We are so accustomed to the word “inflation” that one might think that it is something natural and irresistible. But this is not the case.
Inflation is nothing more than an indicator of the presence of theft (usually from abroad) in the economy: more inflation means more theft in all sectors of the economy. Inflation is like thin matter — it is difficult to grasp and understand its source.
Let’s explain why this is exactly the case and does not contradict K. Marx’s Capital.
To understand the origins of inflation, we need to remember where paper money comes from and how it grows in volume and why this happens. Everything is clear with gold — its limited amount of metal and the theft of gold will immediately become obvious by its preserved mass. Therefore, those in power began to abandon gold money 200-300 years ago. The abandonment of the “golden” dollar in the 50s in the 20th century is only a formality that is used as a reason to explain inflation. It’s a lie again, it’s a little different.
Absolutely all sectors of the economy suffer from inflation, because The lack of a price and value base does not allow us to create the foundation for a strong economy. Today, the vast majority of countries in the world have a floating economy, dangling under the influence of someone’s interests outside of these countries – we are talking about large supranational private banking structures. Inflation allows you to rob poor countries and make them poorer, although, as we will show below, there is no reason for this.
If an enterprise operates normally, makes a profit every year and pays dividends, then its shares will always grow, because there is always a huge majority of those who want to receive a solid income. But due to inflation, the share price charts of enterprises do not look at all like they are constantly growing — on the contrary, their value often suddenly begins to fall, fluctuate and behave in an incomprehensible way for unknown reasons. What’s it? This is the result of inflation, which confuses all calculations and leads to unexpected losses caused by unexplained price increases where no one expected them. Inflation is like rust eating steel — it turns valuables into mountains of garbage.
Wave a shiny thing in front of a child and its price will rise sharply for him — he will really need it. Give him this thing and in about a day it will be lying on the floor — the child will realize its uselessness for him and its price will be what this thing is worth — 0 coins. This example is the foundation of how inflation works. It’s very simple.
So, what is the money supply and why can it grow? Can it decrease?
According to K. Marx’s Capital, the growth of the money supply is regulated by the growth of the commodity supply. This is true if there is no inflation. Inflation makes any increase in the money supply possible without an increase in the commodity supply. But how is this possible?
In the days when people paid with precious metals, everything was clear — money from metal could either be mined in a mine, or sold, or robbed in a war, and so on. The total mass of metal money grew only due to mining. In general, the volume of gold and silver on the planet remained constant and grew only with the extraction of new metal.
A line should be drawn here. The fact is that in our articles we have already shown that money is not necessary for the economy at all. This is just a temporary replacement for a product invented by someone, i.e. money is an unnecessary substance in principle and you can easily do without it if you understand everything well. It is especially necessary to understand the sources of inflation well.
We have already realized that inflation is possible only in those economies where there is paper, plastic or other easily produced money. It is the low cost of producing money in comparison with its face value that creates the prerequisites for inflation — or simply theft. For example, if every inhabitant of the planet could materialize gold, then monetary economies simply would not arise, because there would be no point in them for thieves — there is nothing to cheat on. Paper money is an artificial medium that serves only for the tasks of robbing the world’s population and supporting credit, the slave trade, drug trafficking and theft of minerals from the planet, or simply to deplete the planet’s resources and sell its population trinkets in exchange for gold. Do you recognize the handwriting of Christopher Columbus’s Spanish grandfather and what followed his trip to America?
But still, let’s understand the concept of money supply and the principles of its formation, because it is what any administration uses today as a kind of indicator of the success of the economy and, consequently, creating a positive image of the results of their work, although this is certainly not the case.
Let’s start with the concept of a country’s GDP, i.e. gross domestic product. Why does this value fluctuate both up and down? After all, if the economy is strong and there is no inflation, then GDP will always grow.
Let’s start with a hypothetical example, which will serve us to solve the mystery of inflation. Let’s say we have a settlement with a certain set of factories and farms necessary for this settlement. That is, everything is accountable, there is popular control in the form of a local community, everyone knows each other, thieves are immediately detected, the head is a strong businessman and lawyer, brought up on love for the Motherland and protection of his people from enemies internal and external. Let’s consider whether inflation can occur here.
