Inflation is a by-product of Capitalism

As long as you have Capitalism, you will have inflation

Sometimes, hyperinflation

Remember that now

In the end, inflation kills us all

Debt is currently in need of some measure of destruction.

But in the Capitalist Model, this is a fatal flaw...

It's called the: ''http://www.youtube.com/watch?v=7ZXFba1WRN4">fractional banking system.''

- It's really a relatively http://www.youtube.com/watch?v=Xbp6umQT58A">sophisticated form of modern slavery.

K&R

I'll pay you Tuesday for a biggie now. ;)

Couldn't inflation occur in any society, be it Capitalist, Communist, Fascist?

I am not an economist, but I thought the following:

I thought inflation was the rise of the price of something over time.

The something could be anything, could be real estate, could be food,
could be minerals, could be tulip bulbs as what happened in Europe in the 1600s.

The rise in price could be caused by either an increase in the money supply,
making the value of money less, or an increased desire for the thing in question.

I guess one can argue it's easier to control inflation in a command economy.
In a command economy, the government regulates prices, which, unfortunately,
can lead to scarcities of needed goods and services.

On the other hand, in a command economy, the government can compel the production
of needed goods and services that might otherwise not be provided in a free market.

I would think it doesn't matter if one has a command economy government or
a capitalist economy government as far as the printing of money is concerned.
Either could flood the economy with money causing inflation.

At first I thought having a Gold Standard, to limit the printing of money,
might be a good idea. Now I am not so sure. I suspect the financial industry
has a way to inflate the money supply even if the government can't flood the
economy with money.

Massive quantities of gold from the new world came to Spain. Spain became very rich compared to other European powers, but golds value also sank because it wasn't as rare (both in Europe and especially in Spain). The abundance of gold within Spain meant higher costs there than where gold was rarer. Thus Spain didn't experience the early phase of industrialization like England, Holland, and France. For the Spanish, it was cheaper to import. Thus Spain became an economic backwater until the late 20th century.

http://www.straightdope.com/columns/read/611/what-happened-to-all-the-gold-spain-got-from-the-new-world

However, what are we talking about when savings interest is less than a third of one

percent . . . while interest on credit card debt can be OVER 26%?


That's financial manipulation which is beyond inflation -- and it can only happen when

our Congress has been corrupted -- entirely!


What are we talking about when elites hugely profit from wars which bankrupt our Treasury?

Is that inflation for them and deflation for us? Or is it simply more manipulation of

the wealth of our nation -- ? Every $1 anyone had pre-Bush is now worth 50 cents, more or

less. Are we really going to call that inflation -- or are we going to call it theft --

criminal corruption of government?


What are we talking about when banks sit back every day and we run around using their credit

cards -- for which they charge BOTH the buyer and the seller -- earning fees for them?

The businesses are often barred from offering lower prices for cash -- and they are charged

exhorbitant fees which are certainly added to the cost of the product or service.

Is that inflation -- ? Or is it manipulation of the market being permitted by Congress because

they, too, are also on the corporate/elite dole?



Let's see ... what about the heavy penalties for poor and the middle class in their having to

pay huge increases in Social Security FICA rates allegedly to cover the one day coming "baby

boomber retirements" -- ?? Tha tburden fell strictly on the shoulders of the poor and middle

class since there was no increase in the FICA earnings cap! Was that inflation for the poor

and middle class -- or was it something else?

Meanwhile, the alleged reasons for the FICA increases were more truthfully to create a bigger

SLUSH FUND for Poppy Bush!


What about Social Security COLA's -- ? When these adjustments for inflation are made are the

payments inflationary in themselves as the RW would like us all to believe? And what about when

we have huge increases in inflation/losses to the value of the dollar and COLA's aren't paid?

Is that theft and manipulation?



And what about the gimmick used to destroy our Post Office Service? They've been forced to pay

for retirements over the next 75 years in just 10 years! And, meanshile 100,000 or more of those

employees have been laid off and none of that money has been returned to the Post Office!

Not unlike what happened with Social Security, right?

We could lose our Post Office because of this gimmick to destroy the Post Office --

Was what happened simply inflationary or was it theft of and destruction of our Post Office?




Think we're a long way from fully understanding even the subject of inflation ---


however ...

Capitalism is an evil -- nothing can save it -- it's over.

Inflation and deflation are both a result of uneven growth in the money supply and productive output.

This couldn't have happened unless they worked together to undermine govenrment for the

benefit of elites/corporations -- in fact, in many cases, our CONGRESS are the elites/

corporations -- !!!