Assessment: Meanwhile, back in the wintry real world, everyone facing a dime in higher costs is jacking up their price by a dollar …
We’re constantly assured everything’s on the mend but this trying-too-hard marketing has the opposite effect: it confirms everything’s unraveling. We’re told inflation is transitory (you mean like terminal cancer is “transitory”?), the economy is opening up and growing smartly.
None of this is remotely persuasive. OK, we get it: the pandemic shutdown crushed supply chains and demand, and then trillions of dollars, yen, yuan and euros of monetary and fiscal stimulus boosted pent-up demand which then snarled creaky supply chains. Inflation is transitory because the effects of this massive stimulus is temporary and the global supply snarls will all be unkinked shortly.
“But know this, that in the last days perilous times will come” 2 Timothy 3:1-5
“For men will be lovers of themselves, lovers of money, boasters, proud, blasphemers, disobedient to parents, unthankful, unholy, 3 unloving, [b]unforgiving, slanderers, without self-control, brutal, despisers of good, 4 traitors, headstrong, haughty, lovers of pleasure rather than lovers of God, 5 having a form of godliness but denying its power. And from such people turn away!”
But this happy story only accounts for a thin wafer of global supply issues. Yes, a few items may be restored to low-cost production and shipping, but all this rah-rah ignores the primary dynamics: all the cheap, easy-to-get resources have been extracted and consumed, and labor costs, crushed for the past 45 years, have reversed: after being stripmined by capital for the past 45 years, labor is now demanding some modest restoration of decades of diminished purchasing power, not just in the U.S. but in China and other production nodes in global supply chains.
Capital’s screams of agony are laughable, as the top tier of capital has added trillions in wealth at the expense of the bottom 99.5%. The wealth of the few has metastasized into hyper-wealth–$100 million yachts and villas barely scratch the surface of the billions gained by gaming financialization and the Federal Reserve’s financial fentanyl.
Although nobody benefiting from the Fed’s financial fentanyl seems to have noticed, hyper-wealth has extinguished democracy and destabilized the economy and society.
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