My friend Chris keeps prodding me to post about monetary policy—or something like that. I’m economic and finance challenged, although from time to time I come across articles that make a bit of sense to me. So, today, I came across several items that I want to juxtapose, for what they say about the world we find ourselves in today and about the risks and challenges facing us.
Personally I'm tired of waiting. Like sitting in the dental chair knowing that the root canal is coming but delay then delay then delay....Just get it over with already. Bring on the crash, whatever form it takes. We won't see the kind of revolutionary transformation needed to clean out the gangsters without a cataclysm of some kind, so just bring it on. Anyone who isn't ready by now is never going to be ready.
I'm an old-timer, but I wonder if any of you have heard of value investing, price-earnings ratios or book value? How about some old Wall Street maxims, such as trees don't grow to the sky. Or maybe that the market runs on two emotions-either greed or fear. Things have a life of their own, and it is wonderful to assume intelligent heads are coping with the problem, one way or he other, but when we hit the iceberg we will claim in retrospect it was some 'black swan' or other. Of course the Captain of the 'unsinkable' Titanic could have slowed down, but he didn't and it is probably too late to rescue our system by making hard decisions. We now have record public and private debt, an economy where everything but productivity dictates policy and an intolerance to pain. Of course the globalists, the politicians and the crony capitalists like to think they are gaming the system, but should the entire system fail they will be the ones jumping out of windows. Things were much healthier when the market crashed in 1929, and our new 'new deal' will guarantee an even greater 'great depression'.
Ooh yeah it's a big mystery, that "monetary policy". Central Banks are a fraud. They were a fraud when they were started, have never stopped being a fraud, are now a fraud, and will be a fraud forever. They are not needed, nor their "monetary policy." Like all things , banking is least corrupt when it is decentralized, distributed, localized. The corrupt central banks have drained ALL the value out of the currency with their "policies" and now they are trying to pretend they didn't cause the problem that will consume us all. Can't wait for all my money to disappear in a digital instant. Prepare yourselves, it's not going to be a cozy life, but it will be a meaningful one all the same.
The Fed has boxed itself into a bad, bad spot. Raising interest rates - given the debt levels across the boards - is going to be a big problem, and not just for Xi or “developing countries.”
If they raise rates, they raise the cost of serving the debt, and at the levels we are at now potentially could crash the dollar.
If they dont raise rates, our inflation potentially goes hyper and they crash the economy.
The problem with this type of postulation is it overlooks the one consistent when it comes to income inequality - access to genuine education.
The type of economic system does NOT drive income inequality. The inequality of educational access does.
The type of economic system absolutely dictates the quality of life for the bottom 50% - where higher quality of life at the bottom is universally better the more private capital is free. The quality of life is worse the more a government engages in excess regulation and redistribution. Importantly, European economies do not redistribute - their taxes are flat to regressive and people pay for their own government benefits.
Don’t believe me? Look up the most unequal places in the country, then look at the literacy rates (hint, NY and CA are both below WV).
Monetary policy doesn’t determine income inequality, though it can drive wealth inequality. Economic system drives quality of life for the masses, and equality of access to high quality education drives what percentage of people share in the good life.
It takes time and trends for these things to work their way through. It is no coincidence that the rise in income inequality began about 10 years after SCOTuS outlawed poor kids going to Catholic school in the governments dime - as my 72 year old father from an impoverished abuse alcoholic home was able to do.
You really oughta give this guy a listen if you want to cut through the BS of monetary policy. Richard Werner is the Robert Malone of Quantitative Easing.
So you don't think shipping manufacturing overseas and financializing the economy has anything to do with inequality? I'm not arguing that education isn't a major factor, but I believe there are other factors beyond education.
Oh, I absolutely do. With the signing of the WTO, we handed redistributed income producing capital, mostly to poor Asian countries, with no care or concern for what would happen to the people here. It was a huge government incentivized redistribution program - redistributing capital out of the United States. I was a kid when it happened, but it drives a lot of international tax policy to this day (greatly disfavoring the US absent a VAT tax).
I wish I had kept my deleted Facebook account because before the 2020 election I told several people that we were going to have to deal with inflation either way but electing Biden would put it into hyperdrive inflating financial assets for those of us who have them, and expenses for everyone. But that impacts wealth inequality more than income inequality. I was writing this at the time to largely broke middle-income people hoping they'd consider the actual outcomes of Biden's plans, which have been far more painful for them than for me. Most of them didn't....
What I've noticed on education is more of a pattern related to the concentration of income spread reducing inequality how income gets divided up that is rarely discussed. The countries with the least income inequality tend to favor school choice and have very good educational systems. The further down you go, the more access is divided between the haves and the have nots - who can afford the educational opportunities v who can't.
Three of the 5 US states with the highest income inequality, are also in the bottom 5 for literacy. Obviously, there is a lag for kids growing up, and population mobility to consider, but I think it's a big impact. Especially correlating the improvement in eastern European countries relating to income inequality with the school systems that have improved dramatically over the same time period ours has failed. I also like to look at Taiwan, but I don't see it on the list this year.... maybe I'm just missing it. weird.
