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“Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis” is the title of one of the many executive orders President Trump issued in his first week back in the Oval Office. This executive order directs federal agencies to “deliver emergency price relief” to the American people by reducing federal regulations that increase the cost or limit the supply of healthcare, housing, energy, and other goods and services.
Repealing regulations is an effective way to reduce costs and increase supply in the affected industries. However, the price increases caused by regulations are sector specific. Economy-wide price increases are caused by the Federal Reserve.
Widespread price increases are the result of inflation. Inflation occurs when the central bank lowers interest rates by increasing the money supply.
In his remarks by video on Thursday before the World Economic Forum’s yearly meeting in Davos, Switzerland, President Trump said he would soon meet with Federal Reserve Chairman Jerome Powell to “demand” the Fed cut interest rates in order to help Americans cope with high prices. Pumping more money into the economy may give some consumers a temporary boost in purchasing power, but a long-term effect of the cut will be further erosion of most Americans’ standard of living as the influx of new money causes the dollar to lose value.
The short-term benefits of any increase of the money supply and reduction in interest rates are mostly felt by the well-off since they receive the new money before other Americans. So they enjoy increased purchasing power before the Fed’s inflationary policies cause prices to rise.
Interest rates are the price of money. As with all prices, interest rates inform market actors about market conditions. When the central bank manipulates the interest rates, it distorts the signals sent to market actors, causing misallocation of resources. The result is a “bubble” that produces a short-term boost in employment and incomes. However, the bubble will eventually burst, causing a recession. Just as middle- and lower-income Americans suffer most from the Federal Reserve-caused price increases, they are the primary victims of the Federal Reserve-caused recession.
The best thing Congress and the Federal Reserve can do when a bubble bursts is let the recession run its course. Recessions are necessary to remove the distortions caused by the Federal Reserve’s easy money policies. Of course, Congress and the Federal Reserve refuse to take the sensible, though politically difficult, path. Instead, they set the stage for the next bubble via “stimulus” spending and low interest rates.
President Trump claims he knows more about interest rates than does Federal Reserve Chair Jerome Powell. Whether or not President Trump’s experience in real estate development (a business that is very sensitive to changes in interest rates) makes him more of an expert on interest rates than Chairman Powell is beside the point. No politician, bureaucrat, or central banker can know the correct interest rate. The only way to know the correct rate is to allow individuals acting in a free market to set the interest rate.
Despite his misunderstanding of monetary policy, President Trump deserves credit for publicly criticizing the Federal Reserve. President Trump should follow through on his critiques of the Fed by working with Congress to pass the Audit the Fed bill and legislation allowing people to use alternatives like precious metals and cryptocurrencies.
Restoring a free market in money is key to fulfilling President Trump’s inaugural pledge to bring about a new golden age.
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Dr Ron Paul states in the article:
As always, Dr Paul is completely correct.
The U.S desperately needs much higher interest rates.
A Fed Chairman with guts would raise the Fed Funds Rate to a minimum of 10% straight away.
This would liquidate the bad debts and liquidate those businesses that should never have come into existence in the first place.
This frees up the finite resources and savings of the nation so that these funds can be loaned to businesses with a commercially viable business model.
“Money”, worthless papers, or even more worthless zeros, are the function which create the state, of worthless parasites.
One of the best books I have read, are Ira Levin’s “This Perfect Day”, which describe a totally castrated population, which submit to supercomputers hidden in a cave, and a oligarch, Marxist, with transplanted head onto a athletes body.
He thinks its fun to have the computers 😉
Dr. Paul’s working presumption here is that all these “market actors” are “rational.” Nevermind the lack of any real evidence to support the belief that these people are somehow different in that manner from the muddled masses of actors in every other sphere of captive Human activity. Ignore all the very compelling evidence that while “rational”-izing is something our domesticated Human Relations obviously excel at, sensible behavior is hardly their strong suit. Else how come they’re in such dire straits right now?
The Libertarian panacea for what ails “America,” ie. “End the Fed,” has the same appeal that simplistic “solutions” always have. They require no comprehensive examination of the overall context they’re supposed to operate in. The Fed itself is so thoroughly entangled in every area and aspect of actual here-and-now “America,” that trying to extricate it without inducing systemic collapse would require feats of financial legerdemain far beyond the talents of even The Wizard of Omaha.
