the 1970s, Jimmy Carter and the other fools running things at least acted like they believed inflation was a BAD thing. They falsely claimed they could fix it. Today they tell you inflation’s good for you, and to stop expecting so much. The arrogance of today’s tyrants may surpass Hitler, Stalin, Mussolini and so many others combined. The people running things today are just mind-blowingly rotten, with no redeeming virtues whatsoever.

Michael J. Hurd, Daily Dose of Reason

Why Inflation Now ?

Inflation is back. In a big way. And, horrifying as it is to contemplate, it could lead to hyperinflation. Hyperinflation brought down pre-Nazi Germany and Venezuela, among other places. Hyperinflation, which involves the total devaluing of the currency, means the kiss of death for an economy, and a society.

How did we suddenly get so much inflation? To understand it better, I recommend the writings of the best economists. I have read Ludwig von Mises, Henry Hazlitt and George Reisman extensively. Also, read the works of Frederic Bastiat.

With inflation, the government “prints” or creates more money than the economy needs. This is what happened after the so-called pandemic of 2020, although it has continued into 2021 and, if Democrat Communists realize their dreams, indefinitely into the future. Through redistribution of wealth, and programs such as open-ended unemployment benefits at higher rates than the market pays for jobs, forgiveness of student loans, and all the rest, the government has poured funny money — thanks to the Federal Reserve’s virtually unlimited power — into the hands of consumers. Any economist will tell you this has the effect of artificially creating demand. “Artificially” means there is, thanks to this money poured into the citizenry for “free”, more demand for goods and services than there otherwise would have been in a pandemic and its aftermath, or any other context where there’s an economic downturn.

I saw a statistic yesterday that inflation in the United States is going up at 5 percent a year already, and climbing, while in other industrialized countries like Japan it’s way down at under 1 percent, or maybe 1 or 2 percent. There’s a reason: The United States, initially under Trump and the Republican Senate in 2020, and massively under Biden and the Democratic Congress in 2021, has spent like there’s no tomorrow. The debt and the deficits are piling up to incomprehensible levels, levels beyond what even ten years ago most would have considered acceptable for fighting a war to save the country from destruction. It’s clear that neither party intends to stop the spending. So we can expect more and more inflation.

Put simply: When the government creates more money than would otherwise have existed in a free market based on, say, a gold standard rather than a politicized Federal Reserve, then there’s more demand for goods and services than would otherwise have been the case. When the government hands out trillions in “free money”, it drives up demand relative to supply, which in turn raises prices. This explains the supply chain, lumber, housing, food and employment shortages, in part. These things are only going to get worse as the government continues to spend, and spend, and spend, and pour trillions of “free” dollars into the market. It’s like creating a fantasy economy; it’s the socioeconomic equivalent of heroin addiction.

Sure, the government could step in and impose price controls, as the government did back in the 1970s. Price controls lead to shortages. Why? Because the high demand remains, and the supply gets bought up by the artificially cheaper prices created by price controls. Without being able to raise prices, there’s no incentive for businesses to hustle and try to keep up with all the demand. That’s when you get, quite literally, a Soviet Russia, a Venezuela or a North Korea, where people eat their pets because the grocery store shelves are chronically empty, or a bottle of milk costs $75,000.

Read economics. Most Americans are clueless on the subject. They listen to people like Paul Krugman at the New York Times WHO IS ABSOLUTELY ALWAYS WRONG ABOUT EVERYTHING, yet they still trust him because … well, because he works for the New York Times and has an economics degree. How could he be wrong?

It’s all part of the ignorance that our media and government masters exploit so well. Ignorance and evasion are impoverishing us and, on our current road, are going to kill literally millions of us.

Michael J. Hurd, Daily Dose of Reason

Big Government and Big Inflation

April’s 4.2 percent past year increase in the Consumer Price Index is not likely to dissuade the Federal Reserve from continuing its policy of near-zero interest rates. Fed Chairman Jerome Powell believes the rising prices are just a temporary phenomenon caused by the ending of lockdowns releasing pent-up consumer demand.

Powell may be right that the ending of lockdowns would inevitably be accompanied by a rise in prices. However, this is just the latest reason the Fed has given for putting off increasing interest rates. Powell does not want to admit that the real reason the Fed will continue to keep rates low is that increasing rates will cause the federal government’s interest payments to rise to unsustainable levels.

