What the Bible Says About Money Inflation,
Debt, and The Fed
American Thinker,
by
Jason Peirce
Original Article
Posted By: Imright,
4/3/2022 9:50:48 AM
It’s now common knowledge that the U.S. dollar is in danger of losing its status as the world reserve currency. This is primarily due to two factors, the first being the Federal Reserve’s inflation of the money supply, which drives price inflation. Money inflation destroys the purchasing power of the dollar, acting as a crippling tax on the poor, middle class, and retirees on fixed incomes. But the money inflation also distorts prices, and supply and demand structures and markets. This drives the boom-bust economic bubbles which blow-up into recessions. In addition, the money inflation also funds America’s destructive welfare state (which only incentivizes additional welfare),
Reply 1 - Posted by:
ARKfamily 4/3/2022 10:04:23 AM (No. 1118147)
The Bible says quite a bit but, hey, can you get a government (federal, state, county, or city) official to read it? They think they know better. . . look how well that is turning out?!
11 people like this.
Reply 2 - Posted by:
LC Chihuahua 4/3/2022 10:25:00 AM (No. 1118170)
Federal debt of 30 trillion. Total US debt of 89 trillion.
We cannot go on like that, and we are starting to see the consequences of our irresponsibility.
I recall the bible saying don't be a debtor or a lender. Guess we see why now.
10 people like this.
Reply 3 - Posted by:
franq 4/3/2022 10:26:22 AM (No. 1118172)
Excellent article. Thanks, OP. FTA: "...wealth-getting degenerates into a gamble or lottery." It's worse than that, it is under control of an oligarchy of billionaires.
6 people like this.
Reply 4 - Posted by:
Strike3 4/3/2022 11:09:19 AM (No. 1118223)
When Biden and his low-IQ cabal are put to the guillotine, America will come bouncing back faster than they soiled it. People putting their faith in the ruble to buy a little warmth in Winter are in for a huge surprise when Russia is the country that goes under. Joe's $5.8 Trillion budget pipe dream for next year is further proof of their insanity, if that is needed. Not that the Bible is wrong, it's just not time yet.
1 person likes this.
Reply 5 - Posted by:
stablemoney 4/3/2022 11:13:00 AM (No. 1118225)
A perfectly written article, and every word true.
4 people like this.
Reply 6 - Posted by:
davew 4/3/2022 11:33:52 AM (No. 1118242)
The dollar will remain the reserve currency of the world as long as the market for its debt, i.e. Treasury notes and bills, is liquid enough to give large lenders (investors) the security that they could get their money back if they needed to. Fundamentally it is a classic Ponzi scheme but reinforced by the fact that the debtor controls the legal system and taxation power. As long as the lenders don't ask for their money back the music will continue to play and the players will keep going around the chairs.
The greatest risk to this game is the realization by lenders that the debtor running the game (US) is no longer honest enough to be trusted. If they see that the rule of law has been undermined by rigged elections and the courts no longer defend the rights of lenders, they may pull out and find another game with a safer return. So far there is no better game in town with the liquidity they need to put their wealth but that could change. Neither China or Russia is trusted even by their own people so that isn't the threat. The real threat is losing the trust of the sovereign wealth holders across the world in the honesty and dependability of the American people.
The use of Quantitative Easing and Open Market actions by the Fed to add or remove liquidity for the US economy is a rational system response to unexpected economic impacts (like pandemics) to normal market flows. What is inflationary is wasteful government programs that have continuously failed to accomplish their social engineering goals but continue to get funded because of political, not economic, criteria.
The current price inflation appears to be more a supply inefficiency than a demand excess because inventories of goods have been increasing while the velocity of money is at historic low levels. Time will tell if this reverses, but the volatile food and energy inflation is likely to ease in response to normal market forces once the bottlenecks in raw materials like fuel and fertilizer are resolved. This is not a new problem and it will work itself out just fine eventually. As we know from "The Hitchhiker's Guide to the Galaxy",
"
Don't Panic!".
5 people like this.
Reply 7 - Posted by:
DrOstrow 4/3/2022 1:26:13 PM (No. 1118337)
The sole cause of inflation is printing money WITHOUT a corresponding proportional
increase of goods and services ( GDP ). If you have an economy (GDP ) worth $1000 and you
have $1000 in circulation - what happens if you simply print and give away another
$1000 ( stimulus checks anyone ) ?
Prices double. It's that simple.
I heard politicians and so called financial experts come up with almost every explanation you can
imagine on or about 1978 when Jimmy was in charge of the printing presses and inflation
was running in the high teens ! It didn't start to get better until Jimmy left and the presses
were STOPPED. You can print money FASTER than ANY economy can grow !
Look up Germany in the 1930's or more recently Zimbabwe in the last 3 decades.
Inflation has nothing to do with supply and demand, supply chains, pent up demand or the day of the week.
It's printing money, PERIOD. And how much has been printed so far ??
6 TRILLION DOLLARS or is it 8 TRILLION now and no end in sight.
7 people like this.
Reply 8 - Posted by:
Faithfully 4/3/2022 10:56:09 PM (No. 1118661)
"Never a borrower nor a lender be." I have gotten out of debt twice. At my age I hope to manage it again.
0 people like this.
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