Inflation is an artificial, weaponized attack on the people, not the system
"You will own nothing and you will be happy."
In a free market economy, price inflation and deflation will happen naturally, and market forces will ultimately restore order.
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However, in 2022, we live in a society completely detached from a free market, and the fact that we are seeing consistent, devastating inflation and monetary debasement is entirely a product of our ruling class.
It doesn’t take a PhD in Austrian economics (real economics) to realize that there is absolutely no organic trigger for the inflation you’re witnessing today. Given the amazing technological advances of the past couple of decades, our stuff should be getting significantly cheaper through price deflation, not more expensive. Energy should be abundant. Property should be affordable. All of our stuff should be a lot cheaper.
So, what in the heck is going on?
For quite some time, inflation has been used as a weapon to hoover up power for the elites. Both the U.S. system and the Eurosystem purposely create inflation (primarily, through a debasement-driven monetary policy) with the clear but unstated end goal of empowering a small network of individuals and groups. Diabolically, this fraction of one percent of the U.S. population receives almost all of the benefits of the money printing regime, while the 99.9% become the ultimate fiat bag holder suckers.
For many years, things were going just swimmingly. Through continuous war, currency manipulation, other manufactured crises, and the like, this small cartel — which sometimes engages in friendly competition amongst themselves, but never engages in activity that threatens to spoil the fiat party — has seen tremendous success.
But now we are witnessing cascading failures, and the system looks like it might break. Decades of Keynesian madness, far detached from the laws economics, threatens to cripple the power drunk authoritarians.
The elites want inflation, but they certainly do not want *hyperinflation,* which will blow up their whole system. “You will own nothing and you will be happy” only works if the plebs remain committed to their system. If their system breaks, all bets are off.
That’s why you’re seeing demands for climate lockdowns, energy lockdowns, inflation lockdowns, pandemic lockdowns, and the like. It’s not two weeks to flatten the curve. It’s two weeks to flatten inflation. The ruling class is worried that too much consumption will spike inflation to levels that will render their system unsustainable.
There’s a lot of both warranted and unwarranted critiques on governments’ potential imposition of a CBDC, or Central Bank Digital Currency, which further centralizes power through a completely cashless systems.
What many seem to be missing in critiquing the CBDC is that the U.S. Dollar, the Euro, etc. is already a tool for control and manipulation. You may not have noticed, but you’re already living inside of the fiat matrix.
Even if your cash is stuffed under your mattress, you remain tethered to the system of the ruling class. The CBDC only sharpens the power of dollar to coerce, manipulate, and control. However, the transition from a cash available society to a cashless society does not change the fundamental dynamics of the system itself. You’re still using the same currency!
Of course, this is why I am an unapologetic proponent of Bitcoin, a secure, decentralized, free market money, as opposed to the fiat system, which is controlled and manipulated by unelected, unaccountable, unsanctioned masters of the universe.
This piece was reprinted from my economics newsletter: Current Thing Capital, which will soon feature some really interesting thinkers in the Econ world. I’ve made it available to The Dossier subscribers for your convenience!