The Real Causes of “Monetary Inflation”

Money itself is at best a teriary cause of “monetary inflation”. What does money have a mind that orders us to raise prices? Don’t be stupid. The real causes are enforced individual monetary scarcity and systemic monetary austerity which tempts commercial decision makers to raise their prices when they perceive more money coming into the system in order to hopefully garner additional business revenue.

So the real cause is monetary scarcity itself coupled with no policy infrastructure to eliminate the temptation to inflate by commercial agents. And the solution is policies intelligently providing monetary abundance while guaranteeing price and asset deflation with a Discount/Rebate monetary policy at the point of retail sale.

It’s about the monetary and financial paradigm, stupid!

And by the way hyperinflations are largely manufactured phenomena. They never happen until after disastrous wars and/or other disruptions to their productive capabilities and where the vanquished nation has onerous war reparations imposed on them; whereupon their pols and central banking authorities leverage up speculators to short their own currency making two trillion reich’s marks able to purchase a one way ride on the subway and then the vanquished nation says to the victorious nations: “Here are your two trillion run amoks, we’re even. 🙂

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