The System can no more tolerate letting “the market” determine “the cost of money,” than it can allow farmers to be the sole “free market” deciders of whether foodstuffs are shipped to The City. Such pie-eyed notions always look great on-paper, and in that perfect world where everyone can always be relied on to “Do the right thing!” who wouldn’t prefer it? The thing is, in that world there’d be no need for “money” or “interest” or any of the rest of the philosophical BS the “money”-shackled have to invent and then contend endlessly with, anyhow.
What Dr.Paul is wishing-for here is the same ol’-same ol’….to have his free market cake and to eat as much as he wants of it, too. How that is supposed to work here in our actual Natural Free Wild LivingLoving Arrangement of Earth and Sky, where no one is paying the actual Sources of Everything even so much as a little R-E-S-P-E-C-T, none among them dares to say. Could be The Fed is just Nature’s Way of waking our zombified “civilized” Sisters and Brothers up to the Natural Facts of the condition their Condition is in. That sure makes a lot more sense here in Indian Country than the blizzard of gobbledegook wasted on futile and vain attempts to explain to the General Population what is completely inexplicable except as evidence of rampant insanity.
Interest rates are a smokescreen. What matters is credit creation. Whoever gets the money determines what the effects are. If the money goes to home loans, you get a real estate bubble. If the money goes to manufacturing, you get more production from that sector. If the money goes to consumers, you get inflation.
This is how central banks create bubbles and crashes, and they’ve been doing it for longer than any of us have been alive. They then use the crises to achieve their sinister goals, like the New Deal following the Great Depression.
By all means call out the central banks and let’s have transparency, audits and reform. But don’t fall for the interest rate BS.
Read “Princes of the Yen” by Prof. Richard Werner, Quantum Publishers.
With respect (you’re the only person I’ve ever campaigned for) it’s the reverse: lowering the interest rate creates more money. 94% of all dollars are generated through mortgages and double-entry bookkeeping. When I bought my house 37 yrs ago, interest rates were almost 20%. As they wobbled down, never in a straight line, each percentage drop raised the price of the house that could be financed with the exact same monthly payment–doubling and tripling it by the time it reached 3%. I chart this in my book, How to Dismantle an Empire: https://www.amazon.com/How-Dismantle-Empire-2020-Vision/dp/1733347607.
According to Benjamin Franklin, the problem for which the Revolutionary War was fought was that the American colonies were forbidden to issue their own currency. Only bankers could. As we know, this victory was short lived. First the Constitution forbid the States from issuing currency, even to pay the back wages of veterans whose farms were being foreclosed for back taxes: https://thirdparadigm.substack.com/p/the-constitution-coup.
And then, of course, the Fed usurped ownership of all property and the right to issue credit against them. Cryptocurrencies and precious metals won’t change this, unless people have to spend a lifetime saving before they can buy a house to raise a family. Debt isn’t the problem, the problem is who can issue that debt. My book explains how communities could be empowered to issue both the debt and the credit to repay it as monthly dividends, used for locally produced food, wellcare, education and home improvements. And using the local mortgages to back Social Security so that it remains a viable pension for the ordinary person forever.
The biggest problem with America, the world, is there are too many people for the available resources, in my lifetime U.S population has nearly doubled, the world population will probably have trebled by the time I die.
If the strain is to be taken off people they will have to learn how to live in extreme environments, that takes energy, lots of it, do we have the energy needed?
Fusion energy is the energy of the future, and always will be goes the joke. There doesn’t seen to be an alternative to fossil fuels and fusion. All this green energy nonsense never tells the full story of energy in energy out, hydrogen has hit that barrier that’s why it’s no-longer the darling of the left.
Energy is king and until we find a cheap alternative to fossil fuels then we really should control our population, and Trump is probably right on Greenland, we either have to develop it to take the strain off other parts of the globe or reduce population. I wonder how Sub Saharan Africans would go in Greenland?
“Creates more money” 😉 I think this is so funny, I thought it was the printing press that created “money” 😉 Nowadays its of course the banksters which create zeros, so the computers gloves.
As more zeros, as more the “Jews” can demand for the land we are supposed to somehow be “citizens” in, the more they can wipe the working slave cast to create shit that nobody want.
Its probably not only the poison shots in the fake Pandemic which create those three foots blood clots, when bees fall dead to the ground in the vicinity of 5G antennas, the death cult are close to reach its goal.
Blow up the Atlantic cables, so we get rid of the murderous clowns.
Banksters have succeeded in circulating vacuum-backed digital and paper currency as money; this “money” is condensed into existence out of thin air, and carries the perpetual interest drag. Of course this model is unsustainable after a few decades, as it needs destruction of interest burden every few years but the banksters refuse to let that natural remedy and reaction to their concocted “money” cleanse the economy. The result is that the same result is achieved through physical destruction of war, demolition and wasted production.
