The European Central Bank tweets about inflation as if it were a weather event. As if inflation is something that just "happens." As if no one were responsible. As if it were a law of nature.
https://x.com/ecb/status/2022612118084927871?s=46&t=tg_JVBeOXdbwqFxXx59yOQ
J’accuse, Madame Christine Lagarde.
Inflation is not a cosmic coincidence. Inflation is a political choice.
The representatives of the Austrian School of Economics explained this fully over 100 years ago.
Carl Menger showed that money emerges from the market, not from government decree.
Ludwig von Mises proved that any expansion of the money supply inevitably leads to an unequal distribution of purchasing power loss.
Friedrich August von Hayek explained that central monetary planning inevitably leads to malinvestments and crises.
Murray Rothbard made it unmistakably clear: Inflation is a hidden tax.
The mechanism is simple:
1. Central banks create new money out of thin air.
2. This new money first reaches states, banks, and systemically favored actors (The Cantillon Effect).
3. They benefit from prices that are still low.
4. Only later does the general price level rise.
5. The general public pays the bill through a loss of purchasing power.
This is not a bug in the system. This is the system.
Inflation is not an increase in prices. Inflation is the expansion of the money supply. Price increases are merely the consequence.
When the ECB acts today as if inflation were an external problem, it is nothing less than institutional denial of reality. Or deliberate deception.
Central banks do not exist to keep money stable. They exist to enable government financing that would be politically impossible through direct taxation.
Fiat money allows for permanent deficits. Permanent deficits require permanent money creation. Permanent money creation leads to permanent loss of purchasing power.
This is the structural truth of the system.
#Inflation #ECB #MonetaryPolicy #AustrianEconomics #Bitcoin #Fiat #21Right
https://x.com/ecb/status/2022612118084927871?s=46&t=tg_JVBeOXdbwqFxXx59yOQ
J’accuse, Madame Christine Lagarde.
Inflation is not a cosmic coincidence. Inflation is a political choice.
The representatives of the Austrian School of Economics explained this fully over 100 years ago.
Carl Menger showed that money emerges from the market, not from government decree.
Ludwig von Mises proved that any expansion of the money supply inevitably leads to an unequal distribution of purchasing power loss.
Friedrich August von Hayek explained that central monetary planning inevitably leads to malinvestments and crises.
Murray Rothbard made it unmistakably clear: Inflation is a hidden tax.
The mechanism is simple:
1. Central banks create new money out of thin air.
2. This new money first reaches states, banks, and systemically favored actors (The Cantillon Effect).
3. They benefit from prices that are still low.
4. Only later does the general price level rise.
5. The general public pays the bill through a loss of purchasing power.
This is not a bug in the system. This is the system.
Inflation is not an increase in prices. Inflation is the expansion of the money supply. Price increases are merely the consequence.
When the ECB acts today as if inflation were an external problem, it is nothing less than institutional denial of reality. Or deliberate deception.
Central banks do not exist to keep money stable. They exist to enable government financing that would be politically impossible through direct taxation.
Fiat money allows for permanent deficits. Permanent deficits require permanent money creation. Permanent money creation leads to permanent loss of purchasing power.
This is the structural truth of the system.
#Inflation #ECB #MonetaryPolicy #AustrianEconomics #Bitcoin #Fiat #21Right
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