Don't Cry For Me Americina

The truth is I have real money.

• An Argentinian economist explained to me how deeply embedded hyperinflation is in the country's central bank, with potential for lawlessness and mass starvation if unwound.

• The inflection point as to when higher rates calm inflation, to when they exacerbate it, has been reached in the US already, which is why consumer prices are ticking higher already, with short term rates sill at 5.4%.

• This was last reached in the late 1970s, but back then, the debt was still payable.

• Don’t Cry

I spoke with an Argentinian economist last night named Alan Futerman about what is going on over there. It will be on YouTube today, uploading now. He's a friend of mine who knows what is going on in the central bank and why the hyperinflation there is deeply embedded into the system, the risk being that if Milei tries to unwind it, it could cause complete lawlessness and mass starvation.

From a logical standpoint, if inflation is theft of the public – which it definitely is – and the theft funds consumption – which it does – then there is no escape from the impoverishment that must ensue when the theft is revealed. In religious terms, God forgives, but He cannot forego punishment, which evens the scales. The most He can do is preserve use through what is to come so we can survive and get to the other side, but there is no magical solution that will insulate us from what we have done.

The debt must be paid. It's how the world works.

The most important thing we discussed was the inflection point. That is the point where higher interest rates stop suppressing price increases, and start to feed into them. I believe we have reached that point in the US already.