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How to Fix the US Economy and Stabilize Inflation and Interest Rates

November 9th, 2022 3:57 PM by Gregg Mower

We know the state of our economy is the worst it has been since the financial collapse of 2008.  We know we are having record inflation with no end in sight, and we also know that interest rates are being raised to combat the high inflation with no end in sight.  What we are not being told is how to fix this, which I find as odd as the answers are all right in front of us, but it seems like it is taboo to talk about the right way to fix things. We know that gas prices are the highest in history which affects the delivery costs of goods and services.  So why is it so hard for our elected leaders to figure out how to solve this problem in these modern times?

We need to explore the reasons why we have record inflation, high gas prices, and high interest rates.   We know that the Federal Reserve has only one tool to fight inflation, and that is to raise interest rates.  But the big question is why is inflation so high?   This can be answered by analyzing where the inflation is coming from and how to fix it.  We know that over the last several years since the pandemic started, the government has shut down the economy and paid it’s citizens to basically stay home.  All this extra money that has flooded into the economy has devalued the dollar and that has caused some inflation.  We also know that Americans have been at the mercy of other countries to deliver goods, pharmaceuticals, computer chips, and oil.  This dependency on foreign suppliers has been a challenge as other countries were also under shutdown orders and some far longer than the US.   We have all heard about the “supply chain” issues, which is really the big issue that is not being addressed by our elected officials.    

We know that when there is a low supply of goods with the same amount of people trying to get these goods that the price of the goods will rise and we have seen this occur in 2022.   To compound this issue when the United States slows its domestic production of oil this causes a decrease in the domestic supply of oil and more dependency on foreign oil and when foreign suppliers of oil slow their delivery of oil to the U.S. prices have to go up to slow demand of oil that is not there.  With oil prices going to the highest in history this dramatically affects the cost of diesel that is used by the trucking industry to deliver goods to stores for Americans.  With higher delivery costs you see higher prices on the shelf for consumer goods and commercial goods.  In addition, farmers will have higher costs to run their machines to get the seeds in the ground and when then harvest the food for Americans.  Thus, high prices for food as a result of higher costs to produce and deliver our food. Higher fuel prices also affect the individual consumer’s monthly budget as with high gas prices Americans have less money to spend on other goods and services that have raised due to the above.

Knowing this you would think you would have heard more about fixing the underlying problems with the supply of oil, and foreign goods that we are dependent on.  It seems all we hear about is how oil use is bad for “climate change” and the Government’s desire to fix this.  Granted the Earth is going through changes, but it has been going through changes from the beginning of time. To think that mankind has any control over it is just stupid and is a good excuse for globalists to try and control the masses with control over our basic needs.  The proof, for those that live in a city and rarely go out into the world, would be to look at the Grand Canyon and there you can see firsthand how that climate has been changing long before mankind was even present.  But I digress for the purpose of proving my point about the control of the masses and this is exactly why Russia and China formed BRICS to stay independent of Globalist's agenda, a topic for others to debate, but the “supply chain” is dramatically affected by all of this.

The way to fix our current economic dilemma is multi-faceted but the overall idea is to focus on the supply side of the economy and not so much on the demand side.  The reason for not focusing primarily on demand, like the current administration is, is simply because there will always be a certain amount of demand for basic goods and services, and we are currently really close to a basic demand market.  You see the Federal Reserve trying to curve demand by raising interest rates only can go so far then the high interest rates kill the entire market as capital is not readily available for expansion or even normal business activities putting the whole economy into a recession or worse a depression.  If the supply side of the economy was being addressed properly, we would see more investment into the expansion of US supplies and farmers.   Yes, we must stop being as dependent on foreign goods and oil.  We should bring computer chip manufacturing back to the US and we should bring manufacturing back to the US most importantly we need to open up new oil exploration and pipelines to deliver oil more efficiently.  We need to look to Hydrogen (the most plentiful element on the planet) as an alternate fuel source and explore other technologies that will curve our oil dependency.  Electric cars are good for the short term, but long term they create as much waste as fossil-fueled vehicles.  Investing in America and American engineering will be the key moving forward and education of our youth must be paramount for the US to stay independent and take the indoctrination to a certain set of beliefs out of our education system and focus on productivity not emotions as emotions don’t pay the bills.  If the supply side of the economy is not focused on the economy will continue to spiral out of control with higher and higher prices for everything.  



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