Dual Cycles of Demand Destruction and the Economic Face Plant

Why haven't you read more about [the threat of imported inflation]? Here’s a not very well kept secret. Most economists are on the payroll of Wall Street banks, media outlets whose shares trade on the public stock exchanges, or the current US government administration, or they toil at an academic institution where they hope some day work for a Wall Street bank or gain political appointment to the current or the likely next government administration. Government administrations, whether Democrat or Republican, have for decades supported pro-bank and anti-citizen policies that have resulted in an economy dependent on the finance, insurance and real estate industries – the FIRE Economy – and a social system of debt-serf neo-feudalism.

Any surprise, then, that these FIRE Economy economists dutifully report that a depreciating currency does not result in inflation? After all, currency depreciation is the last tool left to keep the debt deflation from swallowing up the FIRE Economy. They'd rather see the average citizen swallowed up by inflation but be unaware of the mechanism.

We call these paid-for economists the The Flying Monkeys of the FIRE Economy. They are let out of their cages on K Street and Wall Street, and various academic institutions where they are cared for and fed, each time a crisis occurs in the FIRE Economy to assure us all that the system – utterly unfair, dysfunctional, and corrupt as it is – will be back up and running in short order after the latest brief setback. All that needs be done is for money to be printed by the Fed and poured into private banking institutions to keep them afloat while Joe Sixpack runs to the local pawn shop to try to raise cash to "take advantage" of the inflation said bailout printing produces.