{"id":29697,"date":"2018-01-13T15:50:32","date_gmt":"2018-01-13T20:50:32","guid":{"rendered":"http:\/\/olduvai.ca\/?p=29697"},"modified":"2018-01-13T15:50:32","modified_gmt":"2018-01-13T20:50:32","slug":"as-the-controlled-inflation-scheme-rolls-on","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=29697","title":{"rendered":"As the Controlled Inflation Scheme Rolls On"},"content":{"rendered":"
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As the Controlled Inflation Scheme Rolls On<\/a><\/h3>\n<\/div>\n
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Controlled Inflation<\/strong><\/p>\n

American consumers are not only feeling good.\u00a0 They are feeling great<\/em>.\u00a0They are borrowing money \u2013 and spending it \u2013 like\u00a0tomorrow\u00a0will never come.<\/p>\n

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After an extended period of indulging in excessive moderation (left), the US consumer makes his innermost wishes known (right). [PT]<\/p>\n

On Monday\u00a0the Federal Reserve released its latest report of\u00a0consumer credit outstanding<\/a>.\u00a0 According to the Fed\u2019s bean counters, U.S. consumers racked up $28 billion in new credit card debt and in new student, auto, and other non-mortgage loans in November.\u00a0This amounted to an 8.8 percent increase in consumer borrowing.\u00a0 It also ran total outstanding consumer debt up to $3.83 trillion.<\/p>\n

\"\"<\/a>US non-mortgage consumer debt \u2013 this exercise in admirable restraint seems to have served as a template for corporations and the government. [PT] \u2013 click to enlarge.<\/p>\n

Perhaps this consumer spending binge will finally propel price inflation, as measured by the personal consumption expenditure (PCE) deflator, up to the Fed\u2019s elusive 2 percent target.\u00a0 Academic economists and central planners consider 2 percent price inflation to be the sweet spot for attaining economic heaven on earth.\u00a0 We have some reservations.<\/p>\n

Controlled inflation, or what is sometimes called financial repression, is what the Fed is after.\u00a0 Because controlled inflation is the grease that keeps the gears of the debt based monetary system turning.\u00a0 You see, through controlled inflation, and the subsequent slow erosion of debt burdens, borrowers can make good on their debts with dollars of diminished value.<\/p>\n

And, of course, the biggest debtor of all is the federal government.\u00a0 Controlled inflation benefits Washington more than anyone else.\u00a0 The government can borrow massive amounts of money and inflate its debts away.\u00a0 Yet this isn\u2019t without consequences\u2026<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

As the Controlled Inflation Scheme Rolls On Controlled Inflation American consumers are not only feeling good.\u00a0 They are feeling great.\u00a0They are borrowing money \u2013 and spending it \u2013 like\u00a0tomorrow\u00a0will never come. After an extended period of indulging in excessive moderation (left), the US consumer makes his innermost wishes known (right). [PT] On Monday\u00a0the Federal Reserve […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[175,195,303,426,11763,536,3650],"class_list":["post-29697","post","type-post","status-publish","format-standard","hentry","category-economics","tag-credit","tag-debt","tag-fed","tag-inflation","tag-mn-gordon","tag-money","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29697","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29697"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29697\/revisions"}],"predecessor-version":[{"id":29698,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/29697\/revisions\/29698"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}