Inflation, Taxation, Then Deflation Will Destroy Prosperity. Guaranteed.

News & Current Events Public News & Current Events
1

Originally published at: https://peakprosperity.com/inflation-taxation-then-deflation-will-destroy-prosperity-guaranteed/

With Paul Kiker off on holiday this week, this is a solo presentation.

I hold two thoughts about the world’s financial ““markets”” at present:

More people will be harmed by the bursting of the many nested Fed-enabled financial bubbles than were ever harmed by Covid itself and/or the devastating Void and jab policies.

The markets are actually “”markets”” and are almost entirely works of fiction which are maintained for their narrative powers rather than their ability to accurately channel capital to where it is most needed and valued.

Accordingly, the various lies that have been told and retold over the decades about such things as employment and inflation, are now systematically and unashamedly emitted by US government agencies.

Jobs were just admitted to be “overstated” by 818,000 and revised downward as even the most casual of economic observers knew they would be. Nobody even blinked, and nothing happened as a result, and nobody will be held accountable.

Ditto for inflation. Nothing but transparent lies and fabrications in service of a narrative that loosely can be understood as “your leaders are doing a great job!”

Which, of course, they aren’t.

But if it weren’t for lies and gaslighting, what would DC and its MSM enablers actually talk and write about? The truth? LOL

At any rate, lurking under all the noisy fictions is something more sinister which is that the Harris-Walz promise is to deliver economic and taxation polices that are indistinguishable from list items from the Communist-Marxist manifesto.

Fed a steady diet of narcissism and rewards for self-absorption, far too many in the current generation are primed to believe that envy and resentment are legitimate underpinnings for national policy.

“Soak the rich!” is the battle cry.

Naturally, to believe this you have to be 100% ignorant of history, both global and US.

History shows that all such programs create poverty and misery and that causes the “rich line” to move steadily lower until it envelops even the lower middle classes, many of whom are currently cheering on this program (soon to become a pogrom?).

Regardless of these political shenanigans and strong indictments of the US educational system, the path seems clear enough; the Fed will eventually cave and ‘cut rates’ and then ‘expand QE’ and do everything in its considerable power to complete its project of destroying the US and its middle class while transferring all f the wealth to a very tiny minority.

Sadly, those fools will eventually discover what people have always discovered all throughout history; that all of that wealth isn’t real wealth at all. It’s merely a currency that represents a claim on wealth which is – surprise! – created by real people doing real things and creating real products and delivering real services.

Stack up all the claims you wish, but if there’s nothing to spend it on, it’s not really wealth at all. It’s claims. Paper promise tickets set against an empty cupboard.

Or maybe they’ll rediscover this:

Greed is one of the 7 deadly sins, and for a good reason. It leads to ‘wrath.’

Peak Prosperity endorses and promotes Kiker Wealth Management’s financial services. To arrange a completely free, no-obligation discussion of your personal financial circumstances and goals with someone who speaks your language and thoroughly shares your outlook on the world, please click this link to go to Peak Financial Investing to begin the process.

FINANCIAL DISCLAIMER. PEAK PROSPERITY, LLC, AND PEAK FINANCIAL INVESTING ARE NOT ENGAGED IN RENDERING LEGAL, TAX, OR FINANCIAL ADVICE OR SERVICES VIA THIS WEBSITE. NEITHER PEAK PROSPERITY, LLC NOR PEAK FINANCIAL INVESTING ARE FINANCIAL PLANNERS, BROKERS, OR TAX ADVISORS. Their websites are intended only to assist you in your financial education. Your personal financial situation is unique, and any information and advice obtained through this website may not be appropriate for your situation. Accordingly, before making any final decisions or implementing any financial strategy, you should consider obtaining additional information and advice from your accountant or other financial advisers who are fully aware of your individual circumstances.

26 Likes
2

Chris going for the McKayla Maroney look in his Thumbnail today.

image

7 Likes
3

I literally laughed out loud with your histrionics during that Kamala clip. OMG so funny but so tragic that she is the best candidate that the Dems have put forward.

And stop showing that odious Paul Krugman. The end of last year I was down in the OBX with the wife at our favorite breakfast joint. In walks Krugman with his family and plops down at the table next to ours. Wife wants to know what’s wrong with the breakfast? I told her I suddenly lost my appetite.

24 Likes
4

Creak … groan … Canadian railroads shut down due to labor dispute. But rail is how many parts and products are transported to and within the U.S. too. Seems chemicals and food are the goods most likely impacted first. Almost like they’re trying to wreck things.

8 Likes
5

Hi Chris,
You mentioned Kroger’s having a profit margin of 1.6%. I do not believe it. The dictionary defines it as: “the amount by which revenue from sales exceeds costs in a business. A business cannot operate with the difference between all costs and all revenues being only 1.6%. There is nothing left for the shareholders. Any increase in lending rates and Kroger’s goes negative. It has a forward dividend/yield of 1.2% and a share price of $52. I did not go into its balance sheet to determine if the profit margin was before shareholder distributions. I just do not see how the share price of $52 is warranted unless it is using a lot of cash flow to paydown financial obligations or writing off its “intangibles”.

1 Like
6

It is a grave mistake to mislead members of this community into believing that Kamala Harris is not bright. Her mother worked at Laurence Livermore. I spent time in Livermore. This is more likely a complex story. Her father is an academic of high standing in Marxist circles. Please don’t do this. At least behind the paywall we need to have a serious discussion.

2 Likes
7

Sigh. Since that last time I checked, images of Kamala’s mother have been scrubbed from Wiki as well as references to her father’s book and his academic positions. Well, these are not stoners but you would have to be stoned to buy their story.

