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Jeremiah Donaldson

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A Confluence of Confluences
by Jeremiah Donaldson   
Rated "PG13" by the Author.
     
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Debt, inflation, unemployment, and sustainability. The Four Horsemen of the Economy.

In roughly 10 years we have a megastorm of issues coming due. Most of these issues are connected to borrowing trillions more than we'll ever pay off. The ones that aren't are connected to the notion that Neo-classical economic theory allows us to do anything, ie, debt doesn't matter and money isn't real (fiat) and has therefore zero real backing. This failed economic model is what has created the trillions in debt that will never be paid off and the insane interest payments that are dragging down the standard of living the world over. A person's standard of living is connected to the amount of debt being paid on due to limited resources, and it doesn't matter what college professor wants to argue with that, because those same people argue that releasing students from their debt would improve their lives, aka, improve their standard of living, so they've already said what I just said. Marxist and Neo-classical economic theories are a failure and only Classical has any real merit. Why? Because we live on a limited world with limited resources that must be managed as though they are limited. Which is what the other modern economic models do not take into account. Neo-classical theory has become synonymous with unlimited borrowing and inflation. Marxist theory is synonymous with unlimited forced labor and starvation. And Keynesian theory? All that does really says is that you will have 'boom' and 'bust' cycles if you allow unfettered economic activity. It's also been corrupted and incorporated into the Neo-classical theory in an attempt to explain why the Neo-classical system causes economic recessions and depressions. Hint: it's because the Neo-classical system allows companies to make far more stuff than they could ever use by allowing them to borrow far beyond their means, ie, a fast food franchise expands and then has to close stores due to expanding beyond their means with money they borrowed beyond their means forming a 'boom/bust' cycle for that company that wouldn't have existed without the money they borrowed to over expand. Neo-classical economic theory is like a monster that constantly eats itself and calls it 'progress'.

Debt, inflation, unemployment, and sustainability. The Four Horsemen of the Economy. These are primary issues we face, and indeed, created by going off the gold standard and pretending that money didn't really exist. Until we had to pretend it did indeed exist in the form of debt, if nothing else. And then people want to essentially argue that debt doesn't exist, because that is what you're doing if you argue that the amount of debt doesn't matter. If it doesn't matter, why does it cause negative effects on society? Well, the negative effects on society exist, therefore, the debt exists, whether the fiat money it's based on actually exists or not. That means that the other negative effects also exist and these negative effects are in the process of converging into a storm of epic proportions roughly 10 years from now. That's not a long time to anyone but kids. Everyone else still has a phone book or calendar from 2013 in their house. If you think it is a long time...then I say...develop some longview and recognize we are all but ants moving across the pages of history.

The first horseman, debt, has been riding for a while now. People have been warning for literally decades that it would have to be brought under control. Debt is insane and no Western country has any chance of paying what they owe off. Furthermore, most of the people within those countries don't have the ability to get out from under the debt they have. 'Debt slaves' are the new slaves and a massive number of people are in that situation and even brag about it by bragging about the vehicles and houses they have in their possession but will never actually own. However, they're adults and did that themselves because they did not recognize the economic poison being pushed in every 'zero percent financing' sign or thought, due to Neo-classical economic upbringing, that the amount of their debt did not matter. But of course it mattered, because that debt lowered their standard of living and these same people are now crying that 'they can't afford to buy a house'. Well, why would you? You wasted tens of thousands partying in college under completely wrong economic assumptions and you wasted all the time and money that other people used to buy such things with. You made your decision. However, that doesn't mean that it doesn't lower the standard of living for these people. Credit cards, buying trucks for double their actual value, buying a house over FOMO when the prices have shot up double, and other really stupid financial decisions also caused these things. Here's a hint: if the general public is doing it and promoting it, DO NOT TOUCH IT. That holds true for the Covid vaccines that killed millions, for crypto which is more fiat than fiat money (and that I lost money on myself after making money off it years ago before the public was on it), for borrowing money to buy garbage you don't actually need, for EVs that are collapsing in sales so fast you'd think a plane hit them, and for legal meth they call Ritalin and Adderall that's helping cause mental health issues, because SURPRISE, meth causes mental health issues like psychosis. Hold yourself to that rule and your life will be better than the lives of most people you know: you won't be drowning in debt, losing money, wondering want to do with your EV yard ornament, or being shot by your drugged up kid. You'll make mistakes, but LEARN from them and don't say 'uh, oh, better luck next time'. Pick a new game next time from the one that just face planted, because repeating the same thing over and over with the same result is insanity. And by that definition, raising the debt ceiling yet again would be 'insanity'.

The second horseman, inflation, is off the charts, even per the doctored numbers pushed by the US government. And guess what? Prices are not going back down. We would have to have negative inflation, deflation, for prices to go back down. Therefore, prices aren't going back down and are only going up in the future. Why? Twofold. The first thing that triggered the massive wave of inflation is the money printed during the pandemic. This does include the money handed out to people as checks, but it also included the money governments borrowed for the completely failed, blind, and DOA Covid response, including billions that went to pharmco companies that have killed millions with opiates alone. All this money together caused massive inflation. Then people didn't want to work when they got this money, especially the people getting $600 a week on top of their normal unemployment benefits, and wages started to skyrocket because companies needed workers. So this increase in wages also pushed inflation up right behind all the money that was created. And wages also can't go back down. Anyone that tries to lower their wages are going to lose their employees to companies that don't lower their wages. Therefore, wages have hit a new high and can also only go up from there, albeit slowly. This will only continue to feed inflation, as any new money borrowed will also do.

