Happy Monday Morning! After holding rates last week, Tiff Macklem was summoned to parliament for more berating by concerned politcians wondering when the beatings will end. In regards to rate cuts, “We can’t put it on the calendar,” Macklem said. “We need to see how inflation evolves.”
Inflation is the imposition of liabilities —prices — on us by those with the power to impose prices. The purpose is to extract or transfer more assets for the benefit of those with the power to set prices. Mythical supply and demand curves do not actually apply but demand-pull explanations are preferred to cost-push ones as the cover story.
When central banks raise interest rates to allegedly fight inflation they signal the financial markets to impose more liabilities in order to transfer more assets to those financial operatives.
Purely and simply, inflation is price gouging by those with the power to do so when there are or may be some shortages in supplies. They may not be real but expectations of shortages also justifies raising prices and imposing liabilities just in case shortages occur. Demand usually remains the same but the pretense is that it must be suppressed. That covers the real issue which is the facilitation of more transfers of assets to those with power to set prices.
In conclusion, inflation is yet another cover story for asset transfers to the wealthy as is raising interest rates to fight inflation. By focusing on price increases or liabilities, emotions are aroused stirring up more animal spirits to justify austerity measures.
The outcome of more liabilities and more asset transfers is more wealth and income inequality.
Inflation is the imposition of liabilities —prices — on us by those with the power to impose prices. The purpose is to extract or transfer more assets for the benefit of those with the power to set prices. Mythical supply and demand curves do not actually apply but demand-pull explanations are preferred to cost-push ones as the cover story.
When central banks raise interest rates to allegedly fight inflation they signal the financial markets to impose more liabilities in order to transfer more assets to those financial operatives.
Purely and simply, inflation is price gouging by those with the power to do so when there are or may be some shortages in supplies. They may not be real but expectations of shortages also justifies raising prices and imposing liabilities just in case shortages occur. Demand usually remains the same but the pretense is that it must be suppressed. That covers the real issue which is the facilitation of more transfers of assets to those with power to set prices.
In conclusion, inflation is yet another cover story for asset transfers to the wealthy as is raising interest rates to fight inflation. By focusing on price increases or liabilities, emotions are aroused stirring up more animal spirits to justify austerity measures.
The outcome of more liabilities and more asset transfers is more wealth and income inequality.