Just when you think you’ve heard it all, the establishment wants to convince you that higher prices will help the economy.
My Sunday paper’s business section featured an Associated Press article by Christopher S. Rugaber with this headline: “What World Needs: Higher Prices? Banks Hoping Inflation Rises.” *
Well duh. Of course the big bankers want inflation. Their Mothership, the Federal Reserve, is the very outfit that causes inflation, so their attempt at painting it in a favorable light should come as no surprise. What makes this newsworthy is that now they’re hoping to convince you that paying higher prices for the stuff you buy is going to be good for the economy. Here’s the genius logic behind that thinking:
“When prices barely move, many people postpone purchases. Why rush, if the same price -or lower- will be available in six months? Collectively, these delays slow consumer spending, the economy’s main fuel.”
Get it? You people haven’t been shopping because you’re too darn lazy. But if somehow prices started rising, and kept rising, you lazy people will hurry up and buy stuff before the stuff you want gets even more expensive. That mad scramble to purchase things will stimulate the economy.
Who thinks this way? Well, billionaire big bankers apparently do. Surely Dennis Kozlowski might have put off buying that famous $6,000 shower curtain and $15,000 umbrella stand if he foresaw they might get even more expensive later. But that’s not how the rest of us make our purchasing decisions.
Most people shop for either one of two reasons: there is something they need, or something they want. If your refrigerator fails, you will go out and buy a new one today. You don’t put it off six months just because refrigerator prices have been stable. You buy that fridge because you need it now. You are not motivated by any other consideration.
Similarly, if there’s something you want, be it a video game system, an item of clothing, or a carton of ice cream, you will likely buy it now because you want it now. People tend to make their buying decisions because they want things immediately, not sometime down the road. If there is any reason for you to postpone getting that game system, or those pants, or even that carton of ice cream, it’s because you can’t afford it, not because you feel you can get it any old time.
I don’t know about you, but if there’s something I need or something I want, I buy it just as fast as I realize I need or want it, as long as I can afford to do so. And there’s the qualifier: as long as I can afford to. Which, in reality, is not that often anymore. My personal weakness is books, and my Amazon shopping list is full of titles I want right now. But even though I desperately want every book on that list, they remain there unpurchased because I simply can’t afford to buy anything “just because.”
The reason I don’t have all my wants met (not to mention many of my needs) has nothing to do with putting them off simply because I figure, oh well, what’s the hurry? If I see the prices go up on those books, am I suddenly going to rush to buy them? Not hardly. I’ll just do without.
I don’t think I’m that different from most people. We aren’t spending money the way we once did because we simply don’t have money for nonessentials. We will not be better motivated if prices increase. As inflation takes off, we will all be in less of a position to help “stimulate the economy” than we ever were.
During a period of inflation, people needing to replace their refrigerators will be less likely to buy increasingly expensive new ones. They’ll settle for something second hand instead. That will do nothing to stimulate the economy, because the sale of used appliances doesn’t keep appliance factory workers employed. Laid off factory workers don’t tend to buy as much new stuff as they used to, either. They will buy less unnecessary things like fast food, resulting in the laying off of fast-food workers. And so the economy will continue to spiral downward. Inflation always results in a weaker economy, never a stronger one.
So, are the bankers just stupid? No. When the controlled media issues a sell job of this caliber, it’s a signal that the long-delayed hyperinflation will soon be upon us. This is an attempt to mitigate the coming effects, to justify the move to hyperinflation.
This is economics for rubes. It’s intended to get the ignorant masses to accept a bad policy as needful and beneficial. The first “given” is contained within the first sentence: “Since the Great Recession ended 41/2 years ago…”
You say you were unaware the recession ended? Well, where have you been? The assumption in that opening sentence is meant to make you think you’re alone in your ignorance, so you will accept the specious arguments about to put be put forth in the media that will contradict what you are seeing with your own eyes. You need only look to the author’s ridiculous assertion that the price of breakfast cereal has not risen in years, a statement that anyone who spends any time in the breakfast aisle knows is palpably false.
This article is a heads up: we are about to be hit with massive hyperinflation. The author points to recently departed Fed Chairman Ben Bernanke as being worried when prices are too low. That should tell you all you need to know. If you don’t already have all the food and necessities you can afford, get them now. Things are going to get ugly fast. Forget that X-Box. Soon you may have trouble affording food.