How Inflation Destroys Civilization… and What You Can Do About It

Via International Man

by Nick Giambruno

Thanks to rampant inflation, socialism could soon become irreversibly entrenched in the US—just as it is in Argentina, Venezuela, and other countries.

Rapidly rising food, housing, medical, and tuition prices are squeezing Americans—many of whom do not understand the true cause of their falling living standards.

The explosion in the cost of living is a predictable consequence of money printing.

Since the outbreak of the Covid hysteria, the Federal Reserve has printed more money than it has for the entire existence of the US.

From the founding of the US, it took over 227 years to print its first $6 trillion. But in just a matter of months recently, the US government printed more than $6 trillion.

For further perspective, the daily economic output of all 331 million people in the US is about $58 billion. At the push of a button, the Fed was creating more dollars out of thin air than the economic output of the entire country.

In short, the Fed’s actions amounted to the biggest monetary explosion that has ever occurred in the US.

Initially, the Fed and its apologists in the media assured the American people its actions wouldn’t cause severe price increases. But unfortunately, it didn’t take long to prove that absurd assertion false.

As soon as rising prices became apparent, the mainstream media and Fed claimed that the inflation was only “transitory” and that there was nothing to be worried about. When the inflation turned out to obviously not be “transitory,” they then told us “inflation was actually a good thing.”

Of course, they were dead wrong, and they knew it—they were gaslighting.

The truth is that inflation is out of control, and nothing can stop it.

Even according to the government’s own crooked CPI statistics—which understates reality—inflation is hitting 40-year highs. That means the actual situation is much worse.

Even though the media won’t tell you, the Fed’s money printing is the primary reason why most people are feeling the economic pain of inflation today. They know it’s becoming harder and harder to maintain their lifestyle—but many don’t understand why.

That confusion opens the door for opportunistic politicians who promise supposed freebies to ease the pain of inflation. Many, unfortunately, succumb to this siren’s call.

Perverse as it is, the policies offered to people suffering from inflation create even more inflation. In other words, inflation has a way of perpetuating itself, much like a heroin addiction.

Here’s what happens.

The more inflation reduces living standards, and the more people push for misguided government policies like universal basic income, price controls, and a higher minimum wage… which creates a cycle of rising prices.

It’s only a matter of time before “fight for $15”—the rallying cry for a $15 minimum wage—becomes “fight for $20.” Then it’s “fight for $50,” “fight for $100,” and so forth.

People should really fight to end the Federal Reserve and politicized money. It’s the only way to end this insidious cycle that impoverishes everyone except the politically-connected insiders closest to the money printing. But, of course, that’s not going to happen.

Instead, the more likely outcome is that the US is headed straight into an inescapable downward spiral of a political-inflation cycle that follows a clear pattern.

1. In a fiat currency system, the government will inevitably print an ever-increasing amount of currency.

2. This makes prices and living costs rise faster than wages.

3. The average person feels the pain but doesn’t understand what’s happening.

4. More people support politicians who promise freebies to supposedly relieve the pain inflation causes.

5. In order to pay for the “freebies,” the government prints more currency.

6. This creates even more inflation, and the cycle repeats.

Most of America Depends on the Government

At this point, we have to ask ourselves whether the political situation in the US will improve. Unfortunately, the data points to a troubling but inevitable answer… “no.”

The reason is simple: a growing majority of US voters are receiving money from the government.

An estimated 47% or so of Americans already receive some form of government benefit. But I don’t think that accurately reflects the situation. At least, not when you consider all the government employees and those in the nominally private sector who feed off the warfare state. This includes defense and other government contractors who win huge, no-bid contracts.

People involved in the military-industrial complex live off government slops as much or more than those who collect food stamps and other traditional forms of welfare. Yet they aren’t counted in the statistics. Any honest account of who depends on the government needs to include them.

When you count everyone who lives off political dollars instead of free-market dollars, we’re already well north of 50% of the US population.

In other words, the US has already crossed the Rubicon. There’s no going back.

The growing majority of voters who collect net benefits from the government is a built-in constituency to perpetuate policies financed by ever-increasing inflation.

That’s why I think this trend is unstoppable. The notion that a significant number of people living off government largesse and political dollars will come around to a libertarian way of thinking is a pipe dream.

In short, there is simply no hope for positive change from the political system. That means one thing is certain: an ever-increasing amount of inflation to pay for all these government programs.

What You Can Do

For many decades, Argentina has infamously been trapped in a perpetual cycle of hyperinflation and socialism from which it cannot escape. And now, the US is entering that same inescapable cycle.