The leaders of your country are making moves on behalf of their constituents. Don’t get excited. By now you should know I’m not talking about the verbose blow-fart sitting in a cushy chair in some government office suite. I’m talking about the real national leaders, the bond holders, and the State’s chief investment banker, Janet Yellen(real frickin’ girl power), and her posse at the Federal Reserve.
The Federal Reserve wants to reduce its holdings of Treasury notes, the bonds or IOUs that the federal government issues in order to raise money for interesting projects like sponsoring a musical about climate change. The Federal Reserve has been accumulating and holding this debt (now at 23% of gross domestic product) since the financial crisis of 2008. As these IOUs hit the market, the price to purchase them will fall as their supply is added to whatever current supply there is in the current market. As the prices fall, the yields on these IOUs will increase, driving up the costs to access capital or borrow money.
Statists (Keith Ellison, Maxine Waters, John McCain, Louie Gohmert, Corey Booker, Rand Paul) won’t have any solutions to offer to consumer-labor as producer-entrepreneurs see increases in their costs of doing business and are forced to cut labor loose and replace labor with more technology. Bondholder-investors will welcome the move away from labor and toward technology because the move creates certainty of constant returns to capital.
Collectivists (the aforementioned statists and their do-gooder grassroots groups) are going to complain about system failure , arguing that the Trump administration is creating an economy that is failing the public as costs to access capital and consumer prices continue ticking upward while wages remain flat in the face of flat labor productivity.
Ironically, producers see less reason to pay higher wages or invest in more capital because of flat productivity, preferring to hoard cash or return earnings to shareholders.
Anarcho-capitalists should continue to keep our eyes on the writings on the wall. Proceeding from the platform that the administrative state (no matter which gang, Crips-Democrats or Bloods-Republicans, is in charge) serves no value, programs that promote self-sustainability should be pursued. Examples include using renewable energy to generate our own electricity; using technology to grow food at home; and moving more of our holdings out of bogus “full faith and credit” currencies into gold and silver as a hedge against changes in the value of paper currencies.
As the masses seek comfort huddling in a political economy taking in water, we should build our own life rafts.