American Economics Thread


Bellum_Romanum

Senior Member
Registered Member
Inflation is still transitory?

Too much printed money and not enough goods to use them paper money,
Don't know about you guys/gals but I am stocking up. It's just prudent to do so.


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Imagine if this practice was being done in China? The usual lemmings and analysis will always be about the "evils of communism" and how it always resort to lying. But when it comes to Democratic countries like the U.S. oh it's being done to protect the public's sensibilities and to ensure public confidence and safety. No one even dares to question that maybe, just maybe the current political governing system in America is out of whack and needs to be corrected. The lemmings and the crazy freedom nutjobs along with the faux lefties argue cosmetic changes that's it. But what the heck are the difference if a country that's under Communism does the very same thing?
 

emblem21

Senior Member
Registered Member

Lmao turning America into a tinpot military state.

Prepare to see soldiers manning the cashier stations at your local Walmart and Target.
The fact that the USA national guard didn’t rebel in amass from this crisis at being forced into working a job that really no government should force them into. If the US government fails to fix this crisis soon, the government quite frankly deserves to face a revolution in a similar manner as the French Revolution that has the potential to wipe the entire leadership clean since it is too clear right now that Biden is sleeping on the job
 

2handedswordsman

Junior Member
Registered Member
The fact that the USA national guard didn’t rebel in amass from this crisis at being forced into working a job that really no government should force them into. If the US government fails to fix this crisis soon, the government quite frankly deserves to face a revolution in a similar manner as the French Revolution that has the potential to wipe the entire leadership clean since it is too clear right now that Biden is sleeping on the job
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Have a look when you have time to spend :)

A major class struggle took place in USA from 1870 until I can say 1950, ended by McCarthy's and Hoover's purge. Many times the US national guard attacked and killed hundreds of protesting and striking people, siding to the capitalists and slave owners. The only serious political movement appeared in the US ever again were the Panthers. America needs to rev it up :p
 

FairAndUnbiased

Junior Member
Registered Member
The supply chain issues in USA seem almost intentional, blamed on everything from Covid, to antivax workforce, to no truck drivers to clear the docks, etc...

But ... It all has to do with the fact that global energy production and consumption peaked in late 2019 and has been and will be going downhill year after year from here on out....

As America is the global hegemon that makes its wealth taxing everyone else as "rent", its actually more exposed to this than anyone with no place to hide

Most of the modern money/currency derives much if not almost all of its purchasing power from the "work multiplier effect" of energy... Society relies on cheap and abundant high density (low entropy and higher EROEI energy resources) to pump up the productivity of labor and production, without which everyone will be working much harder for much less real income....each American has somewhere between 200 to 8000 "Energy Slaves" but as cheap energy goes away, this is the real reason of rise of permanent underclass of third class gig workers, slave labor in US prisons, and massive underskilled cheap immigrant labor flooding into the borders...

Which as we crossed the global total energy inflection point in terms of availablity for consumption, this is exactly why real hyperinflation in US is close to 30%+ this year.

The US is intentionally crippling its supply chain so as to cause artificial consumption destruction so its that people cannot really spend the money, and with nowhere for that money to go then that their ponzi scheme of 401k, stonk markets, house tulip bubbles, and CIAcoins dont deflate as quickly...

This is analogous to grocery stores having fake food items to make it appear things are okay, its to prevent an even bigger panic so that people dont start hoarding and then all of a sudden you get a runaway situation...

How much longer can this cheap parlor trick of masking the real symptoms go on? I think when people realize their 401k's rose 25% this year but they cant even buy a xmas toy for little timmy and shelfs are near empty, but all they hear from leadership is you can still have a very merry christmas in their imaginations, thats when the US gov cant hide it anymore no matter what they do and the wheels really start to fall apart...
Saving this, this is spot on and I'll comment when I can think more of it.
 

FairAndUnbiased

Junior Member
Registered Member
@9dashline

The point about EROI declining is absolutely true. Gas prices are skyrocketing with a near 50% increase since December 2020.

ch.gaschart

Since the economy did not grow much, it is not due to economic growth. gasoline is sourced domestically, so it is not an exchange rate effect either. It is a loss of purchasing ability. But it's not just gasoline. Diesel typically tracks gasoline and is a bit higher.

Loss of ability to purchase gasoline is a massive shock to the economy which relies on gasoline/diesel for logistics which imposes a higher cost on every economic activity. Most people get to work by driving with no ability to take transit; this straight up imposes a decline in their purchasing ability on them. Meanwhile, higher costs for logistics are passed onto retail which is passed onto customers, a double attack on their purchasing ability.

If it was 'merely' gasoline it would still be really bad. But natural gas prices are skyrocketing too.
1596478060-o_1eeqo3sraolpor41u6d1n13r148.jpg

So basically lower EROI increases the 'transaction cost' of essentially everything while reducing consumer purchasing ability at the same time.

But wait. There's more. Politically, going after a product supplier is bad news for the consumer who must endure higher prices either as a result of retaliation or due to switching to less economical suppliers.

What happened with magnesium, for example?

proxy-image


So not only transaction costs are going up, but also product costs.

The end result is low purchasing power combined with new money with nowhere to go except valuation of paper assets.
 

caudaceus

Junior Member
Registered Member
@9dashline

The point about EROI declining is absolutely true. Gas prices are skyrocketing with a near 50% increase since December 2020.

ch.gaschart

Since the economy did not grow much, it is not due to economic growth. gasoline is sourced domestically, so it is not an exchange rate effect either. It is a loss of purchasing ability. But it's not just gasoline. Diesel typically tracks gasoline and is a bit higher.

Loss of ability to purchase gasoline is a massive shock to the economy which relies on gasoline/diesel for logistics which imposes a higher cost on every economic activity. Most people get to work by driving with no ability to take transit; this straight up imposes a decline in their purchasing ability on them. Meanwhile, higher costs for logistics are passed onto retail which is passed onto customers, a double attack on their purchasing ability.

If it was 'merely' gasoline it would still be really bad. But natural gas prices are skyrocketing too.
1596478060-o_1eeqo3sraolpor41u6d1n13r148.jpg

So basically lower EROI increases the 'transaction cost' of essentially everything while reducing consumer purchasing ability at the same time.

But wait. There's more. Politically, going after a product supplier is bad news for the consumer who must endure higher prices either as a result of retaliation or due to switching to less economical suppliers.

What happened with magnesium, for example?

proxy-image


So not only transaction costs are going up, but also product costs.

The end result is low purchasing power combined with new money with nowhere to go except valuation of paper assets.
If wealth goes to paper assets, wouldn't that risk balance sheet recession? What'd happen if there's another recession in near future? Another stimmy?
 

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