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Yesterday the head of the Bank of England, Andrew Bailey, warned of a ‘very real income shock’ this year together with an ‘apocalyptic’ warning about food price inflation. He said surging inflation is going to hit household spending and cause unemployment to rise.
But don’t worry, the White House has a solution. Raise taxes on the rich. Listen to the excruciating response by the new press secretary when asked exactly how raising taxes would bring down inflation.
Phew, I didn’t think our dear leaders knew what they were doing but after that response I’m very confident inflation will be gone pretty soon.
Back in the UK, Mr Bailey said ‘the main driver of inflation…is the very big, real income shock which is coming from outside forces and, particularly, energy prices and global food prices’. He told MPs that he felt helpless to do anything about inflation.
A bit more honest about the outlook but still not addressing one of the main reasons inflation is high and will continue to be high - money printing. Globally, the money printing machines have been going BRRRRRRRR 24/7 since the pandemic started (yes, I know it wasn’t physical machines going BRRRRRRRR). I also know that economics is complicated and nuanced but sometimes a simplistic approach helps to clear things up. More money chasing the same goods (or less goods due to supply chain issues) equals inflation.
This, combined with a changing working demography, has now led to a wage-price spiral. The era of cheap labour has come to an end, more people are unemployed but not looking for work and the pandemic has encouraged older folk to retire earlier.
The wage-price spiral will now ramp up with people changing jobs for a higher salary, meaning more “money” in their pockets chasing the same goods, pushing inflation ever higher.
As always the poorest will be hit first and hardest. The higher salaries will be available to the laptop class who cowered at home during the pandemic, demanding money printing and causing the inflation in the first place. They will be ok, their salaries will rise, their assets will go up in value whilst the rest fight over the scraps.
Andrew Bailey can see this wage-price spiral coming too, so much so that the only weapon in his armoury is to beg rich people not to take pay rises. £570,000 a year Mr Bailey said high earners should ‘think and reflect’ before asking for a pay rise.
To be fair to the monetary policy men, they are now in a difficult position. Just sit back and watch as inflation destroys everyone’s living standards or raise interest rates, cause a recession and destroy everyone’s living standards. The former will increase asset prices for the rich whilst inflating away government debt so I’m guessing they will go with that option. Either way, unless your are very rich, your standard of living is going down and very soon.
However, let inflation rip too much and we have scenarios such as we are seeing in Sri Lanka and Iran. Iran are now issuing digital tokens for basic food stuffs so I can guess you can see where that might lead.
Could this have been avoided or is this just a result of kicking the can down the road in 2008? Is the financial crisis of 2019 that never was, rearing its ugly head? Did the fortunately timed pandemic stop the 2019 crisis that was looking inevitable, saving Deutsche bank in the process? Have decades of quantitative easing and corporations and governments stocking up on more and more cheap debt compounded these problems?
Or do you think, like some of the comments here suggest (Fast Eddy), that this is purely and simply down to peak oil? 8 billion people being fed by oil is no longer achievable and and this is manifesting in the financial markets.
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May 17, 2022Liked by NE - nakedemperor.substack.com
There is plenty of oil. What? The oil all just happened to run out the day Biden was elected?
No, it’s terrible government policies that are driving all of this.....and they are doing a lot of it on purpose. The rest is incompetence......this is exactly what you get when the left takes over......every time it is tried.
May 17, 2022·edited May 17, 2022Liked by NE - nakedemperor.substack.com
If you look at Event 201, one of the sessions (don't remember which one) was about the economy.
In particular, they "discussed" the question of whether governments should use big stimulus packages to help the economy.
I'm joking of course because it really wasn't a discussion. Every panel on Event 201 was a message to policy makers about what they should do in case a pandemic were to hit us. By amazing coincidence a pandemic from a deep state funded lab controlled by the CCP did in fact hit us and was wildly promoted on the established media.
By another amazing coincidence, Event 201 was jointly organized and sponsored by Bill Gates and WEF. One of the WEF's most famous slogans is: you will own nothing and you will be happy.
With money printing and inflation, most people's assets are losing a lot of value. Soon, most of us will practically own nothing. Though I'm not sure we'll be happy.
May 17, 2022Liked by NE - nakedemperor.substack.com
We need to ban all semi automatic and fully automatic weapons of war, those machines of mass destruction, Government printing presses.
If we have to endure anymore random acts of violence by spraying more stimulus checks through our society, who could imagine the carnage and the grieving family and friends to all those lost to violent economic extremism.
