Fewer Nail Salons, More Global Heating Mitigation? Federal Reserve Bank Will Target Higher Inflation… At Last!


This is a historic day, the day when the central bank recognized there are bigger issues than inflation. There always have been. Rome didn’t go down from inflation, but from the unemployment and un-empowerment which preceded inflation by centuries. Roman inflation in the Third Century was a big problem, but it originated from much bigger and deeper problems, and first the lack of democracy and the mass unemployment and mass un-empowerment of the Roman plebs.

Emperor Diocletian was able to fix inflation where it really hurt state and society with a command economy, and that worked well: Roman provinces were doing great economically… until they got invaded. Archeology has revealed this to be the case all over, from Italia, to Gallia, to Africa, and even to Syria, which got invaded two centuries later than the former three.

So Rip out and throw away all the economic textbooks of the last fifty years: they were wrong.

The revamp towards higher inflation and a more active economy (as requested by US President Trump!) is designed to address the “reality of a quite difficult macroeconomic context of low interest rates, low inflation, relatively low productivity, slow growth and those kinds of things,” said Fed Chairman Jerome Powell during a conference broadcast online. “We’ve really got to work to find every scrap of leverage in helping stabilize the economy.

I have asked heavens to target much higher inflation, for decades. In the so-called “glorious thirties”, which ended in the mid 1970s, the economy, the technology, the quality housing were all growing fast… propelled by inflation well above 2%.

How much above 2% is not clear because the ways of measuring inflation vary, and have changed from introducing “hedonistic” factors. However, the following graph is telling enough:

Enough inflation, enough real GDP growth (here the ten year treasury is used as a proxy of inflation, and it’s much better than the all too tweaked and humanized, even hedonized CPI)

Also inflation has been very strong in some areas (say health care, medical drugs; quality education), or then tweaked, twisted and tortured (measuring real estate cost from rents instead of face value, etc.)

One of my main reason to favor higher inflation is that, well done, it accelerates the speed of money and the speed of technology, while weeding out obsolete habits.

***

Catastrophic Climate Change, CCC, is upon us, so forest fire mitigation has to become primordial:

Larry Minikes informed me that: “In July, [California Governor] Newsom announced the delivery of $285M worth of dozen Huey Hawk (Blackhawk) helicopters to replace our aged Vietnam-era Bell helicopters. I believe they were ordered in February. The new Hawks can each carry a fire crew plus 1000 gallons of water and are certified for night flying, which the Bell are not. However, as I am reading, pilots are not yet fully certified so they could not be used at this time”.

I did not know about the new helicopters, and Newssom’s initiative. Especially flying at night is good. They better rush, because the maximal fire season is not yet here. Systematic racism against domineering brush would be most welcome, by burning it during the cold, wet months. Some of this brush was/is ridiculous: one has to tunnel through it. It does not have to be done everywhere. That could employ a number of qualified professionals, same technique as counterfires. 

Doing preventive burning in patches would be enough, more effective for large fire prevention, and best to preserve plant and animal diversity. This was done in places like Yosemite already starting long ago, after huge fires, and it was done with reasonable success. Goats should be unleashed: there are enough mountain lions to keep the numbers down should they escape. Bovines are not ideal, but way better than nothing.

The 747-400 supertanker can drop 74 tons of water (20,000 gallons)… What is clear, as we both agree, is that much more, and more innovatively, needs to be done, right away. This should become part of a more general economic reorientation as part of an adaptation to the massive climate catastrophe around the corner. Burning the forests is how much of the change will happen, and will accelerate it, so we need to learn to slow it down as much as possible… And learn to acquire the mentality to divert enough economic activity to do this. 

Less nail salons, more prescribed burning. The responsibility in California is higher: redwoods disappeared from Europe, but they are the highest carbon storage form of life per surface. They also release huge quantities of oxygen, which may come handy if more seas die, with all their plankton… They are one of the answers to global heating: also they are fire and heat resistant.

