Inflation Steals The Value We Create During Our Limited Time On This Earth

InsightSpencerFernando

It’s a theft of the most profound and manipulative kind.

Each of us has a limited time on this Earth, and we spend much of that time seeking to generate value to improve our lives and the lives of our loved ones.

We are usually compensated for the value of our time with money, which we use to store the value of our labour through time.

It is a truly amazing thing when we think about it, how we can store the value of our labour and then deploy that value at a time and in a way of our choosing.

Every single day, millions of Canadians seek to better their position in life, accruing value that they can use to move their lives forward and help their family have a more prosperous future.

In doing so, they are – whether consciously or unconsciously – depending upon the value of our government-controlled fiat currency.

Unfortunately, the dependability people are counting on isn’t there.

A system designed to manipulate

By it’s very nature, a system based upon government money is manipulative.

It is designed to make it easy for governments to rob us of our purchasing power, while making it difficult for people to realize what is taking place.

Are prices actually going up?

A way to grasp this manipulation is to realize that when we talk about ‘prices going up,’ what’s really happening in most cases is that the value of our money is going down.

Many ‘progressive’ politicians are either unaware of this, or purposely ignore it so they can push their statist agenda.

For example, with ‘prices’ surging, US Senator Elizabeth Warren tried to blame ‘price-gouging.’

Warren also blamed surging Turkey prices on ‘big poultry’ ‘abusing their market power.’

“Americans are paying record high prices for their Thanksgiving turkey while big poultry companies are paying billions in dividends, giving CEOs raises & earning huge profits. These companies are abusing their market power. I’m asking DOJ to investigate.”

Senator Warren expects you to believe that the price of poultry is surging because the companies are greedy.

That begs the following questions:

“Did they just become greedy this year?”

“Were they choosing not to be greedy last year?”

“Why would they rise prices to a level that could cause fewer people to buy their products?”

Warren is ignoring the fact that companies are always seeking that ‘perfect’ price point, where they maximize their profits. Just as charging 1 cent for a Turkey would destroy the Turkey industry, so would charging $1,000. Charge too little, and you run out of money. Charge too much, and you lose customers and then run out of money. So, for Warren to think that companies are just randomly raising prices due to ‘greed’ is total foolishness.

Notably, Warren ignores the elephant in the room, the fact that roughly 40% of all US Dollars in existence were ‘printed’ in 2020.

A similar situation took place in Canada, with an immense increase in the money supply.

And then, lo and behold, everything is getting more expensive?

Why wouldn’t Warren – or progressive politicians in Canada – want to talk about that?

Because it would call into question their entire worldview.

Money printer fixes everything!

For statist politicians, their solution to every problem is to spend more money. And, since they abhor balanced budgets, they must borrow.

And, since central banks have shifted in a decidedly ‘activist’ direction, those politicians are able to count on a huge increase in the money supply to fund their big government vision.

Now, if all that spending was somehow generating gargantuan amounts of economic growth, it would be sustainable.

In some sort of hypothetical situation in which a new technology was massively increasing productivity, and the government was borrowing to speed adoption of that technology, then an increase in the money supply could represent an increase in real economic growth. Of course, in a nation with Sound Money such a technological surge would bring prices down, giving people a much more honest and realistic view of what was occurring.

But of course, we aren’t seeing massive economic growth.

In fact, the same governments that are so intent on massively increasingly the money supply are also trying to restrict economic growth ‘to save the planet.’

As you can imagine, this is a horrendous combination:

Weakening the economy while flooding it with cheap money.

And that brings us to the reality discussed at the beginning of this article.

Our central banks and political leaders are robbing Canadians of the value of our labour, which is tantamount to robbing people of the value they generate in their lives.

You can break it down hour by hour.

Each hour we work we generate a certain amount of value.

We store that value largely in the form of money.

Politicians and central bankers are debasing our money, thus stealing a portion of the value we generate.

Thus, each hour of our labour becomes less valuable as time goes on.

To put it in the starkest terms, we are having the value of our lives stolen from us, by those who claim to be acting “in our best interests.”

Sound Money is the only way to protect the value we generate

So long as our money is controlled by the state and completely untethered from anything tangible, the profound theft being perpetrated upon Canadians will continue.

Canadians must begin to realize how deeply damaging inflation is not only to the broader economy, but to each of our own lives and the lives of our families.

How can we stand for a situation in which the government is allowed to rob us in such a brazen manner?

In many ways, Sound Money is the core issue of our time, because everything else flows from it. By having such control over our money, the government is able to continually expand it’s size and power, and drain wealth and power away from us.

Only by returning to Sound Money can we protect the value we generate and turn the tide against the rise of statism.

Spencer Fernando

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