Financial, Economic and Social Mood Update (October 1, 2022)
The issue of hyperinflation is so serious that the central banks of the world need to tighten credit interest rates (i.e. raise interest rates) much faster & higher than they have been. The US federal government’s officially admitted annual inflation rate of 8 to 9 percent is far below the true honest rate of inflation which when one looks at prices for fuel, energy, food & groceries must be more like 20, 30 or 40 percent per annum over the past 2 to 3 years. Asset values for real property & corporate stock also remain far above their true honest levels. The solution to this unacceptable situation must be to raise interest rates above & beyond the rates we remember from early 1981, when the highest paying retail certificates of time deposits were paying from 20 to 22 percent per annum. I would say that the central bank’s key rate should be no lower than 19 percent per annum right now, because defending the value of the currency should be the only concern at this time. Every single country on earth has a lower standard of living today & all peoples have far weaker purchasing power today than they did at certain points in the past.
As of September 30, 2022 the overall US stock market has lost 37 percent of its nominal value since November 2021 to January 2022 depending upon the index. The digital currency market has lost 68 percent of its nominal value since November 10, 2021.
The entire world today has become like one big third world country, with a dying middle class, an exploding under class and very few corrupt people at the top controlling governments, politicians, the media, entertainment and large corporations. Europe peaked before World War One in 1914 and has basically been in decline since then. The Philippines peaked in 1897 and has likewise been in decline since then. The Philippines hit its peak economic & financial prosperity at the tail end of Spanish Colonial rule from 1861 to 1897, when one it took 27.7 US Dollars to purchase one Philippine Peso – when the Dollar Peso relationship was reversed from what it has been since then. The Philippines had a niche in two global commodity markets in 1897 – in hemp which was used for ship rigging & in Cigarillos which is a smaller version of the famous Cuban cigar.
China peaked before the Opium Wars in 1839. China was the last part of the world waiting to be “carved up” by Imperialist & Colonialist powers before the start of World War One in 1914, but the European “suicide” of 1914 to 1945 put a stop to those plans. China underwent yet more trauma during her Nationalist republican revolution in 1911, the horrific invasion by Imperial Japan in 1931, World War Two, the Communist revolution of 1949 and the disastrous Cultural Revolution under Mao. China has been recovering since the demise of Mao in 1976, but she doomed her own recovery with the “one child policy” which was overturned far too late – China now faces the worst demographic collapse in recorded human history.
Japan hit an economic & financial peak in 1989, when the Nikkei Dow stock index was worth more than any other stock index in the world. The market value of Japanese real estate was likewise worth more than that of any other country in the world. But Japan was one of the first countries in the world to die a demographic death due to too few births, which leads to an inverted population pyramid – too many older people & not enough younger people. The result today is that one third of residences in Japan are vacant (the figure is already one out of 10 in the USA) and that the nominal value of the Japanese asset market has had no net increase in 40 years.
Both Argentina & New Zealand were the most affluent countries on earth in 1945 and have been in decline since then. Latin America is similar to Argentina, with countries there having peaked at different times in the past. Mexico hit its peak no later than 1910.
The post-colonial experience of Africa has been marked by local corruption & abuse at the hands of a corrupt global corporate order. A huge case in point is the Congo – a large country in central equatorial Africa which is the poorest country on earth in terms of per capita income. The Congo is an ongoing victim of the global lie & scam we know as “climate change” or “global warming.” The Congo is deliberately being kept poor via so-called corporate “carbon credits” and her natural resources & environment are being ruined due to the disastrous global governmental push into BEV (battery electric vehicles) which are no way, shape or form “environmentally friendly.” As I have said previously, a far better choice is the hydrogen fuel cell car – now only being developed by the likes of Toyota, Hyundai and BMW. The best ever run country in colonial sub-Saharan Africa was the former Rhodesia under Ian Smith. He unfortunately failed to see the need to move to majority rule more quickly – the world should have given his short lived successor state of Zimbabwe-Rhodesia a fair chance to succeed, because Zimbabwe turned into an infamous kleptocracy marked by a falling standard of living, hyperinflation & starvation whereas the former Rhodesia was the bread basket of southern Africa.
The USA’s peak was a geopolitical extension of the peak of the British Empire after the end of World War One in 1918. The USA hit its economic prosperity no later than the decade of the 1970s and has been in decline since then, with a very marked decline since 2020.
