666

I took down  my last post — something I really do not like to do — as it was based on articles from sources that are not very credible.  That does not mean the premise, that the current illegitimate government in America may be intentionally looking to massively devalue the US dollar, is false.  However, it is irrelevant to some degree — i.e. whether it is intentional or not.  The policies being pursed by the illegitimate Biden administration will cause a secular decline in the US dollar.

For something to get really bad — like OMFG, bat sh*t crazy bad — you often need self-reinforcing cycles at work that cause the badness to magnify and intensify over time (e.g. what is going on in the Arctic with global warming).  One dynamic that will contribute to the OMFG inflation that will develop in America is the relationship between the Federal Reserve and illegal immigration.

The Federal Reserve basically believes that inflation will be “transitory” — i.e. a one-off thing — as long as price increases are not met with increases in wages.  In traditional economics, as prices increase then workers demand more money in order to maintain their standard of living.  If these wage demands are met, then the workers increased spending will further push up inflation — thus creating the dynamic for “permanent” inflation.  For this justification, the Federal Reserve will continue with its unprecedented monetary stimulus, despite spiraling inflation, because workers are unable to win wage increases.  The reason why workers are unable to win wage increases is because of the surge of illegal immigration, which is causing a massive increase in the supply of labor.  A basic concept of economics is the relationship between demand and supply — if the increase in supply is greater than the increase in demand, then the cost will go not go up (minimum wage prevents wages from going down in nominal terms).

The long term implication of this dynamic is that the Federal Reserve will continue to cause inflation to spiral higher as workers are unable to win wage increases due to the flood of supply of labor from illegal immigration.  As prices rise and income stagnates, the majority of US citizens will continue to suffer impoverishment — they will have to consume less as their real income (nominal income adjusted for inflation) falls.  As US citizens suffer economically, the Federal government will continue its massive social spending, which in turn will also contribute to higher inflation.  More and more illegal immigrants will cross the border to intensify this ongoing dynamic.  At some point in time, the market will discount this into prices, and raises the distinct possibility that the fall in the US dollar will become dramatic — which might cause spiraling inflation to metastasize into some form of hyperinflation.

The economy of a nation is like an organism, in that it evolves over time.  New organs may pop up or change in nature.  Small changes occur in an ongoing basis and the culmination of these small changes can cause a sudden quantum leap in the evolution of the economy — for the good or for the bad.  We have argued that the opening of the Third Seal, as described in the sixth chapter of Revelation, will eventually bring about a manifestation of hyperinflation (or at least a very high level of inflation that will cause suffering to people).  The polices being followed by America look to be the catalyst that will cause this to occur, not only in America, but also to many other parts of the world, given the role America currently plays in the world economy.

Leave a Reply

Your email address will not be published. Required fields are marked *