February 26, 2024

Bigotry economics is part of the perpetual war against the lower classes produced by incompetent power mongers. Power mongers feel threatened by a well-functioning economy. If the lower classes thrive, the self-evident truth is that power mongers are worthless failures and the lower classes are achievers.

The modern world was constructed after WW-II by persons who came out of the poverty of the economic depression of the 1930s and the war and had the purpose of solving problems. By the time they had the social structures in place, incompetent power mongers moved in and converted them into power structures for their personal gain at everyone else's expense.

Power mongers feel threatened by rationality, because it exposes them as the incompetent corrupters that they are. Rationality as truth and justice based on objective reality comes out of the lower classes due to the problems that need to be solved. So the lower classes need to be subdued to make power mongers feel good.

Subduing the lower classes means generating perpetual social and economic problems, as power mongers assume they can survive social problems easier than vulnerable persons can. So the corrupters are constantly degrading the functionality of social structures including the economy. Their primary tool for degrading the economy is to raise interest rates.

Corrupters convince themselves that their lies are facts; so they are convinced that they must prevent a well-functioning economy from being a well-functioning economy. Their terminology for a well-functioning economy is to call it a "hot" economy as a disparagement.

To make a "hot" economy less hot requires that it be subverted. Any old method would do, except that economist only have one tool in their kit for degrading an economy. It's to raise interest rates. So they pretend that something good comes out of raising interest rates.

It's self-contradicting to pretend that something good comes out of something that degrades. So a reversal of cause-and-effect is used to pretend that the input fixes the problem that it causes. The problem supposedly already existed; but it doesn't actually exist until their fix creates it.

The pretense is that a "hot" economy creates inflation. It doesn't. Nothing reduces inflation like a well-functioning economy.

And they pretend that screwing up the economy with increased interest rates reduces inflation. It doesn't. Prices can only increase with a screwed up economy.

So the repeated claim is that inflation gets out of hand and they have no choice but to raise interest rates. But the truth is that the inflation doesn't exist until they raise interest rates.

Proving their fraud to be fact is as simple as finding some problem that some incompetent created and saying, see how the problem is causing inflation that needs to be fixed. Nowhere else in the economy is there inflation that needs to be fixed.

Problems forever exist everywhere, which allows the fixers to pretend that they have the fix. But the problems always have real and identifiable causes which have nothing to do with the state of the economy. So the problems don't have economic fixes.

An example is supply chain problems that developed during the pandemic. Those problems were generating business concerns for awhile. But normal business had already resumed by the time the economists decided to fix the economy with increased interest rates. There still remained some supply chain problems due to a tariff war that Trump created; but it was still a small effect that tariffs created though increasing for reasons unrelated to inflation or increased interest rates.

In other words, the problems that are used as the excuse for lowering inflation through increased interest rates are totally unrelated to inflation or increased interest rates, such a supply chain problems. There are oceans of physical, mechanical and hardware problems related to technology, business and trade that constantly need improving; but economic manipulations do not fix technology or business problems.

Most basically, any idiot would know that screwing up the economy will cause costs to increase. Yet the purpose of increasing interest rates is to screw up the economy to lower inflation.

That absurdity flows from the motives of incompetent power mongers in a highly obvious manner, as they try to reduce the social order to their level of decadence, so they can dominate and prevail, as their perpetual war against the lower classes shows.

Increasing interest rates is the opposite of "quantitative easing." Quantitative easing means the money supply is increased by the Federal Reserve creating money. That process began more than a decade ago, because the money supply was far short of meeting needs for two reasons.

One, the new form of business based on silicon-based start-ups was being financed by venture capitalists instead of banks. Bank loans are the usual method of increasing the money supply; but venture capitalism does not increase the money supply. Start-ups now days have no collateral that banks require with loans; so big money dealers finance those endeavors.

The second reason for quantitative easing is that globalization of trade was based on U.S. dollars, which put huge amounts of dollars in foreign banks. Those dollars needed a lot of replacing.

Raising interest rates does the opposite: It makes borrowing more difficult, while borrowing from banks is the usual method of increasing the money supply. So the money supply stops increasing as interest rates are increased. But the two causes for a shortage of dollars still exist as start-ups being financed outside the system of bank loans and the global economy constantly expanding.

So raising interest rates at this times contradicts the problem of a shortage of money supply.