capital is destructive insofar as new knowledge, new ideas, new technology obliterate the ways of the past

I am now thinking the price of crude will stay relatively high in the range $90-$110 that's because OPEC + [Russia] wants to help me remove the lunatics and criminals in Washington yeah it is funny

Ashkenazi Jews who totally control the USA do not want Americans driving diesel vehicles diesel fuel has 15% more energy than gasoline and diesel engine is 40% more efficient than gasoline engines

I tend to think inflation will stay relatively high 4%-8% in the USA, Europe, all over the world although it is clear it is peaking because I am now acknowledged as the global policymaker

Repeat: an important reason rates cannot go up much because if they do they will bankrupt the US govt which has a gargantuan transfer payments program

I am going to put my son Christophe [age 23] in charge of tech development for the US govt even for the entire world this will drive down inflationary pressures

Annual debt service cost of US govt is now about 20% of US govt hard cash revenue but the US Treasury Department is run by criminals and they will not acknowledge this

2 main reasons for the Ukraine war: 1) reverse Zionism the Ashkenazi Jews have realized Fertile Crescent Zionism is finished 2) get Ukraine, topple Putin regime get Russian oil & natural resources

In the mid 1990s I came up with the concept of "development dictatorship" and the Chinese govt has brilliantly carried out my conceptual model

Most of the important heads of state around the world realize that I now "call the shots" so this means I pretty much rule over the entire world this is pretty cool also amusing

I hope to interview the ambassador of Kazakhstan to the United States this will be interesting I have generally been proven right about Kazakhstan however they need more "development dictatorship"

The criminal/crazy Ashkenazi Jews want to deny energy to Americans but I will put an end to this Americans will be driving diesel vehicles this will be deflationary

Repeat: Ashkenazi Jews do not like the 1st Amendment they want to restrict speech they do not approve of

Repeat: the Christian faith and its tolerance and forgiveness can only be taken so far it will collapse then the force of nature takes over

I will soon interview my friend Mr Mark Mobius an investor and founder of Mobius Capital Partners we will discuss his book on inflation and his current views on inflation

The German Catholics in Bavaria in the 1920s 1930s did not fully realize the Slavs in the East were not their enemies their real enemies were Ashkenazi Jews and Bolshevism so Germans lost the war

It is probably true that Mr Vladimir Putin knew I was right and so he ordered the military incursion into Ukraine and I think he is now committed to "development dictatorship"

I realized recently WWII was mostly about the Jews, not only the Pale of Settlement but also Jews in Western Europe and this war in Ukraine is also about Jews and WWIII will be about Jews

What is Inflation?

Jun 12, 2022

It was about 1 or 2 years ago that I realized inflation is either growth-induced or debt-induced. That's right, it's that simple.

Debt-induced inflation is really only possible when an entity, for example a sovereign nation state that has a central bank, can produce “money” at whatever rate is desirable. So this is “fiat currency” – money is just created, it is not necessarily earned. Money is created when the authorities want it created, or it is not created and money becomes scarce. Debt-induced inflation is, quite frankly, a function of bankruptcy. Debt is large, so large that “servicing” the debt is difficult. More and more of your wealth – or money printing – goes to paying the “interest” on the debt. I am going to argue that in this situation the “economy” is actually not growing fast enough, or even not growing at all, to maintain so-called living standards or consumption.

Bankruptcy becomes inevitable, it slowly approaches, and in fact this is why interest rates trend downward. Growth is so small or negligible that no one is bidding for capital, to take on debt to expand their production. There's little interest in doing that because nothing is going on, there's no real growth. That's the situation facing the Ashkenazi-controlled American economy. At this time the US government debt service cost is about 15-16% of US government hard cash revenue. And this is with interest rates at a very low level, indeed they cannot really go much lower. Capital does not really yield anything. Yes, bankruptcy. There is not much anyone can do about debt-induced inflation. Liquidating the debt is basically the only way to resolve this. So bankruptcy has to happen, interest rates will then go way up, and the system will revert back to a much lower level of wealth. The central bank is useless if debt-induced inflation is ramping up and on track to implode. Raising "interest rates" merely raises the cost of servicing the debt.  

Then there is growth-induced inflation. Here you basically have the opposite scenario. Growth is so rapid that “production” of products and services cannot keep up with "demand" and so there is a bidding war for desired or required products and services. This is pretty obvious, right? This inflation, if it is growth-induced, can really get out of hand but it is also true that because it can get really out of hand it can also be pretty quickly brought under control. This will happen because of the government cutting back spending or raising interest rates – and sharply. This cutback results in “recession” and this recession cools down the economy and everyone begins to take a more relaxed view of production. This is the jargon that is commonly used, and I will also use it even though it is kind of stupid. By the way, scarcity of natural resources, or even labor, is going to be included as a major source of growth-induced inflation. Demand outstrips production. Crude oil is one very prominent example. Production of the resource cannot keep up with demand and so the price rises.

Several days ago I talked to the Federal Reserve Bank of New York. It was just a “communications talk” but still it was significant. I have never worked for the US government, I have never worked for a central bank, I have never worked as a so-called “economist” but this does not mean I do not have considerable influence – over policy or even over the overall approach to problems and issues.

My first introduction to “government policy” was about 30 years ago. I began to open something of a dialogue with Mr Alan Greenspan. He was the head of the Federal Reserve for almost 20 years. I would communicate with his assistant Mr Donald Kohn [who went on to become vice chairman of the Federal Reserve]. I found both of these gentleman to be generally OK, relatively honest. Under the leadership of Greenspan the Federal Reserve did undertake a very strong policy of supporting the stock market. This is normal to some degree but it was ramped up considerably with Greenspan. Hey, a lot of wealth is being generated so you do not want to step in the way of that. Right? I would certainly like to talk to both now and see what they think. Greenspan is 96 so I am not certain he is fully lucid. “Democracy” is an utter disaster and it will become obvious to the public – in the United States and around the world – within 10 years or so. It will be very shocking when the public begins to understand the reality.

The images below help augment and indeed clarify my arguments here. This is my view of inflation. I am doubting there is any analysis or explanation which is better. Certainly seems so. By the way, everyone to the left of Italy is basically bankrupt. I have also published below my Twitter commentary [@destructive_cap].