The Inflation Chickens are Coming Home to Roost
Big Changes are Coming to America
“The best way to destroy the capitalist system is to debauch the currency.”
Attributed to Lenin by J.M Keynes
Now that the currency is being debauched, get ready for the reshaping of America!
From the New York Times:
“[President Biden’s} advisers are preparing a set of proposals intended to reshape the U.S. economy and other parts of American life (emphasis added). If they pass, they will almost certainly have a more lasting effect on people’s lives than the virus-relief bill that Biden signed two weeks ago. And while the proposals include measures on health care and taxes, they are broader — more diffuse, a critic might say — than the top priorities of other recent presidents.”
In addition to the infrastructure portion of the measure which is sold as mostly funding for highways, roads, bridges and government buildings, but is also windfalls for cronies, boondoggles for politicians, and above market pay for political constituencies, the New York Times says the Biden spending measures include funding for monthly payments to people who have children, “as well as a big expansion of paid family leave,” the expansion of Obamacare, making “pre-K universal for both 3- and 4-year-olds, through federal funding of local programs, and increasing funding for community colleges.”
And that is before all the log-rolling and vote-buying that goes on in what used to be called the world’s greatest deliberative body.
To sum up, the US has spent $6 trillion on boondoggle-laden stimulus/bailout measures since COVID-19 arrived on the scene. And there is more of that kind of spending to come…
… further debauching the dollar. From Thesaurus.com, here are a few synonyms for “debauch” that fit its application to a currency: abuse, betray, bastardize, ruin, subvert, vitiate.
And now the inflation chickens are coming home to roost:
From the Wall Street Journal:
“Lumber, one of the biggest costs in home-building after land and labor, has never been more expensive and is more than twice the typical price for this time of year. Crude oil, a starting point for paint, drainpipe, roof shingles and flooring, has shot up more than 80% since October. Copper, which carries water and electricity throughout houses, costs about a third more than it did in the autumn.”
Today, instead of another chart of the spending, debt, and money printing, we’ll let a picture speak a thousand words. The price of lumber, at an all-time high, is reported by the National Association of Homebuilders to be adding $24,000 to the price of a typical home.
See for yourself:
When a wide spectrum of prices starts to climb, it is generally because the currency is being debauched. When the currency fails, it threatens not just the economy, but the entire social order and the rule of law. Informed people must take steps to protect themselves.
Own gold yet?