WHAT IS INFLATION?
It has taken me years to understand the inflation-deflation mechanism. The more I read about it the more confused I was. The powers that be don't really want you to understand it, because this is the very essence of capitalism, to wit, the owner is the enemy of the worker, and will do everything it can, through the Federal Reserve, to keep the worker in economic chains.
THIS IS HOW IT WORKS:
Low interest allows for more money to circulate, creating new jobs leading to full employment. Workers now have leverage.Employers have to pay out more in salaries, and are not happy. They don't want full employment, where workers have the right to unionize and make policy on their own behalf. Because there is more money, costs are made to rise and there is inflation. The debt, which stays the same, is now worth less and lenders make less while borrowers pay less in real terms, and therefore have more cash available. To stop the largesse, the Fed now raises interest, so that workers have less money. It becomes harder to borrow. Profits are lower because of high interest. Wages don't go up, workers lose their jobs, unions are destroyed. Less money is spent, more unemployment, less production.The bosses now have the upper hand, because they can pay starvation wages and pick and choose their workers. With higher interest, the debt yields more money to the lender.
OR TO PUT IT ANOTHER WAY;
FOR THE ECONOMY TO WORK. THERE MUST BE A PRODUCTION OF GOODS AND SERVICES, NOT PORTFOLIOS
IF INTEREST RISES (DECREED BY THE FED)
THERE IS LESS MONEY
PRICES GO UP
PEOPLE DON'T SPEND
UNEMPLOYMENT INCREASES
THIS CONTROLS INFLATION
IF INTEREST GOES DOWN
THERE IS MORE MONEY
PRICES GO DOWN SPEND CHEAP
PEOPLE SPEND ARTIFICIALLY VALUED MONEY
THERE IS MORE EMPLOYMENT
INFLATION GOES UP
FAKE MONEY AT LOW INTEREST RATES FUEL THE BUBBLE WHICH LEADS TO A CRASH.
EITHER WAY, THE SYSTEM DOESNT WORK.
MORE MONEY FOR THE WORKER MEANS LESS MONEY FOR THE OWNERS OF PRODUCTION. INSTEAD THE BOSSES WILL WORK TIRELESSLY TO KEEP THE WORKERS IN ECONOMIC SLAVERY.
It has taken me years to understand the inflation-deflation mechanism. The more I read about it the more confused I was. The powers that be don't really want you to understand it, because this is the very essence of capitalism, to wit, the owner is the enemy of the worker, and will do everything it can, through the Federal Reserve, to keep the worker in economic chains.
THIS IS HOW IT WORKS:
Low interest allows for more money to circulate, creating new jobs leading to full employment. Workers now have leverage.Employers have to pay out more in salaries, and are not happy. They don't want full employment, where workers have the right to unionize and make policy on their own behalf. Because there is more money, costs are made to rise and there is inflation. The debt, which stays the same, is now worth less and lenders make less while borrowers pay less in real terms, and therefore have more cash available. To stop the largesse, the Fed now raises interest, so that workers have less money. It becomes harder to borrow. Profits are lower because of high interest. Wages don't go up, workers lose their jobs, unions are destroyed. Less money is spent, more unemployment, less production.The bosses now have the upper hand, because they can pay starvation wages and pick and choose their workers. With higher interest, the debt yields more money to the lender.
OR TO PUT IT ANOTHER WAY;
FOR THE ECONOMY TO WORK. THERE MUST BE A PRODUCTION OF GOODS AND SERVICES, NOT PORTFOLIOS
IF INTEREST RISES (DECREED BY THE FED)
THERE IS LESS MONEY
PRICES GO UP
PEOPLE DON'T SPEND
UNEMPLOYMENT INCREASES
THIS CONTROLS INFLATION
IF INTEREST GOES DOWN
THERE IS MORE MONEY
PRICES GO DOWN SPEND CHEAP
PEOPLE SPEND ARTIFICIALLY VALUED MONEY
THERE IS MORE EMPLOYMENT
INFLATION GOES UP
FAKE MONEY AT LOW INTEREST RATES FUEL THE BUBBLE WHICH LEADS TO A CRASH.
EITHER WAY, THE SYSTEM DOESNT WORK.
MORE MONEY FOR THE WORKER MEANS LESS MONEY FOR THE OWNERS OF PRODUCTION. INSTEAD THE BOSSES WILL WORK TIRELESSLY TO KEEP THE WORKERS IN ECONOMIC SLAVERY.
posted by ANTONIO at 11:14 AM
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