Which Way Wednesday – CPI Higher Than Our Last 3 Recessions

We are an economy with $32Tn of debt and a $24Tn GDP.

We NEED inflation because we're not growing the economy organically. Birth rates are nearly negative (20% of young adults do not plan to have any children) and immigration was just 245,000 people last year - not even enough to fill half the new jobs we created in July. That's not how you grow an economy.

Neither Governments, Businesses or people that are 150% of their valuation in debt are considered financially healthy. Our $24Tn GDP is not income, and it's not revenue - the Internal Revenue Service only collects about $2.5Tn a year of Income Tax and Payroll Tax is another $1.5Tn and and our Corporate Masters pay $391Bn (yes, not even 10%) so the REVENUE is $4.4Tn and we have $32Tn in debt so it would take over 7 years to pay that Debt off - if we were using 100% of our Revenue to pay off Debt.

But we're not, are we? We are, in fact, running a $1.5Tn annual deficit with our $6Tn Federal Budget and that's with just $441Bn in interest (1.3%). As the Fed Funds rate moves to 3.5-4% next year, that number will triple over time to $1.2Tn per year of debt service. Where will that additional $800Bn come from? We can cut 15% of the budget or we could borrow another $800Bn a year so that, at the end of the decade, we'll be $50Tn in debt (assuming nothing breaks along the way).

Oh and Oops:

OR we could allow INFLATION to be our friend and rise faster than the 6.66% rate our debt is expanding. Even "just" 8% annual inflation will bring our GDP to $44Tn in 2030 and we're projecting $50Tn in debt and LOOK - we're down to 113% of our GDP. So, as much as the Fed says they want to fight inflation - they really don't - it's the only way we're going to move forward without defaulting on our debts eventually. But that's a painful way to go for the people, isn't it?

Of course, Inflation is just a way of taxing people without raising taxes. It's nowhere near as efficient as just raising taxes would have been - since that takes money out of circulation AND raises Government Revenues. But Americans don't like taxes - especially on the Ultra Rich - so we all pay a 10% Inflation Tax to cover their end.

We need to cut 15% of the Budget just to stop making more debt and, as I said, we'll need $800Bn a year in addition to that very soon, that's another 3% that needs to be cut. Meanwhile, we need to spend AT LEAST $1Tn a year fighting climate change or the debt won't matter much in 20 years and we have $4Tn in Infrastructure Repairs that are long overdue. You can see why the Government goes " F-it " and just keeps running a deficit - what's the point of trying at this stage of the game?

IN PROGRESS