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WTF? He is sounding more and more itulippy...
WTF? He is sounding more and more itulippy...
Why The Fed's Policies WILL Collapse The Economy
Not might folks, will.
“And you need not go further than one of our stores on midnight at the end of the month. And it’s real interesting to watch, about 11 p.m., customers start to come in and shop, fill their grocery basket with basic items, baby formula, milk, bread, eggs,and continue to shop and mill about the store until midnight, when electronic — government electronic benefits cards get activated and then the checkout starts and occurs. And our sales for those first few hours on the first of the month are substantially and significantly higher.
“And if you really think about it, the only reason somebody gets out in the middle of the night and buys baby formula is that they need it, and they’ve been waiting for it. Otherwise, we are open 24 hours — come at 5 a.m., come at 7 a.m., come at 10 a.m. But if you are there at midnight, you are there for a reason.”
This is why it can't work folks.
In a credit-driven monetary system, you can only get "inflation" (in the truest sense, where it flows through to wages and prices, thereby debasing - that is, helping - people pay down indebtedness) if there is credit expansion.
But when the limit of credit expansion is reached (which is known - when "QE" by whatever name is initiated, you've reached that point, as you are then artificially trying to create credit expansion that you are unable to stimulate otherwise) further machinations of this sort do nothing other than bankrupt the population.
That is, there is no flow-through to wages. Price for essentials go up (energy, food, diapers, etc) but earnings capacity in real after-tax dollars decreases instead of increasing as occurs in a true inflationary environment.
You've all seen this. The 2qt Ice Cream tub is now 1.5qts. Price inflation. But your paycheck hasn't gone up 25% to compensate.
The upper middle class and above is "unhurt" by this. Oh sure, they feel the pinch too, but in the broader sense it doesn't do much damage to them, in that they still have surplus. So long as you have surplus, you're "ok" in the general sense (you might not like it, but you at least can put gas in the car and food in your kid's mouth!)
The working person, and especially the lower-middle class and below, are decimated by these sorts of policies.
Not might folks, will.
“And you need not go further than one of our stores on midnight at the end of the month. And it’s real interesting to watch, about 11 p.m., customers start to come in and shop, fill their grocery basket with basic items, baby formula, milk, bread, eggs,and continue to shop and mill about the store until midnight, when electronic — government electronic benefits cards get activated and then the checkout starts and occurs. And our sales for those first few hours on the first of the month are substantially and significantly higher.
“And if you really think about it, the only reason somebody gets out in the middle of the night and buys baby formula is that they need it, and they’ve been waiting for it. Otherwise, we are open 24 hours — come at 5 a.m., come at 7 a.m., come at 10 a.m. But if you are there at midnight, you are there for a reason.”
This is why it can't work folks.
In a credit-driven monetary system, you can only get "inflation" (in the truest sense, where it flows through to wages and prices, thereby debasing - that is, helping - people pay down indebtedness) if there is credit expansion.
But when the limit of credit expansion is reached (which is known - when "QE" by whatever name is initiated, you've reached that point, as you are then artificially trying to create credit expansion that you are unable to stimulate otherwise) further machinations of this sort do nothing other than bankrupt the population.
That is, there is no flow-through to wages. Price for essentials go up (energy, food, diapers, etc) but earnings capacity in real after-tax dollars decreases instead of increasing as occurs in a true inflationary environment.
You've all seen this. The 2qt Ice Cream tub is now 1.5qts. Price inflation. But your paycheck hasn't gone up 25% to compensate.
The upper middle class and above is "unhurt" by this. Oh sure, they feel the pinch too, but in the broader sense it doesn't do much damage to them, in that they still have surplus. So long as you have surplus, you're "ok" in the general sense (you might not like it, but you at least can put gas in the car and food in your kid's mouth!)
The working person, and especially the lower-middle class and below, are decimated by these sorts of policies.
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