- All taxes are paid by people like you and me.
- Free is never free, YOU will always pay for your free stuff.
- If the price is too high, the supply is too low.
- Corporations don't print money, they sell products.
- Government prints money.
- The world's economies run on oil.
- And lastly, revolutionaries are always Communists.
Stagflation -- persistent inflation combined with stagnant consumer demand and relatively high unemployment. Under normal conditions one would expect inflation to heat up the economy. In other words, prices are going up while the economy is going down. The word was coined during the crippling inflationary period of the 1970's -- Jimmy Carter's America.
The reason the FED generally increases interest rates during periods of higher inflation -- This helps to cool the economy and prevent inflation from spiraling out of control. The primary cause of inflation is an increase in the money supply. It's what bailouts do to the economy. It's a little like stomping on the accelerator while at the same time standing on the brakes, bad for your car, bad for the economy.
So what is going on now? The economy is going flat while interest rates are going down, and inflation is skyrocketing. See the problem? The trigger was that government feel good experiment in the form of "ADDI 2003", The American Dream Downpayment Initiative", the Act that made housing loan qualification discrimination -- And allowed illegals, all manner of unqualified buyers and then high end speculators ( flippers ) to buy house, no money down, no credit check. The bills are coming due now, and someone has to clean up the mess. Around here, condo and house flippers got caught in the down draft big time.
Back to basics ...
Energy costs drive the price of everything in America. Raise energy costs, the price of all goods goes shooting up, like today. Tax cuts and bailouts don't work, because costs keep climbing. Well, now we have made the dumbest mistake of all, we coupled energy costs to our food costs. Even Jimmy Carter wasn't this stupid. Biofuels will destroy the world by starvation and deforestation -- Count on it.
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Another way to look at it, it's Carter-McGovern Democrats trademark liberal economic policy. A command and control "tax the rich, windfall profits tax, get the oil companies, get Walmart, get the healthcare providers mentality, help unions", Democrats own branding of Marxism. Marxism is fueled with the politics of envy and hate, the objective is "fairness". High energy prices triggered it for Democrat Jimmy Carter, the worst President in US history. Interest rates went to 22% to try and combat high inflation, inflation went to 14% as the money supply was inflated by government policy. The futility was obvious to everyone, except Jimmy Carter. The US and to a large extent the world economy, runs on oil. Oil prices skyrocketed, the economy stalled.
Never forget, government can do little to stimulate the economy, but can do a whole lot to destroy it. Ask Hugo Chavez, a darling of Carter-McGovern Democrats, how it's going in Venezuela -- Venezuela for all practical purposes has stopped as a free market economy, Chavez just steals the oil money for himself, like most dictators do.
Democrats talking worldwide to thugs and dictators resulted in Democrat Jimmy Carter installing the mullahs in Iran, so they could set up their terror shop right in the middle of the world's oil supply, and Mugabe installed in Zimbabwe, so that African blacks could be terrorised by a real murderous dictators.
Ah, the young, they haven't a care, they haven't a clue. They think what is when they were born is what has always been and will always be. How wrong they are.
Don't bother with Wikipedia and Jimmy Carter, it's been so thoroughly white washed by liberal sycophants. You need to go to a library and look him up in a real encyclopedia -- Something I doubt many people do anymore, go to a real library and do research work. Wikipedia is a liberal tripe shop, rewriting history for the benefit of liberalism. Another topic to stay away from in Wikipedia, global warming -- All you get is tripe. Everywhere you see it, just move on, it's probably not true. The scientific literature is your friend, especially peer reviewed science papers, use google scholar.
He who controls the past controls the future. He who controls the present controls the past. -- George Orwell, "1984"-- Watch the movie, or even better, read the book.
Parting shot -- A gaping chasm lies between the artfully suggested, and the possible, the perfect description of the Hussein campaign.
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