What is the price for all of the debt and money printing by our government and central bank puppeteers? Inflation of course! It is no coincidence that a year after global central banks printed currency like there was no tomorrow, “for the good of the people” we are experiencing massive inflation, not just in the equity and asset markets (wealth effect), but in nearly the entire spectrum of consumer products and services. Inflation, which is a monetary phenomenon, is experienced as rising prices. The truth is it is a tax, an insidious stealth tax. Few understand it, so the cause, government, can blame it on a myriad of things other than its own malfeasance. Inflation is rearing its ugly head as expected. The financial markets had kept it subdued and isolated in the asset markets, making the wealthy, wealthier, but now it is loose. It is said, “it is very difficult to put the inflation genie back in the bottle.” While the wealthy can afford higher prices, the middle and working classes cannot. As I have said previously, the path our government has taken ends with hyper-inflation or insolvency, or both.
The Left (the banking party) is full of it. They talk a good game about helping the little guy, but have an extensive track record of screwing them the hardest. Now that we have adopted Modern Monetary Theory, thanks to the Bernie and AOC camps, which encourages massive money printing and penalizing taxes; inflation and a super charged IRS will go along way toward taking out the once mighty middle class. The set up is clearly for a two tier society, neo-feudalism if you will, with a bureaucratic managerial class (the carrot for party loyalists).
“Every election is a sort of advance auction sale of stolen goods.” – H.L. Mencken
Money printing and debt creation along with rigged interest rates (interest rate apartheid) has created great wealth inequality, perhaps the greatest in world history. Again, the monetary policies championed by the left and to a lesser extent the right are absolutely 100% the root cause. This allows politicians to make all sorts of very expensive promises (bribes) that we as a society can in no way afford. We are being set up for never ending problem, reaction, solution cycles. Government creates the problem, gooses the reaction, and seems to save the day with a solution which in turn sets off another problem. All the while these eat away at our collective wealth, morals, and conscience; demoralizing us into submission.
The important takeaway is that inflation is almost exclusively a monetary phenomenon. The Biden administration is trying to pass massive spending bills, the result higher inflation. The news and rhetoric will blame it rising prices and breakdowns on a variety of falsehoods. The truth is the politicians and government in cahoots with the banking sector created this mess. Their attempts to solve it, if it involves more spending or taxation will only exacerbate and expedite the problem. Inflation is a tax!