Rapidly rising food, housing, medical, and tuition prices are squeezing Americans, and many do not understand the real cause of their falling living standards.
That confusion opens the door for opportunistic politicians who promise supposed freebies to ease the pain of inflation. Many, unfortunately, succumb to this siren’s call.
Perverse as it is, the policies offered to people suffering from inflation create even more inflation. In other words, inflation has a way of perpetuating itself, much like a heroin addiction.
We are already seeing cockamamie schemes in the US, like “inflation relief checks,” which attempt to solve the problems of inflation by creating more inflation.
The political-inflation cycle follows a clear pattern:
Step #1: In a fiat currency system, the government will inevitably print an ever-increasing amount of currency to finance itself.
Step #2: This makes prices and living costs rise faster than wages.
Step #3: The average person feels the pain but doesn’t understand what’s happening.
Step #4: More people support politicians who promise freebies to relieve the pain inflation causes.
Step #5: The government prints more currency to pay for the freebies.
Step #6: This creates even more inflation, and the cycle repeats.
At this point, we have to ask ourselves whether the political situation in the US will improve.
Unfortunately, the data points to a troubling but inevitable answer… “no.”
The reason is simple: a growing majority of US voters receive government money.
When you count everyone who lives off political dollars instead of free-market dollars, we’re already well north of 50% of the US population.
In other words, the US has already crossed the Rubicon. There’s no going back.
The growing majority of voters who collect net benefits from the government is a built-in constituency to perpetuate policies financed by ever-increasing inflation. That’s why I think the US has entered an unstoppable inflation death spiral.
The notion that people living off government largesse and political dollars will come around to a libertarian way of thinking is a pipe dream.
In short, there is simply no hope for positive change from the political system. That means one thing is sure: an ever-increasing amount of inflation to pay for all these government programs.
For many decades, Argentina has infamously been trapped in a perpetual cycle of hyperinflation and socialism from which it cannot escape. And now, the US has entered that same inescapable cycle.
Although many don’t realize it, interest rates are simply the price of money.
And they are the most important prices in all of capitalism.
They have an enormous impact on banks, the real estate market, and the auto industry. It’s hard to think of a business that interest rates don’t affect in some meaningful way.
However, interest rates are controlled by a politburo of central planners at the Federal Reserve, not set by the market like any other price.
It’s bizarre that most people don’t understand the implications of this or thoughtlessly accept it as a “normal” part of a supposed free-market economy.
Further, it should be self-evident to everyone that economic central planning doesn’t work.
In Marx’s Communist Manifesto, the 5th plank calls for the “centralization of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly.”
That is a perfect description of the Federal Reserve and other central banks.
In reality, the Fed is nothing more than a politburo of bureaucrats attempting to centrally plan the economy by tinkering with the money and interest rates—the most important prices in all of capitalism.
Even if we presume the Fed has benign intentions—which it doesn’t—central planning is impossible, and failure is inevitable.
That’s why the Fed is in a mission-impossible situation—much like it was impossible for the Soviets to centrally plan their economy.
Here’s the bottom line…
The Fed can’t save the day any more than the State Planning Committee of the USSR could.
The media, politicians, and financial analysts often flippantly use the word “trillion” without appreciating what it means.
A trillion is a massive, almost unfathomable number.
The human brain has trouble understanding something so huge. Let me put it into perspective.
If you earned $1 per second, it would take 11 days to make a million dollars.
If you earned $1 per second, it would take 31 and a half years to make a billion dollars.
And if you earned $1 per second, it would take 31,688 years to make a trillion dollars.
So that’s how enormous a trillion is.
When politicians carelessly spend and print money measured in the trillions, you are in dangerous territory.
It took until 1981 for the US government to rack up its first trillion in debt. The second trillion only took four years. After that, the next trillions came in increasingly shorter intervals.
Today, Congress has normalized multi-trillion dollar federal spending deficits.
The US federal debt has gone parabolic and is well over $31 trillion.
If you earned $1 per second, it would take over 995,000 YEARS to pay off the current US federal debt.