The same paper “money” can be created by a government treasury too, thus reducing the interest burden very much, but the banksters have successfully eliminated anyone who tried this simple alternative in the past two hundred years – Napoleon, Lincoln and Hitler being the most prominent examples. However, they failed to anticipate that China would resort to this heresy, but China had quietly done it, and achieved unbelievable prosperity (note that the trio mentioned above also led their economies to great prosperity; the drag of the interest burden grows exponentially over decades and is the number one cause of poverty).
Of course there are other alternatives – metal discs of uniform weight being the best known alternative, but it is too uncontrollable for the control freaks to countenance. Moreover, they have certain natural restraints – availability, for instance. Another misguided attempt is the Bitcoin – a completely useless token that people prefer over the FED issued papers, showing the desperation of the people to get out of the clutches of the banksters.
The major problem with the Gold Standard is that the economy and technology move continuously towards reducing the cost of manufacturing; thus one ounce of gold buys more and more goods as time goes by – it could now buy, for example, a million times more computing power, or a few thousand times more plastic, a few times more food, clothes, etc. Thus a Gold Standard economy is naturally deflationary when technology improves. This is very counterintuitive for the stupid humans who insist on collecting rent for the money they loaned. If a man borrows ten ounces of gold in 1960, when an ounce of gold could buy 10 kg of plastic, he has to probably repay it in 1990 with twenty ounces of gold, which may be equal to 1000 kg of plastic. Thus a debtor has to work much harder to repay the loans. The simple solution would be to make the interest negative, but this is an abomination no “sane” human could even think of. Thus, a Gold Standard is doomed not because of the scarcity of gold, but because, as technology improves, the same quantity of gold gets immense purchasing power, which goes heavily against the borrowers; the world being about 99.9% borrowers, this solution would heavily benefit the remaining 0.1% (Gold Standard was imposed on the world through Europeans only in the 19th Century; even then the two largest economies of the day – India and China – were not on that Gold Standard but Silver, because they needed huge quantities of money for circulation, and there was not enough gold around for that, so chose the Silver Standard over centuries; it is a fascinating topic, but not the one we are on now).
Thus, to counteract the continuous increase in the purchasing power of money in an economy where productivity keeps on increasing, we need to debase the currency continuously; thus inflation is inevitable when the population increases and technology improves. This decision cannot be left to the market, as it will result in complete chaos when the lender and borrower cannot agree upon how much the loan is worth now – the lender would say $1 of 2000 should be equal to $2 now, and the borrower would counter that $1 in 2025 buys a lot more. (explanation: this example works only when the currency is not debased; in our real life we have inflated the $$$, so this example does not work). Therefore there must be a central decision on how much the money has to be inflated. Now who should wield that power?
The greatest question before the economists of the early 20th century was: “Should the medium of exchange and store of value be one and the same?”; Keynes famously said “No”, thus severing the link between gold and $; now the dollar is medium of exchange, and gold, store of value.
The greatest economic question of our times is: “Who should have the power to create money in an economy, and how much money should be created?”.
Let us wait and see the answer. But my surmise is the answer would be: “The government; the newly created money should offset the taxes; and a proportional quantity of money, say 2% of the GDP, should be created every year”. I think Friedman proposed a solution of creating a fixed amount of money every year.
America is Great, so gigantically Great that never before in the satanic-evil history of this depraved planet, which is ruled by the most satanic-incest bastards, has there been such a Great piece of the most satanic and most stinking Shit.
The fact that the other parts of the world are not populated by “angels” can be disregarded for the moment.
It had to come this far/ to become totally inhuman, resp. satanic, i.e. that all state powers, national and international leading organizations & institutions, including jurisdiction, self-prostitute themselves in such a primitive, evil and satanic way, so that all conditions are fulfilled … for the great ANNIHILATION … worldwide, completely/ irreparably, i.e. forever and ever.
The End of the (Hi)Story.
Although you (the vast majority of you) cannot imagine it today, this is how it will be, and not otherwise, absolutely and under no circumstances otherwise. Even if all, absolutely all the armies of this depraved world were to unite to prevent it, they could do absolutely nothing, not the slightest thing, to thwart our soon to be accomplished plan.
This is the Promise of “A Truly Mighty One”, which I am merely delivering to you at His command.
