The Pary's Over

Taki's Magazine ^ | 4 Aprl 2022 | The Z Man

[arthurus]

The main reason is that the Federal Reserve and the European Central Bank created trillions of dollars and euros out of thin air during the Covid panic. Throwing everyone out of work would result in food riots, so they showered the public with free money as a form of riot insurance. The trouble is the money did not magically go away, so we have the classic problem of too much money chasing too few goods.

Then there are the systemic troubles created by a generation of outsourcing and the general incompetence of the ruling class. They allowed the supply chains to become fragile by letting business chase the cheapest labor rates. This means everyone is now dependent on the least organized countries. Ukraine, for example, is where half the world’s neon used in making computer chips is produced.

[HighSierra5]

If all these Leftists think they’re so smart and have the right answers, why is everything so fu(ked up?

[delta7]

Throw into the poisonous mix, $7- 10 trillion of unwanted US dollars globally returning to the US and a dethroned USD.

[cuban leaf]

And mortgage rates are now over 5%.

Yeah, the party’s over. Prepare accordingly. This is not to be taken lightly.

[Zhang Fei]

Some of the columnists are Taki are insightful and knowledgeable. The Z Man is not one of them. This guy is literally regurgitating Soviet propaganda. While the Cold War is over, Soviet fantasies seem to have 9 lives.

[lurk]

The flood of paper dollars is rather like incoming tsunami, which takes a bit of time to leave after the flow stops. And a great number of people have grown accustomed to their Nancy checks.

[packagingguy]

Everything is fine. Unemployment is very low (just ignore all the people who don’t want to work anymore). The experts agree on Modern Monetary Theory:

“Put simply, such governments do not rely on taxes or borrowing for spending since they can print as much as they need and are the monopoly issuers of the currency. Since their budgets aren’t like a regular household’s, their policies should not be shaped by fears of rising national debt.”

https://www.investopedia.com/modern-monetary-theory-mmt-4588060

So, given our new normal, any discussion about inflation by the little people of flyover country should be banished. The experts said so. (Huge sarcasm)

[Scarlett156]

Some of them are insightful and knowledgeable. The writing is always good but then they just start with the Trump-hate, which is a total turnoff. Who will they back in the next presidential election? Some version of Evan McMuffin.

I note they frequently seem to be urging us all to go out and demonstrate and cause trouble for the corrupt elite. Who will then turn on us and destroy our lives. Makes good copy.

[Worldtraveler once upon a time]

--- "This guy is literally regurgitating Soviet propaganda. "

While I don't normally read Taki, this article seems rather valid. Is your point that the author should never believed categorically? Kill a messenger, even if the message has value?

His conclusion was "The West has been in decline for a long time, but it was covered over by financial legerdemain. The free-money era concealed the great cultural looting of the West. That era is now over, and Western people will soon have to pay the price for it."

Given "Biden said there will be a 'new world order' that must be led by the United States," Are you siding with Biden in this? Or arguing that "the free money era" is not over?

Source: https://www.foxnews.com/politics/biden-europe-trip-new-world-order-comments

Certainly the rampant inflation, which seems best explained by the Fed and ECB pursuing economic foolishness, shows itself. The article's title argues "the party's over." Are you saying it is not? Or that this view is "literally regurgitating Soviet propaganda?"

[Reily]

I find Taki’s Mag worth reading. It usually has an interesting though Euro-Coservative (Yes such creatures exist!) take on culture & politics. For example Theodore Darylrimple is always worth reading for his views on modern Kultur & Western culture collapse.

[Worldtraveler once upon a time]

I've read Theodore Dalrymple on City Journal site, so his work seems to be somewhat widely available. A sensible voice, I'd say.

As to Euro-Conservatives, and as a former longtime resident of Germany, I must say that more conservatives are being formed by the advancing idiocy and fascist tendencies of the Euro-Left. That there are such as the AfD alarms the authoritarians. How dare we disagree with the narrative!

[Zhang Fei]

[Given “Biden said there will be a ‘new world order’ that must be led by the United States,” Are you siding with Biden in this? Or arguing that “the free money era” is not over?]

---

The “new world order” is a phrase that has been around since Woodrow Wilson came up with it a century ago. He was referring to a need to prevent border changes by force, in contradiction to the very basis of the founding of the republic, of course. A cynical interpretation was that we’d pocket our wins, while everyone else would have to deal with the borders as they were however disadvantageous. In that respect, I’m perfectly fine with the new world order. Putin obviously is not, despite Russia being almost as big territorially-speaking, as the members of NATO combined.

The writer believes that the US forces the world to use the dollar by pointing a gun at their heads, in the form of the US military. This, in his view, is why the US is a wealthy country - the fact that other countries use the dollar. His take is that without military coercion, the dollar would be toilet paper. That was basically the Soviet, and now the Russian view about the dollar and the US economy - that it is toxic waste propped up by American military power.

[Reily]

I have several of Dalrymple’s books.
Worth reading!

