It’s already bad enough we live in a world overpopulated by idiots. Worse, they are often in charge of ‘the monetary system’ and even head up ‘the media’! Luckily for tomorrow, entrepreneurs are busy developing a decentralized crypto-monetary platform for a money that nobody can control, and an alternative media, of which we are part.
One recent article encompassed precisely the unnecessity of the stupidity of central bankers and their mainstream financial media lapdogs.
The article was entitled, “Amazon cutting prices at Whole Foods will not cause deflation.”
The author was responding to a quote from a Fed official, Charles Evans, who claimed the merger would result in lower grocery prices.
Naturally, technological innovation and other types of productivity enhancements bring falling prices, which can ultimately be construed as a mild type of deflation.
But that is good news and doesn’t call for a policy to offset it! We all look for deflation when we go shopping. Evans doesn’t shop, apparently. He sees this as a bad thing, something that may make it harder for the central bank to achieve its 2% “inflation target”! Heaven forbid!
In this central banker’s view, falling prices produce unemployment, which leads to more falling prices, then more unemployment in a vicious circle like what happened in the 1930’s. This is the debt-deflation spiral formulated by Irving Fisher and later Keynesians, typically in defense of why we need to have a central bank, or why we need to have a policy of constantly rising prices.
In the typical Keynesian central planner's playbook, rising prices create the opposite: growth!
You can recognize a Keynesian instantly by whether or not he or she believes that they can create growth with the printing press. Many will regardless try to obscure this assumption in their theories, as if they know it is an inherent weakness. As Evans’ critic, and central bank sympathizer, put it in his article: "prices rising modestly [over time] encourage both households and corporations to spend and invest money now.”
He agrees with Evans on this; this is what many people believe today, including those employed by Wall Street.
Like typical Keynesians, however, none of them appreciate the trade-off between consumption and investment. If prices are generally rising, that means the value of money is generally falling, which encourages households and business to consume at the expense of investing now.
But, you can’t increase consumption and investment simultaneously! Sure, both can be considered as “spending” of money quantities, but tell it to the Keynesians constructing the GDP accounts.
That’s not the issue here. They believe price rises engages the “animal spirits.” What is really happening though is that by printing money and lowering interest rates they are encouraging consumption at the expense of saving, and replacing investment by the public with investment from the bank’s printing press directed by Wall Street, government, and the banking cartels.
To really understand all the fallacies inherent in that worldview is to understand the gold story and now the emerging crypto story. Ultimately, the weakness in the Fisher-Evans view is that they think the debt-deflation spiral, like all economic depression, is brought on by an inherently unstable and unbridled free market capitalism in the post-industrial age.
But let me tell you something else that started to become apparent in the post industrial age in the West: central banking and their unnecessary management of economic systems! Tulipmania, South Seas, the Mississippi bubbles all occurred in the era of central banking alongside western industrialization.
I mean, forget about the academic fact that indexes like the CPI are fallacious from the get-go because the value of money does not drop uniformly, and the weightings and baskets in the real world always change. Always, always, always, day to day. Their chained indexes and all the other statistical measures in the world will never capture the dynamic nature of subjective whim.
Not only that, but their underlying assumption is that money, and hence prices, should be stable in the first place, or that if not, they should know exactly how stable it should be, not the market.
The Austrian economists have shown that it is this fatal conceit and the interference in money quantities and the rate of interest that bring about the boom-bust cycle to begin with, as well as the ultimate depreciation in the value of money, which comes with it the occasional and sudden drop in confidence experienced in decades like the seventies, the mid-thirties, or more recently.
That is, it is the government supported and centralized system of fractional reserve banking that brings all the recessions and instabilities in the financial climate. In fact, this is even the big point that the movie, The Big Short, overlooked in putting the blame on the banksters and their greed in creating collateralized obligations and default swaps. The problem was right there, the movie even portrayed it but only in passing: it was the government guarantee underlying them!
I can’t say that by ending this system we would end all financial crises, but surely we would end the large ones that have become characteristic to western civilization in the last 100 years.
Regardless, it is in the aim of trying to achieve growth through the printing press and by trying to stabilize the financial and economic instabilities brought about by this attempt that we get the boom-bust cycle and the inflationary outbreaks that the central planners claim to exist to fight.
To fool Americans about this has only required a public education to get the message across that without your government saving and investing and lifting prices for us, we would be poor.
The dumbing down of America could not be more evident than it was by reading one of the few criticisms ushered in by ‘the media’ against Evan’s pronouncement and worry about this. No need to worry, said this author, the Amazon Whole Foods merger will not cause prices to fall! And we are all saved as a result, because prices won’t fall! We can all agree that prices won’t fall.
Central banks and Keynesian economists have been obfuscating the real meaning and cause of inflation for decades. Because, as Henry Ford once said, “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
To see how the Federal Reserve itself is a scam set-up to impoverish nearly everyone at the expense of a few, watch this video.
