Patience, thrift and hard work are all a part of the same package, and all serve in the natural process of capital formation and wealth accumulation. But inflation inverts this calculus. With high price inflation of the traditional variety (i.e., an inflation of high street prices, or CPI), tomorrow’s money is worth less. Thrift makes no sense. Only idiots save. Patience is punished too, the more rational action being to pursue instant gratification by spending money while you can. During the Weimar hyperinflation, Berlin was simultaneously gripped by a wave of hedonism in which night bars, cabarets and strip clubs expanded as rapidly as the money supply, while families with children were starving to death. Credit Inflation(such as in America now) compared to money inflation, is different in form but not in substance. Why save up for something when you can cheaply borrow the money and have it today? Both types of inflation reduce the rewards of patience and thrift. Both types of inflation consequently distort the process through which wealth is created. -- Dylan Grice This is how a godly Christian family in Missouri can hardly grow their wealth while godless fornicating financial wizards in the East Coast can casually pay $15 million for a piece of art(junk) in a cocktail party in order to impress blond harlots.
Posted on: Tue, 05 Nov 2013 09:25:00 +0000
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