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The Inflation Bomb That Will Raze the American Economy to the Ground | John Hawkins’ Right Wing News

Justin Malonson

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The Inflation Bomb That Will Raze the American Economy to the Ground | John Hawkins’ Right Wing News



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[dropcap]When[/dropcap] the world’s second-richest man tells you that an extraordinarily volatile digital currency created by an unknown person or persons in 2009 is less “bs” than fiat money like the dollar, it should set off screaming alarms. Those alarms should have gotten even louder when Musk, whose net worth as of writing is $166.9 billion, put his money where his mouth was by putting 1.5 billion dollars of Tesla’s cash into Bitcoin. As someone who believes that Musk is right (and also owns Bitcoin), it’s worth asking why Musk and a lot of other people are so skeptical about the dollar. The answer is “inflation” and at a minimum, we need to take a very brief surface-level glance at America’s monetary history to understand what’s going on.

Gold has stood the test of time as a store of value for more than two thousand years, so if you have gold, you have a reliable store of wealth. Unfortunately, gold isn’t very portable or easily splittable into smaller amounts, so creating dollars that represented gold made it easier to trade, pay salaries, and do everything else we do with money. From 1879 to 1933, Americans could trade in their dollars to the government for an equivalent amount of gold. FDR stopped the practice because he wanted to print more money to get us out of the Great Depression. Still, up until 1971, foreign governments could trade their dollars for gold, but Nixon put an end to that and drove a stake through the heart of what was left of the gold standard. Why did FDR and Nixon do this and why have other presidents continued this practice? All sorts of explanations are given, but the short answer is that being on a gold standard puts limits on how much money the government can print. That leads to more economic corrections, which are not necessarily a bad thing even though they can be painful in the short run. Additionally, when you can simply make as much money as you want, it TEMPORARILY leads to more prosperity and it allows you to simply print as much money as you need to deal with war or economic crisis. Sounds good, right? So, why would anyone want to be on the gold standard and have every dollar backed by gold? Because if the government can print as much money as it wants, it inevitably prints far too much, devalues the currency, and people lose interest in holding what they believe is worthless paper. Many people are unaware of this, but this has already happened once in the United States during the Civil War. The South printed so much money to fund its debts, that inflation went up 9000% during just the four-year length of the war. Could the same thing happen again in modern times? Absolutely.

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Fast-forwarding to today, if you look at the official statistics on inflation (the Consumer Price Index), it doesn’t look so bad. Over the last decade or so, it averages out to less than 2% per year. Of course, it doesn’t take a genius to figure out this is bogus and the real inflation rate now is probably AT LEAST 7%. If you look at some of the increases in prices over the last few decades, you get a better sense of how much of a bite inflation is taking out of your wallet. For example, in 1972, the average cost of a new car was $3500. Today, the average cost of a new car is $40,857. The cost of going to college has gone up 3009% in the last 50 years. Per capita, healthcare spending in 1970 was $353. Today it’s 31 times higher at $11,582. You can go on and on with these kinds of comparisons and yes, there are sometimes other factors at work, but inflation counts for most of the increase.

There are some interesting debates among economists about why America isn’t already in such a state of hyperinflation that it would require everyone to bring a briefcase full of money to the store to buy a Hershey bar, but the truth is no one really seems to know for sure and there is certainly no guarantee that will continue. That’s doubly true since we printed 23.6% of all the dollars in circulation LAST YEAR. This is what we do now in the United States. We have a war, economic crisis, or pandemic and our solution to the problem is to print more money backed by nothing other than our promise to pay. This should be of great concern to most of the people reading this column for two reasons. The first is that once investors conclude that investing money in Treasury bonds is no longer a safe bet because of inflation, it will create a death spiral, forcing the government to pay for spending through money printing instead of by issuing debt. The other reason it should freak you out is that a lot of the people reading this are relying on payments in dollars for their retirement. Social Security, pensions, cash savings – what will they be worth when you need them? Maybe not much at all. This has happened in other nations in the past, it’s happening in nations like Venezuela, Sudan, and Argentina today and it seems highly likely to happen here unless the Fed tightens monetary policy.

