Although there really is nothing amusing about our currently unhealthy economic environment causing prices to rise a lot, I want to share a bit of a laugh that I got yesterday from a headline.
The headline did not say “Fed Increases Interest Rate”.
The headline did not say “Fed May Increase Interest Rate”.
The headline merely said “Fed May Discuss Increasing Interest Rate”.
Talk about newsworthy. Needless to say, I did not read the article.
Might as well laugh when we can (even if only a little positive reaction to minor amusement), because our U.S. Fed must raise interest rates, which (even a little) will have a brutal impact on the economy, so painfully against too many lives. They are so sensitive about it, because they know that monstrous impact is there. They also know that they need to raise the interest rate by a lot to beat the inflation rate, which would be terribly catastrophic in the near term.
While the mainstream talks war and supply chains, the largely publicly ignored elephant in the room is the federal balance sheet.
More money printed equals less value per dollar (economic law of supply and demand also applies to currency). Our oligarchs for decades have printed their way out of all problems (including injecting trillions during a global pandemic), which is mainly why inflation is powerfully pressing. That printing has been (and still is) quietly in effect a tax at least nationally against us all (that quietness being good for election results in the short term).
Healthy people understand how bad inflammation is against the body. It is also bad for the economy.
Money must finally come out of the system. They cannot again kick the can down the road (i.e. print their way out), because the can is now too heavy.
One expert claims the only way out is to tax the middle class and cut government spending. I agree with the latter, starting with seriously cutting international offense (I mean, national defense). What that financially wealthy expert left out unethically is the need to pass a law to end tax evasion via personal loans (basically the way wealthy people avoid paying taxes). Also, to encourage the financially wealthy to invest responsibly in serious economic growth (which is what that expert says, in order to justify protecting that wealth), there should be a heavy tax on buying luxury goods and services for lavish living — until the economy is healthy.
Basically, the financially wealthy selfishly made this problem, so they can enhance that wealth. It only makes sense that they be required to clean up this horrendous mess that may even destabilize our nation to cause terrible tension worldwide.
I wish you all the very best in navigating the inevitable corrective economic splash.