Let Them Choke On Their Supply
Once again, industrialists congratulate themselves through their media mouthpieces on a selfish job well done.
The nation's industrial sector was humming in March, with production at factories, mines and utilities rising by 0.6 percent.Meanwhile, the economy is shedding jobs like a chemotherapy patient sheds hair. And where jobs remain, wages and health and pension benefits are slashed to the bone.
The solid performance in overall industrial production, reported by the Federal Reserve on Friday, suggests that the economy was heading into the spring with decent momentum. . .
The showing was better than economists were expecting.
The strength in March was broad-based. Machinery, consumer appliances, furniture and carpeting, and business equipment all posted production gains. Even the struggling automotive sector saw some improvement.
But, that's not THEIR economy, that's OUR economy and it's every class for itself.
With the economy chugging ahead at a solid clip, the Federal Reserve and other economists are being especially watchful for any signs that inflation may flare up.Again, that's THEIR inflation, not OURS. We must find a way to deal with OUR inflation on our own, while THEY diligently guard against WAGE inflation and nothing else.
The Federal Reserve boosted a key interest rate to a five-year high on March 28, the latest in a series of rate-raising moves since June 2004 to keep inflation in check. Analysts expect another rate increase on May 10, the Fed's next meeting. . .
And they do so by increasing interest rates so that whatever modest gains WE make in wages THEY siphon away in increased mortgage payments, credit card bills, and student loans. This is not a war against inflation - this is a war against the working class.
[T]he proportion of overall industrial capacity in use rose in March to 81.3, the highest since September 2000.That's a red herring. Sure, without enough goods circulating to match the number of dollars, prices are going to rise. But, they don't care if prices rise because THAT lines their pockets. They only care about wage increases because that EATS into their profits.
Economists look at this capacity utilization figure for clues about the future inflation climate. For instance, if plants were running at full tilt and couldn't crank out enough goods to satisfy customers' demand, then there could be a run up in prices.
What they don't tell you is that if plants were running at full tilt and all of a sudden people STOPPED buying, either because they couldn't or they wouldn't, prices would either have to fall, or plants would have to close to keep costs down AND keep goods scarce - hence keep prices high - exactly what's happening today in the auto industry. The result is fewer goods and fewer jobs, but prices remain high.
So, if there are fewer jobs, who's going to buy the goods and from where are they going to get the money? Simple.
They convince us to buy using DEBT. Then, we're damned if we do and damned if we don't because if we do they screw us with increased interest rates and if we don't they close more plants and we lose more jobs.
The only way to stop this madness is to wrest control of the money supply from these maniacs. Aaron Russo has given us a watershed opportunity with his new movie From Freedom to Fascism. It's EVERY American's duty to watch it and SPREAD THE WORD.
In the meantime, who gives a shit that production is up 0.6 percent, if we can eat equity, then let them choke on their supply.