The monetary system is run by idiots and it is reported on by idiots! It’s no wonder your average person has no clue about money, finance and economics!
Stick with us here at The Dollar Vigilante. Through our lens of free market, anarcho-capitalist Austrian economics we can see through all the stupidity. And, it’s paid off for subscribers, earning them 99% gains in 2016 in gold stocks and more than 100,000% gains since 2011 in cryptocurrencies (click here to subscribe)!
Strange, with a track record like that you’d think we’d be on every mainstream financial channel and publication. Could it be they don’t want you to know?
Thanks for sharing!
I think someone else needs to jump in and offer a bid for whole foods....Even though I wouldn't mind if amazon eats them up at $42 a share.
Wonder if that documentary what the health that went viral is part of pushing this agenda. The documentary is very good, same creator of cowspiracy. I find it strange how many zombies are being inspired by this film.
It's so true that deflation is not a bad thing. When gas prices started dropping it was a huge boon to most American families. People could buy more things or save and invest in the stock market. Whether or not Shell, BP, Chevron and the lot suffered deflation in revenue is not important to the overall economy. The money found other productive outlets. Deflation in food is good for most everyone same as the gasoline prices dropping.
The inflationary effects that Keynseians promote do little for the average citizen. I am a small business owner. When I did an expansion I tried to get a loan for inventory. I had impeccable credit and very reliable income streams but the banks refused me outright. They were awash in cash from federal reserve money fresh from the printing presses, but they do not lend it to the people who can actually produce real economic growth. It's a disgusting system for Main Street!
My Top 10 Reasons To Attend Anarchapulco 2018
https://steemit.com/money/@sinushacker/top-10-reasons-to-attend-anarchapulco-2018
I have to say this is interesting and raises some issues.
"Central banks and Keynesian economists have been obfuscating the real meaning and cause of inflation for decades." YES. Thank you. Too bad there aren't more of the Austrian ilk. Not everyone has a closed mind. At one time, I wasn't hip to the truth either.
Misspelling aside, the meme is valid
Even if Amazon Decides to cut the Prices on Whole foods it will still be Expensive as hell . I used to work for Whole foods and they mark up the price of produce by 400%
cafe du monde at whole foods: $15
cafe du monde at the local asian store : $5
Never shopped at Whole Foods because I thought it was too expensive. Not planning to go there anytime soon
I just going to keep stacking silver, gold, and food lol.. I trust the people in charge of the world monetary system
END. THE. FED!
CHEAPER high quality and organic FOOD! That is PREPOSTEROUS!!! We CAN'T have THAT!
Amazonization
If only the schFOOL system taught fractional reserve banking and the meaning of a Debt system?
When the government say's the economy grew by 5% what they are telling you is that the next generation has 5% more debt/money to pay.
It only gets worse and worse using a debt system.
Great article and video! I actually did some research myself on the Federal Reserve back in college. One thing that I did learn was that the FED runs a ponzi scheme right under our noses and here's how.
There is a distinct difference between Income Tax and Federal Income Tax. Income Tax is paid by corporations and businesses small and large on the profit that is made. These taxes pay for the entire Federal Budget. Federal Income Tax is what the employee pays out of his/her paycheck and is paid to the Federal Reserve. This is the big deception! The American Employee is actually paying a fee to the Federal Reserve for using the currency issued by them instead of receiving currency issued by our Treasury, which would not cost a penny!
The FED is using the deposits from the American Employee to fund its operations and to use that money to loan it to the US Treasury, which is being paid back with interest. This is what we all call the National Debt.
So printing of money is not the only way the FED is able to fund itself. This is outright theft, but was made legal when our US Treasury gave its authority to the Private Federal Reserve to print and control our currency and interest rates.
Motivation is the only thing that keeps hope alive and gives everyone the power to keep going forward and helps anyone…
The Fed has no control, never has. I don't even understand why people waste time listening to Yellen. It is safe to say that crypto currencies are partly born out of the controlling intent of the fed and increasing regulations from all branches of the government.
And by trying to "control" growth and volatility, they only make volatility worse when it takes hold. Remember the idea of "sustainable growth?" What a joke. Fat tails exist and will destroy those trying to fight it. Even if you have the deepest pockets in the world (US Fed) volatility will catch up at some point.
As for long term value of gold? I don't see it. Mining stock that pay a dividend yes. Crypto currencies as an investment in the future version of the technology? YES!!! But owning a gold coin is pointless as when the crap really hits the fan and you need to spend it, it isn't divisible. My business partner says: cans of tuna will be valuable in an armageddon situation. I tend to agree.
All in all, I really like the ideas in the post. Are you a fan of Taleb? Peace out and keep up the great posts!
Yellen said (I watched It) that in Her lifetime, things will remain "status Quo." ((( Ya gotta read between the lines)))>
Bullets will be worth a ton......I see people exchanging them, if there is a total meltdown situation. Cans of Tuna would be the Buillon. Spam would be worth an entire gun.
