Mises Institute: Last week, Ned Davis Research published a note titled “Turns Out, Growth Looks like It Was Transitory—Inflation Is More Sticky.” There are many factors that show us that consumers and salaries are being eaten away by inflation, leading to an abrupt halt in the recovery. Autos and new home sales plunged, real disposable personal income has plummeted, and real median wage growth is lower than inflation.
Policymakers have pushed inflation at any cost with the most aggressive monetary policy in decades and it took a normal recovery after the reopening to prove why inflation is always a monetary phenomenon: in 2020 G7 central banks increased money supply well above demand and faster than ever since 2009.
Monetary history shows that policymakers always resort to the same excuses when it comes to printing money and monetary mismanagement:
- first, say there is no inflation
- second, say it is transitory
- third, blame businesses; fourth, blame consumers for overspending
- and finally present themselves as the “solution” with price controls, which ultimately devastates the economy.
Opinion: Inflation affects the poor and middle class as a relentless and unforgiving tax increase. To the wealthy, or 1%, inflation is a shrug of the shoulders … at first.
BBC September 26, 2021
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The constant use of the printing press creating new money being added to the monetary system makes those with the most assets even more wealthy, while the masses need more dollars to buy the same commodities. It becomes a struggle to find alternatives to expensive items like meat, oils and alcohol.
It was no different in 1st century Rome.
From our paper “The 1% and Revelation: Do not Harm the Oil and Wine”:
“To get an understanding of how the 1% today have not changed since the time of Jesus, we turn to the Book of Mark just before Jesus Christ was betrayed and arrested. Jesus was with His disciples at the dinner table when a woman broke a flask of expensive perfume and poured it on Jesus’ head. Some of the disciples became indignant since this perfume could have been sold and the money given to the poor.
In Mark 14:7 Jesus admonished His disciples for scolding the woman: “For you have the poor with you always, and whenever you wish you may do them good; but Me you do not have always.”
The wealth comparison is remarkable because the perfume was a luxury item of the 1% of first century Rome and its territories. Super-wealthy elites made up about 1% of the total population of the Empire. The elite ruling class and priestly families maintained domination through a system of inequality of the people.”
When the final economic collapse comes it won’t be inflation that will affect the whole world, it will be hyperinflation.
See the rest of the paper HERE