And that’s with the unrealistic assumption that it would stop growing.
The US federal government has the largest debt in the history of the world. And it’s continuing to grow at a rapid, unstoppable pace.
The debt will keep piling up as the US government continues to pay for political promises. It’s virtually inevitable.
Below is a chart of the Congressional Budget Office’s deficit projections for the next decade. These estimates will almost certainly be too rosy, as they often are.
Even by the CBO’s optimistic projections, the US government will have a cumulative deficit of over $15 trillion for the next ten years.
Historically, there has been a vast foreign appetite for US federal debt, but not anymore.
In the wake of Russia’s invasion of Ukraine, the US government has launched its most aggressive sanctions campaign ever.
As part of this, the US government seized the US dollar reserves of the Russian central bank—the accumulated savings of the nation.
It was a stunning illustration of the dollar’s political risk. The US government can seize another sovereign country’s dollar reserves at the flip of a switch.
Even US allies, like Japan, have also cut their Treasury holdings.
There are numerous other examples. But it’s clear the world isn’t hungry for more US debt right now.
So, who is going to finance these incomprehensible budget shortfalls? The only entity capable is the Fed’s printing presses.
In other words, the government has no choice but to finance itself through legalized counterfeiting and debasing the currency.
Allow me to simplify this fraud in three steps.
Step #1: Congress spends trillions more than the federal government takes in from taxes.
Step #2: The Treasury issues debt to cover the difference.
Step #3: The Federal Reserve creates US dollars out of thin air to buy the debt.
It’s also crucial to note that inflation is a big bonus to debtors. It allows you to borrow in dollars and repay in dimes.
And since the US government is the biggest debtor in the history of the world, it is the single largest beneficiary of inflation.
The US government can only finance itself with the Fed’s printing presses. It is also incentivized to debase the currency as it attempts to deal with its impossible debt burden.
I believe the US has entered an inflationary death spiral for three reasons:
Reason #1: A growing majority of voters who collect net bnefits from the government is a built-in constituency to perpetuate policies financed by ever-increasing inflation.
Reason #2: Even if we presume the Fed has benign intentions—which it doesn’t—central planning is impossible, and failure is inevitable.
Reason #3: The US government cannot finance itself without the Fed’s printing presses. It is also incentivized to debase the currency as it attempts to deal with its impossible debt burden.
In short, it’s game over.
The US government is fast approaching the financial endgame.
They have no choice but to “reset” the system—that’s what governments do when they are trapped.
Think of it like this.
Imagine a spoiled child playing a board game, and rather than admit he is losing, he flips the board.
This is what governments will do now that they are financially checkmated. They can’t win, even in their own rigged game, and now they are left with the choice of losing power or flipping the board. Since power does not relinquish itself voluntarily, we should presume they’ll choose to flip the board.
I suspect it could all go down soon… and it won’t be pretty.
It could result in an enormous wealth transfer from you to the parasitical class—politicians, central bankers, and those connected to them.
What exactly will the “reset” look like?
What can the average person do about it?
I just released an urgent PDF guide, “Survive and Thrive During the Most Dangerous Economic Crisis in 100 Years.” Download this free report to discover the top 3 strategies you need to implement today to protect yourself and potentially come out ahead.
With the global economy in turmoil and the threat of a “Great Reset” looming, this guide is a must-read. Click here to download it now.
DON'T BELIEVE A DAMN WORD YOU READ ON THIS WEBSITE!
The reader is responsible for discerning the validity, factuality or implications of information posted here, be it fictional or based on real events. Moderators on this forum make every effort to review the material posted on this site however, it is not realistically possible for a one man team to manually review each and every one of the posts atomicbobs.com gets on a daily basis.
The content of posts on this site, including but not limited to links to other web sites, are the expressed opinion of the original poster and are in no way representative of or endorsed by the owners or administration of this website. The posts on this website are the opinion of the specific author and are not statements of advice, opinion, or factual information on behalf of the owner or administration of Atomicbobs. This site may contain adult language, if you feel you might be offended by such content, you should log off immediately.
