Inflation Is A Policy, Not An Accident

Why are prices at the grocery store getting higher, while the package and portion sizes are getting smaller?

From the Ludwig Von Mises Institute of Canada: “Central Bankers: Inflation Is God’s Work”

Inflation is always somebody else’s fault. Ludwig von Mises called out finger pointing central bankers and politicians decades ago in his book, Economic Policy. “The most important thing to remember is that inflation is not an act of God, that inflation is not a catastrophe of the elements or a disease that comes like the plague. Inflation is a policy.”

In the fall of 2007, Gideon Gono blamed his country’s inflation rate of 4,500 percent on “the differences that Zimbabwe has had with its former colonial master, the UK,” and added, “we are busy laying the foundations for a serious deceleration programme.” Deceleration? A year later inflation was 231 million percent.

Money printing didn’t have anything to do with it according to the central banker. Droughts began to be more frequent in the 2000’s and Gono believed  ”there is a positive correlation between the drought and inflation.” Dry weather, he told New African magazine, has, “got a serious bearing on our inflation level.”

In Gono’s dilluded mind,inflation was about the weather, lack of support from other nations, and political sanctions. He had nothing to do with the hyperinflation in his country. “No other [central-bank] governor has had to deal with the kind of inflation levels that I deal with,” Gono told Newsweek. “[The people at] my bank [are] at the cutting edge of the country.”

Please read this article. Make sure you understand some basic economic principles so that when politicians and bankers lie about why financial life is getting more painful you’ll be able to see through it.

One of the key reasons we’re doomed is that people want something for nothing, and they elect politicians who promise to deliver just that. Economic cluelessness is penultimately fatal to your financial well-being, and your freedom.

Ultimately, it is simply fatal.