Loading ...You have to kill the “inflationary psychology” (as if its just in our mind) like buffoon Paul Volker succeeded. First you start running the prime rate up to 21%, and we end up with 18% variable rate mortgages and high interest rate car loans. That causes less demand and falling prices.
The great 21% prime is great for savers. They get 18% for 5 years bank CD rates, and or 16% US Gov’t Bonds paying 16% for 30 years. The above changes then create the “strong Dollar Policy” the Dollar Index goes to 120, from around 82.
Then the strong Dollar, shuts down our expensive US manufactured consumer products, and replaces them with far far cheaper foreign manufactured consumer products and natural resources. This creates millions of worth less jobs. Good for making the mall and store owner rich, and able to grow and open even MORE foreign goods distributers.
That above in turn is also great, because millions of people could start and open many new retail stores and shopping malls, because the super high quality imported products will be mathematically very very cheap, and the store owners can make huge profits, to pay wages rents and property taxes on the stores and malls.
Also the strong dollar pushes commodity costs lower for the next 20 years. Like Silver down to $4, Gold down to $250/oz. Copper to .46 cents, heating oil to .42 cents, stocks, house prices and rents, flat to lower for 12 years!!! What more could you ask?? Its perfect!! Raise the rates to 21%.
Who needs those dirty menial polluting factory jobs anyway? We will be totally sales and service of imported products. Plus a deflation in labor costs because of the use of foreign labor. Also the womans liberation movement flooded the USA with twice as much labor and helped get labor costs lower too. Who cares if we end up with open borders and diseases from other countries? And a $29 trillion national debt? It doesn’t matter. Cheap high quality imports are very important.
Sarcasm and entertainment of course. The USA is where it is, because of that past scenario to get inflation numbers lower
