Rishi's Maximum Would Be an Epic Fail.

Monday, May 29, 2023, Maneko 64, Home of Alternative Economics, and Contrary on Views. Today we're gonna look at Rishi's maximum. And what is that? Well, that's his latest idea to cap the price of food and groceries. Of course, it's not gonna work, and we're gonna look into that before we go further. Just wanted to say, if you're new to the channel, if you enjoy my videos,

and his advisors have had. It's been happening for millennia. We can go back to Roman times to the Emperor Diocletian. And it's called the Edict of Diocletian or Edict on Maximum Prices. And why did it happen? Well, because the Romanians state was debasing its coinage, what does that mean? Well, a denarius is supposed to have a certain amount of silver. But as the Roman Empire expended,

as the state fought more wars, as the state spent more, as the state became bigger, it took out the silver from the coinage and put base metals. And people are not stupid. So they were asking for higher prices. Because the base value of the coin remained a denarius, but it had let silver. And that's why he imposed this Edict on Maximum Prices or the Edict of

Diocletian. It happened in revolutionary friends. When they're doing their revolutionary, revolutionary QE or money printing, the Romans didn't do QE because they didn't have money as a debt instrument. But by 1790, the French did. And they did many rounds of QE, revolutionary QE. And they had to impose a maximum as well. As you can see here on page 40, the third outgrowth of the vast issue

of fee money was the maximum. As far back as November 1792, the terrorist, the so should of Robespierre St. Juice, St. Juice, in view of the steady rise in prices of the necessaries of life had proposed a scheme by which these prices should be established by law, at a rate proportionate to the wages of the working classes. So there you go. It ended in tears. And

why does it always end in tears? And actually has the opposite effect that you want to have. Well, because you disrupt the running of a free market, the most important thing that you need to know is that producers of the goods, if you cap the price they can sell it at, but the currency that they have to use is getting the base. And nowadays, of course,

our currency has been the base. That's that's the whole thing. What happens is producers stop producing because it's not worth for them to produce. Or grow or keep chickens and produce eggs. If they're going to lose money, they're in business to make a profit so they can keep investing into business and keep growing. And you're probably seeing a lot of people talk about greedy business people

that they're making windfall profits that, yeah, they even talking about greed, flation. But I would say that's the only way to make money. I would say it's more a symptom, all the rising prices and now the talk of limiting prices or capping or putting a maximum is a symptom of inflation. And who who creates inflation? Well, it's the government through its central bank. It can only

be created by government because government is getting too big. We've got government spending more than 50% of GDP. We've got taxation. The highest it's been in 70 years. And that's why the currency keeps getting the base because the government is boring a lot of this fee of money into existence. And the bank of England is creating it out of thin air to buy the government bonds

to keep interest rates low. Yes, interest rates are going up now. But so that's all it is. And it does create shortages. And it creates a black market. It creates a lot of money. And a lot of trouble. With rising inflation, bank failures and massive layoffs across multiple sectors, the future of the economy remains uncertain. It's no wonder the central banks have been getting prepared by

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silver strategy call by clicking on the link in the description below. It looks like the mainstream media is waking up to this even the telegram and I was saying price caps will create food shortages. Richie's soon act warned. So that's encouraging. We'll have to keep an eye on it. The other thing that happens and you can read about it here and I highly recommend it. You

can get a free PDF online of this is that if the government gets really serious about imposing these draconian Maximums, it leads to tyranny. And what do I mean by that? Well, they're going to pull it out. I'm not sure if it's going to get as bad as it did in revolutionary friends where if you sold something for a higher price, at one point when they're

getting desperate, the people in charge, you could be guillotine for doing that. So that's how bad it got. Of course, it all ended and collapse. As you can see here, the printing press was burned. The assignats were burned. In 1796, what will happen this time around? I don't know. As I said, history doesn't repeat exactly, but it rhymes. And there are other examples, of course, more

recently of price controls. In the 70s, Richard Nixon imposed price controls. When he took the dollar off the gold standard or the Bretton Woods agreement, they imposed price controls. This country, Ted Heath, Theresa May recently, she imposed price controls on energy companies, charging consumers. That was back in 2018. Why do you think we had the energy crisis that started in 2021? It wasn't because of Putin

because the war there started in 2022. Well, because energy prices started rising. And the energy suppliers. They could only charge a certain amount to the consumer. So a lot of them didn't hedge because they didn't expect prices to go as high. And they went out of business. And a lot of the costs that we're paying now for higher energy, even though they've come off quite a

bit. There's still a lot higher than pre 2021 is because a lot of the companies that failed. And there are dozens that then that failed. That's not to be bailed out by the companies that survived. And who do you think is paying for that? Well, you and me are. And it's amazing that they've put a price cap again on energy prices. And that's going to end

in tears as well. So. The conclusion for me. Is that all this trouble that's going on all this talk of capping food prices. Well, they're capping energy. They're giving subsidies to people to everyone so that their bills aren't too high. This is all a symptom of the currency debasement. And don't let them fool you that it's not the government that is the trouble. It's government that's

taking over the whole economy. It's like a cancer. And what's the solution? While the solution is for the government to get a lot smaller. To go from 50% of GDP in spending to more like 10 or even 5% like it did back in the Victorian era when we had sound money. But that that's not politically palatable because no one would win an election or you'd lose

an election. And then someone will come into power and promise everything more. So I'm afraid they're going to keep trying everything. We're going to keep blaming greedy businesses. They're going to keep blaming food for inflation. There is no such thing as food inflation. What there is is an inflation of the money supply of the Fiat money supply. And it's the simple law of supply and demand.

When you increase the supply of something and you keep the supply of other things limited. Yeah, that that thing that increases supply becomes less valuable. And that's what I'm saying. All it is. Very simple inflation. And it's got nothing to do with anything else. So with that, let's quickly go through the markets. I know the markets are close today. But there's a few things trading out

there. Some futures. Gold is trading. So silver. Gold is unchanged. It's trading in 1946. Silver as well. 2331. We got the Dow futures up 100 points. And as they said, 76 points. SMP is up 16. Yes, there is an agreement between Biden and McCarthy for a debt ceiling solution to extend the debt ceiling to lift the debt ceiling. But I think over the next 72 hours,

it's going to be touching go because there's still the little problem of getting the rebel Republicans to agree with it. So I'm going to stop right here because it's going to be a very quiet day in the markets. We might as well cover things tomorrow. But yes, Rishis maximum. Let's hope he doesn't try it. But they're saying that the French tried it this year. But you

know, the French, they don't seem to learn. Or it's not just the French. No one seems to learn the lessons of history. And we keep repeating it. But I think that is quite a cliche. Try it back in 300 AD. And we're still trying in 2023. So there you go. With that, I'm going to wish you a very good day. Take care. Bye.