this is nothing new but it cannot harm to remind... this is what Lyn Alden published recently - this must be just coincidence, right? 😀
brutality in one image
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aside the 'conventional' wars there were/are others too... war on terror, war on drugs, war on climate, war on covid, war on gender, etc... all of them (just like all the regulations in the name of greater good and orders) create inflationary pressure
Idea: Maybe certain things like war, corruption, shitcoins are actually helping to tackle the inflation?
Let's say a corrupt politician steals 10 million USD and buys a Bugatti Veyron.
The raw material consumed is 1/500 if the money goes into the economy, and 500 people buy a Kia Sportage.
M1 Abrams has a price tag of roughly 130k USD / ton
Kia Sportage is maybe 20k USD / ton
I know...technology etc.
If you have an infinite amount of money and a finite amount of resources, it is better to sell one Bugatti Veyron than 100x Kia Sportage. Doesn't cause the same spike in raw materials.
Let's say a corrupt politician steals 10 million USD and buys a Bugatti Veyron.
The raw material consumed is 1/500 if the money goes into the economy, and 500 people buy a Kia Sportage.
M1 Abrams has a price tag of roughly 130k USD / ton
Kia Sportage is maybe 20k USD / ton
I know...technology etc.
If you have an infinite amount of money and a finite amount of resources, it is better to sell one Bugatti Veyron than 100x Kia Sportage. Doesn't cause the same spike in raw materials.
Corruption simply removes purchasing power from the mass and concentrates it into a clown with a Veyron. In a fiat regime, the real driver of inflation is debasement: new claims printed against the same finite pool of real stuff. Corruption does not stop the printing presses, it just changes who gets to waste the proceeds.
War is the same mechanism, just bigger and uglier. The civilian demand is suppressed because civilians are too dead or too scared to consume.
Both slow down the visible inflation effect of monetary expansion by destroying or isolating the money before it can bid for essentials.
Arithmetic doesn’t change: if printing is faster than production, you get inflation.