This is a follow up to the “The Rot Within Part I” also written by Charles Hugh Smith. Hats off Charles for writing these two great articles! We are not economist, we’re musicians, but when anybody reads these types of simple to understand articles that underscores what’s behind the “cause” of economic woes that is effecting so many folks across the nation. We feel it’s important to spread the facts as far and wide as we can. In the hope that people will start to understand what is actually going on.
Inflation is the “Enemy of the People”, eating away at our prosperity, and our incomes. Don’t you love how the government excludes; “food and energy” costs from their inflation calculations. In the face of ever rising costs just to stay in the exact same place each month, “we the people” are painfully aware of just how much inflation has increased over the past several years. The situation is like being invited to an upscale expensive restaurant with some beautiful people/elite types, that order the most expensive wines, appetizers, and entrees all around the table, and at the end of the meal after they’re done, after they’ve ordered that one last bottle of wine, and another desert tray, they just get up and walk out, laughing and talking, leaving you on your “average” income to pick up their massive tab. Hello, welcome to “Jurisdiction B”, (the tax and debt sector) we the people live, work, and die in.
Here are some quotes from this great article;
“The official policy of the Central Bank (Federal Reserve)/government is: inflation is necessary for “growth,” i.e. economic expansion. The unstated reason for this official support of inflation is that it’s easier for borrowers to service their debts as their income inflates.”
“There are three problems with the Fed’s “inflation is growth” scenario:
1. Earned income (wages and salaries) don’t inflate along with prices
2. Rising inflation and low interest rates crimp lender profits and increase risks
3. Bringing demand forward exhausts households’ ability to fund additional consumption with debt.”
“Deduct healthcare expenses and debt service, and what’s left of wages for the rest of life’s expenses is tanking”
CLICK HERE to read the full source article by Charles Hugh Smith.