You'll have nothing and you must be happy, Bank Of England Chief Economist on why people need to accept being poor
Yesterday, we talked about an interesting finance concept called "The Time Value Of Money(TVM)" where we mostly went furious following the exploration of the fact that we live and thrive in an economy fundamentally structured to place individuals in financial paralysis.
This is due to the supposedly known reality of fiat currencies which is the fact that they are designed to be worth less every single second into the future regardless of the government structure or economic system, the bottom line and nature of all fiat does not mirror the value flow in the economy, so high production or sales within an economic system does not always have a direct impact on the value of fiat currencies because cost effectively expands as production companies expand their work force and kick for greater profit every single time.
Having said that, on today's chapter of "what the fuck is this?" We have a supposed chief economist in the Bank Of England telling you that you're supposed to accept being poor, like it's some sort of trophy.
The top economist at the Bank of England says people must accept the fact that their financial situations are eroding.
In a new interview on Columbia Law School’s Beyond Unprecedented podcast, Huw Pill says people of all stripes should stop seeking higher pay to maintain the lifestyles they are used to.
“If the cost of what you’re buying has gone up compared to what you’re selling, you’re going to be worse off.
So somehow in the UK, someone needs to accept that they’re worse off and stop trying to maintain their real spending power by bidding up prices, whether [through] higher wages or passing the energy costs through on to customers.
And what we’re facing now is that reluctance to accept that, yes, we’re all worse off. And we all have to take our share. Instead, [people] try and pass that cost on to one of our compatriots, saying ‘we’ll be all right, but they will have to take our share too’.
That ‘pass the parcel’ game that’s going on here, that game is generating inflation, and that part of inflation can persist.”
According to the report, similarly last year, the Governor of the Bank Of England told the public not to ask their employers for significant wage increase, citing if everyone tries to beat inflation, it gets worse.
There's a couple of things to note in these statements, one is the fact that "the people", who actually are the backbone of any economy, are being pushed to do more in order to increase production and value flow, which the government earns bountifully from. Looking at the line saying "If the cost of what you’re buying has gone up compared to what you’re selling, you’re going to be worse off". So in essence, you're expected to produce more and likewise increase product prices to simply maintain a lifestyle because regardless of all these "productivity and wide range of involvement in economic building via diverse increase in the workforce, fiat will consistently be devalued and this is really just simply a formula used mostly to get people to never rest or retire from work.
The system values your strength because that's what economies are built on - the working class, there's that constant need for a productive and innovative mind to consistently develop and deploy new products and services which in turn enables this establishment to channel more value into their pockets.
When will people stop to realize this is all really fucked up?
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This is because the banks and lenders of the world have corrupted the idea of capitalism (an economy based on exchange of positive capital values) and turned it into an economy of debt, with an ever increasing pit of value owed to other people.
In the beginning, you did some work, or made something and exchanged it for a monetary value. This is a positive asset, capital. You used this asset to buy things. You paid taxes to your local and regional governments, who were responsible and distributed this positive value to others.
Banks introduced credit cards and loans... ways to do business with money that had not yet been earned through positive aquisition. (why do you think even Jesus got violent with them and called them a den of thieves) Feds derived the methods to operate on monies that had not yet been collected through taxation. Schools utilized debt methods to allow students to pay for schooling without monies that had yet been earned. All these debt methods have societies so far behind the ball that it's doubtful that we will ever get back to a place of positive capital business through fiat systems.
A true capitalist never borrows a dime. They understand that that you have to work harder and longer for borrowed money than you do for money you earn outright.
Anybody who has studied the financial sector long enough knows that fiat is practically backed by nothing, thus has no intrinsic value. Fiat originated within the concept of having a unified "unit of account" to make trades more efficient.
What it evolved into basically put the whole world in a debt trap, owing money back to an establishment that is really worth nothing initially and all the fiat are effectively worthless, the fact that we allowed the "acceptance of it" as a medium of exchange(being a unit of account) is the only reason it seams valuable.
On a grand scheme of things, it's basically worthless paper.
You are correct. Even gold is nothing more than a metalic rock collected from the ground with no more actual value than the air you breathe. Fiat, gold, crypto all get their value by the mutual agreement that it will be accepted as a specific increment of value and that trading parties will negociate and agree to the fair exchange of the value medium for the product or service it is traded for. Even a sheep and cow can be agreed upon as having a mathematical unit of value and can be traded for each other.
And by the way, "The People" do not have to accept being poor. They just have to accept responsibility to provide for themselves, and each other, instead of allowing corporations to be their supply sources. Let those that run corporations become poor and accept their positions, instead. Economies ran for thousands of years before corporations existed.
The way I read the news is that what this man is saying in essence is "screw all of you, you'll always be poor", coming the bank, it is but a fact unless fiat is burned to the ground.