Why Inflation is Not About Fuel Cost
Inflation is caused by the currency supply.
The Oxford Dictionary describes inflation as The general increase in prices and the fall of purchasing power and the decline in the value of money. The increase in availability of money resulting in inflation.
So let us take a look at this process. You may hear government types saying that the inflation we are experiencing is cause by Russia and Putin, or some other ridiculous argument.
These arguments are there to confuse the populous. And have know basis in reality.
Inflation Didn’t Just Start Recently
When you realize that inflation has been around for a long period of time, you have to take other things into consideration.
That is what we will do here in this article.
So let us get started, using basic terms what happens when something gets inflated It becomes larger.
OK so we can start with that. Now a little patient is in order, as I do not want to lose you.
For anything to get larger there needs to be more of that thing, we surely can agree with this statement I just said.
Felix Somary in the book ,The Raven of Zurich 1986, he is quoted as saying: The State Alone is Responsible for Inflation, Inflation without government is indeed impossible.
So now we have to take a closer look at this and follow this to the conclusion.
Felix was a brilliant man who advised kings and governments.
So we should firstly assume that he knew something about what he was talking about.
So we have the fact that only the State can create and allow for Banking Charters to be created, and allow the banks to create money or shall we call it Currency.
What we call money is actually currency, real money retains the purchasing power over long periods of time. That happens because it is something that is hard to come by. Currency; however, does not need to adhere to that pure definition.
It is Currency and not Money
This is the core of the matter.
This currency that Is used in all of our commerce today is not only allowed or authorized by governments and created by Central Banks is what we are lowed to use period.
If you were to try and create your own private notes or I O Us and circulated them as money, just see how quickly you would wind up on the wrong side of the law if you did that.
Who is in Charge
So now that I have clearly made the argument that only governments can cause inflation, so we need to look at the why, and who benefits.
You’ve no doubt seen countless crime movies and you know that whenever a detective wants to solve a crime he or she will look for the M.O. The motive, or who had to gain by committing the crime.
Did you Know?
Did you know that even under Stalinism, 1924-1939, it wasn’t until the Soviet Unions New Economic policies introducing gold as basis supporting the rubles, at 50,000 rubles to an ounce of gold did their economy rebound? TRAGEDY AND HOPE pg. 248
The Crime Scene
Now we will look at who benefits from this inflation thing we are concerned with here.
You see nothing in our modern world is ever as simple as it seems at first glance. We need to dig deeper to find the answers.
We all know that governments have expenses, things that they promised. And we should know that over time governments make more and more promises to their constituents. And we also know that all of these promises require money or currency to pay for them since people will not work for free, they want to get paid for the work they do.
Can you start to see what why this is all happening?
The more people go to government and ask for things the more currency needs to be created in order to satisfy those requirements.
Now in business their is a law that’s called, The law of supply and demand.
What this law states is that the greater the supply of something the less it cost, and the less there is of something the more it will cost. That is the jest of it.
So here we have I believe discovered one area of the cause for inflation.
In order to give the people what they are asking for, much more currency needs to be created.
I know this is getting pretty long, but there is still more to cover.
I think I will leave it here because I already made my case that inflation is not caused by higher fuel costs, that is just B.S.
Thanks for reading, I will continue with this at a later date in the meantime you can watch Maneco 64 a good person to learn from.
By: Joseph Sanchez
https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator
Maneco 64 a good channel to watch