Maybe one of your viewers was more proactive than I was and screenshotted the WIKI before it was scrubbed.

Good Luck!
tc

8

{kamala’s father} he earned his Ph.D. in Economics from the University of California, Berkeley (1966). He later became a naturalized U.S. citizen. His dissertation was titled Inflation, Capital Accumulation and Economic Growth: A Theoretical and Numerical Analysis .

Please. Stupid? Is it just a coincidence that Kamala knows so little about econ?

1 Like
9

She appears to not be bright. I havent heard a single coherent and intelligent argument from her.

Not all children from bright parents end up with capability. We all know how she rose to many of her positions. It wasn’t from her intelligence. There are images and anecdotes.

Kamala seems low IQ. She must have a good reputation in certain circles but not for her acumen.

13 Likes
10

I am constantly amazed at how little the average person understands about inflation. You hit the nail on the head talking about how they all think we have 2.9% inflation and not that it has increased by 2.9%. I have had 2 debates with people today about this. One was open to be being educated on it and the other insisted that inflation is caused by corporations doing price gouging and gives no responsibility for it to the government. I bet you can guess which one was a Trump supporter and which one was a Harris supporter. They didn’t know anything about the CPI or how the basket of goods keeps getting switched out so that they don’t have to report on the REAL increase in the cost of living. I know I asked one of them if their grocery bill only went up 2.9% this year because I know mine has gone up a helluva lot more. I’m sure I won’t get a response or it will be some ridiculous, uninformed response. Sometimes it’s almost enough to make you want to just cry to know that our friends and family members are so ignorant and just believe everything the MSM and political parties tell them. I swear most people have no critical thinking skills anymore. It’s depressing. Thank God for the tribe here.

15 Likes
11

“We all know” is the kind of group speak I hope this community avoids.
Her mother and father are highly placed Bay Area royalty.
“We All Know” what that means.
tc

2 Likes
12

By the time one gets to her age, brightness should have translated to principled wisdom that is fit for purpose. It does not appear to have done.

5 Likes
13

Or she is a spy.

14

When Biden was elected, inflation took off because he promised “No More Oil”. If I could figure out how to do it I would post a chart, but I know that the price of oil took off right after Turnip Brain won the election, and then maybe a month later inflation started going up.

Of course, that wasn’t the only reason for inflation, but oil is used to make or distribute everything, so that might not be surprising to some people’

2 Likes
15

Sorry to be a bit of a post turtle myself, but are you saying that Kamala is really a very smart woman who pretends to be a moron, and ho-ing her way into power was all an act? To hide her giant brain?

12 Likes
16

Excellent Inflation Primer.

Just listened to another podcast after yours on same topic. Her explanation was also spot on.

Average grocery profit margins are ~1.5%, so if she cuts margins 50% to 0.75%, that $100 you spent on food only goes down to $99.25, whereas the same basket only cost you $60, pre Biden.

She’s only tweaking at the margins, wheras the real issue was the top line price increases over the last four years, amounting to ~40%.

They are really looking to implement the Logan Act from WWI era (already on the books) to control food & energy for climate change agenda (really a food/energy control agenda).

Good short listen, by a really interesting daily podcaster Tara Servatious in Greenville NC, if your followers care to listen.

https://tinyurl.com/mruuva9z

FYI - thanks for pointing us Glen Meder way (privacy, de-googled, linux, etc.)

3 Likes
17

A hard currency such as gold would not allow all this inflation. Just maybe there is wisdom there.

2 Likes
18

You must be new here :wink:

3 Likes
19

Thanks Chris for refresher on inflation including some excellent quotes. The idea of the hidden tax is one I’ve heard but don’t always think about. The impacts on fixed income people, typically older and retired, needing to chase returns and take risks to stretch so their money doesn’t run out. A few years ago they were in the same boat needing to chase risky returns, then then it was due to safe investments, e.g., T bills paying close to zero.

I remember when I was a kid and got my first savings account, passbook I believe was term, I’m pretty sure we got around 5% for savings. I think this must have been late 60s or early 70s. As a younger kid mid/late 60s, we could turn in coke bottles we found and buy a piece of candy at the 5 and 10. We don’t really have refillable bottles anymore. Now in 2024 can you buy a piece of candy, small tootsie roll, with money from recycling return value?

1 Like
20

It is not possible to bring inflation to zero in the current monetary system, nor is it even remotely possible to balance a national budget. I agree with so much of what Chris says in this video but I was disappointed by those statements.

What seems to not be appreciated by “the right” is the devastating effects of deflation that reverting to a “sound money” system would result in, or even just balancing the budget. Doing so would be quickly followed by a practically world-ending deflation that would cause global misery. This misery will not be solved by introducing sound money and balanced budgets. The problems go much deeper.

The only reason inflation was zero over 100 years in the 1700’s on a gold backed currency was because the economy could legitimately grow “organically”,meaning it increased the amounts of goods and services “produced” which genuinely served peoples’ needs, in co junction with a growing poulation. Over the last century our economies started to encounter problems with real growth due to real world constraints which in part, has led to the necessity for increased financialization to foster fake non-organic growth. Which of course, just happens to align with the bankers’ financial shenanigans.

Every year which passes without the crash, makes the crash even worse, were it allowed to happen. This is one reason they want CBDC’s. They think they can prevent it by centralizing production and distributing it so there isn’t mass starvation. If course it won’t work for long for obvious reasons. The problem is that “the right” doesn’t appreciate the deflation that’s always waiting right around the corner, nor do they understand how to address it bevause their models of production and consumption are fundamentally no more valid than the Keynesians’ models. Friedman and all the others were as divorced from reality as is Krugman.

3 Likes