| Cutting the pie into more pieces does not make the pie bigger, it makes the pieces smaller
29 June 2022, revised 19 Sept 2022 People are noticing that prices are rising. In the coming months there will be many references to inflation. All inflation is caused by debasement. Hyperinflation is caused by governments and banks printing extremely large amounts of currency. The more they print the less the currency already in circulation is worth. They can cut the pie into more pieces but that does not make the pie bigger, it makes the pieces smaller. People experience this as rising prices. Most belongings people have are denominated in the currency of the nation in which they live. When governments and banks debase currency they are stealing the wealth of the people, the value of their houses, savings and salaries. The piece of the pie they had has been cut by deception and stolen. The remaining piece of pie they have is smaller. Debasement occurs when every mortgage, credit card or car loan is opened. Those funds do not exist prior to the loan being made. They are not composed of deposits from bank customers. They are imagined into existence by fraud and this causes debasement that the public experience as an increase in prices. Debasement is also caused by governments that print currency either as cash or entries on a computer they might call quantitative easing. It is debasement. This is fraud, malfeasance in public office, a deception most people neither know about nor understand. Governments and banks deflect responsibility for this malfeasance, this fraud, this theft, by referring to inflation as though they have not caused it, are not responsible for it and are quick to blame anything or anyone except themselves. The public experiences increased prices without knowing it has been caused by their government and the banks and credit systems that they use for their mortgages, credit cards and car loans.
As of 18 August 2022 The USD has been debased by
Once hyperinflation grips an economy it will destroy it as shown by the Weimar Republic and Zimbabwe. Wealth can be preserved by investing in ways that are not affected by debasement eg land and precious metals.
This article is an extract or compilation of extracts from the book of the same name and describes the causes of inflation. Here
This is an attractive documentary series by Mike Maloney in which he describes the difference between sound money and fiat currency. Here |