I have been accused of the oversimplification of inflation. Mostly not in person, or even directly. Most people seem to just silently ignore my assertions, changing the subject, or pretending to listen silently.
All are entitled to their opinions, and surely I don’t have the answers to everything, but there are indeed unbreakable laws of the universe, called natural laws, and whether someone denies these laws, admits them, believes them, understands them, or even knows them at all, they apply.
The laws of mathematics are such laws. They are unbreakable. Any, and every time anyone removes 50% of any number, they will have half of the original number remaining. All laws of mathematics work with this same scientific precision.
The results can be masked by other factors, yet the truth will remain. The numbers can be inflated to the point that the laws of math are unnoticed, but the fundamental principals will remain, and the results can be predicted 100% of the time by anyone that keeps their eyes on the the basics, refusing to be drawn off course.
Inflation is simply the manufacture of currency beyond what is currently on hand. The printing of more currency does not increase the goods, and services produced. It doesn’t even increase the capacity for an increase in goods, and services. It simply divides the representation of the wealth produced by those goods, and services to smaller increments, and if those increments have the same name, “like dollar.” Those increments, or dollars, decrease in value at a mathematically precise rate. It is so precise, and so predictable as to literally be a natural law.
The over complication of such a simple principal is deliberate, and anyone who perpetuates the fraud that inflation is more complicated is either confused, or corrupt. There is no other option.
Millions of Americans are completely confused, and dare I say defrauded by this truth. Those confused range from the barely literate to the brilliant. I believe that the educational field of economics has been corrupted in order to indoctrinate entire generations of economically illiterate “experts” to further the deception of this ruse.
There is but one answer to this dilemma, the constant, and continual repetition of truth.
It was about 1983 when the lightbulb lit up for me. Two things converged in my brain to paint the vivid picture of the simplicity of the “inflation” con. I read the simple statement that inflation is simply the production of more currency. In my mind, I immediately remembered that the US Constitution states implicitly that only gold, and silver could be money. All of a sudden, I realized the truth, and why the framers of our constitution made such a bold requirement. It is impossible to counterfeit gold, or silver.
I look at the modern subject of economics like it is a shell game. In a shell game there four components. There are the shells, (generally 3, but we are counting them as one component,) the pea, the presenter of the game, and the player.
Both the presenter, and the player know that the game is a game of deception. If there were only one shell, everyone would know exactly where the pea was. It would either be exposed, or it would be under the shell.
Two other shells are provided to confuse the whereabouts of the pea, and the presenter hones their skills to enable them to confuse the player as to the whereabouts of the pea.
The difference between the shell game and the field of economics is that with the shell game, everyone knows what is going on. The presenter is challenging the player to reveal their attempt to deceive, and the player is accepting that challenge.
With the field of economics, one of the shells is the perception that the presenter, (or the economics expert,) is indeed an expert in the science of economics. In many cases, they are either a fraud, or the victim of a fraud.
Math is scientifically precise, and any field of study that obscures the exactness of its scientific precision, is a fraud.
Every new dollar created reduces the value of each, and every dollar in circulation, at a scientifically precise, mathematical rate. There are no exceptions, and no mitigating circumstances that can alter this truth. It can only be obscured, and the victim of this fraud convinced to concede, if they are not resolute enough to resist.
God bless you, Dave