The Federal Reserve is considering a much more aggressive approach to raising inflation.
Seeking higher inflation is perhaps the biggest con of our day.
The number one most important thing to understand about inflation is this: Rising prices are not healthy. Falling prices are.
The “deflation bogeyman” was invented in 2002 by none other than the Federal Reserve. Deflation is not something to be scared of, rather it is the number one wealth-producing and inequality fighting factor of all time.
Deflation and low prices were the sole benefit of the Great Depression, not the cause of it or a problem to be fought. Imagine how much worse the Great Depression would have been if people both had no money and life got more expensive. When you can imagine this, you have an idea of the financial future the Federal Reserve is preparing for us right now.
Inflation, debt, wealth inequality and – eventually – revolution, are all natural results of monetary debasement (aka QE, debt monetization and fiat printing).
The Federal Reserve is pulling off the biggest scam of our lifetimes by simultaneously saying they are going to try and fight inequality and reaching for more inflation.
The only reason the inflation numbers don’t reflect reality is because the CPI and PCE are inherently and intentionally broken. The CPI formula was changed in 1980 and, unsurprisingly, that was the same year the rampant inflation of the ’70s was finally curtailed. Things like housing, education, and healthcare are excluded from inflation numbers.
Almost nobody realizes that inflation (money printing) steals purchasing power from every other dollar that already exists. This means that inflation is a tax, and it is a tax we do not get to vote for.
Further, the result of money printing is that goods and services become more expensive. When goods and services become more expensive, the prices of assets (real estate, company stocks, gold) rise. Rising prices are good for the rich who own assets. Rising prices are bad for the poor who own no assets and can afford less and less each year on stagnant wages.
In conclusion, inflation is a wealth transfer mechanism from the poor to the rich. The Federal Reserve is the reverse Robin Hood. Every dollar that the Federal Reserve prints is simply wealth stolen from the poor and handed to the rich. It is laughable that the Fed says they want to fight inequality because, by their very existence, they can only make the problem of inequality worse.
Seeking inflation and encouraging the Federal Reserve to print more money is the biggest con of our day, and will very likely be the nudge that pushes the system over the cliff.