Let this settlement be completely autonomous — all products are used for their own needs and for sale to the side. This example is quite real if there is the right type of leader who is vigilant over the safety of the treasury. This is a very important condition, because inflation is possible only when there is no control over the treasury, i.e. any theft is not stopped by anyone, there is simply no punishment for embezzlement and theft of national property.
A set of policies that the manager adheres to:
– There is an understanding that the purchase of something from the outside creates the prerequisites for inflation, therefore, to the maximum, everything should be its own, the purchase from the outside is not welcome and is not supported;
– Only those enterprises that use or create products internal to the settlement are supported and created;
– Maximum self-management for each private house in the settlement removes a lot of unnecessary work from the administration, there is time to control cash flows and look for loopholes for money leakage outside the settlement;
– All waste must be disposed of by enterprises and private farms themselves, so there is no garbage in such a settlement.;
– Main enterprises: a foundry, a blacksmith shop, a locksmith shop, a mechanical assembly shop, a workshop for the production of steam-powered means of transportation, a common fleet of agricultural machinery used for both general and private needs. The repair of equipment is centralized, carried out by the administration. There are no common poultry farms or farms, everything is private, which creates a strong agricultural unit in the settlement.
-The use of money is minimized, often it is not needed at all. The money is mainly used for settlements with external suppliers, of which there are few. Efforts are being made to completely replace the purchased products with products of our own production. This is the main task of the administration — not to spend anything, to ensure only the influx of money into the settlement. The money is used for scientific and technical research and laboratories engaged in the production of know-how in the field of energy, transport, autonomous residential buildings.
– The settlement’s products are in high demand all over the world, business is going well, the treasury doubles every six months.
– Everything that is produced before being put into production is thoroughly tested for reliability and the possibility of recycling;
Maximum support for private businesses that produce goods and services from local raw materials for domestic consumption and for sale to the outside;
◦ vehicles are used with manpower, mechanical, and steam. Other types of heat engines are not used, as they require outside purchase for their maintenance and the overhead costs for such transport are very high. Electricity is obtained everywhere using our own mini-CHP plants. Each facility is completely autonomous, there are no common power grids, and there are no structures serving the grid.
◦ All machines are of our own production, powered by steam, electricity, mechanics or manpower.
All construction is carried out from local materials using unique technologies of local craftsmen.
All houses are strictly single-storey, lightweight structures, quick-assembly, without purchased fasteners, which excludes any centralized maintenance.
The education system is local, tailored to local needs, mainly engineering education. There is a high proportion of the formation of inventive skills among the population, to constantly combat the costs of production and home management.
◦ There are no fire brigades, because everything is entrusted to the local government.
– There are no police structures because everyone knows each other, and outsiders are immediately identified and removed from the boundaries of the settlement in case of violation of the social rules of the settlement.
– All necessary food production facilities are available on the territory of the settlement.
– A healthy lifestyle is practiced, so there are no medical structures, as well as pharmacies. The best global health care practices are used.
– Steam mini-thermal power plants installed at each building are used to generate electricity.;
– The whole population values the fact that they live here, all their relatives live here. No one wants to go anywhere, because everyone has a lot of interesting tasks that need to be solved every day. There are no unemployed or sick people.
– Any electronics are missing. Simpler technologies are used for communication — live mail by courier, express letters on birch bark or leather, instead of TV — public gatherings at the office, instead of TV shows — meetings in clubs on the topics of local master inventors, transfer of experience in mastering new methods of combating garbage and improving the quality of life. There is no need for world news — there is a lot of local news that is interesting to all residents. If there is no electronics, there is no industrial espionage, telephone scams, neural networks and other bad things that exist in cities.
– Paper and packaging are not used at all. Crates and pottery are used for some goods.
– There are no housing and communal services, because there is no need for them – everything is self—managed.
– Instead of refrigerators , cellars are widely used;
– Instead of washing machines, we use our own washing machines.
