This chart explains everything
If you’re wondering why life is so expensive, this chart is the answer.
The money supply grew faster than the economy.
Some of it shows up in consumer prices.
Most of it shows up in asset prices — houses, stocks, land — because that’s where people run when their money is losing value.
Which is why working people who don’t own assets get crushed, even when the economy grows.
We live in a world of money-printers vs non money-printers.
Asset-owners vs non asset-owners.
This is what monetary inflation does. It divides people.
And the saddest part...
The dollar system REQUIRES inflation, because there is more debt than existing money.
Debt is a promise of future money. But that money doesn’t exist yet.
So, in order to pay off the debt, the system needs to create new money.
If $4 million in debt is coming due, but there’s only $2 million of money, you have two options:
Default on the debt and go bankrupt
Print new money to cover the debt
Total debt in the dollar system is over $107 trillion.
Total money supply is $22.7 trillion.
If there is no inflation, the system will default on its debt and collapse.
Hence, inflation. Over and over and over and over and over.
Welcome to fiat.
The root cause of all of this is humanity using a system where money *can* be inflated.
Debt can get to $107 trillion because there is an unlimited supply of money able to be issued. And there’s an unlimited supply of money serving as a backstop for it. They can always pay off the debt.
Issue as much debt as you want, you have a money printer.
Debt.
Inflation.
Prices higher.
Assets higher.
Average man poorer.
The solution is to stop using money that can be inflated.
The money supply can’t outrun the economy if the money supply can’t outrun the economy.
Satoshi created Bitcoin to end inflation.
