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

About these ads
Categories: Uncategorized
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 883 other followers

%d bloggers like this: