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Possible self-rectification Elite keeps serfs ignorant by providing no economics education. Voters fail to grasp debt situation. US soft defaults, inflation
by aj700 15y ago
Possible self-rectification
Elite keeps serfs ignorant by providing no economics education.
Voters fail to grasp debt situation.
US soft defaults, inflation etc.
Dollar loses preeminence, 50% of value, the unwarranted part.
Massive inflation affecting all imports, which is most of what people buy, since America makes very little.
Inflation acts as wealth tax, and transfers value from old to young. Many factories move (back) to US. More jobs. Less inequality.
So, I think the demand for dollars from overseas investors who want safety really hurts the US. You could do all this without the evaluation if you would start seeing China as a threat and get protectionist now. Autarchy, in fact.
- rayiner 15y agoSo in a modern economy, accumulated wealth as an "earmark" on current and future productivity. People don't buy food and store it for retirement. They buy shares in Intel and get dividends from the labor of future workers to pay for their retirement. The current state of affairs seems to be one where too much has gotten earmarked. Those booming corporate profits that come from layoffs rather than above-the-line growth are going partly to CEOs, sure, but they're going mostly to retirement, pension, etc, funds. Retirees/near-retirees earmarking future productivity. I think inflation is inevitable as the younger generation decides to reallocate this distribution of the fruits of its own labor.