WTC, 9/ 11 was an Inside Job/ Big Crime of Mossad, CIA & Co. Irrefutable Proofs https://mile7bar.substack.com/p/wtc-911-the-big-deception
The Founding of the satanic USA on the jewish-satanic-masonic foundation and its unchanged satanic existence to this day – but NOT for much longer! https://mile7bar.substack.com/p/the-founding-of-the-usa-on-the-jewish
PS: If anyone on this planet could think/ believe that we will allow these totally perverted and now totally publicly acting most satanic incest bastards to establish their most satanic NWO, murder 90% of the earth’s inhabitants and zombify and totally enslave the remaining 10%, then he is not equal to his hairy brothers, but to amoebas.
Most of the population growth in America over the last sixty years has been from immigrants and their descendents. The Americans with a longer history here downsized the number of children they were having to replacement level.
I am old enough to remember the more lightly populated America of sixty years ago and it was a pleasant place to live. However, pollution in many big cities back then was worse than it is now. The environmental movement was a response to a real problem. However, it has gone too far. Rather than trying to lower pollution to make life better for humans, in some cases it has become anti-human by wanting to return to a pre-industrial era.
So, ‘naturally deflationary’ is a bad thing?
What Orwellian world do you live in, where up is down, black is white, and good is bad?
Deflation is an unambiguously GOOD THING.
And, absent reckless money printing by way of the Fiat Monetary experiment, deflation is the NATURAL ORDER OF THINGS.
You see, as humans learn how to use manufacturing processes that are faster, employ more efficient ways of making things, they can make the same product of yesteryear using less labour, using less inputs (like energy), and make things better/longer lasting/less likely to oxidise or rust, using advances in metallurgy and so forth.
When the U.S (and the advanced nations of the world) were on the Classical Gold Standard during the 19th century for example, a dollar in 1900 had much more purchasing power than it did in the year 1800. In other words we had DEFLATION and incredible growth/improvement in the living standards of the common man.
And this was achieved in the context of workers in 1900 earning far more dollars in nominal terms than they were earning in 1800 – so a total WIN/WIN on all metrics.
Mr Brown Fella, you have much to learn about how a Gold Standard really works and how it is the ultimate panacea to combat chronic inflation, resulting in a far more prosperous and peaceful world (on a gold standard it is far more difficult – in fact near impossible – to fund those endless wars and murderous activities that the Anglo-Zionist empire is known to indulge in).
I wish you well on your journey of enlightenment, because you have much to learn.
(HINT: Stop reading those ZOG dictated books that naturally go out of their way to smear the Gold Standard.
There is a REASON that Malignant International Jewry hate the Gold Standard with a passion. And that’s because under that system, they would not be able to endlessly conjure scores of trillions out of thin air, as they presently do, to dole out to themselves and their Talmudic cronies.
A Gold Standard, by definition, entails FISCAL and MONETARY RESTRAINT.
And that’s a good thing.
Inflation also occurs when greedy merchants, landlords et al decide the “free market” means they are free to increase their profit margin. Whadda ya gonna do, refuse to eat or drive or live indoors in protest? Government’s decision not to exercise its legitimate oversight power “to promote the common welfare” that is promised in our Constitution is not the absence of regulation but tampering with the economy at the most basic level by stacking the deck in favor of the wealthy.
Despite the deregulation prattle of neoliberalism, capitalism and the wealthy depend on the state and legal statutes. It is the state that issues money – the ultimate exchange object. The state regulates commercial transactions by providing a legal framework. The state’s property ownership statutes enable property and wealth to exist. Without legally secured property, there could be no capitalism. The state’s copyright laws protect goods and services from being copied. If anyone could copy any product and sell it, capitalism would end very shortly. A state’s laws form the invisible scripts that run in the background of capitalism. Legal statutes also create and ideologically justify the most unfortunate consequences of capitalism, inequality. All impediments to equality are deadly to functional democracy.
Without even realizing it you have made a rational argument against government as it exists. I will add the answer is market determined currency and voluntary association(yes government too).
I’ll tell you exactly what I’m ‘gonna’ do. I’ll go elsewhere, and patronise another merchant that offers a good product or service at a sensible price.
Of course, there are situations where all merchants in a particular sector of the economy, across the WHOLE NATION, put their prices up in unison – like during the Covid Psyop.
WHY THE EFF do you think that is? It’s because their INPUT COSTS rose in unison.
Did every eff’n one of them, in all 50 states, collude to form a cartel?
Take the Covid Psyop for example. Big Gubmint intervened and was actually paying people MORE TO STAY AT HOME than go to work.
So guess what? They stayed home.
Meanwhile, employers could not find workers to fill positions.