[Zhang Fei]

For an economy that is toxic waste, the US sure comes up with a ton of useful and high-quality stuff involving serious amounts of R&D that foreign customers buy in copious amounts. For instance, the Android and iPhone operating systems that operate to 100% of the smartphones on the planet. Caterpillar tractors and associated equipment that are involved in putting up buildings and bringing in harvests. Boeing aircraft that are close to half the worldwide commercial airline fleet. Whereas Russia sells oil, gas, diamonds, titanium and so on, things that involve very little in the way of human creativity.

[Worldtraveler once upon a time]

Thank you for your reply. The article does not address all that you address, but then your reply also does not address related issues.

Given a massively growing US national debt -- currently tipping the scales at more than $3,300,000,000,000 -- any notion that the US is a "wealthy" country is amusing.

https://usdebtclock.org/

Given that in 2000 the debt stood at about $5 trillion by various sources, the "growth" -- a laughable term when discussing liabilities -- of more than six times is one the THE issues, as I consider things.

As to "new world order," the point is that Biden stated the US should run it.

Your history of terminology did not answer my query to you. Certainly the rampant inflation, which seems best explained by the Fed and ECB pursuing economic foolishness, shows itself. The article's title argues "the party's over." Are you saying it is not? Or that this view is "literally regurgitating Soviet propaganda?"

[icclearly]

“The free-money era concealed the great cultural looting of the West. That era is now over, and Western people will soon have to pay the price for it.”

Quiet the accurate statement! This has been brewing for a few years and now the chickens are coming home to roost! That’s what the all-out war in Ukraine is really all about. The west has invested heavily in that corrupt Ukraine government and its leaders. That includes supporting Ukraine in every way possible — except for troops on the ground (which may come soon).

Our stupid leaders have launched an economic war, in addition to their ground war support. The problem is the economic version of the war hits us harder than the intended target and will continue to do so. Plus it is totally not working!

Watching the west strong-arm other countries and lie about the status of the war through propaganda to gain more advantage is obvious and disappointing. While they can do that to their own citizens (lockdowns, masks, vaccines, mandates), they are finding it to be a whole different matter when they attempt to bully other countries. Ask Russia, China, India, many middle east countries, and even some Latin American countries. They are clearly not buying it.

On the other hand, Russia and China see this as a place to draw the line and they have done that. In particular, Russia is “all in.” They will not stop until they have achieved their goals. If that does not happen and the reverse happens, all bets are off.

This will not end well for any of the countries — most definitely not the west!

[Zhang Fei]

[The article’s title argues “the party’s over.” Are you saying it is not? Or that this view is “literally regurgitating Soviet propaganda?” ]

---

He’s saying the party’s over because inflation will reveal the economy to be the garbage pit that it is. That’s not how the economy works - we are a economic major power because we make a ton of useful and creative products. We are *the* major power because we also have the biggest population of the countries that do this. If prices go up, that doesn’t change this essential fact. We’ve gone through major inflationary periods before, and we’ve always come through with few problems, because ultimately, the American economy is based on creating new products and services as fast or faster than any other country, that people want to buy.

[Worldtraveler once upon a time]

Useful stuff, but what is the deficit whch continues to widen the national debt? Positive in favor of the US? Or negative? Income versus out going?

"The trade deficit in the US remained near-record levels of $89.18 billion in February of 2022, compared to $89.22 billion in January as imports continue to soar amid robust demand and rising oil prices. Imports were up 1.3% to hit a record high of $317.8 billion, on higher shipments of crude oil, other chemicals and petroleum products, fuel oil, and capital goods."

Source: https://tradingeconomics.com/united-states/balance-of-trade

Yup. "...higher shipments of crude oil, other chemicals and petroleum products, fuel oil, and capital goods."

And "Trade deficits were recorded with China ($41.2 billion), the EU ($17 billion), Mexico ($9.8 billion) and Canada ($6.8 billion). The goods gap with Russia widened to $2.1 from $1.6 billion. source: Bureau of Economic Analysis (BEA)"

Sounds like our nation is on the deficit side of the column regularly, and not on the earnings side, in spite of your prose "that foreign customers buy in copious amounts."

[Zhang Fei]

[As to “new world order,” the point is that Biden stated the US should run it.]

---

Why would it be a problem that the US is the leader of the Free World? Would you rather that Russia is the leader of an ever-expanding empire? Or China? We do voluntary defensive alliances (where the members compete to see who can spend the least on defense). They do relentless territorial expansion, checked only by military defeat or fear of defeat followed by internal revolution. I prefer our model.

[Worldtraveler once upon a time]

Thank you for the response. I tend to agree with your views.

The rage against Trump -- which continues -- seems to me to have been and continues to be that he disrupted the "bullying" in favor of energy independence, as one example. One short year later, the US is importing energy again, and now even from Russia. The Democrats have so heavily invested in corruption that any next disruption, a reelection of Trump or another not to their liking -- will blow their game. I certainly hope it will.

In this time of Biden-sized prices at the gas pump, doesn't energy independence sound just fine?