by Chris Black
This means increasingly fewer goods and services.
In other words, we are entering a regime of too little money chasing even less goods/services, i.e. price inflation during a regime of monetary contraction.
Don’t believe me?
Look at the supermarket shelves, or the shelves in your local Target or Wal-Mart.
You see a reduced selection of products, all of which are of increasingly inferior quality, and all offered at steadily rising prices.
Nobody is asking the obvious question: Cui Bono?
The obvious answer to the obvious question is: the Banking class.
Fun times ahead!
Coping With Inflation? US Personal Savings Declines -64.8% YoY In November As M2 Money Growth Falls To Lowest In History (0% YoY)
US headline inflation began to soar as soon as Joe Biden became President. A combination of massive stimulus spending related to the Covid economic shutdown and his war on fossil fuels, driving up gasoline and diesel fuel prices. In other words, headline inflation rose from 1.4% Year-over-year (YoY) at the end of December 2020 to 9.1% YoY in June 2021. It has now simmered down to 7.1% YoY as The Fed continues to remove monetary stimulus.
The sustainability of this economy is somewhat in question. pic.twitter.com/hyIh9ZbY6h
— Mac10 (@SuburbanDrone) January 9, 2023
Something about this rings a bell. pic.twitter.com/YN2pAs9SnK
— Mac10 (@SuburbanDrone) January 9, 2023
The years of bailouts and monetary easing have made investors complacent, and the FED has had to work harder. The more they tighten, the closer investors think it is to a pivot. It's going to take some hard pain for these fools to throw in the towel.
— HOZ (@MFHoz) January 6, 2023
The Fed won't pivot until investors give up on the Fed pivoting. They see that market financial conditions are STILL too loose (upper pane).
Meanwhile banks are tightening at the fastest pace since 2008.
DISASTER. pic.twitter.com/2MaGjGIlEs
— Mac10 (@SuburbanDrone) January 9, 2023
The Present Fiat Monetary System Is Breaking Down
The heart of economic growth is an expanding subsistence fund, or the pool of real savings. This pool, which is composed of final consumer goods, sustains individuals in the various stages of the production process.