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Are you good with this?
I can be a asshole-stickler-on-details, I realize.
Not to mention cynical.
So that which the US Treasury can not role over cheap enough the Fed can simply monetize.
Most policy “experts” and politicians, including President Biden, support interest rate increases to deal with inflation. However, some progressives oppose raising rates. Opponents of rate increases fear that increasing interest rates will slow economic growth, increase unemployment, and depress wages. These progressives believe the old fallacy that workers benefit from easy money. The truth is workers are inflation’s main victims.Workers may see their nominal pay (pay unadjusted for inflation) increase while the Fed-produced price increases cause real wages to plummet. That is certainly the case today. In contrast, the Federal Reserve’s money creation benefits crony capitalists who receive the new money created by the Fed before the injection of new money causes prices to rise. This increases the elite’s purchasing power, furthering income inequality.The Federal Reserve’s creation of new money does more than erode the value of the currency. It also artificially lowers interest rates, which are the price of money. This distorts the signals sent to market actors, leading to investment decisions that do not reflect the real condition of the market. The result is a temporary boom, followed by a bust. Workers who find new jobs in the boom lose those jobs in the bust. These workers are then not just unemployed. They are also often saddled with unmanageable debt incurred during the low interest rate, easy money phase of the business cycle.Progressives could help workers by joining the movement for market-based money. Free-market money will be safe from government manipulation, and thus its value will remain stable. A step toward restoring a free-market monetary system is letting the people know the truth about the Federal Reserve by passing Audit the Fed. Another step is legalizing alternative currencies by repealing legal tender laws and ending all capital gains taxes on precious metals and cryptocurrencies. Congress must also begin to cut spending, starting by making major cuts in our 750 billion dollars military budget and ending all corporate welfare.Fiat money benefits financial and political elites at the expense of working people whose standard of living is eroded by Federal Reserve actions. As a Texas labor leader once told me, “Gold has always been the working man’s friend.” I would add that fiat money is the worker’s foe.
I have a funny feeling this would force interest rates even higher.
1)We go to a global currency, all national debts are cancelled but nations now have to live within a balanced budget.
Shaman says1)We go to a global currency, all national debts are cancelled but nations now have to live within a balanced budget.That is not how it worked in Greece. They somehow managed to continue to spend with reckless abandon.
If Russia and China decide to move to a semi-gold standard, and they have the gold to do this, it's game over real quick.
That is not how it worked in Greece. They somehow managed to continue to spend with reckless abandon.
They don't even need gold at all. They just have to peg their currency to a set price in gold.
This is called the gold standard. You couldn't cheat with that, unless a country just trusted the banks to not steal the gold.
No more rampant consumer spending (69% of US GDP). No more easy funding of welfare programs or Big Govn or war. Some would say this is a positive but how to manage the ensuing chaos?I don't know what moves the powers that be have left to keep this shit show going.
Mortgage rates have gone from about 2.75% to about 5% for a 30 year mortgage. For people living in most of the country, that raises the monthly payment by about $500 a month on a $420k house. Most people just ain't gonna be able to swing that increase. I'm betting new construction contracts have simply stopped being made for the most part except for cash buyers.