The third horseman is everyone's favorite to argue about: unemployment. It can't be said enough that the unemployment numbers given on the news are complete garbage due to people not being counted in those numbers once they've been unemployed 6+ months. In reality, REAL unemployment is eleven times higher than they say on the news and all the numbers prove it. Observe. Labor participation rate was 67.3% at the beginning of 2020. That translates into a real unemployment rate of 32.7%. The labor participation rate just last month in April of 2023 was 62.6. That translates into a real unemployment rate of 37.4%. Comparing the two, we see that there are 4.7% more people unemployed now than slightly more than three years ago. Some of these people are independently wealthy, some are housewives, and some are disabled, but the reasons why are irrelevant, it only matters that we have that many less people producing and paying taxes compared to three years ago. The current stated unemployment rate stated by the Feds is 3.4%, or 1/11th of the real unemployment rate of 37.4%. Arguments about the veracity of these numbers are irrelevant. All these numbers are provided by the US government and are publicly available, just like the millions of Covid vaccine injuries in VAERS. All you have to do is look.

And all of that happened because of the fourth horseman: sustainability. Nothing done in the last 40ish years have been sustainable and people have acted like there’s money trees somewhere. Borrowing and driving up the debt yet more is not sustainable. Allowing more and more people to drop out of the workforce is not sustainable. Allowing pharmco corporations to kill people with their products and cause addictions and mental health issues is not sustainable. Kicking the can down the road for forever is not sustainable. NOTHING currently being done in the modern world is sustainable and is a one way ticket to millions or billions of deaths when the ride ends. Because how many people are getting money from the US? That's right, a lot. And you know what else isn't sustainable? Putting cash in the all the beggar hands held out. When the US fails to sustain the unsustainable debt we're racking up, most of the rest of the world is going to fail with us. And that doesn't take into effect perhaps the biggest issue that's coming: the US $ losing world reserve currency status. One after another, countries are dropping the $ in favor of using their own currency or a currency like the Euro that doesn't have the political baggage associated with it that the $ does. Estimates 5 years ago put the $ losing world reserve status in about 10 years. Estimates now put it in 5 years. If these estimates are off by a factor of half, as such politically motivated estimates normally are, it would put the loss of world currency status at the same time Medicare and SS are going broke and we're having a hard time paying interest payments (if we keep borrowing the whole time without cuts). The effects of the $ losing world reserve currency status are so dire that you cannot even find estimates of the economic damage. However, based on what happened to the UK when the pound sterling lost world currency status after WW2, the value of the $ would plunge by up to 90%, along with the buying power of anyone using it, and we wouldn't be able to borrow anything compared to now since having primary world reserve currency status is what allows us to borrow so easily. We would collapse like the UK did after WW2. Except, their money was backed up by silver and our money is pure fiat money with nothing backing it up, so a worse case plunge of 90% for the US $ could be overly optimistic based on how much other fiat currencies without backup like crypto can fall in value. And no, crypto isn't backed up if it's backed up with US $. That's like backing up crypto with crypto, because it's all fiat money without a value based on a physical object.

A confluence is the junction of two rivers. But we don't have two rivers combining, or even two confluences that are going to combine. We have a dozen rivers of misaligned modern theories and actions that are forming a minimum of four confluences that will then in turn join together in the coming years. I place it at 10 years from that. It could be 13 years from now. Or it could be 6 years from now. But it almost certainly won't be more than 15 from now and it won't be less than 5. Those two numbers are as clear as the fact that it'll happen. We're on the precipice of a cliff that a good part of the country is blind to and when you're this close, you don't really know when you'll fall, just that it will happen. All this is without calculating into the equation that the Feds are lying about way more than we think, which is the Wild Card that could theoretically halve all my timelines above...and considering how much they lie, we should just go ahead and halve those numbers to prepare for the worst case scenario and be happy for what we have past that.


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Reviewed by Ronald Hull
Reviewed on May 11, 2023
A pretty draconian view of the world. And glad you are doing it worldwide rather than the narrowminded scholars, researchers and politicians who only view their narrow corner or niche in society, ignorant about all the rest.

But much of your data can be challenged. I won't go into it because it would take way too much time of mine. There is an economist who writes here that has some simple solutions for improving US economy and the world that everyone should be paying attention to.

From my little knowledge of history, back when we had "unlimited" resources fueled by wage slaves coming from Europe and other places in the 19th century, booms and busts were very common well before neoclassical economics. Almost all the great civilizations boomed for a while and then declined and disappeared. While I agree with you on the hidden unemployment rate and some of the waste caused by borrowing--gambling with future, there are those, like me who has always paid off my debts quickly, but used debt to get ahead economically and free from worry in my retirement.

Many have predicted dire consequences in the future. But I don't think anyone predicted Covid-19, except in science fiction novels and movies. BTW your statistics on vaccines are literal baloney and have no basis in fact. But I will agree that people in economic pain tend to turn towards drugs as a solution to their despair. Doctors who prescribe dangerous drugs are just as liable as pharmaceutical companies that make them. Two things help keep people away from drugs: financial security and education. I'm for putting that poison symbol on regulated drugs and making them over-the-counter so that anyone can buy them cheaply and pick their poison, like we do liquor… The number one drug killer of people in United States from the data that I saw.

There have always been good trends and bad trends. No one can predict the future. But I can predict that I will see the end of my life before anything really draconian happens. But I see global warming and its consequences, not the weather, is the greatest challenge in the 21st-century, and you didn't even mention it--the elephant in the room. You did mention sustainability. Unfettered corporations seek sustainability by adulterating their products when raw material sources get to expansion or dry up. Like reverting to a cheap plastic when paper costs or glass recycling becomes too high. Resulting in plastics in the ecosystem that we will never be able to remove. Especially in our bodies and blood streams.

Ron

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