And to the extent that some could find staff, they had to pay higher wages to entice workers back to work. These higher input costs were passed on to the consumer as higher retail prices.
But many employers could not find workers even with the enticement of higher wages.
So they just continued operating understaffed and thus manufactured LESS OUTPUT.
And when there is less SUPPLY of something but the DEMAND is unchanged, that entails higher prices.
But Marxist nitwits like yourself that have never run a business in their lives, will instantly shout:
‘Greedy Capitalists, raising prices as usual’.
You have NO EFF’N IDEA about market realities.
Mr Lack-of-Observation, your cartoonish views of Capitalism do not correspond to real world situations where unfettered Free Market Capitalism (or something near enough to it), is actually practised.
What you’ve stated above comes straight out of a Marxist textbook, full to the brim with leftist nonsense that has never worked in the real world (other than in command economies like the example below):
The example you mentioned DID EXIST in some societies in living memory (and perhaps still exist in some sub-Saharan Socialist shit-holes).
It existed in the SOVIET UNION – where the all powerful state owned the means of production.
If you wanted a loaf of bread, you queued up for hours at a state run bakery and perhaps had a choice of white bread or dark (rye?) bread.
Sometimes that loaf of bread was over baked and sometimes under baked. Other times they forgot to add enough yeast and it didn’t rise sufficiently, or you’d find the occasional pubic hair in it.
They knew that the customer had no alternative.
The Soviet citizen could try his luck and go to another state owned baker 5 km away and wait in line for a few hours there.
But he might end up with a loaf of bread that was no better (or perhaps even worse), than before.
But unfettered Free Market Capitalism is all about choice. If, by some circumstance, a dozen bakers in a particular region of town colluded and and jacked up their prices by 100%, this situation would not last long.
Someone would open up a bakery and charge say 15% less than the artificially high price offered by the cartel and make a ton of money. Perhaps local residents would start baking their bread at home – and this REDUCED DEMAND would force the cartel of greedy bakers to lower prices to attract the lost patronage.
That is how the Free Market works. The cure for high prices is …. (wait for it) …. high prices.
In the 1970’s the OPEC cartel raised their oil priced fourfold as I recall.
Well, this made it lucrative for marginal oil producing areas of the world, which were not profitable at the previous oil price, to start production and make a ton of money.
In addition, it made investment of billions in exploration for new oil fields a worthwhile proposition – since a successful discovery had the potential for enormous profiits.
And, whaddaya know? Oil was discovered in a ton of places, and soon enough the non-OPEC oil producers were FLOODING THE MARKET.
Oil which had peaked at around USD $40/barrel, COLLAPSED IN PRICE to single digits by the mid-1980’s.
Getting back to the previous example of the bakers cartel that jacked their price up by 100% in a certain part of town, someone who isn’t a baker would see that bread was artificially high in that neighbourhood, and he’d arrange for 1000 loaves to be shipped in a big truck from the other side of town where Capitalism still functioned, and charge even less.
And soon enough others would enter the fray and, before you know it, there would be an OVERSUPPLY of bread in that part of town – resulting in bread being offered to the public at BELOW COST, rather than being left unsold to go to waste.
But of course, in the U.S (certainly in the big end of town), the (((oligarchs))) have colluded with Big Gubmint to prevent new entrants to the market.
They do this through burdensome licensing laws, by enacting a regulatory maze that only big businesses can satisfy, by imposing tariffs and all manner of other impediments that are designed to protect the market share of the established players, and indeed increase their market share.
This occurred during the Covid Psyop, as SME’s (Small and Medium sized Enterprises) were deemed non essential, while the ZOG owned/affiliated Big Box stores stayed open.
That WAS NOT CAPITALISM. That was Crony Corporatism – or Socialism for the rich.
And it could ONLY have occurred through collusion with BIG GUBMINT.
You go on to post an assertion (straight out of a discredited text authored by a rabid Marxist), when you write:
Te reality is that any move by Big Gubmint to interfere with market mechanisms results in DIMINSHING THE COMMON WELFARE.
Let’s face it, Gubmint attracts con men and losers who like to lord over people, to control them.
They like to issue Stalinist-like 5 year plans, build grandiose monuments and waste the finite resources of the nation on boondoggles like subsidies for EV’s, building inefficient solar panels and those bird chipping wind turbines.
Summary: Those in Gubmint, given sufficient funding through money extorted from the productive private sector, almost always pick LOSERS, and thus flush taxpayers money down a rat hole. A stand out example was FDR’s disastrous New Deal, which turned what would’ve been a short/sharp recession into the Great Depression.