I use to shop at Wholefoods, but I since got my head out of my ass and shop at Walmart that carries organic goods at a fraction of the cost Wholefoods sells at.
Just growing like .0001% of your own produce is a start. Like I am talking your spices like parsley, oregano, thyme and rosemary. And heck get adventurous and do tomatoes in the spring. (((It's like running, before you know it, your doing a 5k)))
The monetary system is run by some real dumb dumbs.
Bankers. Set of Cunts. There, I said it....
dude, they are all men, (seriously ) just call a Dick, a Dick.
Who needs bankers they are as old as the dinosaurs, and they one day will be seen as the ones who ruined the world as we know it.
Thank you for this posting.
The Fed will hang on as long as they can. My only question is after all this, do the manipulators have something else under their sleeves after this eventual collapse of the US Dollar.
I just hope they haven't figured out the Digitals yet.
Have no fear... Bitcoin is here lol... Steem On babayyyyy!!!
why they gotta complain like that lol. whole foods was an expensive chain and quality chain anyways.hopefully their products get cheaper
Always on point ....my eyes are tired its 2am here Iwill read over again in the mornjng
When idiots run something, it leads to idiot things.
On top of that mainstream media doesn't help in educating ... this is so bad...lol wtf is going on
Meh. My thoughts: End The Fed, grow your own, fuck the government. ;)
Upvote to me! and follow please! @maulanailham
Keynesian economics has been wrong over and over and over but it's really inconvenient to be that wrong so they just ignore the facts. That'll work.
Could you maybe do a segment on a "Free-Society" and the importance for the presence or absence of a constitution? I saw one of Dan's post, the creator of steemit and it said "why every blockchain should have a constitution" which i thought was an interesting perspective considering that blockchains are supposed to be decentralized, wouldn't a constitution ultimately "centralize" something that's built on the principles of anarchy
The Central Bankers will just find any reason to keep printing money for their coffers. Once they got away with Quantitative Easing and bank bailouts, they knew they have us by the balls. Thanks Jeff for a great post.
The fed is embarrassingly ignorant with regards to the causes of economic growth. For economic growth to occur consumers need disposable income. in order for consumers to have disposable income the rate of change of income must be greater than the rate of change of expenses. For a large portion of the population expenses are increasing and income is flat or decreasing. The fed thinks that fudging inflation and employment numbers will some how cause consumers to have more real dollars at the end of the month. Some of the stats that the government puts out leads me to believe that they are drinking there own kool-aid.
thank sharing.
The banks get bailed out but owners of student loans have no way of getting out from the burden. Why haven't Americans risen up about this injustice? Oh that's right we're all good government taught citizens.
Will you, personally, be at Anarchapulco?
When Whole Foods opened in Williamsburg, I was like "well, there goes the neighborhood." And it certainly didn't help the vibe, but their organic slice meats sure helped my sandwiches. I can't imagine anything getting better with Amazon in charge. Except perhaps the robots. They'll get better. The neighborhood and fellow humans... probably not so much. Thanks for another great one @dollarvigilante!
Some of your best writing, Jeff. Great post!
The American Dream is a "must see" video!
The economy, if left alone by the central bank socialists, would change naturally due to things like demographics, technological innovation, and changing tastes and preferences. It would go through natural cycles, good and bad.
The central banks are trying to play god, and are doing a miserable job at it! They are not god. They think they can stop death by taking over health care. They think they can stop depressions by lowering interest rates. NO! That's not how it works.
The economy grows when it has a sufficient amount of workers, innovators, and consumers, and non-profits and savers/investors are a very important part of that eco-system too! And as for health, individual people can and should be largely responsible for their own health. Much of the woes of are health care system are due to a vice-driven culture, and a large pharmaceutical lobby.
Keep preachin' it!
Great information, your point of view brilliantly represents the crypto world as well as the common thought of the financially oppressed, so excited that crypto currency is creating the machine that will over come the old financial banking system, thanks alot #dollarvigilante
Money as debt is so evil...
I think that your statement about the government as a main culprit is slightly exaggerated.
In my opinion, these people are just puppets. Lock at their statements. They are like candles in the wind. People must dig deeper. Suppose that the system (by pressure from somewhere) fall. Then what? We will see that instantly there will be new leaders with new ideas guided by the same shadows.
inadvertently i replyed twice, sorry
What puzzles me deeply is the fact that crypto currencies seem to work via fractional reserve banking themselves. Though the fact that government is not involved is a great improvement, it still feels like trying to create wealth out of thin air.
Oh, I have a very long way to go understanding this phenomenon of crytpocurrencies and blockchain.
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Fuck the FED!
I really love that short movie, made me laugh many times.
i learn a lot from every post/video from the dollar vigilante thanks a lot