Insane pork filled relief bills that are trillions of dollars in size, a national debt of over 27 trillion, two hundred thousand illegals crossing our southern borders each year, many states in open decline with failed budgets and the Fed now printing currency 24/7. What could possibly go wrong?
In the 1979 book turned movie, ‘The Right Stuff’, author Tom Wolfe first used the term ‘screwed the pooch’. Today, in 2021, that would seem a fitting description of the Biden administration. He has successfully attacked and subdued the one sector that had bailed up out of pending depressions in the past – Energy! With that now going south, the first signs of a impending national heart attack could happen as soon as the summer of 2021!
Our unfunded debts are now piling up so fast that not even the Federal printing presses can hope to keep up. And, with every dollar printed, the money already out in circulation becomes ever more diluted. This can lead to devaluation and subsequent hyperinflation!
You’d think that some, still living, would remember what hyperinflation can do to a country. In early 1923, German workers embarked on a prolonged general strike as a protest against the occupation of the Ruhr by French troops. Despite its parlous economic condition, the Weimar government decided to support this strike by continuing to pay striking workers. It did so by increasing print runs of banknotes, a policy the government had been using intermittently since 1921.
Government economists understood the dangers of flooding the economy with paper money, so the policy was intended to be temporary. But as the Ruhrkampf continued into the summer and autumn of 1923, no alternative way could be found to address the crisis. Paper money was continually pumped into the German economy, leading to devaluation and hyperinflation.
As more banknotes went into circulation, the buying power of each Reichsmark decreased, prompting sellers to raise prices. In 1918, a loaf of bread cost one-quarter of a Reichsmark; by 1922 this had increased to three Reichsmarks. In 1923 the market price for bread spiraled, reaching 700 Reichsmarks (January), 1200 (May), 100,000 (July), two million (September), 670 million (October) and then 80 billion Reichsmarks (November). One dozen eggs cost a half-Reichsmark in 1918 and three Reichsmarks in 1921. In 1923, the market price increased to 500 (January) then 30 million (September) and four billion Reichsmarks (October)…. In my view, America is headed down that same path at breakneck speed.
There is likely nothing that can now be done to avert disaster, especially when the Biden administration is passing pork-riddled legislation with no resistance due to them owning both Houses. See you all on the other side.