I think what You have said that the average "Joe" is not literate about how the money system works is right on. I never paid attention until My later Years in life. Wish this could have been taught in schools . Senior years and most importantly in college and university.
Here in the UK the Austrian school is not taught as an alternative to Keynesianism. The kids are taught what to think not how.
Gramsci's long march through the institutions is complete.
We have a Marxist govt sitting atop a vast bureaucracy and state broadcaster all led by leftist intellectuals with PPEs and a God given conviction that they know what's best for the little people.
The latest wheeze is full employment rights from day 1.
Excellent piece Joel. Simply pointing out the compounding effect of the stated target of 2% interest inflation should be enough to have everyone sit up and take notice.
It also makes a nonsense of capital gains tax. First they steal the value of purchasing power of your dollarand then they tax you on the illusion that the value of your purchase has increased
Henry Hazlitt's Economics in One lesson should be compulsory reading for all before going out into the real world.
Dude, or whoever you are…you got some pretty big balls to come on Joel’s Substack, pretend to be him, and try to scam his readers with whatever “Mr. Ben” is trying to move.
Love the updates about Milie’s progress. Perhaps like Argentina, the U.S. will follow the path of a recovering addict and turn itself around once it hits rock bottom.
What most don't realize is that there is a rock bottom from which recovery is not possible. Read Revelation 13. Or, read The Great Controversy if you want to better understand what you're reading. https://archive.org/details/TheGreatControversy/page/n7/mode/2up Note: If you skip ahead to the end, you will miss the history of how we got there. You all remember what Santayana (and others) said about that.
I would like Joel to point out that the REAL inflation rate would need to include the efficiency gains, which are typically a bit above 2% per year. That means the true inflation rate when published as 3% is closer to 5%.
Joel, Interesting article again, and agree with much of the commenters stated. I liked seeing the graph of where we stand , a picture is easier to read. The U.S. is just a slow train coming up on the end of the tracks.
SCAM ALERT: Someone is attempting to scam my readers under a fake account called “Joel Bowman Notes.” He is asking people to contact a broker and hawking some scammy stock.
DO NOT CONTACT HIM! HE IS A SCAMMER!
I have already blocked this person’s account, reported him to Substack admin and removed all his comments. If you see anyone impersonating me or asking you to contact their broker here on Substack, please report them immediately.
Thankfully, my readers know me well enough to know I’d never flog a stock to them or ask them to contact some dodgy broker. They responded to his bilking accordingly.
Our best defense against these scammers is community vigilance. Thanks in advance for your understanding and apologies for any inconvenience. Cheers, (the real) Joel Bowman.
When I was a child, my family lived in a modest house. We had one car. My father worked from 8am to 5pm, 6 days a week. My mother was at home looking after her children and her vegetable garden. Today, even with both parents working, most couples can not afford a house, childcare, and transportation costs.
How has it come to this?
When inflation is regarded as normal, capital is invested in real assets (real estate) that retain value. The nominal value of real assets is bid up by the extra "printed" money. This causes what we call "inflation". However, wages are "sticky", and do not inflate as rapidly as real assets because wages are not subject to the same investment pressures as capital, which is losing value through inflation. We can stop the situation from becoming worse, by stopping inflation. However, repairing the damage done by inflation over the last half century will take a long time.
Well what do you expect. Government schools teaching kid with brains of mush. Ron Paul had or has it right shut down that corrupt Fed. But that won't happen, just hang on for the ride. the music will stop sooner or later
What changed is debt. They, the wiz kids, proposed to sell bonds and pay for them twenty years latter, cheaply, by inflating the economy 3% a year. It got to be a habit, they liked the power and it wrecked everything. One of the wiz kids, overseeing Bethlehem Steel, announced the plan to my father, in his bar, when he asked, “How are you going to pay for this?” It was 1944.
I read market market in all these missives, especially from Bonner. There is no market, there is no relationship between price and what people can pay.
The beneficiaries of inflation in the US are first, the Federal Government, second, Big Finance. It is likely going to take a dramatic interruption causing chaos and calamity to forever sideline the existing economic paradigms. Most aren't aware but that time draws nearer and nearer. It is possible that the debt doom loop is already underway and not to be sidetracked by those who for the last many decades have claimed we'll grow our way out.
I think we should be taking a future look at the effects of hyperinflation. We have started a period of hyperinflation and it will only grow worse ( lower interest rates, money printing, fractional banking) those elements will see to the process. It seems planning along those lines is the way to go and I think it is high time some of our online sources begin talking about this in no uncertain terms. No more coulda shoulda woulda; the facts ma'am just the facts.God's blessings to all.
I think what You have said that the average "Joe" is not literate about how the money system works is right on. I never paid attention until My later Years in life. Wish this could have been taught in schools . Senior years and most importantly in college and university.
Here in the UK the Austrian school is not taught as an alternative to Keynesianism. The kids are taught what to think not how.
Gramsci's long march through the institutions is complete.
