Home > Uncategorized > The Real Reason for the Uprisings

The Real Reason for the Uprisings

“And what exactly is causing our economic problems? In short: inflation. Both the creation of new money unbacked by productive activity — literally, conjured up from nothing at the whim of a central banker — and the artificially low cost of borrowing to expand the amount of debt…again, thanks to central bankers buying government debt with the money they create in order to shove interest rates down.

Inflation erodes the value of savings. It causes middle-class wages to rise more slowly than prices over time. The well connected — mainly, commercial banks — get the money first and benefit, while their spending of the new money causes prices to rise. Everyone else has to beg and hope for cost-of-living increases to their wages.

Inflation also causes asset bubbles that tend to benefit the rich while wiping out the middle class and poor, who pile into bubbles just in time to be left holding the bag.

In other words, inflation is causing the things that have people revolting in the streets. And central banks cause inflation. “

Via Whiskey adn Gunpowder

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