The Price Signal
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Bernanke delivered the price signal to sell off overbought (overpriced) commodities in a public forum today, telling congress that inflation will become long term.
The overpricing has been adequately baked-in to ensure long term inflation and the need to raise interest rates (the price of money--the price signal) to control it and, he didn't mention of course, the higher rate to be paid on that gigantic public debt with a regressive tax burden.
He testified that he will have to prevent wages and salaries pricing-in the inflation rate but, of course, did not mention that a progressive tax on the benefit (the profit margin that IS inflation) redistributed to the incomes he is worried about being inflated would obviate the need to raise interest rates and would promote economic growth and strengthen the dollar.
No. This was a signal to technically correct the overbought condition of the commodities markets--the OVER pricing you are paying that is deflating the economy and will now be even more deflated with the increased interest rate. It was a sell signal.
Interest rates will rise, commodities will sell off, and the trage will be complete with a gigantic capital gain that has the benefit of a trickle down tax policy that McCain wants to make permanent and you were told was to your benefit, but entirely at your cost.
That huge consolidation of capital will rotate to stocks and bonds to set up the next round of capital gains that will far offset the impending increase in the tax.
This is what tyranny looks like in a post monetarist world.
It's time for it to end.
The tools are there, we just need to start using them to ensure your freedom, not your servitude.
Obama 2008!
The overpricing has been adequately baked-in to ensure long term inflation and the need to raise interest rates (the price of money--the price signal) to control it and, he didn't mention of course, the higher rate to be paid on that gigantic public debt with a regressive tax burden.
He testified that he will have to prevent wages and salaries pricing-in the inflation rate but, of course, did not mention that a progressive tax on the benefit (the profit margin that IS inflation) redistributed to the incomes he is worried about being inflated would obviate the need to raise interest rates and would promote economic growth and strengthen the dollar.
No. This was a signal to technically correct the overbought condition of the commodities markets--the OVER pricing you are paying that is deflating the economy and will now be even more deflated with the increased interest rate. It was a sell signal.
Interest rates will rise, commodities will sell off, and the trage will be complete with a gigantic capital gain that has the benefit of a trickle down tax policy that McCain wants to make permanent and you were told was to your benefit, but entirely at your cost.
That huge consolidation of capital will rotate to stocks and bonds to set up the next round of capital gains that will far offset the impending increase in the tax.
This is what tyranny looks like in a post monetarist world.
It's time for it to end.
The tools are there, we just need to start using them to ensure your freedom, not your servitude.
Obama 2008!