wage and price controls

WAGE & PRICE CONTROL

For those that think, “this time is different”, I weep for your future.  Nothing is different.  Nothing.  Hell, our paralleling Rome is uncannily unfolding almost as if it were a mirror ( all empires collapse the same way.  Not because they wrote a textbook on it for the elites, but because all their similar actions/reactions are the only possible courses available ).  Hyperinflation, wage and price controls and flight of imperial control are all things that are similar to all imperial collapses.  There are no political solutions, despite our insistence on jawboning that possibility endlessly.  The more things change the more they stay the same.

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Too often, whenever a collapse is discussed, you always hear a similar theme of “the political will wasn’t there to prevent inflation or tax increases or X”.  If things had just been done differently, if Superior Politician Jones or Smith had Done The Right Thing, all this collapse fuss would have been avoided.  Bullspit.  As soon as an empire is formed, the seeds of its own destruction is sown, just as a baby starts the clock on its death the moment it pops out into this crappy carcass of a world. 

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Empires require surplus, and surplus always runs out and without surplus you cannot have an empire.  So it starts disintegrating.  Politics has nothing to do with that, barring an Alzheimer’s Annie pushing the button for the ICBM’s.  Rome ran out of conquests to mine for ore and grain and slaves, and it started to eat its own seed corn until that was gone.  The US based its economy and military on oil and that started running out and it is eating its young trying to stay alive.  The process only ends in implosion.  In the end, a dark ages has to regenerate the soil and eliminate all the useless eaters. 

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So, yes, while politics tampers with our daily lives, Big Picture, the trend is not stopped, or even sped up all that much.  All systems collapse because they try to grow when resources are shrinking.  Yes, Fracking Fags, you ignorant twats, a lower BTU and lower net energy fuel increasing in volume is still the same as a resource contraction because compared to the energy extraction prior, you are still pulling in LESS.  Venezuela only has Fake Fuel left after a century of oil production and it is failing accordingly.

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It has Crap All to do with socialism.  What do you call the US with Medicare and Social Security, Food Stamps and Section 8 Housing, government backed mortgages and student loans?  It sure as Hump All isn’t a Free Market.  Socialism=collapse is as simplistic and retarded as fracking=energy independence or Amazon=retailpocalypse.  Get your Gott Damn head out of your ass and stop confusing politics with resources and energy.  Politics has always been theatre, as politicians might have started out in charge but quickly are controlled and corralled. 

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Patriots crow about how “if the vote fails the shooting starts”.  They mean that as a threat, as in, “leave us alone or we’ll fight”.  Well, guess what?  In a system collapse, your vote CANNOT matter.  The system is saving itself.  It isn’t leaving anyone alone.  To save itself it must contract logically, always paring back resource use.  You don’t notice at first because the largest energy users must trim fat.  It starts getting uncomfortable when the fat is all used up and muscle needs to start being cannibalized.  Once all the muscle is gone, the system dies.  Right now it seems like there is still fat, but that is illusion driven by inflation. 

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It is still mere, regular, day to day inflation.  Inflation is a tax always imposed on every system as a reward to the bankers for just being themselves.  That is the deal.  The bankers are given a monopoly and protected ( those that voted Ron Paul SHOULD have realized ), and in return the bankers fund the empire in a far more efficient manner than politicians can do.  This is up front bribery to buy longevity.  Inflation getting out of control is what happens when growth stops.  Your resources growing should match inflation. 

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When resources shrink, inflation rages, because the system’s actual survival depends on growth, always growth.  Hyperinflation is raging inflation that has fed on itself exponentially.  Right now, we are only at “raging inflation” levels.  Once you factor in quality declines, the “nominal” inflation of ten or twenty percent a year in many economic sectors approaches “raging” levels.  The doctors unable to treat diseases, unable to see patients, unable to avoid malpractice as more practitioners treat far too many patients as the smart doctors quit, the administrator bloat, the insurance company delays, all are quality declines.  That cost isn’t counted.

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The insane number of once adequate auto manufactures ( Nissan, Audi, BMW ) now churning out complete crap, the once revered and perfect companies ( Toyota, Honda ) now stooping to decreasing quality, that quality decline is a form of inflated costs, to go along with the sticker shock increases.  The roads are getting patched slower, the power flickers out more often, the inventory is restocked far more slowly, the Internet signal slows to a crawl.  All are hidden costs that disguise the costs rising with inflation.  When the box of crackers cuts its weight by ten percent, the cost goes up ten percent and the salt content goes up ten percent as ten percent of the wheat is substituted by 50% less costly soy flour, that is a 35% inflation. 

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Granted, you can’t do that every year.  We are just talking about real inflation as compared to perceived or manufactured rates.  And all this real world inflation is not JUST the fault of the economic collapse of 2008.  You have to adjust the real cost of liquid carbon fuels by factoring in less BTU’s in the form of ethanol and the decreased net energy of fracking oil now being thirty percent of our fuel use.  The REAL cost of oil is a large factor in our inflationary prices.  $X is the listed price, but we are getting a good deal less energy delivered in that.

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Now, to that, you must add in the death of the PetroDollar.  No Fear Porn today ( although I can’t guarantee anything tomorrow ), I won’t speculate on the future members of the club of deserters.  But just from those countries already opted out ( Russia holds ZERO dollars ), that is far less demand for our debt.  Remember, countries use Treasury Bonds for oil sales, not paper currency.  All the currency is earmarked for drug sales and Afghan warlord bribes.  With less Treasuries sold, we have to make up that difference in domestic inflation ( before, we exported our inflation through those Treasuries ).

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The reason I cover all this, again, is that we need to understand how bad inflation really is, and how bad it is going to get.  Because once inflation gets really bad, wage and price controls are guaranteed.  Not far after that, Rome’s citizens leave the empire to go live amongst the barbarians ( of course, in our case the barbarians are NOT Muzzies and Latino immigrants as caustically labeled currently.  They will be the former productive class chased off by ruinous taxes and inflation, the Deplorables.  And rather than living beyond the empire we will inhabit the areas between the cities that will lose imperial treasure and be poorly policed ).  Continued tomorrow.

( .Y. )

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