Alternative Economists Were Right – the Stagflation Crisis Has Arrived – The Burning Platform

A Catch-22 situation arises and the Fed must make a choice: To continue with inflationary programs and risk taking the blame for extreme price increases Taper these programs and risk an implosion of stock markets which have long been artificially inflated by stimulus

Production of fiat money is not the same as real production within the economy… Trillions of dollars in public works programs might create more jobs, but it will also inflate prices as the dollar goes into decline. So, unless wages are adjusted constantly according to price increases, people will have jobs, but still won’t be able to afford a comfortable standard of living. This leads to stagflation, in which prices continue to rise while wages and consumption stagnate.

Countering stagflation will require localized production, decentralization and a move away from reliance on the global supply chain, the institution of local currency systems, perhaps using state banks like the one in North Dakota as a model, barter markets and physical precious metals that rise in value along with inflationary pressures. There is a lot that needs to be done, and very little time to do it.

Alternative Economists Were Right – the Stagflation Crisis Has Arrived – The Burning Platform