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photograph by
Andrew Mercer
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Over the course of the last few months, the Federal Reserve has pumped $4,000,000,000,000 of liquidity into the economy by buying assets, loaning money, and using other means, like, ... You and your family receiving a check for $1,200 to $4,400.
Needless to say, ...
Depending on the particular situation, that money went to shoring up a business' and a family's finances, purchasing needed supplies, and ... surviving the shutdown.
O.K., ...
Some of the money could have gone to paying out million dollar bonuses to the C.E.O.s and others, but that's not why I'm talking about it. I'm talking about ...
Deflation/Inflation
Deflation is simple; it is when money becomes more valuable.
In other words, you and your family are able to buy more with the same amount of money, like a buy one get one free sale.
While inflation is when your money becomes worth less . You and your family pay more for items, like a price increase.
Guess what?
You and your family are going to see inflation in the items you need for survival, while the items you and millions of other people don't need are going to see a decrease in the price.
Oooh, ....
Employment
Both will have an affect on your family's employment situation.
Think about it.
The businesses that aren't selling will offer discounts, like 0% financing. If people still aren't buying, the business will have to offer deep discounts, maybe BOGO-Free. If that doesn't work, sooner or later, the company fires people.
For businesses that are selling products, the reverse will be true, unless too many people are out of work then the businesses can't keep operating, so more people are out of work.
Which might lead to ...
U.B.I.
Universal Basic Income is simple; the government sends you a set amount of money every two-weeks or so. Supposedly, every adult receives it.
Right now, .... The proposed amount hovers around $2,000 a month.
Guess what?
Who's going to work then? Especially for $10, $12, $15 an hour working in a factory canning food, packaging meat, processing orders for pick-up when they can sit at home playing video games.
So, ...
Businesses will have to raise wages, increasing cost for the company that will pass it on to you.
Oooh, ... Don't forget. Companies buy from other businesses that will have had to raise their prices, so prices will increase some more. Which will probably lead to ...
Price Controls
Admit it. If the government is going to bail everyone out, they are going to get involved again when families can't afford the basics, like food, shelter, medical care, and other critical supplies and services.
So, ... The government will set up a commission to cap prices, or they will provide you another check to supplement the one the government is already sending you and your family.
If they cap prices, businesses won't be able to recoup their costs, so they will stop producing those items. If the government sends you another check, there is going to be ...
Arrests, Prosecutions, and Imprisonments
Don't get me wrong. At first, the government is going to try and convince businesses not to raise prices. It might work or it might now.
But, ...
How do they convince you to do something you and your family don't want to do?
Hogwash
Of course, I have been wrong for over twenty years!!!
There have been no Wars, Famines, Epidemics, Earthquakes, Tornadoes, Winter Storms, Work Place Accidents, Stints of Unemployment, Minor Medical Emergencies, and other events that affected anyone and their families.
Truth
People have been pointing out for many years the fragile nature of the World's economy, folks like Charles H. Smith at Of Two Minds Blog, the shenanigans of people in government like James H. Kunstler at Clusterfuck Nation, and the manipulation of information by the Media like the various writers at Ace of Spades HQ, and many others.
Affairs that are coming to the forefront, for you and your family.
So, ...
Pack an Emergency Evacuation Kit, Store a Two-Week Supply of Water, Gather a Supply of Food you and Your Family Normally Eat, and the other easy stuff because it's a rough road ahead.
Benedict Arnold
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