by Stuart Englert, Stuart Englert’s Substack:
Constitutional Money Offers a Solution to Unsound Currency
Consumers and workers across the United States and globe regularly complain about the rising cost of living, and wages that don’t—and haven’t—keep pace with inflation.
They blame billionaires for income inequality, corporations for price-gouging and politicians for refusing to increase the minimum wage. Some of their arguments and criticisms are valid.
TRUTH LIVES on at https://sgtreport.tv/
But what most people—minus the majority of precious metal stackers—don’t know or understand is that the primary and underlying cause of rising prices is perpetual expansion of the currency through excessive credit creation.
While supply and demand dynamics can and do contribute to higher costs of goods and services, they’re only a part of the equation in a financial and monetary system without a foundational and stabilizing anchor that limits credit and currency creation.
Nobel Prize-winning economist Milton Friedman simplified the obscure and perplexing reality. “Inflation is always and everywhere a monetary phenomenon,” he said during a 1963 lecture titled “Inflation: Causes and Consequences” in India.
In other words, prices are destined to rise whenever the issuance of credit and currency exceeds the availability and production of goods and services. Stated another way, inflation results when currency creation outpaces—and consumer demand chases—too few of the things that people desire and purchase.
While Friedman wasn’t a fan of the classical gold standard, he well understood the inflationary defects and destabilizing effects of government-controlled fiat currency when its creation exceeds real economic growth.
Read More @ stuartenglert.substack.com
