In the United States Majority Rules, the Inflation Consensus

By: Viresh_Amin

Most people are oblivious for a correct justification for the perpetual rise in all that can be priced i.e., oil prices rising to ungodly digits. For Americans, oblivious would be an understatement, though some are waking up to meet reality face to face, but not enough. Over the longer term horizon the general consensus among the public is that the price of everything will continuously rise, and so my wage will rise with it. It’s practically hard wired into the uninformed American mind and time and time again they fall into a myth.

When it comes to finding the fundamental reason, inflation gets the blame. Inflation has become to be known as something that will always happen and will never go away, much like death and taxes. In fact it’s become typical for many soon-to-be-retirees to factor in inflation when deciding upon how much money they would need to retire and live in Florida. Those very same people blaming inflation have no clue where the roots of inflation come from; they are at a loss of words. The administration ideally refers to the trivial fluctuations as some anonymous incident or their favorite, blames “greedy” businesses for raising prices and keeping all profits for themselves, which in some cases leads to a coercive higher tax for that particular industry or a congressional hearing before congress to explain their greedy behavior.

This has during this last depression become all too common. When the Central Bank talks of inflation they speak of it in the same light as the administration and blame some unknown phenomenon that has to do with prices, thus they establish a “war on inflation”, and like all wars in modern America, they seem to never end. They purposely blame prices, in order to lure the public into a dead end road where they leave them with a confusing and complex answer. It’s just smooth talk that keeps the public ignorant of the truth.

The culprit is the Central Banks i.e., Federal Reserve. They purposely inflate and expand credit in order to finance unconstitutional budgets and agendas and push back the realization of their unsound fractional reserve banking that is a scheme that has been climbing a wall of worry from the very beginning; along with public and private debt, and unfunded liabilities. When they can push no further, they will divert to pumping the printing presses quicker than before one more time and the markets will roar bull, although when this too fails, they smooth talk and blame the unknown and how this unknown couldn’t have been possibly seen, after all if a central bank didn’t see it, who could of? (How can you argue with that kind of logic?)

They act as if they are working for your sake (after all they went to war with “inflation” for us) while their actions speak a different tone. More importantly is when all else fails, there soon comes the collapse of the currency itself. The process will occur so quick that most people won’t know what hit them. One day the ignorant are living on a massive credit bubble that sprouts infinite prosperity and the next they are using their dollar bills as toilet paper.

If it comes down to the hyperinflationary state that destroys the facilitator of all transactions in a complex economy, most will be ill prepared, and will suffer accordingly; it will wipe out all with no real wealth. For those who have come to find out that the dollar bill is not true money, but only a money substitute will have preserved their wealth into true money i.e., gold and silver.

Most people today do not look at their money as if it can lose its value like an asset can. It simply does not cross their mind. For example when the price of movie tickets rise from under a dollar decades ago to over seven dollars today, they do not connect the dots and see that it’s the money losing its value which leads to the price to go higher.

In America they say the majority rules. Today, the majority only speak the trivial and not the fundamental issues. When the day ticking time explodes, most Americans will be thrown into a world of poverty and will come to realize who the true terrorists are. On that day, America and its majority will no longer rule.

By Viresh Amin

viresh_amin89@hotmail.com

An Austrian economic, Libertarian, and Anarcho-capitalist writer.

© 2010 Copyright Viresh Amin - All Rights Reserved
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