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Inflation Is a Bigger Danger Than Red China
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A few billion here, a few billion there – and suddenly we are looking at real money. Even more important, real inflation.

Governments all over have been spending like drunken sailors in a desperate attempt to counteract the ruinous effects of the Covid pandemic and resulting closures.

We have seen panic spending accelerate as governments threw away all sensible financial guidelines after unemployment rose sharply and banks took fear. Markets swooned and financial markets issued storm warnings.

Everyone remembered 2009 when ATM’s began to run out of money. Panic was in the air. And all this in a mid-term election year where the Democrats appear to be trailing significantly. Lurking not so far off is a giant storm cloud belching fire and smoke named Donald Trump and his legions of hillbilly Republicans, Christian evangelists and suburban gun owners.

Economists assured TV viewers that the sharp inflation being experienced by Americans was due to various sorts of arcane mumbo jumbo, wicked Red Chinese, menacing Muscovites, and even labor or supply chain shortages.

But the real culprit – certainly in the case of the US – is the federal government in Washington sitting atop a monster $30.5 trillion national debt that keeps growing larger and larger. Economists have previously assured us that our ability to print unlimited quantiles, and the world’s willingness to accept this fiat money, meant that our huge deficits and run amok borrowing did not really matter.

But they do. In my native New York City, I went for my usual breakfast of eggs, turkey bacon and a toasted bialy (a sort of Jewish English muffin). It cost $19.10. The next morning, I had the identical breakfast – and then it cost $21.10. That’s inflation – which Hermann Goering rightly observes can bring down governments faster than revolutions.

Governments create inflation and benefit from it. Inflation is a form of taxation that increases their revenue and lowers their debts (they pay back borrowing in depreciated currency). They get more from taxes.

Republicans used to keep the lid on inflation until Donald Trump came along. He blew the lid off and appeared heedless of the dangers of overspending. Farmers, a party bedrock, got huge subsidies and grants.

The Democrats have always been the party of overspending. Many Democratic voters don’t even pay taxes. Many others receive subsidized food, rents, education and health care.

Forty percent of Americans pay no income tax, meaning that sixty percent must support them. America has ended up, like France, with a permanent underclass that lives off the fat of the land. France was crippled by having to support a large, non-productive class that always threatened to explode into violence.

In a similar sense, America’s big cities have also fallen prey to a permanent welfare class that holds the urban areas hostage. I vividly recall the New York City power failure of 1977. Soon after the lights went out all over town, mobs of looters poured into the dark streets, smashing, stealing or burning. It was the heart of darkness.

My father, a Manhattan liberal, told me, ‘if we don’t keep giving them money, they will come and burn down our part of town.’

ORDER IT NOW

Trump supporters claim the last presidential election was stolen. This is not the case. But their claim of theft is really code for the mobilization of black voters that propelled Biden into the presidency. Without the big turnout of black urban voters in big cities, Trump would have won. But neither he nor his supporters dare assert that they mean black voters. Any more than Democrats dare claim that extreme Christian right-wingers form Trump’s base.

Interestingly, all the banners seen during the mob attack on the US Congress hailing Trump and Jesus have been scrubbed from TV news reports.

Recall the warning, ‘When fascism comes to America, it won’t be wearing jackboots. It will be wrapped in the stars and stripes and carrying a Bible.’” Attributed to author Sinclair Lewis.

I went to school with the son of Charles Lindbergh, a leader of the US anti-war right. His memory still quietly inspires some Americans, particularly in the Midwest, South and Western states. History could be coming full circle.

 
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  1. Notsofast says:

    i don’t get the reference to “read china”. better dead than read?

    • Replies: @Ann Nonny Mouse
  2. Even when he has worthwhile insights, Mr. Margolis has to signal provincial snobbery

    In my native New York City

    and disdain for inland Americans

    legions of hillbilly Republicans, Christian evangelists and suburban gun owners

    that he sees as worthwhile only when they’re packing for Uncle Sam.

    Note, too, the anti-Christian smear:

    Interestingly, all the banners seen during the mob attack on the US Congress hailing Trump and Jesus have been scrubbed from TV news reports.

    With that in mind, is the last paragraph

    I went to school with the son of Charles Lindbergh, a leader of the US anti-war right. His memory still quietly inspires some Americans, particularly in the Midwest, South and Western states. History could be coming full circle.

    something the Eisenhower Republican would welcome, or not?

