William Thien

Archive for the ‘Inflation’ Category

Decades long (Greenspan to Yellen) monetary policy aimed at continually diminishing the strength of the currency for the regular population is in and of itself justification enough to respond.

I believe Washington has chosen monetary policy that forces the public to work longer hours for less income with the desire of increasing productivity at the expense of American working classes and their quality of life.

It has nothing to do with the general economy. The labor statistics coming out of Washington are false.  We’ve all known that for many years. The statistics don’t include the perpetually unemployed or the unaccounted for in industrially blighted urban areas. Therefor, the numbers are unreliable. So why the constant attempt to weaken the dollar?

Is it about selling more American made goods overseas? Somewhat, yes. But in my opinion it is more about squeezing the American working classes to get them to work harder for less, increasing the speed of the treadmill so to speak through weakening the dollar, thereby increasing productivity.

Again, if you weaken the dollar, if you systematically do so while steadily increasing inflation, a person needs to work harder and/or longer hours to get what they want or need or they must borrow more. A weaker dollar buys less and it buys less everywhere you use it even at home, not just overseas when you travel. The thing of it is, it’s not a function of the economy, it’s not happening on its own. It’s policy!

That’s what the FED has been up to starting with Greenspan, what the parties have been up to starting with Clinton, NAFTA and MFN for China, and the dollar.

You are getting squeezed by the FED/Washington establishment and the same people you elected. If money is speech as the Supreme Court determined, by weakening the dollar your voice is also being muffled. Directly.

The dollar isn’t too strong. Rather, Washington may be too powerful, too disingenuous.

I heard a debate on the radio this morning on the way to work. During the broadcast they were talking about a Constitutional Convention. Maybe it’s not such a bad idea.

I myself say, “What do you mean I don’t sound like a conservative? You are full of it. You can be a conservative and still be a working stiff! Conservatism isn’t just for the very wealthy. That’s something else altogether. That’s the monetary policy we have now.”

Copyright © William Thien 2017

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I am always a bit puzzled (not entirely, just a bit) when I hear our country’s leadership say things like “the dollar is too strong” or “we need to make the dollar more attractive in the foreign currency markets.”

What they are saying essentially is that American made products aren’t as attractive in overseas markets if the dollar is strong because the American products become too expensive or less attractive price-wise for foreign consumers.

But a weaker or weakened dollar also means that I have to spend more of my dollars to get what I want. If you don’t make that many dollars or as many as you’d like, if you are in the lower to lower middle income brackets, the argument that the dollar is too strong is a somewhat punitive statement and it means that action to bring down the value of the dollar will have a direct impact on your buying power, decreasing your buying power.

Few would disagree that America needs to sell more products in foreign markets but you would hope that our country’s leadership would find other ways to make sure such sales increase such as instituting quality controls on production or some other method rather than simply selling everything on the cheap and making everything more expensive for the American consumer, punishing the American consumer, which is what they are doing.

Manipulating currency may be easy on American producers but it is also hard on American consumers as it is the same as taxing their dollars so they have less or simply reaching into their pocketbooks and taking the money right out by decreasing their buying power.

Have you seen the price of a new car or house lately? Maybe the dollar is weak enough already.

Copyright © William Thien 2017

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The FED and the administration have been saying inflation is under control but the numbers tell us otherwise. In a recent article on Reuters it was determined that many major pharmaceutical manufacturers are charging prices as much as one hundred percent (100 %) higher than just five years ago for necessary medications. Is it inflation? Is it price gouging? Is it ethical? One thing is for sure, the prices are up. That signifies inflation.

Read the article here, Makers took big price increases on widely used U.S. drugs.

Drug price increases at 100 percent over five years and inflation is under control? What’s that you say?

Copyright © William Thien 2016


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