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A thought on hyperinflation

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I've been reading a lot about hyperinflation, and how it makes life more difficult for a lot of people, because it makes prices go up, and it makes cash lose its value, which punishes savers, and so forth.

But there is one perspective I haven't read about lately, and it just occurred to me: hyperinflation isn't bad for everyone. It's not bad for you if you're the one printing the money. It's not bad if you're friends with the ones printing the money, or friends of those friends, or so forth.

Many of the people running the banks, the Fed, and large parts of the government, graduated from the same Ivy League universities (there was an article to that effect a few years ago, maybe around the time of the 2008 financial crisis), and they're spreading the loot among themselves. They also have a decidedly Leftist slant.

This is not really new. What's new is the scale of it. The money supply in 2020 increased by 30%, or so I've read.

The Left is basically parasitic and can't survive without subsidies from somewhere. They used to try to rely on taxes for that, or their monopoly on unions, but now they are largely using the printing press, instead. Now taxation is not a means of raising revenue for them, it's just a means of control. Their main way of getting what they want is the printing press, either through government spending or through the banks.

The reason they have all the power right now is because they have all the money. They're the ones printing it. They're distributing it among themselves and using it to buy up whatever they want. If you're not a Leftist, you don't get any free money. You have to work for it, or sell something, and then you're a sucker, because in order for you to get money, you have to give up something else in exchange. They don't.

Even if your productivity amounted to millions of dollars per day, and even if you moved that money out of cash as quickly as possible and bought gold or land or something, there would still be people who can make at least as much money as you do, and they can buy all the same stuff as you, but they don't actually have to do anything, because they have a fountain of free freshly-printed money, and you don't.

This is happening across international borders, too. There are gangs of Leftists using the printing press in many "free" countries, careful to proceed in lockstep so that the exchange rates don't move too much.

I also think they are using the money to try to control the culture, such as by buying up media companies and so forth. This affects both news and entertainment. They can play the king-maker and choose which things will succeed by deciding which to promote and which to bury, which to produce and which not to produce. In a free economy, a king-maker would still have to listen to audiences in order to avoid going broke, and so would also have to be an innovator. But people who are getting free money from the printing press don't have to worry about going broke. They don't have to work for their money, whereas their competitors do. This gives them an advantage. They can claim that they're "succeeding in the marketplace," and it will look like they actually are succeeding in the marketplace. This influences others, who may be unaware that the game is rigged.

The Leftists don't actually have to twist any arms in this. Nobody can tell the good money from the bad. All the Leftists have to do is buy whatever they want, and it's theirs.

The more currency they print, the larger their advantage over everyone else. Lately they have been printing more money than ever before, and that explains their outsized influence right now. However, even though they have lots of money and can buy whatever they want, they aren't producing anything much of value (because they don't need to), and since the people who are producing things have to work harder and harder, eventually "supply problems" happen, and that drives prices up, and so the Leftists have to print even more money. That's about where we are now.

There will be a crash eventually -- but even after the currencies collapse, the Leftists will still own whatever they managed to buy earlier with the money they printed, whether it be land, businesses, or whatever -- and that will give them an enormous advantage in whatever happens after the collapse.

That worries me.

Edited by necrovore
Moved "the money supply increased by..."
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23 minutes ago, necrovore said:

But there is one perspective I haven't read about lately, and it just occurred to me: hyperinflation isn't bad for everyone. It's not bad for you if you're the one printing the money. It's not bad if you're friends with the ones printing the money, or friends of those friends, or so forth.

It's unlikely that governmental control of the money supply will be relinquished.

Governmental controls are good for cronies. It's also good for the administrators that work in Government.

Until the money runs out and the side show has to stop.

As far as the crashing goes, another currency would become the currency of choice. It could be sudden.

Ultimately this country could break up similar to other empires that came and went. But as long as there is mostly law and order and a slow incremental downfall, it can be repaired if the institution of free speech is respected. Sweden is the best example, they became heavily socialist twenty years ago, and then they voted against it because they saw how bad it got. They spoke out against it freely.

So as long as there is no violent civil war, or an authoritarian system preventing free speech, the country can in fact correct it's bad behavior.

Edited by Easy Truth
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