Not all posts on this website are intended as truthful or factual assertion by their authors. Some users of this website are participating in internet role playing, with or without the use of an avatar. NO post on this website should be considered factual information on face value alone. Users are encouraged to
USE DISCERNMENT
and do their own follow up research while reading and posting on this website. Atomicbobs.com reserves the right to make changes to, corrections and/or remove entirely at any time posts made on this website without notice. In addition, Atomicbobs.com disclaims any and all liability for damages incurred directly or indirectly as a result of a post on this website.
This website implements certain security features in order to prevent spam and posting abuse. By making a post on this website you consent to any automated security checks required by our system to authenticate your IP address as belonging to an actual human. It is forbidden to make posts on this website from open proxy servers. By making a post on this website you consent to an automated one time limited port scan of your IP address which is required by our security system to validate the authenticity of your internet connection.
This site is provided "as is" without warranty of any kind, either expressed or implied. You should not assume that this site is error-free or that it will be suitable for the particular purpose which you have in mind when using it. In no event shall Atomicbobs.com be liable for any special, incidental, indirect or consequential damages of any kind, or any damages whatsoever, including, without limitation, those resulting from loss of use, data or profits, whether or not advised of the possibility of damage, and on any theory of liability, arising out of or in connection with the use or performance of this site or other documents which are referenced by or linked to this site.
Some events depicted in certain posting and threads on this website may be fictitious and any similarity to any person living or dead is merely coincidental. Some other articles may be based on actual events but which in certain cases incidents, characters and timelines have been changed for dramatic purposes. Certain characters may be composites, or entirely fictitious.
We do not discriminate against the mentally ill!
Fair Use Notice:
This site may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. Users may make such material available in an effort to advance awareness and understanding of issues relating to civil rights, economics, individual rights, international affairs, liberty, science & technology, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law.
At some point freedom of speech and copyright law merge. The following interpretation of "Fair Use" and subsequent posting policy were developed with the assistance of qualified legal council however, we are not lawyers and cannot offer you legal advise as to the limits of "Fair Use"
In accordance with industry accepted best practices we ask that users limit their copy / paste of copyrighted material to the relevant portions of the article you wish to discuss and no more than 50% of the source material, provide a link back to the original article and provide your original comments / criticism in your post with the article.
Though legally each situation is evaluated independently according to guidelines that were intentionally left open to interpretation, we believe generally this policy represents "Fair Use" of any such copyrighted material for the purposes of education and discussion.
You are responsible for what you "publish" on the internet. You must be sure any copyrighted material you choose to post for discussion on this forum falls within the limits of "Fair Use" as defined by the law.
If you are a legal copyright holder or a designated agent for such and you believe a post on this website falls outside the boundaries of "Fair Use" and legitimately infringes on yours or your clients copyright
we may be contacted concerning copyright matters at:
If you require a courier address please send a fax or email and we will provide you with the required information.
For expedited human review & removal of potential copyright violations we encourage users & copyright holders to utilize the "Report Copyright Violation" button that accompanies each post published on this website.
In accordance with section 512 of the U.S. Copyright Act our contact information has been registered with the United States Copyright Office. "Safe Harbor" noticing procedures as outlined in the DMCA apply to this website concerning all 3rd party posts published herein.
If notice is given of an alleged copyright violation we will act expeditiously to remove or disable access to the material(s) in question. It is our strict policy to disable access to accounts of repeat copyright violators. We will also ban the IP address of repeat offenders from future posting on this website with or without a registered account.
All 3rd party material posted on this website is copyright the respective owners / authors. Atomicbobs.com makes no claim of copyright on such material.
Please be aware any communications sent complaining about a post on this website may be posted publicly at the discretion of the administration.
---
DON'T BREAK THE LAW!
---
Other than that you can do / say whatever you want on this forum.
We reserve the right to block access to this website by any individual or organization at any time for any reason whatsoever or no reason at all.
| 
