Brief reflection: Inflation myth

in #politics6 years ago (edited)


If there is one popular myth that is not even questioned, without a doubt, it is this. Practically all public opinion today claims that inflation is the increase in prices. This apparently has no major implications, but it is in fact an extremely dangerous mistake, as it is based on semantic confusion', that is to say, it confuses the meaning of things.

Inflation is actually the increase in the amount of money in circulation that occurs behind the back of the market, and that increase, among other consequences, causes prices to rise.

As can be seen, the cause has been confused with the consequence. And why is this important to clarify? Because otherwise people believe that prices always have to go up, when in fact the normal thing is that the opposite happens: lower prices due to greater technological advances and more production. And when people only see prices go up, they don't realize (or demand explanations) that this is happening because the rulers are printing money behind their backs through the central bank to finance their excesses.

That is why we say that inflation is not something random: it is a policy, it is a decision that leads to the loss of the purchasing power of the currency and, therefore, to general impoverishment.


Young student of modern languages at the Central University of Venezuela (UCV). I believe truth is the only path to success for our society. I have a long-term relationship with Philosophy, politics, and economy.

Thanks for reading!

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Curated for #informationwar (by @truthforce)

Yes, agreed 100%. In the US our schools brainwash us into believing a different definition of inflation - rising prices.

The real one is as you point out, an increase in the money supply.

Also, I'd like to give some constructive criticism, the proper spelling is "reflection".
I do not mean any harm by pointing that out but I've seen it a few times in your posts.

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Thanks! My bad haha!

Yep inflation's is actually fraud and thefts. The bankers agree to loan money to the government as long as the people are collateral. The problem is that making people collateral requires that they be bonded as chattel. So inflation is proof that the system is the slave trade.

Exactly, inflation is just a hidden tax for the common people :)

Inflation is the increase of the circulating money supply, but, the increase with respect to what? this is very important.

If the money circulating increases with respect to yesterday, that does not necessarily mean that there is inflation, in fact, this can generate deflation. Inflation depends on the circulating money supply in correlation to the goods and services offered.

That is, the money circulating is increasing faster than goods and services.

Something very important that must always be noted, is that inflation not only brings losers, because there is a group of people who benefit from the excessive increase in the circulating money supply, and this group is the one that introduces the money in the market (be the State or the Bank).

Currency is a reflection of the value in circulation. @vieira inflation is when there is more currency than the products, goods and services in the economy. Thus one or the other has to adjust. The currency always goes down in value and the products goods and services always remain the same. Thus it takes more currency to buy the same products goods and services.

This is why it is thefts. The labor forces pay doesn't adjust. So a laborer is paid at the lower value of the currency instead of the higher value of the currency. So his labor that produced the product, good, or service or distributed or sold it, that is drawing the value to the corporation is artificially lower because of the rising cost of the products, goods and services.

Such is shifting the value of the labor in a cheating way. Think about it like this you said you would take the job at 10 dollars an hour. When pay day rolls around they pay you 9 dollars an hour. Why people are not hanging is beyond me to explain.

I get what you mean, however, in praxis, most of the inflations are originated due to what I mention i.e. increasing the supply of money that circulates in order to pay the bankers debt :)

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