By Jeanna Smialek
FEBRUARY 03, 2023
The econo-propagandists at the Times will always spin a decline in the rate of inflation – which still represents an ongoing increase in prices – as positive news.
From the article:
“People across the country are finally experiencing some relief from what had been a relentless rise in living costs. After repeated false dawns in 2021 and early 2022 — when price increases slowed only to accelerate again — signs that inflation is genuinely turning a corner have begun to accumulate.”
Happy days are here again!
What nonsense. This is akin to a morbidly obese man reducing the rate of his monthly weight gain — yet still gaining a few pounds each month — and declaring progress. Along with their diversionary tricks, the seditious scribblers of Sulzberger’s Times have “memory holed” the fact that two years ago, the evil “paper of record” and their preferred quack-economists were actually cheer-leading for a “weakened dollar.”I rebutted one such piece. The article is re-posted below. See for yourself who called it correctly. (toot toot)
1. Times economics writer Jeanna Smialek knows more about shoes and handbags than she will ever understand about macroeconomics. // 2. Good news fatboy! Your rate of monthly weight gain fell from 7 pounds to “only” 3 this month! // 3. On the topic of inflation, we dug up a doozy from The Times Orwellian “Memory Hole.”
FLASHBACK / 03-02-21
March 2, 2021:
Only in the upside-down Orwellian world of Fake Economics — where the most basic dynamic of action & reaction is never understood — would the deliberate debasement of the national currency be considered a good thing if it increases exports sold to countries with a stronger currency (hence, theoretically, more manufacturing jobs here). Never mind the real income and wealth diminution of struggling elderly savers; or the decline in purchasing power of already strapped American consumers which such an insane policy would worsen. Those issues can be addressed separately — perhaps with even more money printing and debasement to pay for more welfare schemes.
This is some really crazy stuff — the equivalent of Stupid-19 insanity for economics. Let’s analyze and rebut a few lines. Hazmat suits and hip waders on, boys & girls, into Sulzberger’s macroeconomic muck we go.
Times: President Biden has made reviving American manufacturing a top priority. To deliver, he may first have to deal with something even more fundamental to the U.S. economy: the strength of the dollar.
Rebuttal: The surest way to revive manufacturing (as the pre-Stupid-19 Trump years proved) is through aggressive deregulation, tax cuts, tort reform (lawsuit control), and protective tariffs. Instead, the eggheads want to debase the currency and drive up prices.
Times: “Dollar overvaluation is the big problem,” said Mike Stumo, chief executive of the Coalition for a Prosperous America, …. Mr. Stumo describes policies that prop up the dollar as a “war on the working class.”
Rebuttal: Mike Stumo is out of touch with reality. We presume, given his title, that his salary and net worth in equities render his family immune to the ravages of a weakening currency. But for “working class” people living paycheck to paycheck with neither guaranteed salary increases nor higher-than-inflation capital gains each year, inflation is deadly. Nothing wages “war on the working class” like rising food and fuel prices. Nothing.
Times: Mr. Biden has hired a handful of senior economic advisers who are concerned about the dollar’s strength and have explored ways to reduce it.(emphasis added)
Translation: Inflation coupled with stagnant wages is coming. Brilliant!
Times: At its simplest level, the trade deficit represents a kind of leakage from the U.S. economy: Americans buy more in goods and services from abroad than the rest of the world buys from the United States … If Americans bought more domestically made products and fewer imports, the spending would create jobs for U.S.-based workers.
Rebuttal: But you’re creating another, even more serious problem (inflation, particularly on imported goods) in order to “solve” the import-export “imbalance.” It’s like trying to prevent weight gain by smoking a pack of cigarettes daily in order to tamp down the hunger pangs! Why not just exercise and gradually condition yourself to eat smaller portions? — And why not just maintain a strong currency (consumer purchasing power) and a vibrant manufacturing economy (through business friendly policies, sensible tariffs and, ironically, increased consumer purchasing power).
What is most dangerous about this system is the fact that the US dollar is already artificially propped-up due to its status as the world’s reserve currency. Worldwide dollar demand actually keeps the dollar much stronger and more stable than what it would otherwise be. If (((they))) were to start weakening the “strong” dollar, there’s no telling how fast the existing illusion would unravel as investors start dumping them. It’s quite a pickle.
1. British Sodomite crypto-Marxist John Maynard Keynes (1883-1946) distorted the field of Economics. At the behest of his Globalist Masters, Keynesian ideology replaced the free market with grand and disastrous schemes of boom-bust monetary manipulation and state intervention. // 2. Let the presses roll — at interest! // 3. The elites don’t really worry about rising food prices.
1. The government sinks businesses (especially manufacturing) — then proposes to debase the currency in order to help business? // 2. Mr. Stumo is Mr. Stupid. // 3. “If I smoke more cigarettes, I’ll eat less and lose weight.”
In a perfectly honest monetary system, no government nor Central Bank would be rigging its currency values up or down to achieve this or that economic metric. Ideally, the ratio of debt-free currency to “stuff” (GDP) should be kept relatively constant because the only legitimate functions of currency are to facilitate trade and act as a store of value. In such an honest system, your money should neither depreciate (no theft of citizens) nor appreciate (we don’t want speculative hoarding either) as actual wages and saved wealth increase along with GDP.
Indeed, from 1800 until 1913, wealth increased greatly as prices for clothes and food stayed pretty much constant as neither the state nor the banksters could steal it. But then came “The Fed” (1913); the gradual abandonment of the gold standard (starting in 1933 & ending in 1973); and the post World War II enthronement of “Keynesian” economic gibberish and manipulation on a global scale.
At this advanced stage in society’s mental and moral decline, the monetary error has become so institutionalized that even “educated” business leaders seriously and openly talk about degrading the value of what’s left in our pockets, salaries and bank accounts — as if its good thing for “the working class.” Nuts!
1. From 1800-early 1900’s — booming exports AND stable currency value. Why was that? // 2. The Fed destroys the value of the dollar. // 3. Hitler’s Germany: The strongest currency in the world AND a booming manufacturing with lots of exports. Why was that?