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Date Posted: 16:18:24 5/02/23 Tue
Author: Jasper
Subject: Paul Roberts from a couple of days ago.

.
But not the supply. The supply is exploding. Budget deficits are running in the trillions of dollars while the Federal Reserve shrinks economic growth and the tax base, and nothing can be done about the US trade deficit. The decision to offshore US manufacturing was an economy-wrecking decision. The goods that Apple, Nike, Levi, and all the others make in China and Asia enter the US as imports when they are marketed in the US. The US, having moved its manufacturing offshore, has little to export to cover the trade deficit resulting from imports. By using their trade surpluses with the US to purchase US Treasuries, foreigners financed the US budget deficit and US wars. As countries increasingly settle their trade imbalances in other currencies, foreign demand for US debt is declining.

The consequence is that the supply of dollars is increasing, but the demand for them is falling. This means a drop in the exchange value of the dollar, which means a rise in import prices. The worst inflations are caused by the decline in the exchange rate of a currency. It is an inflation that the central bank cannot fight by throwing people out of work.

https://19thwardchicago.blogspot.com/2023/05/the-us-dollar-is-finished.html#more

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