So we have to change the world economy. And accelerate it. So, inflation, welcome!

In practice it means more loans to engage in more progress. Focusing in quality ecologically correct housing, should be a must, and priority.

Patrice Ayme

Tags: , , , ,

14 Responses to “Fewer Nail Salons, More Global Heating Mitigation? Federal Reserve Bank Will Target Higher Inflation… At Last!”

  1. SDM Says:

    Not to make everything about Trump but you do drop his name frequently. Are you suggesting that he has contemplated what is to be done and arrived at a solution? No doubt he ran to the left of HRC but then did little to implement left leaning promises. As his track record is less than commendable, that is no surprise. That you have been more or less touting him lately seems strange. BTW The immigrants he married are not the immigrants his base loathe. And despite the BLM being undermined by corporate hypocrites, Trump has a soft spot for white supremacists.

    Like

    • Patrice Ayme Says:

      I have hundreds of essays with the word “Obama” inside. And I do not hate Obama, not at all. For personal health reasons I did not try to join the Obama WH… It was just a phone call away.
      Now the irony is that I used to brandish Trump as the epitome of the Big Bank, Big Plutos connection… Meanwhile the situation got ever worse with the pseudo-democrats, and whatever people say, Trump had the same anti-PLUTOCRATIC GLOBALIZATION…. Since the 1980s.

      I view Pelosi and Biden as two war criminals, and strongly suspect that Nancy’s delirious hysteria has to do with burying her abominable past:
      https://patriceayme.wordpress.com/2020/01/01/is-nancy-pelosi-a-self-indicting-war-criminal/

      Young people do not know about the hatred in 2003. I opposed the invasion of Iraq orchestrated by Bush, Biden and Pelosi, and I was the object of direct hatred for this and all my US friends evaporated. I had people get real angry with me at the table, and asked me to leave their house. Yes, even from pillar of radicalism in Berkeley, CA. I was accused of wanting to change… the US Constitution.

      Now those aware of finance, Trump pushed and pushed and pushed Jerome Powell ( Fed head) to make the turn in targeting inflation above 3%. Now Powell has turned.

      As far as Trump being unable to implement left leaning promises… The first thing is not “left leaning” stuff… It’s POWER. If one brings back manufacturing, one brings back POWER. The telling CENTRAL BANK graph is in:
      https://patriceayme.wordpress.com/2020/08/20/plutocratic-globalization-is-the-number-one-enemy-of-we-the-people/

      I am touting Trump because I positively hate the viciousness of Biden. I was directly involved for two years to get a (BLACK) guy out who got multiple life sentences for… NOTHING…. A pipe used for crack cocaine in his pocket… All because of the Biden 1994 law… Now right, if one exhumes my essays just before Obama became president, one finds I was pro-Biden and pro-Clinton… I was giving them a second chance. But, meanwhile I saw.

      Now for the left leaning stuff: there was an agreement to pursue the tech monopolies… With Congress. Also the American Invent Act of Obama, which gutted my bread and butter, US patents for the little guy, was supposed to be changed back to what it used to be, instead of the tech monopoly device Obama made it, corrupted by my good “friends” in the Silicon Valley (where I am)… But then there was the “impeachment”. Same with the medical drug bill, etc (Trump imposed executive orders on the latter…)

      Anyway, I spend way too much time fighting the propaganda out there. I had a nice racist incident today I will relate tomorrow, complete with racist blue eyed blonde. So the alleged Trump character intervened in no uncertain term…. Because you know I have been myself the victim of systemic racism too many times to count… So I am zero percent against genuine BLM… It would be like being against me. What I have had enough of, although I voted for him twice is the likes of Bernie Sanders… For BLM, but also for handguns… And having accepted the “fix” of Biden, when he could have swapped him aside during their debate… Even the “moderators” egged Sanders twice to say something about Biden and Iraq, and Sanders refused…

