We are being told that the elevated costs of food, fuel, and everything else are caused by disruptions in supply chains. We’re also being told, albeit much more reluctantly, that inflation has increased due to the stimulus efforts to keep working people a step ahead of absolute desperation. The first question to come to the mind of a layman might be, “So, which is it, supply chain disruptions or inflation triggered by massive money printing?”
After some consideration, the most reasonable conclusion would be that both problems are driving up the cost of living. However, if the cost of productivity is going up because of disrupted supply chains, then the value of your labor should also be going up. It isn’t, at least not as far as you can tell. It could be that the value of productivity has gone up because it’s harder to turn out a product. If you’re not seeing more money in your paycheck, it’s because your employer is keeping the difference and hopes you won’t notice out loud.
But what the government is telling us is that the elevation in prices is due entirely to supply chain disruptions caused by COVID-related measures. They are telling us that the changes are temporary and that things will go back to normal when we finally beat this virus. Of course, anyone who knows the first thing about coronaviruses knows that this thing will always be with us. No vaccine and no treatment will make it go away, because that is the nature of coronaviruses.
This week a report came out called “The Beige Book.” All the big bankers and all the important finance people are saying that the book says the supply chains are the problem. But, according to ZeroHedge’s favorite finance guy, Peter Schiff, what they are not talking about is a problem with the money supply. He calls it a record increase in the money supply, stating that it’s going on everywhere. But the banking people and the government finance people aren’t saying anything about the effect of money printing on inflation.
What’s important to notice here is that the predominant narrative isn’t about the fact that this record inflation is not temporary. It is not impermanent because changes in the value of a currency that is not backed by anything of value always go one way- toward higher prices.
Inflation is triggered first and foremost by money printing. It is irreversible, and the only people who suffer as a result are those who have to work for their money, meaning you and everyone you know. We are not taught this in schools, and it is never mentioned in the media. The reason for this is if the people knew that printing money reduces the value of their labor, they would reject it out of hand. That is something the banking interests and the governments of the world cannot allow to happen.
The problem is not supply chains. It isn’t even that some people make more money than others. It’s because some people can print money and others cannot. As long as that is the case, it will always be used as a means to increase dependency on systems of power.
I’ve tried and tried to explain how money printing is the major cause of inflation and all I get is a “Huh?” from most people. It seems so very obvious to me that the more money is in circulation the less it’s worth. Try to explain Germany’s massive inflation under the Wiemar Republic from exactly the same cause and get another “Huh?”.
What I don’t understand is why so many people don’t understand the simplest laws of supply and demand. For instance, Diamonds are so called precious jewels only because the supply is strictly controlled by the producers. If you could go to the beach and pick up handfuls like sand they would be worth about the same as an equal quantity of said sand. Same for food, oil, clothing, anything you care to name, the more you have the less it’s worth.
It is a most insidious form of taxation because most people have no idea what it’s doing to them.