Governments forbid counterfeiting, as they forbid force, yet they practice both. Legal counterfeit blends with the genuine money supply and is indistinguishable from it. It is, therefore, more insidious and, through sheer volume, vastly more destructive of the power of the monetary unit than is illegal counterfeit. It inevitably manifests itself in higher prices of goods and services.
The public is bewildered by the higher prices, and it requires but slight propaganda by the author of the inflation, the Government, to deflect criticism onto private business which, in the end, is always obliged to bring the bad news of rising prices to the people. The public does not realize that it is, in effect, indirectly paying taxes over the merchant's counter instead of paying them directly to the tax collector.
The Government finds this a ready way to increase taxation without being detected.
Flight from Inflation
The Monetary Alternative
by E.C. Riegel
An unelected bunch of technocrats, with their inflationist monetary policy, are levying a tax on us all. We are being systematically robbed by a "Central Committee", communist dictatorship style.
Talk is cheap, of course, and I wouldn't flatter myself that the criticisms I post on this blog causes the slightest bit of consternation among the ruling elites. Or for that matter, what is posted on much more widely read blogs than mine.
However, better late than never, parts of the fourth estate are growing ever more wary of peddling the Bank Of England's excuses about its woeful overshoot of the 2% CPI target and articles questioning The Bank's commitment to the target are becoming more frequent. Now even the Prime Minister has expressed his concerns. ("PM Actually Dares To Mention The Bank Of England Are A Pile Of Shit Shock!")
The game is up. Hey, guess what, it turns out that a massive government deficit that is monetised by the central bank is inflationary! Economics 101 anyone?
What really pisses me off is these Oxbridge pricks on six figure salaries were certainly quick enough to take the credit for hitting the inflation target during the easy years prior to the credit crunch, oh yes.
But when they continuously get it badly wrong when the going gets tough, then it's due to external factors outside their control! So it's not their fault. Wankers.
Maybe these cunts should read up a bit more on the Wiemar Republic and a bit less on the Great Depression, eh?
Expect some more "surprisingly high" inflation figures this year and I believe the CPI will hit 5% and more. Given that I (unlike the members of the Bank Of England Monetary Policy Committee) have been on a pay freeze for a number of years, I'd love to be proven wrong. But don't hold your breath folks.