Thread by @APhilosophae

1 month ago inflation hit a 30 year high.
Today it hit a 39 year high.
What will it be in another month?

Has inflation been higher than this in the past? Sure. But back then we were able to raise interest rates to get inflation under control. It has been raised as high as 20% in the past to curb and control inflation.

But these days? The US government has so much debt, raising the interest rates to even 5% would hyper accelerate collapse. It's not possible to raise interest rates that high anymore. Even 2.5% is wildly questionable. The US debt/GDP ratio is the highest its ever been.

All your wage gains just evaporated in a month. That hundred bucks your giving at Christmas devalued considerably. Obama warned us not to underestimate Joe's ability to Fuck things up. Come Christmas we may be at a 45 year high.

The best thing the government can do is turn a blind eye for a year or two and let people produce as much a possible with as little govt intervention or resistance as possible. Otherwise, we're going to continue this spiral. And the leading institutions don't understand this.

Central banks are counting on the fact that long term inflation will be 2% just like it always has been and this spike is temporary. Problem is, we've seen annualized inflation at 5% for 7 months. This isnt some transient blip on the radar. And the Fed didnt any of predict this.

So, what happens if central banks and lenders are forced to recalculate for a much higher rate of long-term inflation? Everday mortgage rates skyrocket. This makes housing prices plummet. This makes the housing market collapse.

This will bring a tidal wave of dollars into the economy. This means inflation only goes higher. That tidal wave of dollars is rocket fuel for inflation. Then you get bond yields rising which means the govt has significant trouble financing its debt. Think about it...

Who is purchasing a 2% bond when inflation is at 5%? Without the money to borrow, government actually has the ability to collapse.

And this is how you build back better and reorganize global societies under the leadership of the Global 0.1%. You collapse the old system to produce a shiny new one that is drastically different but capable of "saving the day".

Everyday people look for guidance. And the Global Davos types can bring about renewed stability, even if they caused the instability in the first place. They'll come out wealthier than ever before, power consolidated, and lording over peasants just happy to have survived.