Inflation is in the news, at least for those who have not entirely given up on their ability to link current affairs to their own lives. In my visits with friends and acquaintances, I’ve found that a huge percentage of them have decided that “the news” is biased or that things are out of our hands. They try not to pay attention in order to be happy. I often wonder about my own addiction to information from that public world. Where is the joy in Thomas Jefferson’s “informed electorate?”
The most relevant issue to our individual situations, one that admittedly is beyond our control, is rising prices.
Inflation is a product of a private bank (The Federal Reserve) acting at the behest of the only real monopoly in the United States, the U.S. government. Defining inflation as rising prices is deceptive. Inflation is the declining value of currency. Our money is being destroyed by government spending of “borrowed” dollars printed out of nothing (inflated money supply).
Farmers: Imagine if USDA reported the existence of an extra billion bushels of corn all of a sudden. What would the corn price do? That is, how many dollars would buy a bushel of corn compared to the days before the report?
It is a symptom of a conspiracy (keep reading even if this word causes a tantrum) by government officials to create an illusion of prosperity even though consumers are experiencing a decline in purchasing power. Their wages decidedly don’t buy as much as they used to.
Reports of record highs in stock markets, while appearing to indicate a roaring economy, actually indicate that it takes more dollars to by stocks, not increased value.
Retirees are hurt by this prosperity charade. Their big plans to retire at some point have proven to be a mistake because prices have gone up relative to their savings. Oops! It’s because their saved dollars shrunk in order to prop up politicians’ grand plans that didn’t work, because planned economies don’t work.
Only free economies are sustainable because billions of decisions by self interested people will always trump politicians’ plans influenced by lobbyists. Pleasing donors is paid for by the low and middle classes in the long run, the same as corporate taxes. The politicians and corporations simply pass on the expense while taking credit for what the theft has purchased.
Democrats and Republicans, right wingers and left, all deny that inflation is caused by this creation of cash because it is this stealth tax that funds their popularity. Productive and ambitious people, the ones who make this a land of plenty, are starting to dial back business startups and expansions because their additional income will be taken by politicians to appease donors, whether in “defense” spending, or domestic boondoggles.
We see rising prices and buy things ahead to avoid the added costs. Then, with our full pantries we wonder why retail sales are down. This is the boom and bust cycle caused by central planning Ron Paul warned us about. The transfer of wealth upward was in danger so the corporate media called him a racist and an isolationist. A slur is easier to think about than monetary policy.
Politicians now blame “big grocery” or “big oil” for increased costs for working people. But it is the only monopoly, government, that is to blame.