May 17, 2022Liked by NE - nakedemperor.substack.com
As a pensioner, this can't be good. As a society, this can't be good. As an economy, this can't be good. So I am guessing we're all out of good and right smack in the middle of one of those Fall of Civilization podcasts...except it's happening to us, in real time.
May 17, 2022Liked by NE - nakedemperor.substack.com
Yikes. That's embarrassing.
In her defense, I have no idea how I would explain that tweet except by using trigger phrases and generalities. Nightmare job.
Occasionally we see glimpses of such jaw-dropping incompetence that I often have hope that some of the horrible plans and strategies will just fall apart on their own.
It's enough to look at this chart. We quadrupled M1 since 2020. It is extremely basic economy when you have more 'money' circulating then inflation will happen.
May 17, 2022Liked by NE - nakedemperor.substack.com
We have ideologues running the country so we should expect such outcome. The only saving grace is we can change government (in 30 months) without bloodshed.
May 17, 2022Liked by NE - nakedemperor.substack.com
"The wage-price spiral will now ramp up with people changing jobs for a higher salary, meaning more “money” in their pockets chasing the same goods, pushing inflation ever higher."
You were doing good until you just fell back to the same error that supply and demand are the cause of inflation, not having more new dollars than new wealth that represents its. Fiat currency is the real issue, since there's no way to match new dollars to new wealth without suffering a command economy (and have much less new wealth). A stable basis like gold did a reasonably good enough job and keeping new dollars from being printed just to buy voters and repay donors.
May 17, 2022Liked by NE - nakedemperor.substack.com
Money supply is obviously a problem however it’s not the main problem which is the cost of energy. In the US, the average price of a gallon of gas is reaching $4.50. If the price were $1.50 there would be no inflation. And there would also be no need to print money so you can buy the gas.
(Pssst: Can't comment on your Karahan Tepe post there since I'm not a paid subscriber so sneaking over here to tell you how much I enjoyed reading it; how much I appreciate that you let free subscribers get access to it; and that I hope you'll do more such posts. Just wonderful.)
A gift comes without strings. Any type of universal income that comes with strings is to be declined unless one wants further strings attached with each passing digital token.
I think Blackrock/Vanguard have owned the world too long. I think oil is unsustainable and plundering the earth and sea for oil are wrong. I think all of this has the potential to catapault is to new ways of living and using our technology that forego tokenization and harness tech in ways that operate integrity, but first we have to be willing to go through some major trials. We need to be willing to learn what it means to live symbiotically rather than parasitically with the earth and with one another in order to say fuck no to digital ID and technocracy until we can GET leadership of integrity.
I got hung up on how that pen-troll looking girl just kept shuffling her papers around in a clearly dismissive manner, as if saying "I hear you, you don't count, and now I'm going to rattle off talking points from my script here".
And the she just read from a pice of paper. In my class, that's a failing grade in public speaking.
And she is what, press secretary and spokesperson for the US president? How can someone so inept be anything than a quota filler?
As for inflation, what the rich elites now fear the most is nationalism surging through Europe wrecking the Festung Europa the EU-commission is bulind right now. Because no one minds someone making it rich while developing a busienss what keeps his fellow countrymen paid and fed - but we do mind fat cats moving production to Whereveristan, and the charging us a mint for the same goods but of a tenth the quality (seriously, have you seen how brittle the chinese 'alloys' are?), all the while telling us we must shut up, grin and bear it and not make demands because then we cause inflation.
Hang the capitalists with the guts of the globalist politicians! Communist or corporate monopoly is the same sh*t for the self-employed just trying to get by.
There is plenty of oil. What? The oil all just happened to run out the day Biden was elected?
No, it’s terrible government policies that are driving all of this.....and they are doing a lot of it on purpose. The rest is incompetence......this is exactly what you get when the left takes over......every time it is tried.
And the problem is not peak oil, the problem is peak communist stupidity
She makes Jen Psaki look smart.
If you look at Event 201, one of the sessions (don't remember which one) was about the economy.
In particular, they "discussed" the question of whether governments should use big stimulus packages to help the economy.
I'm joking of course because it really wasn't a discussion. Every panel on Event 201 was a message to policy makers about what they should do in case a pandemic were to hit us. By amazing coincidence a pandemic from a deep state funded lab controlled by the CCP did in fact hit us and was wildly promoted on the established media.