    • Agree: anonymouseperson
  3. pyrrhus says:

    The last election wasn’t stolen??? Clueless…

  4. @Notsofast

    It’s a peculiar article. Seeing “Read” rather than “Red” may serve a purpose.

    • Replies: @Notsofast
    , @Notsofast
  5. Notsofast says:
    @Ann Nonny Mouse

    agree, i just can’t figure out what the purpose is, i guess i’m missing something. it has doubled the comments, maybe that’s the purpose.

  6. meamjojo says:

    “Forty percent of Americans pay no income tax,”

    Blame that on Congress, who passed the tax laws that provides low income earners with enough deductions to eliminate any income tax payments.

    If you can afford $21 for a breakfast, what the hell are you complaining about?

  7. Notsofast says:
    @Ann Nonny Mouse

    the title has been changed to “red china”. lol.

  8. Okay, I’m carrying my billy up the hill. Does that make it or me a hillbilly?
    Either way, this hillbilly wants to know why the banks are all private profiteers, grabbers. Why aren’t they all nationalized, every one?

  9. Alistair says:

    Inflation is NOT about the rising prices, but declining purchasing power of the US Dollar versus main commodities which are traded in term of US Dollar; Gold, Silver, Oil & Gas, Grains and Foods stuff etc. the inflationary pressure on the US Dollar can be verified versus spot prices of these sample commodities:

    Price on January 2017 versus price on November 2022

    Gold US$ 1,200 Oz — US$ 1,680 Oz

    Silver US $ 17 Oz — US$ 21 Oz

    Crude Oil /B US$ 55 — US$ 91

    Wheat / Bushel US $ 4.16 — US$ 9.22

    These commodities can effectively benchmark the declining purchasing power of the US Dollar, which began at the beginning of Trump presidency, on January 20, 2017 through November 2022.

    The US Dollar has been losing its purchasing power steadily; partly due to the rising tension with China, Russia, Iran and all those rival nations that keep dumping the US dollar as the reserve currency; but also some friendly nations like Israel and Saudis who are too worry about the future of US Dollar — unless some geopolitical miracle prevails, the US dollar will continue to lose its purchasing power in the foreseeable future.

  10. Eric write us an article on how Canada banned you and you were run out of town up there.

  11. Perceptive and well-written article. And THANK YOU for NOT using the nauseating “Black” word., which is now used universally, sadly even in this website. It connotes black supremacy and white inferiority It is a disgrace to the white people who built this country and dominate every aspect of it, except of course crime and welfare.. The fact that this loathsome designation is used by 99% of the “media” tells you all you want to know about the triumph of anti-white racism in America.

    • Replies: @Greta Handel
  12. @Kent Thoreau

    Perceptive and well-written article.

    So then what’s your answer to the question posed at the end of #2?

  13. Alistair says:

    The inflationary pressure in the US is due to the external factors; it stems mainly from a quiet devaluation of the US Dollar versus major commodities; these commodities can effectively benchmark the real purchasing power of the US Dollar, which remains relatively stable versus other currencies that practising “Dirty Float”; i.e. “pegging” their exchange rates to the US Dollar for geopolitical reasons; yet the US Dollar has been devaluing steadily since President Donald Trump started his “Trade War” with China, Europe, and the rest the world in 2017.

  14. ka says:

    “corporate profits account for 53.9 percent of the recent rise in inflation versus an average of 11.4 percent for the period 1979 through 2019. (See above chart.)

    Bevins’ chart made it into the hands of Congresswoman Katie Porter, who blew it up into a giant poster and explained its significance during a hearing before the House Subcommittee on Economic and Consumer Policy on September 22. The hearing was titled: “Power and Profiteering: How Certain Industries Hiked Prices, Fleeced Consumers, and Drove Inflation.” Armed with the chart, Porter said this during the hearing: “This is another really important point when we talk about inflation – what consumers are experiencing. Prices are not going up just because of supply chain or labor or some other invisible market forces, they are going up because powerful executives are making deliberate choices to maximize their profits at the expense of the rest of us.”

    https://wallstreetonparade.com/2022/11/an-economists-chart-goes-viral-shows-main-source-of-inflation/

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