March 10, 2023

Economists are so screwed up that it is impossible to tell the difference between the sin and the ignorance. There is no objective subject matter to economics; so the result of economists is a measure of the lack of knowledge and experience in life of ignorant persons. They fight inflation as if they were cutting off a stick to make it longer. They try to damage the economy by increasing interests rates to reduce inflation. Inflation is caused by problems, which means creating more problems does not lower inflation, as examples have been showing.

Economists didn't notice anything wrong until the Silicon Valley Bank went under due to high interests rates being produced by the Federal Reserve. Earlier, the effect took down the economy for about half of society, but no one noticed. Most persons can no longer afford rent, healthcare and education.

There have been two major problems destroying the economy for a long time, which was the cause of inflation. Then increasing interest rates spread the damage to the financial sector.

One of the major problems was billionaires draining the economy dry by extracting the money supply and tying it up making it unavailable to everyone else. The primary mechanism for extracting the money supply is mergers and acquisitions. Every time one company buys up another company, the sellers walk away with that much cash. That is money removed from the general economy and tied up under the control of incompetent power mongers who use it for waste, fraud and abuse trying to redesign existence for everyone else.

The second major factor destroying the economy was incompetent power mongers taking over social structures and converting them into power structures. Power structures are used for personal gain, which destroys the purpose of social structures in producing constructive results for the good of society. As power structures replace social structures, their functionality is reduced to waste, fraud and abuse.

Combining those two major forces reduced the social order to nonfunctionality. As incompetent power mongers replaced rational persons, constructivity was replaced with waste, fraud and abuse. A social order cannot function that way. Products and processes have been deteriorating to nonfunctionality.

So the reaction of the power mongers has been to extract from workers demanding more out of them for less pay. That's why unionization processes have been increasing.

To assume the resulting inflation can be reduced by damaging the economy further through high interest rates is so stupid it raises the question of whether the purpose is to damage the economy. The same thing happened during the late 1970s and early 1980s, as interest rates were increased driving inflation up to 23%, before other factors changed the results.

Economists assume that damaging the economy is needed to lower inflation based on strange theories that tell them corporations cannot produce enough products, which causes inflation, so the economy needs to shrink by damaging it with high interest rates. The measure of a shrinking economy is assumed to be more (low class) persons being driven out of the economy by putting them out of work.

That set of assumptions is driven by bigotry, not evaluation of objective realities. When there are no realities to go by, incompetent corrupters act out their motives and convince themselves that the proper direction must be feel like an improvement and destroying the lower classes is what feels right for incompetent corrupters.