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Craig Whitfield's avatar

I've always felt that America's middle class was the unwitting sacrificial lamb when the U.S. government signed on to the Bretton Woods Agreement. The exorbitant privilege of having the world's reserve currency is not a completely free lunch. Since Bretton Woods the Federal Reserve has had to conjure up trillions of dollars to grease the wheels of international commerce. If all the new dollars went overseas the inflation could have been exported to other countries. As one would expect, the government and Parastrocracy (i.e. Parasite Class) used the exorbitant privilege to enlarge and enrich themselves. This development created inflation which wasn't easily exported to other countries. I've argued that business did a masterful job of counterbalancing a good portion of this inflation by exporting production overseas to take advantage of lower wages. In essence, we ended up sacrificing the middle class to contain the inflation on American soil. In retrospect, if business didn't step up to fix the inflation problem then the government and Parastrocracy would have had to change their ways. Now fast forward to today. The government lockdowns effectively took a sledgehammer to distribution chains which took decades to build. The increasing Balkanization of the world means that new distribution chains must be created and previously off-shored production will return back to American soil. This development will be highly inflationary. I don't believe business will be able to save the day again as they will struggle mightily to keep their profit margins from tumbling. The Federal Reserve will just exacerbate the problem with their current policies and the government will never willingly shrink itself. So the horizon looks like continual inflation and sub-par growth; stagflation. Yeah, we'll most likely have an occasional recession and then back to stagflation. At the end of the day the government and Parastocracy took us for a ride. We unwittingly traded our Middle Class for a bunch of miscreants. Deal with the devil and you're gonna get burned.

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Pete McDevitt's avatar

the ever increasing price of fuel seems to be the largest factor of inflation. Everything is transported, sometimes several times before it gets to market. Most of our travel is by virtue of vehicles or aircraft that are powered by petroleum based fuels. There has to be enough power on the grid to recharge all these electric vehicles. They are already talking about rolling black outs in California because of the lack of power on their grid for recharging electric vehicles. Not to mention if you dig into all things "green", they aren't near as "green" as promoted if at all. Follow the money. And say a prayer for everyday Citizens.

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