– Each farm is allocated 2-3 hectares of land to provide the family with food. There is private animal husbandry and poultry farming for which the local pond, river, fields and meadows are used. There are a large number of public and private fruit-bearing gardens, groves, parks, and forests.
Despite the lack of many modern amenities, the life of a local resident can be called comfortable and safe, everyone creates their own comfort. There are no power lines, towers, or cellular amplifiers on the streets. The lamplight is powered independently from a mini-CHP. The lamps are used by our own design.
– All residents are united by common goals and objectives that are interesting to everyone, without exception — the further eco-development of their settlement and the sale of the acquired know-how and products to the outside to popularize the lifestyle of the future.
– There are no harmful industries because This is an eco-settlement.
– The main income item of the settlement is the production of mini-thermal power plants powered by gas and steam, filters and smoke traps for thermal power plants, the supply of sets of single-storey frame eco-houses and equipment for them, kits for the construction of stone furnaces for heating houses, the sale of eco-products from private land, honey, livestock products.
– Scrap metal necessary for the production of mini-CHP plants is purchased from cities at low prices. A small amount of tools is also purchased, which is not enough for production. Taking into account the development of production, fewer and fewer tools are purchased every year, as there are more and more new ways to exclude it from production.
Already in this description, you can see where leaks and holes for inflation occur in modern cities and countries — almost everywhere, at every point, because there is no protection and control over leaks.
The basis for inflation is precisely the money supply. If there is no money, there is no inflation.
Holes in the treasury for leaks and the appearance of inflation are the weak control of the administration over the flow of funds. Buying goods from the outside is a direct source of destruction to your economy, which is like a ticking time bomb. It is more correct to study the population’s need for new goods from the outside and immediately create their own production, rather than buying everything without control.
The main reason for inflation is the lack of work with the population and garbage in people’s heads: everything is bought indiscriminately, as long as it is foreign. This reflex was formed during the time of terrible prohibitions on everything — but now everything is possible, so they can’t stop. The result is the transformation of money into garbage and the enrichment of foreigners who make super profits by selling cheap products at triple the price. Don’t be like the American Indians, who sold gold and their gods for beads and cheap things brought by the Spaniards — as a result, they sold themselves and their children into slavery, all strictly according to the scriptures of those who invented them.
The flow of money abroad must be compensated, otherwise it will be seen how the treasury is decreasing every year. Therefore, the administration is stamping new banknotes to somehow show and stretch the data on GDP growth, although this is a forgery and deception. As a result, inflation is caused by an uncontrolled flow of money into other people’s pockets, and those who contribute to this form of theft are trying to compensate for the situation by injecting new money into other people’s pockets. they carry water in a sieve. The most amazing thing is that no one understands that all the newly printed money goes to the producer of the foreign mass of goods. They are loaded into wagons and voluntarily given to strangers, who immediately begin to buy up the true values on your territory or simply conquer your land. If there is no growth in the native commodity mass, then to prevent leaks to outsiders, it is strictly forbidden to print money, because this already creates a gap in the security of your territory where you live (think of the American Indians). This is the essence of the global (killing those who let strangers into their territory) economy. If the money is not backed by the commodity mass or gold, then its value begins to be lost — inflation begins. Those who create it are outside of your system. They fill your country with cheap beads, but they take away what really costs money — gold and natural resources. They perfectly understand and know how much money has gone and how much will be printed, which allows them to further raise the price, unwinding the flywheel of inflation more and more and playing with a gilded pacifier in front of the baby until the trap closes — a crisis is coming. A crisis is a necessary stage of sobering up and reassessing the value of what is being purchased. The period of total savings and reduction of expenses for the most necessary things begins. In fact, nothing has changed, because inflation is just a mirage — there simply cannot be such high prices, but in pursuit of a carrot, the victim does not notice the trick and is left with nothing.