      So enough of the fix. If Trump is right I will say it, just as I would say it for Marx, or Hitler… Or even Mahomet (whom I have quoted favorably many times)… Whomever, even Xi… Xi is doing an EXCELLENT manufacturing policy, BTW… Right is right, I want my baby ideas right…

      Like

      • Anonymous Says:

        You are correct about the destruction done by Biden, Pelosi and Obama. And about the fake progressives. While Trump did promise many things about jobs, healthcare, etc. they were generally vague (as usual) and given his track record it was most unlikely that he would follow through. Drain the swamp became fill the swamp almost immediately with Goldman Sachs, ExxonMobil and other corporate swindler types in his administration. Trump was right about the “stupid wars” yet he has not been as forceful as president to end them, even going so far to saber rattle with Iran and giving in to Israel and the Saudis.

        Like

        • Patrice Ayme Says:

          Sorry this was delayed, “Anonymous”, but you appeared without a recognized email, so the system blocked the comment…

          The massive destruction of We The People started under Carter, when he launched the war if Afghanistan secretly, just because he wanted to block the French, the Russians and socialism there.
          https://patriceayme.wordpress.com/2013/01/21/usa-attack-against-afghanistan/
          It was an alliance with the Islamists of Pakistan (who launched a Fatwa against me, two years ago). Then came Reagan, a creature of no redeeming values whatsoever. Best Reagan did was Star Wars and nationalizing thousands of banks (Obama, great admirer of Reagan, nationalized none… with a way worse crisis…) But all Reagan did, he did thanks to Democrats (O’Neil, etc.) who passed his laws… That’s when Biden appears, and condone Reagan all the way.

          Then came Goldman-Sachs CEO Robert Rubin under whom “president” Goldamn Clinton served. This time the target was the BANKING ACT OF 1933 (known under the euphemism “Glass Seagal” to disguise the monstrosity of destroying it…)

          Obama’s presidency was mostly make belief: healthcare costs are higher than ever, I spend $3,000/month for three and degraded service… My brother in law outright died from it (he was refused treatment after a heart attack in Anchorage… BTW, I was once refused treatment after having been hit head on by a car… I had broken bones and was sort of bleeding to death, but since I had forgotten my proof of insurance before being on the right lane on my bicycle, I was informed at 2am that they won’t wake up a surgeon…)

          That Trump couldn’t do all he wanted to do is greatly due to systematic obstruction by Washington’s Deep State. I related this in other comments. The Impeachment was just a maneuver to prevent the recasting of AIA and the end of tech monopolies, both of which were on the front boiler in Fall. Same with the medical drug laws Congress was supposed to pass. Since Trump acted by executive order…

          It’s true that Trump could not expect, nor did I expect, the pseudo-Democrats to go in a slow coup. Now it is really personal, because I have been personally targeted to prevent my ideas to go around. I have lived under dictatorships (Bolivia, Iran), and I have been big time victim of others (Algeria, instituted by racist De Gaulle). So I know how it works.

          So Trump was played like a violin by the pseudo-Dems, right from the start. He should have acted forcefully, nearly dictatorially (if he had known what to do and what was going on, which he didn’t… nor even extremely suspicious individuals such as yours truly could guess…). This is actually why the Roman Republic had the office of dictator: to clean this built-up of the Deep State.

          I had campaigned deeply and efficiently for my friend Obama, acting directly on journalists… But then I saw the Plutos come in and take control. They told me: “we don’t know what you are going to say next!”, so removed me from the “presidential bubble”. Followed the two most depressed years of my life…

          Like

      • SDM Says:

        Yes, Biden,, Pelosi and Obama were disasters. Obama ran a progressive campaign only to turn his back on it all and go full neoliberal. Trump did the same for the most part. Rather than drain the swamp, he just filled it again with corporate swindler types from Goldman Sachs and others. Trump’s past record is ridiculous and anyone who believed he would actually improve healthcare or create good manufacturing jobs was soon to be disappointed. Electoral politics is a dead end street with the entrenched two party system. Both parties are beholden to corporate oligarchs. Sanders bowed down and frittered away his power proving himself to be a fraud and even worse -weak and feckless. People need to take it into the streets.

