Your Money Under Siege: The Hidden Impact of Government Money Printing
In the realm of politics and economics, there exists a fundamental principle that often goes overlooked by the masses. It's a principle that, if widely understood, could reshape the way we perceive our financial systems and government policies.
Economies thrive when the collective desires of a society outweigh the available resources. Consequently, businesses strive to produce goods efficiently, and we, as consumers, reap the benefits. In an ideal world, most industries would operate in "free markets," where money naturally flows to the most efficient producers.
However, in the year 2023, citizens worldwide find themselves burdened by high taxes, suffocating debt, and soaring inflation rates. This financial turmoil is, in many ways, a validation of the shortcomings of Keynesian economics.
But what exactly is Keynesian economics?
To grasp the roots of this economic ideology, we must rewind to the 19th century when gold was the primary currency. The introduction of FIAT money, backed by governments, aimed to expedite transactions and address the fractionalization issues linked with gold.
This system functioned seamlessly until the onset of World War I. War, as history shows, is an expensive affair, and if the true cost were apparent to citizens, it's likely no one would support it. However, this presented governments with an opportunity to surreptitiously institute a system where FIAT money, or government bonds, were marketed as lucrative investments to the general populace.
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Bonds were exchanged for gold, promising returns. Over time, FIAT money, which can be printed endlessly, replaced gold, which has a finite and stable supply, on a massive scale.
Masses were convinced that a 2% inflation rate was beneficial, as it ostensibly fueled global growth. However, in reality, it granted governments greater power to print money. The more money governments can print, the more they can subsidize struggling businesses, often leading to massive failures and wealth destruction.
So, how did governments acquire this tremendous power to spend and print money? The answer lies with the very citizens who didn't willingly hand over this privilege. Instead, they unwittingly signed a figurative blank check, permitting governments to print as much money as they pleased, with the promise of repaying through increased taxes and inflation.
In this landscape, short-sighted politicians engage in spending extravaganzas, doling out favors to preferred individuals and businesses, all thanks to their near-unlimited ability to print money.
The hard truth is that even substantial wealth, such as 100 Crores, can be reduced to nothing in the face of hyperinflation. So, why isn't this issue discussed more openly? The answer lies in the fact that the majority of economics taught in schools and universities follows the Keynesian model. When a falsehood is repeated enough, it becomes the norm, and people stop questioning it.
In a world where understanding the true implications of economic policies is paramount, it's essential to challenge conventional wisdom and foster a broader understanding of how these systems impact our lives. Keynesian economics may have its merits, but it's equally crucial to consider the consequences it can have on your money and your future.