Money & Markets: Inflation Will Dominate The Next Five Years

Article by Bill Bonner in Money & Markets

We’ve seen that all forms of “stimulus” are mutant varieties of fraud. Whether we’re talking about unfunded tax cuts, bigger deficits, giveaway checks, quantitative easing (QE), zero interest-rate policy (ZIRP) or lower interest rates — they all work the same way.

That is, they all lie. They tell us that there is more demand (money) around than there really is. And they “work” by misleading people into doing things they shouldn’t do. Consumers overspend. Businesses overproduce. And investors buy stocks that are overpriced.

Depending on how it is delivered, this inflation of the money supply causes over- and adverse reactions that can easily be mistaken for real growth. More consumer spending. More business expansion. Higher stock prices.

But it is all a lie. And as the lying goes on, the economy gets more and more out of kilter … more and more dependent on inflation … And the feds need to tell bigger and bigger whoppers to keep it from collapsing.

The trouble with inflation, as we’ve pointed out before, is that it delivers its benefits like a package from Amazon — almost immediately.And by the time the bill shows up, the people who placed the order are no longer around to receive it. They’ve been replaced by new politicians, new voters and new consumers.

And what are they going to do? Stump up the money with grace and good humor? Or try to find some new way to avoid the pain?

Looking ahead, the next five years are likely to be dominated by new and outrageous ways of inflating.Student loan forgiveness … Medicare for everyone … infrastructure … lower interest rates … new currencies … more debt …

To read this fascenating article in Money & Markets in its entirety, click here.