One way the Fed increases the money supply — and thus lowers interest rates — is by purchasing US Treasury securities. These purchases increase demand for US government debt, keeping government’s borrowing costs low. An expansionary monetary policy thus enables increased federal spending and deficits. Since the lockdowns, the Fed has worked overtime to monetize federal debt, doubling its holdings of Treasury securities.https://googleads.g.doubleclick.net/pagead/ads?client=ca-pub-9106533008329745&output=html&h=280&adk=879074345&adf=3530780641&pi=t.aa~a.372876087~i.12~rp.4&w=649&fwrn=4&fwrnh=100&lmt=1621346711&num_ads=1&rafmt=1&armr=3&sem=mc&pwprc=8684081392&psa=1&ad_type=text_image&format=649×280&url=https%3A%2F%2Fwww.lewrockwell.com%2F2021%2F05%2Fron-paul%2Fbig-government-and-big-inflation%2F&flash=0&fwr=0&pra=3&rh=163&rw=649&rpe=1&resp_fmts=3&wgl=1&fa=27&adsid=ChAI8MuNhQYQ0YnV-fjOuMkNEkwAvRzVSkrGd6X0eGVC8bTZJUGBcxfSpOk6U16NjDVdrBKA46iBmcFX8OVbYO59027gCmTBqDjWrzfnG0guj4AubsaRAzCBKCcmUj4r&uach=WyJBbmRyb2lkIiwiMTEiLCIiLCJTTS1UNzIwIiwiOTAuMC40NDMwLjIxMCIsW11d&dt=1621349967275&bpp=14&bdt=6480&idt=-M&shv=r20210511&cbv=%2Fr20190131&ptt=9&saldr=aa&abxe=1&cookie=ID%3D7e035107d994f3bb%3AT%3D1619189990%3AS%3DALNI_MYyu5F4Vm53BYKijby3yI8OwOAC-w&prev_fmts=0x0&nras=2&correlator=7373187450034&frm=20&pv=1&ga_vid=1905934101.1599339146&ga_sid=1621349964&ga_hid=931902315&ga_fc=0&u_tz=-240&u_his=1&u_java=0&u_h=1138&u_w=712&u_ah=1138&u_aw=712&u_cd=24&u_nplug=0&u_nmime=0&adx=16&ady=1016&biw=712&bih=970&scr_x=0&scr_y=0&eid=42530671%2C31060005&oid=3&pvsid=2588426869731136&pem=653&eae=0&fc=1408&brdim=0%2C0%2C0%2C0%2C712%2C0%2C712%2C970%2C712%2C970&vis=1&rsz=%7C%7Cs%7C&abl=NS&fu=128&bc=31&jar=2021-05-18-14&ifi=13&uci=a!d&btvi=1&fsb=1&xpc=opJFF5PPsy&p=https%3A//www.lewrockwell.com&dtd=57

A Truth in Accounting report from April concluded the real federal debt is 123 trillion dollars — over four times larger than the 28 trillion dollars “official” debt. The higher debt calculation includes the federal government’s unfunded liabilities. The biggest unfunded liabilities are the 55 trillion dollars in promised but unfunded Medicare benefits and the 41 trillion dollars in promised but unfunded Social Security benefits.

Congress could transition away from entitlement and welfare programs without harming current or soon-to-be beneficiaries by cutting spending on militarism and corporate welfare. Part of the savings from these cuts could be used to pay down the debt, and part could be used to provide payments for current and soon-to-be beneficiaries of government programs while we transition to a free market.

Unfortunately, there is not much appetite in Congress for spending cuts. The main Democratic criticisms of President Biden’s 1.52 trillion dollars budget, which increases spending by 8.4 percent, are that Biden is not proposing bigger increases in spending and debt, or in taxes on “the rich.” Biden’s budget increases are in addition to the trillions in other spending Biden is pursuing, including related to Covid, infrastructure, and his “American Families Plan.”

Republicans are making obligatory attacks on Biden’s spending, while also attacking Biden for increasing military spending to “only” 753 billion dollars. Republican complaints about Biden’s big spending ring hollow given their support for Presidents Donald Trump and George W. Bush’s spending increases and Republicans’ proposals to spend billions on infrastructure.

Some conservatives have even embraced the madness of Modern Monetary Theory. These conservatives are urging people to stop worrying about spending and debt and instead figure out how to use Fed-financed government spending to advance conservative ends.

The refusal of Congress to cut spending means the Fed will keep increasing its balance sheet in an effort to monetize skyrocketing debt. Eventually, the increasing debt and inflation will lead to a major economic meltdown. The meltdown will likely include a rejection of the dollar’s world reserve currency status.

The only way to avoid the crash is to spread the truth among enough people to force Congress to reverse course. Early steps in reversing course are blocking Biden’s big spending plans and passing Audit the Fed so the American people can finally know the truth about the Federal Reserve’s actions.

Ron Paul