        Like

        • Patrice Ayme Says:

          Obama turned not just “neoliberal”, but also “NEOCON” by accepting, for example, to nominate to the top job the hyper connected hereditary, unelected Susan Rice, an alumna of Clinton, soul of the Rwanda-Congo wars with her employee Kagame.

          What counts is big time significant results. Just look at the manufacturing output, or the $15/hour of USMCA… Also the executive order on drugs, the Justice Dept prosecuting the tech monopolies, etc…

          I am also being persecuted behind the scene by my fellow (?) establishment Democrats… so for me it has become personal. I voted Sanders twice, and I got enraged against him when he sank himself during the debate.

          Truth: Biden is a mental retard selected by other mental retards, because the plutocrats find mental retards more manageable. I eman the guy is also rotten to the core: see him escape 500,000 dollars of health care taxes in just two years. Do I do that? NO. Nor can I, I don’t have that freedom.

          Like

        • Patrice Ayme Says:

          Two days ago, I didn’t take it to the streets, but to Safeway:
          https://patriceayme.wordpress.com/2020/08/28/systemic-racism-in-action-all-about-no-debate-no-common-decency-fake-outrage/

          I got in plenty of trouble with various authorities, racist and fascists in various countries, even suffering incarcerationS, and woundS, some requiring surgery. I am a bit more sedate… BUT TRUTH IS MY LIGHT.
          When Hitler is right, Hitler is right, doesn’t matter that it’s Hitler. The USMCA is right.

          Like

  2. Gmax Says:

    Yes I remember articles after articles you wrote calling for higher inflation. Now the Fed is saying what you were saying ten years ago. High times!
    Congrats

    Like

    • Patrice Ayme Says:

      Thanks, time they are changing… Can’t believe what the NYT did to my comment yesterday… I guess it’s better than when they outright doctored them, more than ten years ago…

      Like

  3. Paul Handover Says:

    I feel, and I’m speaking of climate change, that we are approaching the point at which this will become the sole priority for us humans. I think that we will amend our ways, both individually, politically and corporately, in time but it will be a close run thing. Very close run thing!

    Like

    • Patrice Ayme Says:

      That indeed should be the case. We spent a full week in smoke in Northern California. I was 200 miles from where the fire where raging, the Bay Area, in the Sierra initially. I saw one person nearly dying from asthma. It was apocalyptic. Couldn’t see the sun, for days, although there were no clouds.
      Back in the Bay, I was protected by mighty HEPA filters, but the smell of smoke outside was overpowering. All parks, 350 of them, were closed (add this to COVID). And the local stores are boarded, because of the vandals… in violation of fire codes and elementary common sense (try to exit from a huge store through a two feet wide door)…

      Like

  4. D'Ambiallet Says:

    Did you forget Trump is the devil? He has all the sins! He wants to pull out of Afghanistan, Iraq, Syria, Germany! He is the Neocon nightmare! He wants jobs at home, not in China! He caused a virus! He is the horse of the apocalypse!
    As revealed by scripture?
    How can you give the devil the credit for anything? In France the media owned by multibillionaire Dassault calls Trump, the milliardaire — the billionaire, not the president. It’s propagande extraordinaire. They totally hate him. Meanwhile Sultan Erdogan is close to war with France and Greece about gas and wanting to invade Greece which doesn’t have the right to view itself as an archipelago, Erdogan just said

    Like

  5. Patrice Ayme Says:

    New York Times calls Facebook “dangerously right wing”. That’s a bit rich when so many of the leaders of the “Democrats” are factually war criminals and Neocons, some in power for 48 years. If torturers and invaders of Iraq are not right wing fascists, who is?

    Like

What do you think? Please join the debate! The simplest questions are often the deepest!

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


%d bloggers like this: