21 Nov 2013

8) Economic Trend VS Economic Design

Economic indicators are interrelated, and trends are not merely reactions to current events.  The patterns in each have meaning and there is intent, design and subsidy behind each.

The world’s dominant powers and currencies can easily be used as a smokescreen courtesy of indices and exchange rates that, according to economists, are simple reactions to events causing a chain reaction.  Are supply/demand, political stability and other factors that determine which figure goes where on which index the only determining factors?

Here is a casual glance at some interrelating graphs:

Without consideration for any of the given reasoning for fluctuation and trends, take in the correlations. Notice, for example how the South African currency has steadily lost ground to the dollar over time, as have other emerging market economies.  Notice that despite rising US debt and marked increases in US money supply, “debt ceilings” and “fiscal cliffs”, US inflation has, in the long run, come down on the overall decade to decade average.

A quick reference on Wikipedia’s article on inflation here http://en.wikipedia.org/wiki/Inflation shows us that most economists can’t even agree on the reasons for inflation.

Unlearning the misinformation is the first step towards freeing the mind to stop ignoring the relationships.

In my next post I’ll be citing examples through the World Bank, where inflated debt is written off in exchange for US companies taking over the infrastructure contracts in emerging “markets” (sorry, I mean countries) and how this holds back those economies and subsidizes the first world.