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Author Topic: Inflation is Kryptonite which will end the Ponzi Scheme  (Read 524 times)

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Offline Contrarian

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Inflation is Kryptonite which will end the Ponzi Scheme
« on: January 27, 2022, 03:52:07 AM »
People are finally waking up to what the assholes running the World like Klaus Schwab have been doing to us by printing money. QE is essentially a wealth transfer, a tax whereby they steal more wealth from average people and give it to themselves. Don't forget how and why it happens when the World economy crashes again, because this time will be different.

https://quoththeraven.substack.com/p/inflation-is-the-kryptonite-that

Online AvHdB

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Re: Inflation is Kryptonite which will end the Ponzi Scheme
« Reply #1 on: January 27, 2022, 06:06:35 AM »
People are finally waking up to what the assholes running the World like Klaus Schwab have been doing to us by printing money. QE is essentially a wealth transfer, a tax whereby they steal more wealth from average people and give it to themselves. Don't forget how and why it happens when the World economy crashes again, because this time will be different.

https://quoththeraven.substack.com/p/inflation-is-the-kryptonite-that

Interesting article. I will not pretend to be some brilliant economist, but I suspect some assumptions are wrong, but the basic premise is spot on. Our economy is a house of cards, controlled by an unholy combination of bankers, Federal Reserve officials, and a few politicians.

A week or so ago I overheard some Wall Street types at a restaurant maintain that some ‘serious’ inflation would be good for the world economy. They than said Europe should buy no more Russian petroleum products, America can more than adequately supply Europe! I wanted to enjoy my dinner and said nothing.

The reality sort of reminds me off the scene from The Wizard of Oz, Pay no Attention.




“If you aren't in over your head, how do you know how tall you are?” T.S. Eliot

Online andrewfi

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Re: Inflation is Kryptonite which will end the Ponzi Scheme
« Reply #2 on: January 27, 2022, 08:44:04 AM »
yes, inflation is a form of theft - especially when it is sought purposefully.

The banker types have a point about inflation is being 'good' from a certain perspective. I have written about this on the forum before. The benefit of inflation is that it enables debt to be inflated away. For example, if one owes £1000 and there is no inflation the real value of the repayments remains constant and constantly as painful.

If inflation devalues the money by 50% then the money being used to repay the debt remains whatever it was before in nominal terms. In real terms the repayments now cost half as much, making repayments much less painful. So, from the perspective of the national debt, this may be the only way in which debt in the US and some other countries can be paid down.

Rich people tend to benefit from inflation because they tend to be closest to the point of issue of the new money that is feeding inflation. So, they get to spend it before it has become fully devalued. The poor tend to only ever spend devalued money because of the time it takes for that newly printed money to reach their hands. That enables rich people to buy up the assets of poorer people at a relatively lower cost.

When I last posted about this a week or two ago, I noted that this was an alternative to default on debt and also that default often follows hyperinflation anyway, making default a 'better' choice for many parts of the economy - but not the very wealthy.
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