There is a simple way to understand inflation and deflation.
What causes inflation?
Less productive people, decreased immigration, unbridled confidence, lack of fear, increased printing of money, low interest rates
What causes deflation?
More productive people, increased immigration, lack of confidence, increased fear, decreased printing of money, increased interest rates
These are general rules.
Of course, you have to balance these factors against each other in determining whether we will have overall inflation and deflation.
The ratio used for determining inflation is eco-available money divided by evo-available people (and their stuff).
If you have a fixed money supply, and you tell everybody to go home and sit around in front of the television, you will get inflation.
If you have a fixed money supply, and you tell everyone to go out and work their ass off, you’ll get deflation.
If you create fear, people are less willing to part with their money. That in turn shrinks the eco-available money supply. You get deflation.
If you eliminate fear, people are more willing to part with their money. That in turn increases the eco-available money supply. You get inflation.
Obviously increasing the money supply is an inflationary move. Obviously decreasing the money supply is a deflationary move.
Interest rates affect the money supply. Increasing interest rates decreases the money supply. That is a deflationary move.
Decreasing interest rates. Increase the money supply. That is an inflationary move.
Once you understand all these factors, it makes sense why our government is doing what it’s doing.
Our government is worried about inflation. They’re worried about inflation because they created the inflation. They don’t want you to know that.
So they are trying to fix inflation by increasing interest rates, allowing immigrants to flood over the border, and increasing fear in society.
Now, of course, they have been doing the latter two for a long, long time. They are going to continue to do it. And they will do it not only because they want to deceive you, but because rampant immigration and fear helps them.
Rampant immigration keeps wages low, and it keeps you fearful. Fearful people are less likely to rebel. They are in a weakened state, or so the elites reason.
Some of these measures create compensatory forces which operate within the context of the original measure.
For example. Lack of fear and unbridled confidence (inflationary moves) causes an increases in productivity which is a deflationary move. In this case, the tail does not wag the dog. This should not mean that an increase in productivity completely corrects the initial inflationary measures.
The converse is true. Total fear, and total lack of confidence (deflationary measures) cause a decrease in productivity, which is an inflationary move. Again, in this case, the tail does not wag dog. This should not mean that a decrease in productivity corrects or over-corrects the initial deflationary measures.
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