By Irina Sharnina @ Adobe Stock
At SchiffGold.com, Peter Schiff explains that inflation is not an accident, and in fact the government uses it to create benefits for itself at the expense of the people. He writes:
This week Peter’s back to discuss new economic data, Powell’s recent remarks in the Netherlands, and the Biden administration’s new tariffs. More and more signs point to economic stagflation, but Biden, Powell, and their cronies continue to deflect the blame and increase everyday Americans’ taxes.
The Dow may have traded above 40,000 this week, but that doesn’t necessarily mean Americans are wealthier:
“Inflation creates an illusion of prosperity, an illusion of wealth. That’s another reason that government loves inflation so much. They’re really partners. The government derives all sorts of hidden benefits from inflation, but it never wants to admit this. It never wants to say this out loud. But everything the government does is supported by inflation. … They kind of worship inflation, but they never speak its name— not in the context of what they’re using it for, right? And so when the public gets upset that prices are rising a lot and their living standards are falling, then the government will talk about inflation. But it’ll talk about it as if it’s this exogenous event that is completely beyond their control.”
Contrary to what progressives believe, inflation is not a result of capitalism:
“Everything is more expensive because of the government debasement of our money. That’s why we have inflation. It’s not an accident, and it’s not a natural byproduct of capitalism. Capitalism does the reverse! I’ve pointed this out, but the CPI from 1800 to 1900 lost 50% of its value. Prices fell for a hundred years! That’s what capitalism does. Now in the following hundred years, prices skyrocketed. That’s what socialism does. That’s what government does. That’s what central banking does.”
Read more here.
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