Monday, March 23, 2020

THIS IS A REAL PROBLEM

Screenshot from media website

Everyone has been taught to expect governments to initiate economic growth miracles (through inflationary spending), but the US government does not have any real solutions to the coming economic crash. This crash will not be similar to other economic slowdowns in the past, because commerce is deliberately being stifled due to the COVID-19 outbreak.

Trump with a cooperative Congress, and the profit motivated bankers at the Federal Reserve, will try to "pump" the economy through massive spending and loan programs, but such efforts will be futile and ultimately counterproductive. What the economy requires is a period of deflation, a period in which prices appear to drop as the value of currency increases. This economic phenomenon is based on the laws of supply and demand as they apply to money. When the supply of money and credit is greater than the demand for money and credit, the value of money and credit decreases; thus prices appear to rise as the money can purchase less goods. Economic deflation is always difficult and painful, but it ultimately allows a nation to prosper as the cost of living begins to fall and the working class can save and invest more of their money. The enemies of deflation are the bankers, wealthy industrialists, and politicians, it is to their benefit to gouge the working class with higher prices.

Do not put your trust in politicians, bankers, the media, academicians, or anyone else that declares we must "trust" this corrupt and inefficient system. Put your trust in God, in yourself, your family and friends, and in the notion that regular people working together can overcome any obstacle when given the freedom to make their own choices.