Inflation’s technical definition, suspect these days given the corrupt and incompetent elites penchant for changing definitions in a 1984-like imitation, is a persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money. Inflation has also been described as too much “money” chasing too few goods. When the money supply is inflated, as it is when excessive amounts of fiat currency is released into the system by the corrupt, unethical, and immoral criminal cabal that is the Federal Reserve, the value of the existing currency effectively declines. This means the wealth of the People is stolen as new currency creation means there is more of something and in the laws of supply and demand, the value of anything falls when the supply is increased if demand remains constant. The effects of inflation on everyday people becomes rather disastrous as was seen in the Weimar Republic, Zimbabwe, and Argentina, among many many others. Inflation hurts the elites, who control institutions like the Federal Reserve — especially the super elite Oligarchs — the least as while their purchasing power is diluted as well, they have so much that they rarely feel it. They are also sophisticated enough to plan around buying the assets of those who are hurt by inflation on the cheap when the opportunity presents itself, something they have been doing for hundreds of years, which makes up for any losses from the currency creation.
Inflation causes the prices of everyday goods to rise as well as asset prices (for a while). Manufacturers of goods and services try to reduce package sizes and service quality for as long as they can until they are inevitably unable to do so and remain in business. Raising prices means there is less demand which hurts businesses. Businesses being hurt means less jobs. Wages rarely rise fast enough to make up for inflation, especially if the inflation becomes hyperinflation which is very hard to stop once it starts. Inflation, if complete control is lost, becomes a vicious cycle hurting nearly everyone in the end — except for the ultra elites who while hurt, position themselves well for the rebuilding. As mentioned above, asset prices rise first. So you can expect to potentially see real estate and all other assets rise until inflation hurts the ability of people to pay the prices for the assets and the job losses effectively decimates the economy. One place where inflation is arguably good for a consumer is in debt repayment. That is if a consumer has any excess cash after paying $10 a gallon for milk or $100 to afford the debt repayment. If they do not, they lose their assets or see other repercussions from an inability to pay existing debts.
As many are aware, the CPI, which is the consumer price index, has been manipulated heavily to hide inflation that has definitely exceeded 2% for quite some time now. Not only does the government have a vested interest in not giving raises to social security income recipients and other fixed income schemes tied to the CPI like pensions that are tied to cost of living increases more money, but it does not want the People to know about the inflation as they will get upset and they replace their bureaucratic government overlords. Since the Federal Reserve’s mandate is to suppress and control inflation, something it has failed to do entirely since its founding, the People in the majority being aware of this failure poses a risk to the Federal Reserve’s already questionable existence and mandate. A great debate raged after the massive amounts of money that were created to bail out the reckless, incompetent, and corrupt after the 2008/2009 Financial Crisis (“The Great Recession”). The winners of that debate knew that most of that “money” was going into the hands of the few and so therefore was not going to result in material inflation.
We now find ourselves in the opposite situation. Not only has massive amounts of money been distributed directly to the People via stimulus, unemployment benefits, and early attempts at Universal Basic Income, but massive loans were given to businesses of all sizes as a result of the Covid 19 — ahem — “Pandemic”. This money is currently in the hands of people of all walks of life and is driving up the price of everyday items. The Federal Reserve, having already enticed corrupt politicians to borrow like mad, is effectively trapped in its interest rate policy as raising rates will tank the economy and make the debts of many people, companies, institutions, and local, state and federal governments completely impossible to meet the payments on. With Congress plotting a new “Infrastructure” bill that is likely all political payoffs if not outright graft, inflation will be supercharged once this money is released.
This is not the first time humanity has faced this insanity brought about by the nihilism, recklessness, idiocy, and incompetence of the elites and there is a time-tested solution to end it: backing the currency with a physical commodity that is limited in production and that grows at a fixed rate as it is extracted from the ground. This limits the ability of reckless fools masquerading as respected leaders to lead the People and their economy down the path of destruction. This limits the ability of central banks and their tentacles to corrupt the morals, ethics, sensibilities, and memory of the People. This is a fair system that allows the People to keep their wealth and use it as they see fit without the stealthy theft that their system manifests itself as.
Inflation is likely to get worse before it gets better and you can rest assured that the terrible people allowed to be our “leaders” will lie to us about it till the very end (their end). Unfortunately, the People have forgotten the struggles of their ancestors, their history, and the lesson that the elites are not to be trusted with so much power and “money.” The suffering will usher in a new knowledge and a demand to fix this system and make it more just for the People. At the moment, a large minority mock the Patriots and their knowledge and desire for change. The suffering will bring about a change in attitudes and a unity unlike the United States of America has seen since World War II. It will happen all over the world. When the People have had enough, they will demand change in the way their monetary system operates and the tried and true method of backing the currency with gold and silver will be implemented. Those who had the foresight to plan for this change by acquiring precious metals will benefit greatly from this new future, but so will society and numerous future generations to come.