Inflation, And Why It Exists: Pro-Tip, Don’t Believe What The Government Tells You.

There is only one thing causing, or that causes inflation.

More money (or more precisely currency units) chasing the same to less amount of goods and services.

And in all modern societies, there is only one entity to blame for more money being created.

The government.

That graph is M2 money supply. Defined as a measure of the U.S. money stock that includes M1 (currency and coins held by the non-bank public, checkable deposits, and travelers’ checks) plus savings deposits (including money market deposit accounts), small time deposits under $100,000, and shares in retail money market mutual funds. (Source: St Louis Federal Reserve Bank)

In other words, the currency you and I use on a daily basis to live, experience, and consume.

Notice that since, oh, about 1971, it has done nothing but go up, exponentially.

Moreso, since 2020, until only very recently, we saw one of the largest expansions in money in history.

$5 trillion in 2 years.

Mind you, this was at the same time our hair-brained leaders decided to destroy the economy and global supply chains by locking everyone inside, declaring millions of people “unessential”!

Now those same people are happy to tell you it is “greedy” business people and oil tycoons that are to blame for the persistent inflation. The same inflation they said was “transitory”.

And as people are experiencing, once something goes up in cost (relative to the purchasing power of your dollar), it is difficult if not impossible for it to go down.

After all, inflation is “always and everywhere a monetary phenomenon”.

Thanks for reading. Be good stewards of your earnings.