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by frankfrankfrank
1263 days ago
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I think you should reconsider the position that inflation is a sign of a booming economy. It is an erroneous albeit common perception and perspective. Inflation, the fraud of increasing the number of IOU Currency tokens called {fill in your currency of choice} in circulation simply by copying them is the cause of increasing prices, not inflation itself. It’s a matter of misunderstood definition. An analogy is an artist that puts out a limited edition print, lets say 100, and then realizes that he can make more money if he just prints 2 of each numbered edition, so there are two 1/100. That is inflation and the means of its fraud is the government “printing” more money, and thereby defrauding the people who have the currency based on the prior value. It’s just common fraud on a ruling class scale with no one to hold the psychopathic common con artists ant the top accountable. The Fed (among others) are just people scheming to commit fraud against the people who produce the value. Usually they just keep the fraud at a level that skims a certain low percentage that they get away with and no one notices when everyone is fat and happy, but they always get greedy and desperate when the Ponzi scheme they are running starts tipping over. |
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Increasing the money supply is one of the many things that can cause inflation. But to thing it is the only factor is overly simplistic, sort of Laffer-curve-esque. In that it makes a lot of sense in an economics 101 class but the reality is a lot more complex.
For example, if you double the money supply tomorrow but most of that extra money ends up in the bank accounts of the richest people in the world, it will have little effect on the price of avocados, for example. Rich people aren't buying more avocados because now they have $100m instead of $50m. But you can bet you would start to see inflation for yachts, private air
In other words, money supply only affects inflation in as much as it affects supply and demand.