Tweetstorm: Inflation is Cruel
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Tweetstorm: Inflation is Cruel
By Ben Prentice
Posted July 6, 2019
Inflation is a cruel clandestine method of stealing wealth, unlike tax which is at least knowable, inflation destroys savings, wages, and economic calculations.
Zoom out to see what establishing the federal reserve has done to the price system, the integral component of economic coordination. When prices are distorted, our coordination with each other, our time-preference in saving/spending, and our very culture is being corrupted.
To understand the miracle of the price system, one must simply ask: “who knows how to make a pencil?”
When prices are distorted, prices that we understand are set in aggregate by the market, the signals used by savers, spenders, and producers are manipulated, and the miracle is destroyed.
The temptation to print money is not to be underestimated. In the past, rulers were caught red-handed debasing their currencies, and at great cost of minting new coins.
The tyranny of the status quo is that we’ve all been convinced 2% inflation is necessary for growth.
i.e. “Debasing our currency is necessary for progress. If we don’t devalue your money, you might actually save some!”
No surprise, savings are at all time lows.
This lie, taught to us by the Keynesians, fed to us by the govt-funded schools, perpetuated by the Fed-endorsed banking system where money is created to enrich the banking class, and risks and losses are laid on the populace, maybe the the greatest lie ever told.
The only economic progress we have seen in the past century is due to deflation. Electronics and technology, the exponential revolution, is progressing so rapidly, only prices tied to this phenomenon are falling, in spite of inflation.
So before you point to all the “progress” we have seen in increasing standards of living, ask if it is due to inflation manipulating people into investing in stocks, or due to falling prices of technology.
What could possibly dismantle this global tyranny of lies distorting economic progress to protect big govt and enrich the rich? Could we “end the Fed” with legislation? Protest? Discourse? I have doubts.
What if we could create a new system of money, outside the control of govt, backed by raw energy and mathematics, secured by hundreds of thousands of rule-enforcers, promulgated by a social contract to preserve liberty and protect wealth?
What if the incentives were so aligned that everyone was incentivized to secure the system, to profit from its adoption, to slowly and voluntarily exit the hegemony of govt money? What if #Bitcoin is a global peaceful #revolution that secures wealth and protects individuals?