The Empire stands out back, protecting what actually counts, and the Billionaire Bubble sideshow is folding its tents.
One of the most long-lasting conceits of the modern-day period is that the Federal Reserve acts to goose development and therefore work while keeping inflation moderate (whatever that indicates– the definition is adjustable). This conceit is incredibly useful as PR cover: the Fed truly, truly appreciates little old us and broadening our ballooning wealth.
Good, except it does not. The Fed’s one genuine task is defending the U.S. dollar, which is the structure of America’s global hegemony a.k.a.
The Empire. Something and something alone makes it possible for global supremacy: having the ability to develop “cash” out of thin air and utilize that “money” to purchase genuine things in the real world. The countries that can produce “money” out of thin air and trade it for magnesium, oil, semiconductors, etc have an unsurpassable benefit over nations that should in fact mine gold or make something of equivalent worth to trade for fundamentals.
The technique is to maintain worldwide confidence in one’s currency. There is no one way to handle this, as self-confidence in a herd animal such as human beings is always contingent. When the herd gets skittish, all bets are off.
The herd is exceptionally conscious movements on the edge of the herd, where threats occur. There are different techniques one can deploy to keep self-confidence: pay a higher rate of interest on bonds denominated in one’s currency, so worldwide capital flows into your currency; treat this capital well with a transparent set of tax laws and judiciary/ regulative oversight, maintain a deep swimming pool of liquidity so capital can get in and leave without stampeding the herd, and having at least a semi-productive, varied economy that generates products, services and income streams to support the currency.
There is a mechanism for soothing the herd, and it’s called the market. Narrative control (i.e. propaganda) might deal with the weak-minded in the herd, who are subsequently picked off by hungry predators, but natural selection favors those who search for cues from what can not be manipulated or glossed over– an unfettered market.
Markets are only credible to the degree they are unfettered. Currency pegs and other gizmos can be changed overnight, so they are inherently unreliable. What makes markets trustworthy are: openness, liquidity (i.e. having the ability to purchase and sell instruments in virtually endless amounts without stampeding the herd) and the cost discovery of threat, as danger is the crucial factor of the herd’s motion.
Turning to worldwide supremacy– let’s ask one concern and one only: which nation pegs its currency to another’s currency, and who owns that currency? Does the U.S. peg its dollar to the mighty RMB? No, it’s the other way around: China pegs its RMB to the USD. China’s capability to develop “cash” out of thin air is based upon its peg to the U.S. dollar, not since the worth of its bonds and currency have actually been discovered by unfettered international markets.
To unpeg its currency, China would have to relinquish control of its sovereign bonds and currency and let the market discover its cost and threat structure. This is the tradeoff: if you want to make the confidence of the herd, you must relinquish control to the unconfined worldwide market. Otherwise, the herd will always be skittish due to the fact that risk is nontransparent and for that reason safety is evasive.
The agreement seems to be that the Fed’s only genuine task is maintaining the Billionaire’s Bubble in stocks. But from the point of view of preserving global hegemony, the Billionaire’s Bubble was a sideshow of hucksters and carnies. The real policy goal was moneying the empire’s large spending and not enabling the USD to rise excessive or too quickly, as this tends to destroy weaker currencies, stampeding the herd.
Today it’s time to suck in worldwide capital by raising rates, and let nature cull the herd. The variety of pundits revealing that the Fed will never ever raise rates, that the Fed can’t raise rates because the precious Billionaire’s Bubble would break and the Fed would never, ever, ever let its valuable Billionaire’s Bubble burst, is legion. However they’re incorrect, alas, for the Fed’s task isn’t to enrich billionaires, it’s to preserve the self-confidence of the herd in the USD.
The valuable Billionaire’s Bubble is already breaking, and all those making money from the bubble broadening are pawing the ground nervously, scared of being selected off by prowling predators.
Pick one, but just one: you can’t defend the Billionaire Bubble and the USD/ Empire. Begin, it’s not that hard a decision, is it? What matters more, keeping worldwide hegemony or phantom wealth!.
?.!? The Empire is striking back, protecting what actually counts, and the Billionaire Bubble sideshow is folding its tents. Best to take your prizes home prior to it rains.
My brand-new book is now available at a 20 % discount this month: Global Crisis, National Renewal: A(Revolutionary)Grand Strategy for the United States(Kindle$8.95, print$20)If you discovered value in this material, please join me in seeking solutions by becoming a$1/month client of my work through patreon.com. Recent Videos/Podcasts: Entropy magnifies (26:52 min., with Max Keiser)Tune in( to degrowth ), drop out(of hyper-consumerism and
debt-serfdom )and switch on(relocalizing capital and company) The Reserve bank System Has Failed, It’s Time To Redraw America’s Grand Strategy(39 min) Jay Taylor and I talk about why Inflation is a Runaway
Freight Train(21 minutes)
Grand Method for the United States(Kindle$ 9.95, print$25 )Read Chapter One free of charge (PDF)
. A Hacker’s Teleology: Sharing the Wealth of Our Diminishing World (Kindle$8.95
: Earnings, Power, and AI in a Traumatized World
(Kindle$5, print
Drake$1.29 Kindle,$8.95 print); checked out the very first chapters free of charge (PDF)Cash and Work Unchained $6.95 Kindle,$15 print)Read the very first area free of charge Become a$1/month customer of my work by means of patreon.com. NOTE: Contributions/subscriptions are acknowledged in the order received. Your name and e-mail stay private and will not be offered to any other individual, company or firm. Thank you, Ron G.($50), for your superlatively generous contribution to this site– I am considerably honored by your steadfast support and readership. Thank you, Gavin B.($50), for your splendidly generous contribution to this website– I am significantly honored by your assistance and readership
. Thank you, Jay M. ($5/month ), for your most-excellently generous promise to this website– I am greatly honored by your assistance and readership. Thank you, Greg V.($5/month), for your supremely generous promise to this site– I am significantly honored by your support and readership.