Inflation ends up being one of the most regressive taxes in existence because as a practical matter, it hurts the poor and middle class much more than the rich. That’s because the rich can afford to put a big chunk of their money into hedges against inflation like gold, silver, art, real estate, and now bitcoin. The poor and middle class? Not so much. They may benefit by having the real value of their debts reduced by inflation, however.

No one can predict exactly when America will go bankrupt or when inflation will finally get completely out of control, but if you have even a passing understanding of economics you can see it’s coming. You may not know exactly when the boat is going to sink after having a hole torn in the hull, but you should be smart enough to start figuring out where the lifeboats are situated. So, think about what you would do if every single dollar you have was suddenly worth a penny? Whatever it is, you should probably get an early start since we’re headed in that direction and seem increasingly comfortable printing massive amounts of money backed by nothing.

John Hawkins is the author of 101 Things All Young Adults Should Know. His website is Linkiest and you can follow him on Parler here. This originally appeared at Bongino.com.



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The Delta Variant – Fact, Fiction And Outright Lies (Dr. Andrew Kaufman Explains)

Justin Malonson

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The Delta Variant – Fact, Fiction And Outright Lies (Dr. Andrew Kaufman Explains)

Dr. Andrew Kaufman, a good friend and colleague, provided this brief educational video on the so-called “deadly” Delta Variant that is believed to be causing major causalities in the world, disproportionately affecting children and the unvaccinated. Dr. Kaufman’s presentation starts out with a basic lesson in genetics, required to understand the topic, but is well worth the time put in. You’ll understand how profoundly misleading the narrative is about the “Delta variant” (and all future such “variants”) if you watch the video beginning to end. For a deeper dive into the topic watch Sayer’s interview with Dr. Kaufman titled: ZERO Evidence that COVID Fulfills Koch’s 4 Germ Theory Postulates – Dr. Andrew Kaufman & Sayer Ji https://odysee.com/@greenmedinfo:3/zero-evidence-that-covid-fulfills-koch-s:2

Dr. Kaufman has gained tremendous popularity in recent months sharing a different perspective on the role of health and disease within the context of current pandemic fears. Follow him and learn from the following resources:
https://www.andrewkaufmanmd.com/
https://www.covid-19-myths.com

https://www.andrewkaufmanmd.com/SOVI

https://www.andrewkaufmanmd.com/hippo
Dr. Kaufman’s you tube channel:
https://www.youtube.com/channel/UCV7v2cvSnrJ9Qyz36cW1Ftw/videos?view_as=subscriber
Dr. Kaufman’s Facebook:
https://www.facebook.com/andrew.kaufman.908/

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Nancy Pelosi & General William J. Walker Implicated in January 6th Setup

Brittany Jordan

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The 5 Real Reasons America Could Go Bankrupt | John Hawkins’ Right Wing News

Justin Malonson

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The 5 Real Reasons America Could Go Bankrupt | John Hawkins’ Right Wing News



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In the next few decades, America risks going bankrupt. The trajectory of the national debt has only been upward regardless of who is president, and there are five clear reasons why.

1) People haven’t felt the pain: What pain have Americans felt because of our 3 trillion-dollar-plus national deficit and our skyrocketing debt, which is almost 28 trillion dollars at this point? We’re still the world’s reserve currency. We’re still able to borrow the money to pay our bills. We’re able to print trillions of dollars in stimulus money and the inflation hasn’t caught up with us yet. We’re even still arguing about whether we can afford to fund cartoonishly expensive new programs like the Green New Deal, so why would the American people be alarmed? In their view, we’ve been talking about this for decades while nothing bad has ever happened, so what’s to worry about? It’s kind of like someone who smokes three packs of cigarettes a day. They can see the warnings on the label and maybe they cough a little more now, but they haven’t gotten lung cancer yet, so what’s to worry about?

2) There are almost no political incentives to cut spending: The entire philosophy of the Democrat Party revolves around big government and taking money from people that don’t vote for them and giving it to groups that may vote for them in exchange for the money, so cutting spending is a non-starter for them. There is a constituency in the GOP for fiscal responsibility, but it exists more theoretically than in the real world. There’s almost no Republican support for cutting any of the biggest budget items like Social Security, Medicare, and the military. In other words, there is no base of support for a responsible politician that wants to do more than give lip service to the idea that we should cut spending. Democrats won’t advocate for it in the first place and Republicans that make a serious attempt will be deluged with negative advertising and abandoned by their own voters.

