Most Conservatives like to throw around the words “The government PRINTED 600 Billion dollars, or $1 trillion dollars, and this caused inflation” However, in order to keep the attention span of the listen, these politicians often don’t give details of how printing money causes inflation.
Governments having the ability to PRINT money is a sign that they are on a rule by the FIAT monetary system. Don’t allow anyone to fool you; even GOLD standards DISSOLVE into Fiat monetary systems.
Once the money is allowed to be PAPERED or digitized, the people in charge of the RULES of money are then allow to turn the gold standard into a fiat monetary system.
This is why it’s important for you to understand the meaning of Fiscal policy.
In economics and political science, fiscal policy is the use of government revenue collection and expenditure to influence a country’s economy.
Once you comprehend this, you get a better CONCEPTION of how STUPID your dictator or ELECTED government officials are with money. The unfortunate reality is that, there are instances in which dictatorships perform better than democracies, and this occurs primarily, because I’d ague we’re in the EARLY stages of democracy, and I personally don’t think enough SECESSION movements have occurred in the world.
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When the government has control over the money supply, this actually means NOTHING; what means something is the LEDGER or the government’s BALANCE sheet, which lets you know how competent a government is with money and resources.
So if a government is running RECORD deficits repeatedly, it’s a sign that the government is INCOMPOTENT with CAPITAL. Communism and socialism are HORRIBLE systems when it comes to attracting value because socialism and communism offer NO long-term VALUE to society, as collectivism revolves around the same concepts that RELIGIOUS institutions operate under, which is that the CENTRAL POWERS know best, and so therefore, whenever the CENTRAL powers create LAWS that stifle capital, the central planners/similar to the PREISTS in a church are held BLAMELESS.
Consumer price inflation is actually economic DEFLATION, because the higher prices get, the fewer STUFF people can afford to buy. Now, many imagine that when prices get more expensive that the cure is for the government to PRINT or BORROW more money, but printing more money doesn’t change RULES and REGULATIONS that caused prices to go up in the first place.
So if you understand FISCAL policy, then you’d know that the GOVERNMENT when it prints or borrows money is actually redistributing the money it printed to GOVERNMENT friendly and preferred entities, who have managed to MONOPOLIZE entire segments of the economy, and these government preferred MONOPOLIZED entities are often HORRIBLY managed, because they DO NOT have any competition.
So this wealth redistribution by governments is actually a redistribution of RESOURCES, and capital is nothing more than a MEASURING tool. Then you have to remember that with SOCIALISTS and COMMUNISTS, they use their POLITICAL influence to BLAME the “greedy private sector” for their bad governance.
Obviously, people who don’t understand how things are will make assumptions based on what makes sense to them, but in this blog, we give you the truth and let you decide.