Consumers increasingly find themselves receiving inferior goods and services at higher prices.
Living standards have declined significantly in recent years, and the trend is worsening, fueling simmering social anger. Yet for the elite that dominates opinion-forming, it is business as usual as consumption is accelerated by the 10% of those connected to Wall Street who continue to record profits that are not linked to corporate fundamentals and the beneficiaries of the globalization system.
They account for about 58% of total consumption in the United States, according to Federal Reserve data for 2025. The common perception that producers—such as food or energy companies—are to blame for rising prices is a serious error.
In the absence of natural disasters that destroy real wealth, price increases are due solely to the expansion of the money supply. It is paradoxical that producers are blamed for inflation, while the Federal Reserve and the state are presented as the bodies responsible for dealing with it, which completely reverses reality.
Inflation as a mechanism for transferring wealth
Producers actually resist the effects of the monetary devaluation caused by the state. The state does not produce real wealth, but creates regulations, taxes and money without any consideration.
The increase in the quantity of money beyond the increase in real wealth constitutes an indirect form of embezzlement of capital from citizens.
Nevertheless, conventional social perception treats the state as a protector and not as an aggravating factor, while producers are considered exploiters. The main problem is located in the state and the central bank.
Inflation and the erosion of social and moral structures
There are two basic ways of survival as we know:
- through production and exchange in the market or
- through appropriation of the wealth of others.
Inflation does not enhance economic activity, but acts as a mechanism that erodes trust and moral standards of social behavior.
In our view, it creates a layer of parasitic activities and undermines the living standards of the middle income class.
In a truly free economic environment, prices would tend to fall due to increased productivity, while the Federal Reserve’s 2% inflation target is considered distortive.
The increase in inflation is associated with the deterioration of moral behavior – the corruption of morals
As economic conditions become more difficult, individuals and businesses seek survival by any means necessary. Inflation, which he characterizes as a form of “hidden embezzlement”, discourages production and encourages recourse to unproductive or criminal activities.
When production decreases, the incentives for the illegal appropriation of wealth increase, creating a vicious circle. At the same time, citizens, although they may not fully understand economic theory, intuitively perceive the loss of value and the concentration of wealth in the upper classes, which negatively affects the overall moral cohesion of society.
Inflation, corruption and aggression
The increase in legal disputes is linked to the perception that wealth is created without production. Groups associated with the state and monetary policy benefit first from the creation of new money, which intensifies the inequality that the market itself produces.
The general public perceives that a redistribution of wealth is taking place, but without precisely identifying those responsible. This leads to a false attribution of responsibility to producers, facilitating state intervention.
The shift from an economy of production to an economy of false redistribution of a declining wealth creates conditions for generalized conflict.
The legal system, rather than limiting delinquency, may become an instrument for transferring wealth, especially when it is characterized by excessive complexity and regulatory overload.
Historical Experiences of Inflation and Social Destabilization
Currency collapses have historically been accompanied by social unrest. Notable examples include the fall of Chiang Kai-shek’s regime in China after World War II, and the hyperinflation of the Weimar Republic in Germany, which contributed to political instability and the rise of radical nationalist political forces.
In environments of high inflation, political power becomes attractive as a means of accessing wealth, leading to further economic and institutional instability.
Strategies for adapting to a crisis environment
In response to these conditions, the importance of developing skills that allow the production of goods and services regardless of economic conditions is being upgraded.
The need for multidimensional preparation — spiritual, psychological, physical and economic for conditions of generalized social collapse — is multidimensional.
Saving in precious metals and the development of investment skills are proposed, with the aim of protecting wealth from monetary depreciation. At the same time, the lack of financial literacy should be eliminated and there should be a childhood that provides practical adaptation skills in times of crisis.
Social and institutional destabilization
Inflation must be viewed not only as an economic phenomenon, but as a factor in broader social and institutional destabilization.
Rising prices, falling real incomes, and the erosion of trust in institutions are, in this approach, linked to deeper changes in the functioning of the economy and society – and ultimately kill any semblance of democratic functioning.
