Thursday, October 22, 2020

I define a new economic unit

 I call it the Nixon.

I define the Nixon as one standard complete US devaluation cycle. The nominal US tax dollar Fed contract period over one complete generational default. 

Now we have something to plan for. What is a half Nixon? It is five years to reset prices instead of ten. It is 7% peak CPI instead of 15. And it is 7 years back to deflation instead of 30. 

Then 15 years after a half Nixon, Treasury and the New Fed sit down and negotiate a half or third Nixon over the next contract. It is the perfect American unit of government, the Nixon.

It includes the regular events. The overnight declaration, the revenue sharing, the wage and spiral hallucination, economist doing the 'this time is different'.  We just encapsulate that into one Nixon. All parties know what a Nixon is and the known sequence of actions can be discussed and commutative power obtained.

No comments: