By Chris Black
Even if legacy media doesn’t tell you this, all the signs are here.
Further disregarding inflation will push the global economy to a major crisis, according to the latest report issued by Deutsche Bank economists who point the finger at the US money-printing policies.
Germany’s largest lender warned that the unprecedented levels of cash being injected into the economy while inflation fears are being dismissed will lead to excruciating economic pain if not in the near term then in 2023 and beyond.
The report points to the US’ “breath-taking” monetary stimulus that is reportedly comparable with that seen around World War II.
(It’s not really comparable to that.)
“Then, US deficits remained between 15-30% for four years. While there are many significant differences between the pandemic and WWII we would note that annual inflation was 8.4%, 14.6% and 7.7% in 1946, 1947 and 1948 after the economy normalized and pent-up demand was released,” Deutsche Bank notes.
Moreover, the experts forecast dire impacts from the Federal Reserve’s new framework that supports tolerating higher inflation for the benefit of a full recovery of the country’s economy after the slumber caused by the Covid-19 pandemic.
“The consequence of delay will be greater disruption of economic and financial activity than would be otherwise be the case when the Fed does finally act,” Deutsche’s economists wrote in the first report of the new series, titled “Inflation: The defining macro story of this decade.”
There are 2 reasons we’re not witnessing hyperinflation: the bubble based economy, i.e. the stock market/real estate/commodities/crypto which are sucking all the excess cash from the economy, and the fact that the USD is the world’s reserve currency, as most transactions are settled in USD, oil sells in USD only etc.
By the end of this year, we will have twice the number of dollars in circulation compared to 2019.
Why is the FED claiming that inflation is transitory? Why is mainstream media claiming that the lockdowns have made the US economy better? The MSNBC literally says that.
Inflation is an artificial construct caused by excessive speculation in commodities and securities, because of vulture corporate socialists being gifted billions in printed cash by the privately owned FED/banks via fractional banking, courtesy of modern monetary theory which is Keynesianism on steroids.
None of the freshly printed cash gets to actual consumers. The actual consumers of the commodities must fight with speculators, thus massively increasing the cost.
Without Wall Street, there would be next to no inflation because the actual market of producers and consumers of goods and materials would set the price.
Did Apple increase their sales 4x over the last five years to justify a $2 trillion market cap?
40 years to get to $1 trillion, four months to add another.
Inflation is a construct of Wall Street and endless money printing to feed the beast.
Speaking of inflation, have you noticed the recent spike in Bitcoin?
Bitcoin is one of the most manipulated trading vehicles ever created. We are also supposed to believe that the current rally is because a 3rd world shithole (El Salvador maybe?) decided to make it legal tender, most likely because the dictator bought up a small hoard of Bitcoin with money he stole.
How is Bitcoin going to be legal tender when nothing is priced in Bitcoin?
There is no accepted exchange rate for Bitcoin priced goods.
Everything is based on the dollar exchange rate.
Using a cryptographic method to transfer the savings in your account to another account was supposedly Bitcoin’s original purpose, i.e. to facilitate a transfer without supposedly being tracked.
It was never meant to be held as a store of value, unless the idea that it was a protocol was a cover for being nothing more than a pyramid scheme.
Cryptos became the latest in a long line of get rich quick schemes. When you have thousands of coins that reached multi-million dollar valuations and dozens that hit billions, without any use case, anyone can make a crypto and make money.
PS: Have you seen this?
The Federal Reserve is taking what may be the first significant step toward launching its own virtual currency, a move that could shake up banks, give millions of low-income Americans access to the financial system and fortify the dollar’s status as the world’s reserve currency.
Why they are doing that when we already have bitcoin et al?
The answer is pretty simple: government will continue to control and manipulate the money supply. They will also be able to track you or to shut off your ability to spend, if they decide you are metaphysically evil (racist, science-denier or whatever).
What is actually even the benefit of going to cryptocurrency if the government is going to control it, and be able to inflate it at will?
I think that the digital dollar might be launched as a replacement for the current dollar after the current dollar becomes so inflated that it is no longer viable, making for the core of UBI, thus allowing the socialists to live out their total corporate control grid dream.