Is there a way to stop inflation without crushing the economy

 

 

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Is there a way to stop inflation without crushing the economy?

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One of the most dishonest games being played in economics today is the attempt by various groups (political and financial) to deflect blame for the rise of inflation. The Biden White House and Democrats desperately want to blame Russia and the war in Ukraine, even though inflation was spiking long before the war ever started. The Federal Reserve pretended for years that inflation was not a threat at all despite numerous alternative economists warning what would happen. Now they blame supply chain disruptions instead of their own monetary policies. The GOP wants to blame Biden for the crisis while ignoring the dominant role of the Fed in the economy (and their unilateral power).

In the alternative sphere, there are some people that try to deny the fact that there is more than one type of inflation. They want to claim it's all about money creation, but this is simply not true. There is inflation in money supply, but there is also price inflation caused by numerous factors including bottlenecks in production, bottlenecks in resources, bottlenecks in shipping, bottlenecks in energy, etc. Anyone that denies this fact is blinded by bias or just doesn't understand how inflation really works.

Overall, it's fair according to the evidence to put most of the blame on the central banks and their 14-year program of bailouts and QE policies. If you have read my previous articles on the Fed's involvement you know that my position has remained the same for years. I predicted a stagflationary crisis based on the position that the Fed was deliberately creating a monetary disaster to make way for a new digital currency system tied to a global framework, and this is exactly what has happened so far.

That said, too much money chasing too few goods is not the only problem we face as a nation. There is also the issue of globalist interdependency and our reliance on other countries, some of them hostile, for production and resources. With supply chain disruptions an ever-present danger, it's not enough to focus on money velocity and the central bank alone... we won't be solving the crisis that way.

In the liberty movement, there is always debate about solutions. We all seem to agree on the core problems but can't ever seem to agree on what to do about them.

There are those that suggest there's nothing that can be done economically except prepare and wait for collapse so we can rebuild once the dust has settled. I find myself in this camp more often than not. Then there are those that believe a political approach is possible. After nearly half the states in the U.S. blocked the COVID mandates and lockdowns, I am starting to think solutions at the state level might be viable. Then there are those that want to build an alternative system, a parallel economy that competes with the mainstream economy.

This is something I have talked about for a long time. It's the ideal solution because it is proactive. Instead of waiting around for other people to fix the crisis for us, regular people simply establish their own trade and production systems based on necessities, separating from the dying economy so that when it collapses, they are mostly unaffected.

This, however, is a short-term solution in that large-scale domestic production is eventually needed to return a country and economy to greater prosperity. Growing gardens, making trade items and forming local barter markets is only a way to weather the storm; it is not a long-term path to growth. What we need is home-based large-scale production of necessities as well as our own domestic resource discovery.

In order to fight back against monetary decline, the U.S. needs to produce the majority of its own goods again. If the problem is too much money chasing too few goods, then we can make our own goods here at home instead of relying on countries like China and the unstable global supply chain.

Furthermore, what if we focused on quality manufacturing instead of just creating a supply? It's a notion that might have been suggested by others, but if this is the case, I have not seen it promoted anywhere,

Consider this for a moment: What if home-based producers were given incentives by states to manufacture high-quality long-lasting goods? Remember when a washing machine used to last for years? Remember when a lawnmower or a chainsaw was made from quality metals instead of loaded with plastic parts and they rarely broke down? Quality used to be a thing, and the idea has been all but erased from economic theory.

Today, it's all about quantity because quantity makes a bigger profit. If items break constantly, it means they need to be replaced constantly, which means companies make more money. In fact, there are many corporations that deliberately design products to break quickly so that the consumer must buy another. But this model does not work in an inflationary environment; it actually adds to the problem by forcing more money velocity and reducing the number of functional goods in the system.

Let's say that instead we had numerous manufacturers that operate out of the U.S., and they are offered a tax jubilee for as long as they are willing to produce high-quality long-lasting models of their goods. With the tax incentives, they could offer such goods at a lower price in order to compete with poor-quality goods from places like China. Now, you have given the public access to items that they only need to replace every five years, or 10 years, instead of every 12 months.

Money velocity slows down. Now there are more goods on the market because they last longer. Savings go up because people don't need to spend as often. Prices in general start to go down. Inflation is subdued and eventually defeated, because what is money other than a means to provide necessities and amenities? If those goods last longer, money becomes less relevant to the health of the economy.

To be sure, there is the argument that higher quality goods and more savings could lead to decadent spending. In other words, there is the theory that the more money people have the more they will spend on frivolity, and this might keep inflation alive. The problem is we have not lived in an economy based on quality for several decades, so it's hard to say how people will react. If people have long-lasting items and are secure in their basic necessities, then what is compelling them to spend with wild abandon? Not much.

The establishment would like to keep the public dependent on the system by reducing our buying power and controlling access to goods. I suspect that they will one day offer the same kind of solution... a return to quality. But only at the price of subservience. The World Economic Forum's "Shared Economy" concept which they clearly plan to introduce after there is a major financial collapse would require quality-based production. If everyone in the world is going to be sharing everything and private property is outlawed, then the goods that are shared would have to be designed to last.

My suggestion is that we circumvent the establishment entirely and create our own economic model, still based in private property but also adapted to quality production. And we manufacture all our goods locally within our own states and country. I believe this would end inflation, not just today, but for all time.

To truth and knowledge,

Brandon Smith

 

SIDEBAR

​ America is losing its sense of consensual government under Biden & his socialist slugs; our DOJ has become like the pigs in Orwell’s Animal Farm where some are more equal than others in its drive to a two-tiered system of ‘justice.’

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As I’m sure you’re aware, the attack caused a maelstrom of media speculation about extremism and terrorists and the fragility of the power grid. For us, we simply remembered the David Tice and his documentary “Grid Down, Power Up”.

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Why do you need an emergency radio?

 

·         . Just 60 seconds of hand cranking provides more than 45 minutes of radio

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