The strike season is upon us. You don't call a strike in Toronto in winter. During eras of wealth and big corporate earnings you will see the companies cave-in quickly and accept the inflationary wage settlement. Their thinking is that they project their sales growth to handle the increase in costs. The roll over only encourages more strikes by others once others see how easy it all is.
You might say, well, they might be reading what you have to say and see the truth in it. I can tell you that they choose not to see any truths but the settlements of other's strikes. Given the way the world is leveraged to increases in inflation by law, the situation can get all out of hand fast. That's why it was imperative for the FED several months ago to start tightening. They had to bust the psychology, not the evidence. Harvard, MIT, Berkeley, and all the rest haven't understood yet that inflation is in the brain so it isn't visible while it is getting virulent. The Asian excuse gave the pseudo-hawks at the FED the excuse to get with their left wing prejudices as taught at the noble universities and provide provide so no one will suffer.
Many think I'm exaggerating. Bank of America said that FED doesn't have to tighten now, but they will almost surely have to in the fall. Now how could economists at one of the world's largest banks make such an insipid comment as that? They said, the FED doesn't have to now because the embedded inflation is being masked by Asia and oil and they said those factors will soon be neutralized. So the reality is that we have a big inflation problem, but the conclusion is that the FED can get away with their irresponsibility for several more months. In the past the people claimed the FED made these delays for political manipulation purposes, but that was always a red herring. They never do that contrary to popular belief. They do it because they can't think of the pain and suffering they will bring down on the poor and oppressed peoples. How does waiting 'til fall achieve that end? How does delaying the inevitable benefit anyone? Their answer is that it isn't inevitable. They know more than B of A. Permanent prosperity through intellect. Bet me Jack. |
