UNDERSTANDING INFLATION!
In my view there is a big difference between the excessive printing of money inflation and the true cost of living inflation. I don’t think very many people including economists understand what causes and drives true cost of living inflation, I do, and nuggets of it is found throughout my writing.
Printing a lot of worthless money alone can’t drive the cost of living up. Government spending alone can’t drive the cost of living up. Government can spend and build like crazy and that alone still won’t drive the cost of living up.
There is only one way to drive the cost of living up on everyone, government consumer price support, there is simply no other way it can be done that I can see. An economy consists of only two players, the merchant and the consumer.
The process of “Natural selection” will always maintain a natural balance between the two. That is what controls and runs every economy. Sure, man can tinker and fiddler around with it but sooner or later the process of “Natural select” is going to complete a rebirth cycle. And the smartest thing man can do is maintain and safeguard a strong enough culture to survive a collapse or rebirth.
When the government gives masses of people on an individual basis enough money to pay whatever the merchant demands that is what drives inflation. Every penny the government takes comes out of the profit margin of some business or service if traced back far enough.
So, the more government takes the higher price the business will have to charge consumers to make a profit, or go out of business. That is what sets up the cost of living inflationary spiral that forces government to keep raising taxes higher and higher to give its masses of dependents enough money to support higher and higher merchant prices in a never ending spiral.
The truth of the whole matter is I can’t see how the USA economy can last very much longer as a social and family provider. I can only hopes and pray for a miracle because that is what it is going to take to save the USA as one nation.
Economic lecture #14 by Freddie L. Sirmans, Sr.
Expect high drama; stay tuned for the next episode.
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