print-icon
print-icon

Inflation: Kryptonite That Will End The Monetary Policy Ponzi Scheme

quoth the raven's Photo
by quoth the raven
Wednesday, Jan 26, 2022 - 17:21

Submitted by QTR's Fringe Finance

The linchpin that allows the world’s nefarious central banking model to be so effective is that the commonfolk - the plumber, the electrician, the teacher, the bartender, bus driver or barber - don’t understand it.

Countless times, I have reminded my readers and listeners that the inflationary “machinery of night” blankets the most regressive tax possible upon the people who can least afford it, and does so in an extraordinarily convenient way for elites, politicians, central bankers and central planners whose titles and “jobs” hinge upon nobody questioning them and/or figuring out how the system works in the first place.

Today, the fabric of our modern banking world is held together by a logical fallacy of a system, wherein central banks are afforded the asinine luxury of being able to print infinite amounts of “money”, which is then disproportionately distributed toward the ruling class, billionaires, and elites, instead of the people who need it the most.

This shows up, literally, as a widening gap between the “haves” and the “have nots” that has widened consistently since the late 1970’s.

As a result of the most recent re-distribution of purchasing power disguised as “monetary stimulus” during the Covid-19 “crisis”, billionaires amassed an additional $4.1 trillion of wealth during a period of time in which the World Bank estimates that “some 100 million people have fallen into extreme poverty,” Bloomberg reported, in conjunction with the World Inequality Report, in December.

As I have asked many times, when the Fed considers stimulating by printing trillions: why not just divide up the money evenly amongst everybody in the country? Why must it be re-balanced and then deployed in a fashion that benefits those who already own financial assets?

The answers to these questions belie a bigger problem: the global economic “system” and monetary policy as a whole.

In the early 2000s and 2010s, posturing as though QE was a one-time experiment that “worked” because inflation didn’t run rampant was easy for central bankers. But now, in 2022, it looks as though it is finally time to pay the piper.

Today, the Fed faces a fork in the road where, in one direction, stocks collapse because of rising rates - and in the other direction, the dollar becomes worthless as we fruitlessly attempt to print our way out of debt.

But in 2022, unlike other points in history, we are facing this challenge at a time when the world has never been more aware of the false narrative central planners are trying to perpetuate.

Over the last decade, the populace has started to get wise to the con. Thanks to the popularity of cryptocurrency, many people who wouldn’t otherwise be interested have started to learn how our fractional reserve central banking system works.

I’m not the world’s biggest advocate for cryptocurrency, but I do support the fact that it has educated an entire generation of investors as to the pitfalls of modern day monetary policy. I just happen to believe it will also educate the same generation of investors lessons about intrinsic value, mania, the madness of crowds, the mechanics of Ponzi schemes and the greater fool theory.

In addition to younger generations “catching on”, older generations have likely moved inflation to, or close to, the #1 spot in their political priorities list. As I’ve said many times, mainstream newsmedia’s coverage of inflation means that it has become a hot-button issue that people want answers about. In an election year like this, politicians want to deliver those answers - or at least deliver bullshit that sounds like answers - to voters in an attempt to appease them.

And therein lies the beauty, and the tragedy, of it all: there is no easy way out for anybody. Politicians will run out of excuses and the few they have left the people won’t believe. The Fed will sit in front of Congress resembling a trembling and tearful addict who has hit rock bottom in the hours before accepting treatment on the TV show Intervention. Last, but certainly not least, collectively, as a country, we will bear the brunt of the consequences of central planners’ decades of deception, our naivety in trusting that it was all under control and the world’s willful ignorance in letting it unfold.

For years, politicians and central bankers have been relying on flawed monetary policy to try and endlessly appease their constituents with promises of grandeur and excess while they pull the strings on a system that socializes losses and privatizes profits for the elites.

They’ve done this with success, subtly sending the message that “everything is always going to be okay, so no one needs to ever question authority or the powers that be”.

Monetary policy has worked splendidly for the elites and central planners over the last few decades and, while it has resulted in a wider gap between the lower and upper class than we’ve seen in 50 years and a country that is nearly at civil war with itself, the harrowing machinations of the monetary motor have all happened behind the curtain, under the cloak of night. This has allowed the elites and central planners to side-step responsibility for 50 years worth of...(READ THE REST OF THIS ARTICLE HERE).

--

If you don’t already subscribe to Fringe Finance and would like access, I’d be happy to offer you 20% off. This coupon expires in 48 hours: Get 20% off forever

Contributor posts published on Zero Hedge do not necessarily represent the views and opinions of Zero Hedge, and are not selected, edited or screened by Zero Hedge editors.
0