Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24
How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - 17th Feb 24
Why Rising Shipping Costs Won't Cause Inflation - 17th Feb 24
Intensive 6 Week Stock Market Elliott Wave Training Course - 17th Feb 24
INFLATION and the Stock Market Trend - 17th Feb 24
GameStop (GME): 88% Shellacking Yet No Lesson Learned - 17th Feb 24
Nick Millican Explains Real Estate Investment in a Changing World - 17th Feb 24
US Stock Market Addicted to Deficit Spending - 7th Feb 24
Stocks Bull Market Commands It All For Now - 7th Feb 24
Financial Markets Narrative Nonsense - 7th Feb 24
Gold Price Long-Term Outlook Could Not Look Better - 7th Feb 24
Stock Market QE4EVER - 7th Feb 24
Learn How to Accumulate and Distribute (Trim) Stock Positions to Maximise Profits - Investing 101 - 5th Feb 24
US Exponential Budget Deficit - 5th Feb 24
Gold Tipping Points That Investors Shouldn’t Miss - 5th Feb 24
Banking Crisis Quietly Brewing - 5th Feb 24
Stock Market Major Market lows by Calendar Month - 4th Feb 24
Gold Price’s Rally is Normal, but Is It Really Bullish? - 4th Feb 24
More Problems in US Regional Banking System: Where There's Fire There's Smoke - 4th Feb 24
New Hints of US Election Year Market Interventions & Turmoil - 4th Feb 24
Watch Consumer Spending to Know When the Fed Will Cut Interest Rates - 4th Feb 24
STOCK MARKET DISCOUNTING EVENTS BIG PICTURE - 31st Jan 24
Blue Skies Ahead As Stock Market Is Expected To Continue Much Higher - 31st Jan 24
What the Stock Market "Fear Index" VIX May Be Signaling - 31st Jan 24
Stock Market Trend Forecast Review - 31st Jan 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

In the United States Majority Rules, the Inflation Consensus

Economics / Inflation Jan 18, 2010 - 04:26 AM GMT

By: Viresh_Amin

Economics

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
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in