IS INFLATION THEFT - OR IS THAT HYPERBOLE?
“The natural order of the world is DEflation,” explains @Jeff Booth entrepreneur, investor and author of The Price of Tomorrow (https://amzn.to/44oFzTh).
Over time, the cost of goods and services should trend lower, because we humans find ways to be more efficient and produce things for less. Especially in a free market.
But in our debt-backed fiat currency financial systems, the increased value that would accrue to us via DEflation is instead siphoned off by those who can print money and channel it where they want it.
Inflation is the result of the government printing money.
When there is more money available, it chases after the same number of goods and services, driving prices up.
But Is It Fair to Call Inflation “Theft”?
When someone steals value that is yours, he is a thief.
Inflation is an underhanded way to do just that.
Suppose there is a total of $1 million in the entire financial system and you own $10k.
That means you own 1% of the total pie; or 1% of the total purchasing power.
But if someone else can issue another $1 million, that doubles the money in circulation and cuts your percentage of the entire pie by half.
Your purchasing power drops because suddenly (1) your percentage of the whole was cut in half and (2) prices go up bec there is more money chasing after the same goods and services. (Two facets of the same phenomenon.)
So while previously the money you sacrificed to save gave you 1% of purchasing power, it suddenly gives you on 0.50%.
A small group of people can do that to you. And you have no recourse.
If you could choose - would you choose to save your hard earned money in a currency that someone else can debase - effectively stealing from you?
Of course not. No one would voluntarily store their savings in an “asset” that is constantly losing value.
Why is it losing value? Because others can steal that value by printing additional money and distributing it as they see fit.
They end up with more. You end up with less.
Inflation is theft.
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What do you think?
