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The Great Reflation Is Underway
Sep 27th, 2017 at 10:17pm
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Money, debt, and finance can get as complicated as you want.  But they can also be stunningly simple when looked at the right way.  And I like simple.

Basically, you have real wealth and financial wealth.  Real wealth is made up of goods, services, infrastructure, knowledge, etc.  Financial wealth is the various tickets that are claims on real wealth: money, bonds, stocks, derivatives, etc.

Over the modern centuries, top politicians and bankers have tended to issue too much financial wealth for the real wealth available.  To prevent a collapse of savers' confidence in the financial wealth, power and deception are used to prop up its value.  One of the favorites is somehow to keep the price of goods and services low by concentrating financial wealth.  As long as not all the dollars chase goods at the same time, all the saved dollars can appear to be still valuable.

At this point, the elites can play all kinds of tricks to keep this game afloat, for a while, but ultimately, the only way to true stability is to let prices rise.  When prices go up, the values of the financial wealth and real wealth will be more equal.  Real faith will return to the financial wealth, and the elites can go back to issuing more of it without worry.

The only problem with inflation, though, is that the public will lose faith in state-issued money.  This is the reason why the elites have tried not to resort to inflation until the last possible minute.  Helicopter money hasn't come, yet.

Enter cryptocurrencies.  If the elites can get the public to believe in crypto as a decentralized, limited-quantity money, then they can feel free to create inflation by issuing more money and debt.  The depreciation of state-issued money against non-state-issued money as a result of the inflation will be described by central banks and the media as free-market demand for a new type of money.  And the state-issued money will be stable at the new 'exchange rate' since the elites are likely buying up many bitcoins now.

This being a perfect play for the elites, plus the many observations in support of this story in recent months and years, we really have to consider the good chance that the Great Reflation is underway as we speak.
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