We have a Marxist govt sitting atop a vast bureaucracy and state broadcaster all led by leftist intellectuals with PPEs and a God given conviction that they know what's best for the little people.
The latest wheeze is full employment rights from day 1.
Orwell's nightmare vision is upon us.
Agree ,this is the situation in many a Country in this world in which We live . Sigh!
Excellent piece Joel. Simply pointing out the compounding effect of the stated target of 2% interest inflation should be enough to have everyone sit up and take notice.
It also makes a nonsense of capital gains tax. First they steal the value of purchasing power of your dollarand then they tax you on the illusion that the value of your purchase has increased
Henry Hazlitt's Economics in One lesson should be compulsory reading for all before going out into the real world.
Dude, or whoever you are…you got some pretty big balls to come on Joel’s Substack, pretend to be him, and try to scam his readers with whatever “Mr. Ben” is trying to move.
Seriously! We are reporting him immediately
Aaron I am agreement and shall ignore
Not me. Good instincts! "Joel Bowman Notes" is not my handle. I am reporting this scammer presently. Please do likewise.
You do not sound like Joel Nice try
I love that Joel's readers know the real Joel! We are reporting this impersonator now
Love the updates about Milie’s progress. Perhaps like Argentina, the U.S. will follow the path of a recovering addict and turn itself around once it hits rock bottom.
What most don't realize is that there is a rock bottom from which recovery is not possible. Read Revelation 13. Or, read The Great Controversy if you want to better understand what you're reading. https://archive.org/details/TheGreatControversy/page/n7/mode/2up Note: If you skip ahead to the end, you will miss the history of how we got there. You all remember what Santayana (and others) said about that.
Dude you’re just good at this. Great writing. Great thoughts. Great value. I’m just a very happy subscriber. Well done and keep it up.
I would like Joel to point out that the REAL inflation rate would need to include the efficiency gains, which are typically a bit above 2% per year. That means the true inflation rate when published as 3% is closer to 5%.
We have a 2028 VW Sportwagen with 58k miles on it. Retail price for a used car like this is the same as what we paid for it, six years ago.
Joel, Interesting article again, and agree with much of the commenters stated. I liked seeing the graph of where we stand , a picture is easier to read. The U.S. is just a slow train coming up on the end of the tracks.
SCAM ALERT: Someone is attempting to scam my readers under a fake account called “Joel Bowman Notes.” He is asking people to contact a broker and hawking some scammy stock.
DO NOT CONTACT HIM! HE IS A SCAMMER!
I have already blocked this person’s account, reported him to Substack admin and removed all his comments. If you see anyone impersonating me or asking you to contact their broker here on Substack, please report them immediately.
Thankfully, my readers know me well enough to know I’d never flog a stock to them or ask them to contact some dodgy broker. They responded to his bilking accordingly.
Our best defense against these scammers is community vigilance. Thanks in advance for your understanding and apologies for any inconvenience. Cheers, (the real) Joel Bowman.
When I was a child, my family lived in a modest house. We had one car. My father worked from 8am to 5pm, 6 days a week. My mother was at home looking after her children and her vegetable garden. Today, even with both parents working, most couples can not afford a house, childcare, and transportation costs.
How has it come to this?
When inflation is regarded as normal, capital is invested in real assets (real estate) that retain value. The nominal value of real assets is bid up by the extra "printed" money. This causes what we call "inflation". However, wages are "sticky", and do not inflate as rapidly as real assets because wages are not subject to the same investment pressures as capital, which is losing value through inflation. We can stop the situation from becoming worse, by stopping inflation. However, repairing the damage done by inflation over the last half century will take a long time.
Well what do you expect. Government schools teaching kid with brains of mush. Ron Paul had or has it right shut down that corrupt Fed. But that won't happen, just hang on for the ride. the music will stop sooner or later
What changed is debt. They, the wiz kids, proposed to sell bonds and pay for them twenty years latter, cheaply, by inflating the economy 3% a year. It got to be a habit, they liked the power and it wrecked everything. One of the wiz kids, overseeing Bethlehem Steel, announced the plan to my father, in his bar, when he asked, “How are you going to pay for this?” It was 1944.
I read market market in all these missives, especially from Bonner. There is no market, there is no relationship between price and what people can pay.
Amen Joel.
The beneficiaries of inflation in the US are first, the Federal Government, second, Big Finance. It is likely going to take a dramatic interruption causing chaos and calamity to forever sideline the existing economic paradigms. Most aren't aware but that time draws nearer and nearer. It is possible that the debt doom loop is already underway and not to be sidetracked by those who for the last many decades have claimed we'll grow our way out.
I think we should be taking a future look at the effects of hyperinflation. We have started a period of hyperinflation and it will only grow worse ( lower interest rates, money printing, fractional banking) those elements will see to the process. It seems planning along those lines is the way to go and I think it is high time some of our online sources begin talking about this in no uncertain terms. No more coulda shoulda woulda; the facts ma'am just the facts.God's blessings to all.