You have wondered about currency machinations. Here we explore strategic and tactical rationalizations, activities, and consequences of financial wars. Appropriate and scaled use of financial warfare can devastate an enemy with no loss of human life or use of military resources. Financial wars are increasingly feasible. There is a growing set of tools available including the use of automated systems, accessible financial markets, and banking policies and procedures currently implemented across the global economy. Financial wars can be waged in consort with allies to disrupt and defeat an enemy.
All the king’s economists & all the nation’s politicians cannot put inflation back together again.
The US Federal Reserve has meddled and imposed mandates. It has used moral suasion, set interest rates, bought & sold bonds, and more. After 100 years, it has exhausted its resources, used all its tools, and demonstrated impotence.
Real wages are declining. Real wages are declining less than many people think. Nominal wages are declining.
Reasons are many and include: 1.) Too many potential employees are available for most jobs other than for ultra-skilled technology work; 2.) Work loads are light relative to past jobs; 3.) It is easy to effectively automate many manual labor jobs out of existence; 4.) Unions are declining in power and membership.
The wage inflation of the 1970s that continued to about 2010 will not return in the foreseeable future. It was overdone and not a valid economic event. People will be happy to work for less than unemployment benefits or the amount that no employment pays.
Those millions of workers who have dropped out of the labor force will need to return to work some day. As they return in large numbers and in unending lines, job offers will carry declining wages. People will happily accept a new job for less than they were earning on their previous job. They will barely recall what they were once paid.
New employees will demand less in work space, equipment, benefits, vacation time, and wages. They will not be disgruntled because deflation in wages will be accompanied by deflation in costs for goods and services. Therefore, the average worker will be less negatively impacted than it appears from today’s vantage point.
Wage declines will not be synchronized or concomitant with economic conditions. They will occur and be implemented over many years. People will eventually return to work for their own welfare. Those who do not, will remain down & out — and on the government dole.