What are the factors that affect inflation?
Firs, let’s look at the overall determiner of inflation, which is the amount of eco-available money in society divided by the number of eco-available people.
For the purposes of this conversation I’ll suspend the use of the word eco-available and assume that I intend to say that.
To begin with, money, ultimately diffuses throughout society (not necessarily equally). It doesn’t sit in a pile in some rich guy’s safe.
And you don’t keep your’s in your mattress.
The wealthy guy puts it in stocks, bonds, gold, Bitcoin, what have you.
If he puts it in the bank, the bank, then puts it in these products.
Whether you buy a stock or a bond, you are ultimately transferring money from your bank to another bank.
Eventually, the money gets loaned out to individuals and small businesses who then use the money to buy homes, cars, or things that they need for their business.
Some of this money will go to employing people who will then use that money to buy personal products.
That money will ultimately end up in a vendor’s bank at which point the cycle will repeat itself.
With that stated, when you increase the amount of money in society, you ultimately cause inflation.
When you decrease the amount of money in society, you ultimately cause deflation.
Likewise, if you decrease the number of people in society, through death, war, sickness, or people, leaving the country, you cause inflation.
You cause inflation, because a lesser number of people have relatively more money to chase the same number of goods or less.
Less people might bring lower productivity and less things to purchase.
In contrast, if you increase the number of people in society, through immigration, super health, or excessive birth rate, you cause deflation.
You cause deflation because the greater number of people have less dollars relatively speaking to chase the same number of goods or more.
More people might bring higher productivity, and more things to purchase.
Once you understand, this, you will begin to understand why our government is permitting this massive immigration on our southern border.
You also understand why the leaders of the United Kingdom have permitted massive immigration across the English channel.
Our leaders, and their leaders, need a deflationary force to counteract the massive amount of inflation that they have caused through money printing over the past decades.
The chickens have come home to roost.
Does this make sense?
What this means is that you can expect this immigration to continue until inflation is brought under control.
Your leaders in the main stream media won’t tell you this because they want to cover the tracks for their “best and brightest” buddies who created this mess in the first place by printing money like a drunken sailor.
That is what is going on..
And so in our country and the UK and the US, which seem to be now more and more joined at the hip politically and economically, the media blathers on and on endlessly about the immigration problem while the leaders do nothing about it.
Do you see what this says about our leaders here and in the UK?
They would rather destroy their countries than be embarrassed by the truth: that they don’t have the right stuff to manage their respective countries.
Sincerely,
Archer Crosley
Copyright 2023 Archer Crosley All Rights Reserved
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