Why inflation is theft and what Central Bankers don't want you to understand.



Most people don't give any thought to what money really is or how the Central Banking system is effectively rigged against them. In this article I will explain why it's important to understand that the mechanics are literally robbing people of their future wealth and hopefully this will inspire you to take action and at least start to consider other alternatives means for wealth preservation and growth, in particular cryptocurrencies.


Although the 'experts' would have you believe that the inflation that is being felt around the world right now is transitory I would beg to differ. I'm sure you have started to feel the pinch in your pocket, whether that be at the petrol pump when you fill up your car, in the supermarket, or when you receive an electricity or gas bill. But the bottom line is inflation is actually theft.


Most people shouldn't feel bad for not understanding this as the idea of economic inflation sounds wonderful; you want your house to become more valuable, or you want your investment portfolio to appreciate. You effectively want things to go up in value. How they do that however is very important.


Inflation is a word that gets twisted as it has different meanings. Do you mean inflation of the money supply, or price inflation?


Inflation is specifically the arbitrary increases in the supply of fiat currency.


What's happening is that the actual unit of perception that we are using to value assets, i.e. the Dollar, is being diminished. The Dollar is a fiat currency. Fiat in simple terms means "because I said so" which in itself a veiled threat of force.


The Dollar was originally created to make gold more convenient, more portable and in essence more transactable. The problem is you end up trusting the custodian and over time this has become a most alluring source of power for governments, or for anyone, as it can command force. By being custodian they are able to control the source of economic power.


The custodial system went from a full reserve currency, with each unit of currency redeemable for a unit of gold, to a fractional banking system where there was an excess of paper beyond what the gold reserves could justify, to a post 1971 fiat