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There are two ways to help 'fuel' a Business Cycle. One way is inflation of wages and prices. This is how inflation and real growth was fueled after WW2 until 1965. Business does not like this, because business (Wall Street) has to pay for this type of visible inflation.
The second way, which Wall Street LOVES, is through debt inflation or invisible inflation, keeping wages low, and steady lowering of interest rates, since consumers have to pay for this, while Wall Street keeps more and more wage-gains and price-gains for itself.
The perfect world for Wall Street is lower costs (wages) and higher profits -- AND, this is a key, more debt for consumers, so they continue to buy more Wall Street products and products necessary to life (not all Wall Street products are necessary to life) and they become more and more enslaved to the debt game, which Wall Street controls. Slavery of the world. Of course, the end of this is death by crisis, massive default, the destruction of the banking system, social implosion, revolution. But it is a wild ride of ever-growing wealth for Wall Street, and her accomplices in government. To hell with the rest of us. The world is a kind of inert helpless being to which Wall Street rigs up a derrick and sucks as much wealth as it can until the world dies.
Wall Street is dracula. They convince us they are the world's heroes. They rob they bank. Then they make their get-away.
Anyway, that is where we are now. Wall Street, through low interest rates, is sucking as much wealth as it can out of companies it will leave for dead (what is share buy-back all about, if not vampirizing public companies before the big get-away?) -- note how the FED abets this final process of public extortion of wealth with ambiguous clinical euphemisms such as NIRP, QE, ZIRP.
Lower rates are the panic of a ruling class afraid they will lose what they have gained during the succeeding Business Cycle. The euphemism is 'extending the Business Cycle'. The truth is theft on a massive scale. Time has run out. Everyone begins to back up the trucks and steal as much as they can. The FED assists in this process.
QE, ZIRP, NIRP steals money from the future to try to cheat God. There is no economic recovery. That is a lie. The argument that we need lower rates to spur more growth is a lie. The economy does not grow when it is dead. And the economy is dead by definition. It died in 2001. It will live again, but not without the Deflation Cycle, which is as vital to the process as is the Growth Cycle. Deflation is sanity. Hyperinflation is madness.
there are two ways to help 'fuel' a business cycle. One way is inflation of wages and prices. This is how inflation and real growth was fueled after ww2 until 1965. Business does not like this, because business (wall street) has to pay for this type of visible inflation.
The second way, which wall street loves, is through debt inflation or invisible inflation, keeping wages low, and steady lowering of interest rates, since consumers have to pay for this, while wall street keeps more and more wage-gains and price-gains for itself.
The perfect world for wall street is lower costs (wages) and higher profits -- and, this is a key, more debt for consumers, so they continue to buy more wall street products and products necessary to life (not all wall street products are necessary to life) and they become more and more enslaved to the debt game, which wall street controls. Slavery of the world. Of course, the end of this is death by crisis, massive default, the destruction of the banking system, social implosion, revolution. But it is a wild ride of ever-growing wealth for wall street, and her accomplices in government. To hell with the rest of us. The world is a kind of inert helpless being to which wall street rigs up a derrick and sucks as much wealth as it can until the world dies.
Wall street is dracula. They convince us they are the world's heroes. They rob they bank. Then they make their get-away.
Anyway, that is where we are now. Wall street, through low interest rates, is sucking as much wealth as it can out of companies it will leave for dead (what is share buy-back all about, if not vampirizing public companies before the big get-away?) -- note how the fed abets this final process of public extortion of wealth with ambiguous clinical euphemisms such as nirp, qe, zirp.
Lower rates are the panic of a ruling class afraid they will lose what they have gained during the succeeding business cycle. The euphemism is 'extending the business cycle'. The truth is theft on a massive scale. Time has run out. Everyone begins to back up the trucks and steal as much as they can. The fed assists in this process.
Qe, zirp, nirp steals money from the future to try to cheat god. There is no economic recovery. That is a lie. The argument that we need lower rates to spur more growth is a lie. The economy does not grow when it is dead. And the economy is dead by definition. It died in 2001. It will live again, but not without the deflation cycle, which is as vital to the process as is the growth cycle. Deflation is sanity. Hyperinflation is madness.
QE, ZIRP, NIRP steals money from the future to try to cheat God. There is no economic recovery. That is a lie. The argument that we need lower rates to spur more growth is a lie. The economy does not grow when it is dead. And the economy is dead by definition. It died in 2001. It will live again, but not without the Deflation Cycle, which is as vital to the process as is the Growth Cycle. Deflation is sanity. Hyperinflation is madness.
What deflation does to the economy has to be done in order to achieve health. What deflation does is it clears out debts. That bill has to be paid. You can't get around it.
Increasing wages without the issuance of new debt does the same thing. But it will tend to do it at full employment or achieve that stat much sooner. It has the advantage of having all the existing debts be good. Deflation will have a large percentage of them written off as bad. That will fail the banks, the banks have political power currently, so we won't get deflation as long as the banks have power. Upping wages will preserve the banks power and restore health to the economy. If the powers that be want to maintain their current position they will radically increase wages, the tool I see is the minimum wage law.
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