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https://www.podbean.com/site/EpisodeDownload/PBFE45F4QHCDI
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SHOW ANNOUNCEMENT
Now that the Biden $1.9T (actually $1.8T) fiscal stimulus has passed, mainstream economists and media are pumping up the rhetoric it will soon lead to excess inflation and rising interest rates that will endanger the economic recovery. Rasmus debunks the notion that deficits and debt—or ‘too much money chasing too few goods’ cause inflation, as well as related ideological notions of mainstream economics. What has been the actually deficits in 2020-2021 due to the three bouts of economic fiscal stimulus during the pandemic (March, December, and now March again)? What have been the actual causes of the deficits (besides the fiscal stimulus)? What’s the likelihood of inflation in 2021 and beyond and its real causes apart from deficit spending? What are financial markets reacting now so negatively driving up long term Treasury interest rates? And what instability might that lead to?
This is an important post and the take away is that the Democrats are the de facto reelection committee for TrumpRepublicans in 2022/2024. The actual additional targeted spending for 2021 is less than one fourth of what is needed which will throw the next election cycle to the TrumpRepublicans in response to the economic suffering of the 90%. To understand that conclusion, it is helpful to put this post in context with previous posts. The Federal Reserve have given the Fortune 500 and the banks $4 trillion dollars of interest-free money. The Fed did that because they knew that a major downturn was coming in the global economy. For example, last year, there was chatter amongst the elite through Foreign Affairs and a private memo by the major German bank the Bundesbank of the coming global downturn. So the Fed has thrown up a $4 trillion dollars wall of money to protect the 1% in this country. But, that dimension of money is what is needed to be thrown at the lower 90% for them to survive the coming downturn. We have a vicious economic double standard in this country which will force a turn to the radical right.
Thanks, David Baker. I get that. Just heard March 26th’s podcast. I may put the following suggestion under that one also when the Doc puts that link up here. I can’t study this stuff full time, and it gets frustrating.
With the Hudson/Escobar link below in mind, I propose a graph. Plot REAL STUFF OR SERVICES created by US corporations over time (since say 2001), and have another line on same graph reporting their percent of profits that went into buybacks.
Now I know that US corporations produce things…and services. You look at customer service, though, and you look the percentage of homeland manufactured hard goods we consume (and you listen to Hudson and Escobar). And you start wondering if many of our companies are just, like, “front” companies…warehousing humans and projecting some massive pretense of gainful employment. You wonder if they’re more or less FAKE.
https://consortiumnews.com/2021/03/26/in-quest-of-a-multi-polar-world/
“Now, because of depletion, we have reached a situation where oil companies, and in fact most companies, are unprofitable. Companies and governments keep adding debt at ever lower interest rates. In fact, the tradition of ever-increasing debt at ever-lower interest rates goes back to 1981. Thus, we have been using debt manipulation to hide energy problems for almost 40 years now.”
Oct ’20 https://ourfiniteworld.com/2020/10/15/fossil-fuel-production-is-reaching-limits-in-a-strange-way/