Gubmint has only a few tasks that it needs to do. It must provide for a functioning judiciary, a police force and make provision for DEFENCE of the nation (as opposed to military forces for OFFENSIVE purposes).
That’s pretty much it, with perhaps a few peripheral things it could undertake on a shoestring budget and with a limited bureaucracy.
The role of Gubmint is to GET OUT OF THE WAY and allow the private sector to do what it does best. ie: generating wealth for the nation and creating prosperity.
It must ensure that that there are no monopolies like there are now, thus resulting in no particular merchant being able to ‘corner the market’ and charge as they please.
Your assertion that ‘ If anyone could copy any product and sell it, capitalism would end very shortly’, is ASININE in the extreme.
The heart and soul of Capitalism is the Small and Medium sized Enterprises (SME’s).
If a particular SME (say your previous Auto Mechanic), was overcharging you, then you patronise another.
If your local Thai restaurant was still providing a tasty product at a sensible price, but a competitor Thai restaurant was willing to work harder and on a lower profit margin (but still offer a similar or better tasting meal at a lower price), you would patronise the new entrant.
Let’s take the example of a big business that manufactures i-Phones. Let’s assume patent laws were deemed invalid and any manufacturer could copy someone else’s technology and incorporate it into their design. HOW THE EFF would that end Capitalism?
That would in fact supercharge Capitalism, as manufacturers that are presently paying a fee to a patent holder per unit of product manufactured, are now exempt.
With reduced overheads, they are now capable of selling MORE UNITS of the widgets they make by offering lower prices.
The reality is that RIGHT NOW, manufacturers already strip down the product being offered by their competitors, reverse engineer it and slightly modify the technology of the product in question, thus making themselves exempt of infringement of copyright.
You obviously have not put a lot of thought into that remark of yours – as is also evident from the remainder of your comment.
This paragraph is the most discombobulated attempt at simple mathematical thinking I’ve ever seen!
Whaaaa? You started off wrong, I think, is your problem. A free market in money (the use thereof) allows for someone to make whatever deal works for him. You somehow mistake the point of interest, which is not just to make up for inflation – it seems everyone thinks this now, since anyone younger than 60 has seen nothing but inflation his whole life – it’s the price of the use of the money.
Except during wartime, the CPI was steady throughout the 1800s – a whole century. What’d people do, not make loans? Gold and silver were the currency. Why would you be worried that your money would be worth more in the future? Loan out 10 oz of gold for 5 years for the cost of one extra ounce as agreed on – you get 11 oz back, the other party had 5 years in which to use the money productively, paying you back in money that. buys more, so what, who loses?
You’re thinking is … unsound … yeah, what Truth Vigilante said.
‘Separate money and State’??!! The filthy, fecking, Jew-hating, ‘antisemite’!
There NEVER was and NEVER could be a Free Market. As Adam Smith observed, businessmen, ie parasites, always end up co-operating to rip off the serfs. And as Smith’s admirer, Marx predicted capitalism eventually produces oligopolies and monopolies, and is increasing financialised, ie turned into a casino, as the rate of return on capital falls.
But where capitalism causes the greatest damage, and becomes omnicidal, is in its neoplasic drive to grow forever, if only to pay back interest and sate the ever-growing greed of capitalists. That cancer nature presupposes an infinite flow of resources on an infinite planet, which TV believes, also, is flat. All that gets in the way of this delirium, like pollution, is dismissed as an ‘externality’ ie denied, TV’s favourite past-time. So, as we stand within a few decades of destruction in a ‘wet hot-house’ climate apocalypse, ‘libertarian’ turds like TV simply say, ‘No, it’s not. Nothing can go wrong, because Milton Friedman said so’. Fermi Paradox resolved.
Yet another idiotic statement from someone that excels in churning them out.
A merchant can be as greedy as he likes, but Capitalism PREVENTS him from ripping off consumers.
Because under Capitalism we have FIERCE COMPETITION, and when one merchant jacks up his prices, consumers will patronise another business.
But because there is NO CAPITALISM in the big end of town (esp, in the U.S), because the (((oligarchs))) have captured Big Gubmint and used the latter to enact legislation/regulatory impediments/tariffs/quotas/unnecessary licensing laws, this prevents new entrants that are leaner, more innovative and willing to operate on lower profit margins from getting a foothold in the market.
Now, to the extent that the U.S economy has not completely collapsed in a heap is because Capitalism still functions to a reasonable extent at the SME (Small and Medium sized Enterprise) level, as consumers are free to patronise those merchants that deliver value for money.
