POLITICAL: “Inflation” is always a monetary phenomenon!

Wednesday, March 2, 2022

https://nypost.com/2022/03/02/takeaways-from-president-bidens-state-of-the-union-address/?utm_source=sailthru&utm_medium=email&utm_campaign=news_alert&utm_content=20220302&lctg=6080ba40747925275a09dcd3&utm_term=NYP%20-%20News%20Alerts

Key takeaways from President Biden’s State of the Union address
By Emily Crane
March 2, 2022

*** begin quote ***

Tackling rising inflation

Biden said investment was needed in US manufacturing capacity in a bid to lower prices, speed up supply chains and boost American jobs.

“I think I have a better idea to fight inflation: lower costs, not your wages,” Biden said. “Instead of relying on foreign supply chains, let’s make it in America.”

*** end quote ***

 “inflation is always and everywhere a monetary phenomenon” —  Nobel laureate Milton Friedman

So how can it “controlled” by any other action than “END THE FED”.

The Dead Old White Guys knew that inflation was tyranny from the phrase “Not worth a Continental damn”.  Hence the Constitutional restriction that only gold and silver could be “money”.  A restriction conveniently ignored by the politicians and bureaucrats in the early 1900’s.  

How did that slip by the Supreme Court?)

For the better part of the 1800’s, “prices” were stable or declining.  (Money supply was relatively static while the supply of goods & services increased.). Everyone could save their cash and it would retain it’s value.

In the 1960’s, the money supply was inflated by FED “printing” and the purchasing power dropped dramatically (i.e., my favorite example is “penny candy”!). 

Argh!

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POLITICAL: Let’s get the “unfunded liabilities” out of the shadows

Friday, November 13, 2015

http://blog.independent.org/2015/10/20/milton-friedmans-solution-for-social-security-would-work-for-government-pensions-too/

Milton Friedman’s Solution for Social Security Would Work for Government Pensions Too
By Lawrence J. McQuillan  •  Tuesday October 20, 2015 3:16 PM PDT  

*** begin quote ***

Friedman’s approach to Social Security can also be applied to ending the state and local government pension crisis. The programs are very similar: Social Security and state and local public pensions have massive unfunded liabilities; and they promise a stream of benefits after retirement.

Applying Friedman’s solution, state and local governments across the country would close their defined-benefit pension plans and issue bonds to beneficiaries equal to the current expected value of the stream of benefits owed. The bonds would be due today or at retirement depending on the beneficiary’s stage of life.

As with Social Security, this approach would ensure that people receive what they have been promised. It would force governments to acknowledge the true extent of the unfunded pension liabilities and establish a specific financing plan (something they refuse to do today). And it would permanently close these politically mismanaged defined-benefit plans.

*** end quote ***

The current 18T+ national debt and the guesstimated 200T+ in unfunded liabilities is what our posterity will have to deal with.

“When there’s an elephant in the room introduce him!” From his “Last Lecture” by Randy Pausch (RIP 2007 at age 47)

Just pretending it’s an “off balance sheet” entry is reminiscent of Enron.

Take the medicine now when it’s just disgusting; rather than dies a horrible death from a self0inlicted wound.

Take off the blinders and wake the flock up. 

“We, The Sheeple” are heading for a slaughter!

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