By another amazing coincidence, Event 201 was jointly organized and sponsored by Bill Gates and WEF. One of the WEF's most famous slogans is: you will own nothing and you will be happy.
With money printing and inflation, most people's assets are losing a lot of value. Soon, most of us will practically own nothing. Though I'm not sure we'll be happy.
Britain is literally sitting on coal and oil . . . and yet we need to virtue signal about "zero carbon" to countries that do not care.
We need to ban all semi automatic and fully automatic weapons of war, those machines of mass destruction, Government printing presses.
If we have to endure anymore random acts of violence by spraying more stimulus checks through our society, who could imagine the carnage and the grieving family and friends to all those lost to violent economic extremism.
/sarcasm off.....
As a pensioner, this can't be good. As a society, this can't be good. As an economy, this can't be good. So I am guessing we're all out of good and right smack in the middle of one of those Fall of Civilization podcasts...except it's happening to us, in real time.
Yikes. That's embarrassing.
In her defense, I have no idea how I would explain that tweet except by using trigger phrases and generalities. Nightmare job.
Occasionally we see glimpses of such jaw-dropping incompetence that I often have hope that some of the horrible plans and strategies will just fall apart on their own.
All there is , is a cluster of puppets in this administration.
https://tradingeconomics.com/united-states/money-supply-m1
It's enough to look at this chart. We quadrupled M1 since 2020. It is extremely basic economy when you have more 'money' circulating then inflation will happen.
We have ideologues running the country so we should expect such outcome. The only saving grace is we can change government (in 30 months) without bloodshed.
"The wage-price spiral will now ramp up with people changing jobs for a higher salary, meaning more “money” in their pockets chasing the same goods, pushing inflation ever higher."
You were doing good until you just fell back to the same error that supply and demand are the cause of inflation, not having more new dollars than new wealth that represents its. Fiat currency is the real issue, since there's no way to match new dollars to new wealth without suffering a command economy (and have much less new wealth). A stable basis like gold did a reasonably good enough job and keeping new dollars from being printed just to buy voters and repay donors.
Amazing! The new spox talks just like her boss! Does she also have dementia?
Stop inflation by making speculation on commodities taxed high, like they should have done ages ago with stocks , transaction tax.
Computers are driving prices up by cheap money flooding into financial institutions that use it to game the market
Money supply is obviously a problem however it’s not the main problem which is the cost of energy. In the US, the average price of a gallon of gas is reaching $4.50. If the price were $1.50 there would be no inflation. And there would also be no need to print money so you can buy the gas.
off with their heads!
(Pssst: Can't comment on your Karahan Tepe post there since I'm not a paid subscriber so sneaking over here to tell you how much I enjoyed reading it; how much I appreciate that you let free subscribers get access to it; and that I hope you'll do more such posts. Just wonderful.)
If those at the top wanted to feed the world, they would just do it.
A gift comes without strings. Any type of universal income that comes with strings is to be declined unless one wants further strings attached with each passing digital token.
I think Blackrock/Vanguard have owned the world too long. I think oil is unsustainable and plundering the earth and sea for oil are wrong. I think all of this has the potential to catapault is to new ways of living and using our technology that forego tokenization and harness tech in ways that operate integrity, but first we have to be willing to go through some major trials. We need to be willing to learn what it means to live symbiotically rather than parasitically with the earth and with one another in order to say fuck no to digital ID and technocracy until we can GET leadership of integrity.
https://www.youtube.com/watch?v=EQYNhJ6lM-w
I got hung up on how that pen-troll looking girl just kept shuffling her papers around in a clearly dismissive manner, as if saying "I hear you, you don't count, and now I'm going to rattle off talking points from my script here".
And the she just read from a pice of paper. In my class, that's a failing grade in public speaking.
And she is what, press secretary and spokesperson for the US president? How can someone so inept be anything than a quota filler?
As for inflation, what the rich elites now fear the most is nationalism surging through Europe wrecking the Festung Europa the EU-commission is bulind right now. Because no one minds someone making it rich while developing a busienss what keeps his fellow countrymen paid and fed - but we do mind fat cats moving production to Whereveristan, and the charging us a mint for the same goods but of a tenth the quality (seriously, have you seen how brittle the chinese 'alloys' are?), all the while telling us we must shut up, grin and bear it and not make demands because then we cause inflation.
Hang the capitalists with the guts of the globalist politicians! Communist or corporate monopoly is the same sh*t for the self-employed just trying to get by.
Who knew hiring someone based on their skin tone and sexual preference would lead to a poor choice?