Personally I'm tired of waiting. Like sitting in the dental chair knowing that the root canal is coming but delay then delay then delay....Just get it over with already. Bring on the crash, whatever form it takes. We won't see the kind of revolutionary transformation needed to clean out the gangsters without a cataclysm of some kind, so just bring it on. Anyone who isn't ready by now is never going to be ready.
I'm an old-timer, but I wonder if any of you have heard of value investing, price-earnings ratios or book value? How about some old Wall Street maxims, such as trees don't grow to the sky. Or maybe that the market runs on two emotions-either greed or fear. Things have a life of their own, and it is wonderful to assume intelligent heads are coping with the problem, one way or he other, but when we hit the iceberg we will claim in retrospect it was some 'black swan' or other. Of course the Captain of the 'unsinkable' Titanic could have slowed down, but he didn't and it is probably too late to rescue our system by making hard decisions. We now have record public and private debt, an economy where everything but productivity dictates policy and an intolerance to pain. Of course the globalists, the politicians and the crony capitalists like to think they are gaming the system, but should the entire system fail they will be the ones jumping out of windows. Things were much healthier when the market crashed in 1929, and our new 'new deal' will guarantee an even greater 'great depression'.
Ooh yeah it's a big mystery, that "monetary policy". Central Banks are a fraud. They were a fraud when they were started, have never stopped being a fraud, are now a fraud, and will be a fraud forever. They are not needed, nor their "monetary policy." Like all things , banking is least corrupt when it is decentralized, distributed, localized. The corrupt central banks have drained ALL the value out of the currency with their "policies" and now they are trying to pretend they didn't cause the problem that will consume us all. Can't wait for all my money to disappear in a digital instant. Prepare yourselves, it's not going to be a cozy life, but it will be a meaningful one all the same.
The Fed has boxed itself into a bad, bad spot. Raising interest rates - given the debt levels across the boards - is going to be a big problem, and not just for Xi or “developing countries.”
If they raise rates, they raise the cost of serving the debt, and at the levels we are at now potentially could crash the dollar.
If they dont raise rates, our inflation potentially goes hyper and they crash the economy.
There is no easy way out now.
The problem with this type of postulation is it overlooks the one consistent when it comes to income inequality - access to genuine education.
The type of economic system does NOT drive income inequality. The inequality of educational access does.
The type of economic system absolutely dictates the quality of life for the bottom 50% - where higher quality of life at the bottom is universally better the more private capital is free. The quality of life is worse the more a government engages in excess regulation and redistribution. Importantly, European economies do not redistribute - their taxes are flat to regressive and people pay for their own government benefits.
Don’t believe me? Look up the most unequal places in the country, then look at the literacy rates (hint, NY and CA are both below WV).
Monetary policy doesn’t determine income inequality, though it can drive wealth inequality. Economic system drives quality of life for the masses, and equality of access to high quality education drives what percentage of people share in the good life.
It takes time and trends for these things to work their way through. It is no coincidence that the rise in income inequality began about 10 years after SCOTuS outlawed poor kids going to Catholic school in the governments dime - as my 72 year old father from an impoverished abuse alcoholic home was able to do.
Here are the countries by income inequality.
https://worldpopulationreview.com/country-rankings/income-inequality-by-country
You really oughta give this guy a listen if you want to cut through the BS of monetary policy. Richard Werner is the Robert Malone of Quantitative Easing.
https://www.georgegammon.com/professor-richard-werner-drops-hard-truths-on-the-rebel-capitalist-show/
So you don't think shipping manufacturing overseas and financializing the economy has anything to do with inequality? I'm not arguing that education isn't a major factor, but I believe there are other factors beyond education.
Oh, I absolutely do. With the signing of the WTO, we handed redistributed income producing capital, mostly to poor Asian countries, with no care or concern for what would happen to the people here. It was a huge government incentivized redistribution program - redistributing capital out of the United States. I was a kid when it happened, but it drives a lot of international tax policy to this day (greatly disfavoring the US absent a VAT tax).
I wish I had kept my deleted Facebook account because before the 2020 election I told several people that we were going to have to deal with inflation either way but electing Biden would put it into hyperdrive inflating financial assets for those of us who have them, and expenses for everyone. But that impacts wealth inequality more than income inequality. I was writing this at the time to largely broke middle-income people hoping they'd consider the actual outcomes of Biden's plans, which have been far more painful for them than for me. Most of them didn't....
What I've noticed on education is more of a pattern related to the concentration of income spread reducing inequality how income gets divided up that is rarely discussed. The countries with the least income inequality tend to favor school choice and have very good educational systems. The further down you go, the more access is divided between the haves and the have nots - who can afford the educational opportunities v who can't.
Three of the 5 US states with the highest income inequality, are also in the bottom 5 for literacy. Obviously, there is a lag for kids growing up, and population mobility to consider, but I think it's a big impact. Especially correlating the improvement in eastern European countries relating to income inequality with the school systems that have improved dramatically over the same time period ours has failed. I also like to look at Taiwan, but I don't see it on the list this year.... maybe I'm just missing it. weird.
I get it.