Inflation is the life blood of oligarchs like Trump and his sponsors because it drives up the values of their assets. This is literally the only reason why Trump was able to overcome, with Rothschild support bailing him out in the early 90s, all his personal errors. Inflation enriches and solidifies the monetary value of all asset classes which can be bought in dollars.
In theory, an "ideal" inflation (e.g. doubling all accounts overnight) would have no effect at all, except that the numerical sticker prices of things would all increase
pro rata. This shows that price-inflation, by itself, cannot actually change reality, it cannot enrich or even impoverish anyone.
However, real inflation is, of course, not "helicoptered" to all accounts,
pro rata. Even stimulus checks, which are supposed to act like helicopter money are not even close to idealized monetary-inflation.
Monetary inflation (central bank monetary expansion) is nothing more or less than legal counterfeiting. Anyone can understand how a counterfeiter benefits at the expense of all other holders of the counterfeited money. The difference between the central bank and a private counterfeiter is that the private counterfeiter
might pull off a few million dollars' worth of counterfeiting (ever) before getting caught and stopped by the cops. But the central bank counterfeits
trillions of dollars per year. This is the
ONLY difference between the private counterfeiter and the central bank:
SCALE.
The harm that the private counterfeiter does to all holders of the counterfeited money, the central bank does on an absolutely industrial scale, and not just once, but month after month, year after year, decade after decade, century after century.
As soon as the private counterfeiter is able to pass his first sheet of Benjamins, he is suddenly a very wealthy man. If he's smart, the first thing he will do is figure out a way to ensure his operation cannot be discovered by the police and put to a stop. He needs to make himself look respectable and he needs to surround himself with an aura of legitimate industry. He needs to acquire a lot of friends by throwing parties to make himself popular and to ensure that everyone has a very high opinion of him. Eventually, he needs to identify his other potential competitors who might get him put out of business by running amateur operations that could tip the cops off to how the whole charade works.
Unlike business cartels which are inherently unstable, the cartel of private counterfeiters will naturally be stable and tend to coalesce into a single entity that cannot be assailed by the public police by any means. When it is finally ready to ascend to its final form, it must receive the blessing of the legislature itself, and this is done through the usual tricks of bribery and corruption. Now that the cabal of counterfeiters has the cover of official law, they are able to go from merely printing a few million dollars here and working overtime to launder the money to conceal its true source, to counterfeiting money on an absolutely industrial scale. And of course, this is precisely what they will do, and this is precisely what the Federal Reserve has done since 1913.
The main goal of the Fed since 1913 is to be "Too Boring To Fail". The Fed are the adults among the adults. They are boring beyond boring. Created by an act of Congress, they are a public agency in the maximum virtue-signaling sense of "public"... it's practically an act of act of penance to head the Fed (that is, this is how we are to perceive the matter).
In terms of its economic effects, monetary inflation simply transfers wealth from the mass of the public into the hands of the kleptocrats in DC. The mechanism by which this happens can be summed up in this statement: "Monetary inflation transfers real wealth from the late users of new money to the early users of new money". This occurs by virtue of TWO effects. First, when the government spends the principal, it is spending money that dilutes the total money supply and siphons the wealth of all other holders of dollars in precisely the same way that a private counterfeiter's funny money rips everyone else off. Second, when the commercial banks receive that newly "spent" money it goes on deposit on their balance sheets,
where it then earns interest. I could easily become the world's wealthiest man
without ever printing a single counterfeit bill, if only I were allowed to buy interest-bearing assets with rubber checks. If I could legally write rubber checks, then I could buy, say, 10 million dollars' worth of Berkshire Hathaway, earn interest on it for a year (probably a good $200k-$500k!), then SELL those stocks, and light the 10 million dollar check on fire, thus wiping my hands clean and saying, "See, I never counterfeited anything, I just 'borrowed from the future', as it were, and now the economy is $500k richer because of it!!) Of course "the economy", here ,is a euphemism for
ME... I am the one who is $500k richer, and that increase in my own coffers has come at the expense of a very small price-inflation spread across all holders of dollars,
no different than if I had just printed up $500k and deposited it in my bank account. In short, credit-expansion is just monetary-expansion with extra steps to make it seem more legit. Credit-expansion is
fancy counterfeiting.
When we look at the economy from the standpoint of liquid cash savings, it becomes clear what the central bank really is. The central bank punishes all holders of liquid cash savings by continually siphoning away the value of liquidity from all holders of it. That's not a "conspiracy theory", that's one of the stated goals of the central bank. They're quite proud of this effect! Liquidity is choice-itself. The more liquid you make your position, the faster you can pivot from X to Y. The more illiquid your assets -- the more invested you are -- the longer your "reaction time" to changes in the market is. The central bank, however, has a literally infinite source of liquidity (its printing press). At any moment, at a snap of the fingers, it can make a trillion dollars -- or a quadrillion dollars, for that matter -- available to itself. Thus, the central bank always has infinite liquidity, it always has the ability to pivot the institutional inertia of its member banks from any market position, into any other market position, overnight.
Note that this relationship of the banking institutions to the rest of us poor schmucks in the economy (in respect to liquidity), is exactly the same as that of the prole under Marxism. The prole's "assets" are all illiquid -- he literally has no cash at all. Of course, even the assets he has, such as furniture in his apartment, does not really belong to him. (I recall reading that even the furniture in East Germany had a serial number on the bottom indicating its government stock serial #, a glaring reminder that everything was literally the property of the State.) Nevertheless, the Marxist Politburo always has plenty of cash, otherwise, it would not be able to trade overseas or do other necessary business. Thus, the real defining feature of Marxism is the complete de-liquidification of the masses (complete de-capitalization), and the coalescing of all liquidity whatsoever into the hands of the Marxist Politburo. Thus, we can now clearly see that the central bank is just Marxism in disguise -- it is Marxism-by-degree. Right here, in the "land of the free and home of the brave", in fact,
it's the beating heart of your so-called "capitalist" economy!
END THE FED!
END MARXISM!