The FREEDOM TO CHOOSE is the essence of Free Market Capitalism.
Contrast that to the Statist Totalitarian dystopia that you dream of Mulga, where a select cadre of rabid Marxists would micromanage the lives of the citizenry.
ie: 1) What you eat (meaning next to no meat or dairy – since cows are flatulent).
2) What you drive, assuming you’re allowed to drive at all. (Likely a wildly overpriced and prone to combust/environmentally unfriendly and fast depreciating EV lemon).
3) Where you live. (You’ll be holed up in a cramped dog box apartment in some high rise monstrosity in your 15 min city – where the farthest you’ll ever venture will be of the order of around 50 km from the city centre, which corresponds to the limits of the Mass Transit system you’ll be utilising for any and all travel).
Oh, and more good news for you on the EV front.
As I said to you a year or so ago, 2023 was the high water mark for EV sales. Beginning with 2024 the whole scam would begin unravelling – and so it has come to pass.
(Refer to the following headline of an article titled ‘Germany’s EV sales crash as buyers abandon electric cars in droves’):
https://fortune.com/2025/01/06/germanys-ev-sales-crash-electric-cars-tesla-volkswagen/
And Germany is not just a country I’ve cherry picked. The crash in EV sales is a worldwide phenomenon – and set to increase in tempo.
And, here’s some Christmas cheer (11 months in advance), with this video titled ’11 Reasons why the “EV Transition” will NEVER happen’:
Video Link
I strongly recommend you watch that video very carefully and learn the facts that your Climate Loon pals refuse to tell you.
“Feel the pulse and vibration and the rumbling force. Somebody’s out there beating on a dead horse.” Bob Dylan: The Man in the Long Black Coat.
The Fed is dead. So is the idolized “civilization” that chucked up The Fed along with all the other make-believe so many here get so excessively exercised about. There is no such thing in Nature as “capitalism,” or “free markets,” or “money” or “interest.” There is no stupid “economy” or mystery “religion” or ancient “philosophy.” Our domesticated Human Relations made it all up and so much more out of the same “thin air” the gold bugs here seem to believe only issues the types of “money” they don’t like, but actually and actively generates also everything they’re habituated-to, and that is systematically destroying them.
They did all that in a vain and futile attempt to fill in the gaping holes in their own half-lives that are the natural and inevitable consequence of their having been captivated by the cold comforts and crippling conveniences that still are the “bait” that is The Trap that is the world-wasting “civilization” disease process. Here now deep into the terminal stage of the disease, they are desperately trying to think and fight and buy their way out of that trap….the same one they so slap-happily thought and fought and bought their way into.
“And somewhere a Wild Horse will not be broken.” John Trudell: Tina Smiled.
The FED is overfed, malignantly obese and dying like an aging sumo wrestler after having defeated all his competitors under his sheer overweight. He can now no longer lift off his tatami.
“Let’s assume patent laws were deemed invalid and any manufacturer could copy someone else’s technology and incorporate it into their design. HOW THE EFF would that end Capitalism?”
Easy: What is the motivation for Company A to pour billions into R & D to develop new and innovative products, if Company B can just steal their design and sell it more cheaply? And they easily could sell it more cheaply, because the cost of all that research would not be baked into Company B’s production costs. In short, creating a great and innovative product would put Company A on the road to guaranteed bankruptcy.
Communist and socialist writers make the mistake of talking about how to divide up the goods, without thinking about how the goods got there in the first place. The way the goods got there, is that highly motivated and clever individuals invented and produced them, for the sake of personal gain.
You are making a similar mistake. If you remove the motivation of profit through innovation, capitalism will consist of people trading potatoes for firewood, and so forth. There may be factories that still produce cell phones, but there will be no improvement in that or any other product.
Which might be okay until you consider that there will also be no improvement in medical devices, treatments, drugs, etc. Unfortunately, no one has ever figured out a better way to ensure that we progress, at least technically, than by guaranteeing intellectual property rights and the right to profit through innovation.
You also have to consider that, if your country, Country A, fails to reward innovation, and Country B DOES reward it, then after a while, Country B develops the means to shoot a particle beam from space through the heads of every citizen of Country A, and Country A cannot develop the means to stop it.
tl/dr: Congratulations, you have expressed the Bolshevik viewpoint very well.
The “better mousetrap” fantasy has been laid out about as well as can be here by Pbar. Nevermind that nearly all of the diseases needing “miracle cures” these Days have themselves been coughed-up by the very same industrial set-up making and marketing all the “technology” that is systematically wrecking the social arrangement supposed to be spawning the “innovators.”
