Inflationary money from central banks will cause global shock and poverty

The Federal Reserve – and all central banks – is blamed as the main cause of inflation through its policy of “currency devaluation,” which systematically destroys the value of Americans’ savings, assets, and wages. A “political-inflationary vicious cycle” is documented, where the government prints money to finance spending, causing prices to rise, which then leads the public to demand more government aid, demanding even more money printing. There is a deliberate and widespread misunderstanding of the root cause of inflation, with the public blaming supply chains or corporate greed rather than monetary policy.
  The Fed’s War on Savings After a historic expansion of the money supply, a grim economic narrative dominates, one that presents the Federal Reserve not as a guardian of stability but as the chief architect of a silent war on American savers. The United States is trapped in a “political-inflationary vicious circle” that is systematically destroying the savings of a lifetime and paving a direct path to a deeply entrenched, impoverishing socialism. At the heart of the crisis is a fundamental misunderstanding of inflation. While the public blames supply chains, foreign adversaries, or corporate greed, it consistently points to the Federal Reserve and the “continued devaluation of the currency.” The New Communist Serfdom The path to serfdom consists of working exponentially harder to earn an exponentially weaker currency. The Fed is presented not as a neutral economic manager, but as an enemy of the average citizen. Central banks in general and the Fed in particular are on an impossible mission given that the free market—not a “politburo”—should set interest rates. A politburo is the main executive and political committee of a communist party. It exercises supreme political power, usually operating in a one-party state where its decisions are binding.
  The US has already crossed the Rubicon — and there is no turning back This deliberate confusion about the real cause of inflation creates a perverse political feedback loop of crisis. As living standards fall, a stricken population turns to the government for help, demanding relief checks, universal basic income, and higher minimum wages. 63% of Americans (Newsweek poll) “strongly support” government relief checks to combat inflation. In other words: Let’s fight the effects of currency devaluation by further currency devaluation. This creates the inevitable spiral, or “vicious cycle”:
  1. The government prints money to finance itself.
  2. Prices rise faster than wages.
  3. The public is suffering but does not understand why.
  4. Politicians promise “gifts” to ease the pain.
  5. To pay for these gifts, the government prints more money.
  6. Inflation worsens, and the cycle repeats itself forever.
The United States appears to have already “crossed the Rubicon,” with over 50% of the population—including not only traditional welfare recipients but also civil servants and defense contractors—now net beneficiaries of government spending. This constituency, will inevitably vote for policies financed by perpetual inflation. The end result, if this trend continues, is a future where the slogan “fight for $15.” The minimum wage will inevitably become a “fight for $50” and then a “fight for $100” as the value of the currency collapses. For those seeking a way out, understanding this established and accelerating trend is key to self-protect.
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TRUST ECONOMICS

Trust Economics is a specialized independent economic research, analysis and consultancy business. Our team provides ingenious analysis in the macro & micro economic field, in the field of financial market, regional and sectoral analysis equally, forecasts, consultancy, specialized studies-research/projects from its headquarters in Athens, Greece.

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