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
inf lation 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.