Who earns from inflation? Those who realized that paper money is worthless in the modern world, but is a convenient tool for legalized theft from other countries. That’s why there are so many foreign enterprises around — the administration has launched a goat into the garden, which is eating your cabbage at great speed. They immediately invest their money in things that can always be sold and are always in demand — real estate, land, production, precious metals, shares of successful enterprises, art objects, and they sell you their products at triple the price, which will depreciate to their real value in 5-10 years, and then their trace is gone. — it’s just like at the train station in the 90s. They are waging wars to take away what the “American Indians” have, from weak countries.
Keeping money with you is a bad habit — it can instantly become cheaper for completely unpredictable reasons that you will not calculate in any way, because You don’t control the money.
The credit policy in your region is a direct mouthpiece of those who are at the helm and looking for Indians. By taking money on credit, you not only lose on inflation, but also pay a loan interest! You are putting on the yoke of an American Indian yourself. Never borrow money unless you have a clear plan for how you will repay it in six months or earlier. Then the banks will blacklist you, because they are not interested here — they will not earn anything with you. It is for smart people like you that they put up a barrier in the form of some kind of insurance that came from nowhere — an instant profit, after which the bank is no longer interested in you, but it is protected from inflation. Learn to count money, not spend it.
With an inflation (refinancing rate) of 16% over 25 years, money is completely (100 times) devalued, which will inevitably create a reason for crisis and impoverishment of entire countries. At a rate of 20%, the money will depreciate (100 times) in 19 years. Your task is not to participate in this process.
How to protect yourself from inflation?
1. Exclude the purchase of goods that cannot then be sold at the same price. Private ad sites are a good indicator. What costs nothing usually gets cheaper very quickly — these are mass-produced cars, electronics, household appliances, all newfangled things, mass-produced furniture. What costs something, on the contrary, is becoming more expensive all the time – the services of master builders and construction—related activities, materials, real estate, precious metals, art objects. Just study the ads and you will see what is worth buying and what is not.
2. Never store large amounts of money in a bank or just at home — they are devoured by inflation, they can simply be arrested or stolen. Buy something that is worth something according to clause 1. If you need to completely secure your money, then buy precious metals in bullion in trusted places. Unlike real estate, they can be easily moved whenever and wherever you need, they are accepted in any country.
3. It is better to invest money in knowledge — it cannot be stolen, and the work of craftsmen is becoming more expensive every year. Learn high-demand, expensive crafts (usually where a lot of money revolves, for example, construction and real estate, cars, smartphones, programmers) and earn from it.
4. Sell everything that gets cheaper quickly and get rid of any junk.
5. Buy only the essentials. Learn to do without the charms of the “new” world. By doing this, you will bring down the arrogance of the manufacturers of all sorts of junk.
6. Replace all purchased services with something you can do yourself: instead of buying hot water from the city, install a cheap water heater. Instead of powerful electrical appliances, install less powerful ones or discard them altogether. Use public transport because driving it is hundreds of times cheaper than buying your own car. As a last resort, buy a bike at a bargain price according to an ad and it will last you a couple of decades.
6. Do not use smartphones if you have a personal computer — install the smartphone emulator for free and forget about software updates.
7. When filling an apartment with things, remember how much 1 square meter costs. Mmm, and think about whether it’s expensive to store all this junk in such an expensive property.
8. Learn how to get what you need for free or at a bargain price — this will protect you from unnecessary expenses. There are a lot of American Indians around — offer them beads and take the gold.
9. Never watch TV shows — they are all aimed at shaping your image of an Indian consumer. Throw the TV out the window and you will immediately feel that you have begun to understand what is happening around you much better and feel much smarter than others. Those who manage money do not watch TV, but order the production of programs for it.
10. Remember that if you had deposited 1 coin in the bank at 15% per annum for 100 years, you would have received 1,000,000 coins in 100 years. That’s how banks get rich. But the loan interest is much higher than 15%. Do you get the gist? Do the same. Make deposits for a maximum period of time at a huge percentage — this will protect you from inflation.
The above simple rules will have a significant effect in 2-3 years. Your income will increase dramatically, and your expenses will become very small. You will feel much more confident, you will learn to see the world not on TV.
The world around you will begin to change and adapt to you, because You know the secret of inflation and how to get rid of it.