No one really believes inflation is under control. Here’s a fun fact – the more money you have – the less inflation matters. In fact, if you have enough money, you can take advantage of inflation to make even more money. Fiat money is a scam!
Anyway – look – inflation is one of the most important themes in politics going forward.
Trump gets it. Whether or not he actually had a change of heart towards decentralization is anyone’s guess. But Trump sees how important inflation and the loss of fiat currency’s purchasing power is to the wider population.
People are tired of watching prices go up while pay stagnates and the value of their savings is ravaged!
Damn Inflation!
With certainty – inflation is a problem. If the central bankers were actually doing their job, and maintaining the value of money, most people wouldn’t care about cryptos. But that isn’t the case. We live in a world where the official narrative is fiction.
Trump is making political hay out of cryptos because the banking cartel and its media assets trumpet inflation data that isn’t connected to reality. Prices are way up. Check out these charts for more info on how terrible official inflation stats really are.
In short, since 2008, inflation in the USA never went under 5% per year. At the moment US inflation is well over 10%. Central bankers aren’t dumb. They are duplicitous. Behind closed doors the central bankers know the inflation situation is dire – on CNBC they tell a different story.
Lies Are Power
If you live in the USA – you must accept violence. Terrible violence exists at every level of the US socioeconomic structure. At the street level, murders in US cities are an issue. At the global level, the world has never seen a war machine like the US military industrial complex.
People go along with the idea that cities are safe and the US is spreading democracy because few people are impacted directly by the lies. The marginalized populations in the cities who are shot frequently are just that – marginalized.
The people who get bombed in far off lands aren’t a part of the US political landscape!
As long as the lies don’t impact the general population directly – people will go along with the fiction. Enter inflation. The problem with inflation is that it directly impacts most people. Every time a person goes to buy food, they see how much less they get for the same amount of money.
While we used the USA for the example above, it applies to every major currency bloc. The UK, EU, and Japan are all being nailed by reduced buying power. If you are rich, you don’t care. But in a world where ‘rich’ is the top 1%, inflation is a real problem.
Dangerous Politics
In theory, Bitcoin attacks modern social structures at a very basic level.
In the world of modern money, the USA sits at the center of the global banking cartel’s power structure. The US dollar has been the de facto global reserve currency since the Suez Crisis, so any interruption in the USD’s dominance could have major consequences for the Western financial system.
Bitcoin has always sat opposed to the banking cartel. With it becoming a political issue in the USA, there may be an unstoppable cycle in play. People know that the US dollar is losing value. The FED was willing to tank the global economy to maintain the USD’s buying power.
If people in the USA now see cryptos like Bitcoin as a way out – the political landscape in the US just became far more treacherous. Donald Trump is a political opportunist, so if be backs Bitcoin, he may not be considering second and third order consequences of that position.
No Way Out
If you are one of the ten people who regularly read our work – you will know we see the modern fiat currency system as a house on fire with the exits nailed shut. Should someone manage to escape the house, there is a banking cartel machine gun nest waiting to open fire on anyone running from the inferno.
Money is power – but not for the reasons you may think. We mean that the ability to issue money is power, not the money itself. A little more than a week after someone (or a few people) took aim and fired at Donald Trump – he decided to fully support Bitcoin in a very public way.
The writing on the wall is pretty clear after the recent FED meeting – the Western financial system is at its breaking point. With the Bank of Japan raising rates, and the US steady, we can safely say that central bankers are terrified at the prospect of out-of-control inflation.
With a major election coming in the USA, and markets tumbling, central bankers will be under pressure to deliver some relief. Otherwise, the Democratic party will have to just give up on politics for the next few years, as the results of its disastrous economic policies work their way through the system.
The Scary Version
There is a good chance that inflation can’t be managed. We may be in the opening inning of a hyperinflationary event. With the US federal debt out of control, the US could look like Argentina in a few years.
For those of you who never lived in a hyperinflationary environment, watching prices go up as products disappear from the marketplace is terrifying.
There is no solution for the US public debt problem. It will continue to grow, and will grow faster for the rest of the decade. Cutting spending (which won’t happen) would not impact the existing debt – which already costs more than $1 trillion to service annually.
Rate cuts would help the government to service the debt, but lower interest rates mean higher inflation. Most of the West is in the same situation!
The EU’s finances live in a perpetual twilight state, and debts continue to mount. There is no way out of this burning house – and if you try and escape – you will find few options out there. Central banks and governments force you to use fiat currency – with no other options on the table.
If you use gold or cryptos, get ready to jump through hoops and pay taxes on something governments see as an asset – or ban outright.
With the FED top-bound at around 5%, we see clearly that rates can’t go any higher without smashing the financial system to bits. Inflation isn’t going anywhere. People everywhere are upset. Fake inflation stats don’t quell an angry mob. Trump’s move to politicize Bitcoin will make him more popular, but it also raises existential questions about the Western financial system.
Inflation matters – but today, there is no solution for fiat-led structural inflation. People are stuck in a system that harms them, and will get worse before it collapses into either remonetization or hyperinflation (or both). The bottom like it that Klaus Schwab may get the angrier world he is looking for!