3) There are huge political incentives to increase spending: Want to get good press if you’re a politician? Bring some pork home to your district. Advocate for a new government program. Offer to send people checks. Push through a trillion-dollar spending bill and repeat as often as possible. It literally doesn’t matter if the money is spent well or the programs work because you’ll still be praised. Meanwhile, try cutting ANYTHING in the federal budget. Whoever is getting that money will squeal like a pig about how you’re ruining them. They’ll hire lobbyists, do PR campaigns, call in every favor they have, and what do you know… your attempt to cut that program will fail. Government spending is like a spigot that only turns one way. Nothing is easier than to turn it on, but once you do, you can never turn it off.

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4) The middle class isn’t paying their fair share: I’m a believer in small government and low taxes on the middle class, but that is not what we have in America. We have big government and low taxes on the middle class. In fact, America has the most progressive tax code in the Western world, meaning that rich Americans are paying too much, and the middle class isn’t paying anywhere close to enough. The top 25% of taxpayers pay 86% of all income taxes. Meanwhile, the average person receives hundreds of thousands more in Social Security and Medicare benefits than they pay in. If middle-class Americans had to actually pay enough to keep programs like Medicare and Social Security on an even keel and knew their taxes would go up every time a new program was passed, you’d be amazed at how interested the middle-class would become in cutting spending. Alas, that is not the world we live in, nor is it likely to be anytime soon.

5) By the time the problem is obvious to everyone, it will be too late to fix: Niccolo Machiavelli was a brilliant man and this is one of his best quotes:

“And what physicians say about disease is applicable here: that at the beginning a disease is easy to cure but difficult to diagnose; but as time passes, not having been treated or recognized at the outset, it becomes easy to diagnose but difficult to cure. The same thing occurs in affairs of state; for by recognizing from afar the diseases that are spreading in the state (which is a gift given only to a prudent ruler), they can be cured quickly; but when they are not recognized and are left to grow to the extent that everyone recognizes them, there is no longer any cure.”

At some point, the consequences of our overspending will become so obvious that everyone can see them. America will no longer be the world’s reserve currency. Investors will stop lending America money at low-interest rates. The interest payments on the debt will become the biggest expenses in our budget. The value of the dollar will plunge. Inflation will take off like a rocket. The government will have difficulty paying people to do things anymore because inflation will make the payments they’re offering nearly worthless. Government payments for programs will be cut, stopped or inflation will make them much smaller than they used to be. Odds are, all of these things are going to happen and by the time they do, the problem will be nearly insurmountable. We’re not a tiny country like Greece, so the rest of the world won’t be able to bail us out and they certainly won’t throw good money after bad. We’ll drop off into a debt-driven depression and then we’ll have to see how bad it gets from there. We could see anything from a decades-long worldwide depression to the country splitting up and there won’t be much we can do about it.

Are these things fated to happen? Well, in Charles Dickens’ “A Christmas Carol,” there was a relevant conversation between Scrooge and a ghost:

“Are these the shadows of the things that Will be, or are they shadows of the things that May be only?” Still, the Ghost pointed downward to the grave by which it stood. “Men’s courses will foreshadow certain ends, to which, if persevered in, they must lead,” said Scrooge.

These are still fixable problems, although we have already waited so long, there are no longer minimally painful ways to fix them. Additionally, it would require a major attitude shift in America to do the politically unpopular things that could make a real dent in the problem. Things like dramatically raising taxes on the rich and middle class. By finding ways to cut Social Security, Medicare, and defense. By getting rid of baseline budgeting. By refusing to add new government programs and by cutting old ones. By insisting on cutting the budget until we run surpluses instead of deficits every year. That would be a good start. Unfortunately, in the “me first” world we live in today, it doesn’t seem politically possible to ask the majority of Americans to accept much more pain today so future generations can grow up in a fiscally sound nation. So, God help us all.

John Hawkins is the author of 101 Things All Young Adults Should Know and this originally appeared at Bongino.com.



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