Take a step back and really look at Pbar’s Pollyanna portrait of the virtual world-o’-hurt. Some things sure as hell ain’t adding up.
No reason The Fed should be any different, in all those characteristics cited by Miville and many more egregious ones besides, than the very “civilization” that shat it out. As a matter of Natural Fact, there couldn’t possibly be any real basis for distinguishing one from the other in their essential natures.
The “sumo wrestler” comparison is rather gratuitously puerile, though. Hollywood movie moguls and some current heads-of-state might be much more apt examples of what Miville would correctly pillory here.
After I explained clearly how removal of the patent laws would not affect Capitalism and likely spur it on into being more productive, when in comment # 14 I wrote:
…. you then came back with your asinine claim that this would be a disincentive for companies to invest billions in R & D.
Let’s take mobile telephony as an example. Apple Corporation spends billions on R & D and is the market leader. Chinese competitors like Huawei copy the technology in the Apple products (China cares not if it infringes patent copyrights) and introduces said tech improvements in their product 18 months or so later.
BUT, even before Apple introduces its latest i-phone, it is ALREADY working on its next generation product. And, when the Chinese or South Korean competitor (Samsung) is about to introduce its ‘copycat’ product, Apple concurrently introduces its next generation i-phone and is still well ahead as the market leader.
Simply put, the incentive to invest in R & D is undiminished even if patent protections were scrapped.
Meanwhile, it is clear that you never read what I posted in the first place because you responded with ‘tl/dr’.
This is so typical of half-wit Marxists and Socialists such as yourself.
You people have the attention span of ADHD afflicted children. What little you know is absorbed through slogans on bumper stickers and 30 second sound bytes.
You find it mentally taxing to read more than a few pages of information in any given day.
Anyway, now that I know who you are Mr Phubar, I will be treating you as the half-baked nitwit that you are.
Maybe you should seek out community with the amish, they seem to be closest to the ideals (minus the religion) you express. And your definition of capitalism is typical marxist mutilation of words. Highly contradictory for someone claiming to speak from indian living loving arrangement.
Not having offered any “definition of capitalism,” this Old Man won’t try to respond to whatever Bro43rd is referring-to here. What was said plainly above is that there is no such thing in Nature as “capitalism.”
Meantime, us surviving Free Wild Peoples of every Kind have long conscientiously stayed out of all the ideological food-fights our domesticated Human Relations seem unable to resist. We honestly don’t see a wooden nickle’s worth of difference, in their actually observable disintegrative effects, between the follies of “Marxism” and those of “mercantilism.” What any of it has to do with the Amish is another aspect of Bro43rd’s comment that seems pretty much devoid of context.
Finally, the Natural Free Wild LivingLoving Arrangement of Earth and Sky simply is what there is. This is “where-and-when” we are all of us living and breathing right now….no matter that our Sisters and Brothers captivated by all the lures and entrapments of the virtual world-o’-hurt often believe, strongly and sincerely, otherwise.
To make America great, Trump has to name names, of those that have the real power in Washington and how they undermine every U.S President.
If Trump wants to change America and make it great again then he has to declare war on those who are destroying America from within.
Deflation is bad for one reason: as technology improves, productivity improves. The same amount of money can buy more goods as time goes on. Imagine how much goods the 1913 dollar can buy today. This is adverse to the borrowers: they need to repay a lot more. For example, if a dollar could buy 1 kg of iron in 1900, it can buy probably 10 kg today (without inflation) because the productivity has gone up. That means someone who borrowed 1 kg iron’s worth has to return 10 kg iron’s worth, even without counting the interest. Deflationary economy reduces the incentive to work. Since we expect technology to be open ended, and productivity to improve without limit, and since there are more borrowers than lenders, deflationary economy is bad.
Having a metal standard, or a commodity money, is more generic than the specific case of gold standard or silver standard. Commodity money does not have to be based on physical commodity. We can have a currency that can buy a constant amount of energy – we can define “$1 always buy 1 unit of electricity”.
I am not against commodity money, though I have some reservations about it, but Gold Standard will benefit only a very few – probably the same cabal. Because it can still issue paper “currency” without enough gold to back it – the original scam.
Today’s economy is based on three scams of the banksters:
1. Compound Interest – unsustainable in the long run
2. Fractional Reserve – individual bank creating “money” out of thin air and lending it for interest
3. Central bank issued currency – sucking up the entire surplus of the economy without taxing, and redistributing it to those who get the bank loans; they have the first dibs on the surplus of the economy.