The Real Source of Inflation

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The primary source of inflation isn’t money-printing central banks.

It’s thanks to something that’s banned in all three Abrahamic religions.

It’s one of the most crude, vile, and unnatural acts ever normalized.

If you’re wondering why you’re getting poorer each year, read this 👇

Money-printing central banks usually get the blame for inflation.

But quantitative easing is a smaller contributor to money creation than many realize.

The real source of inflation innocently hides in the open.

The real source of inflation is commercial banks issuing loans with interest.

I know…sounds boring and harmless.

But it’s the source of most of the world’s poverty.

And once you understand how it works, it’ll change your perspective on life forever.

Here’s an example that puts it into perspective.

Imagine you need landscaping done in your backyard.

You decide to hire a landscaping company to perform this task.

They create value by performing a service, and you give them value (money) in return.

This is an equal and fair transaction.

In this example, the landscaping company provided value and expended energy.

In exchange, they received liquid value (money).

It’s a natural, fair, and equal transaction where everyone benefits.

Now here’s another example, but the service provided is a bank providing a loan.

When a bank issues a loan, it charges interest.

Which means the bank has gained something for nothing.

Lending money involves no input of human labor, no expenditure of energy is involved.

The act of lending itself does not produce anything.

The borrower might use their new capital to provide value. 

And yes, the lender provided a service by transferring value to the borrower. 

But the lender hasn’t created value, they’ve only transferred it.

Yet they expect something in return.

This is why issuing loans at interest creates money.

Because the lender did not create value, but received value (money), new currency needs to be made.

And every day, millions of loans at interest are issued, inflating the money supply.

This is why issuing loans at interest is essentially legalized theft.

The lender wins, the borrower sometimes wins, and everyone else loses.

Because they’re left with the inflation that robs them of their purchasing power.

If you ever wondered why your grandpa could support his family of five on a blue-collar income, this is why.

He was born earlier in life, when compound interest hadn’t yet hollowed out the economy from the inside.

So what’s the solution to this problem?

Well…you can’t directly solve this problem on your own.

However, you CAN buy assets that hedge against currency debasement.

Interest creates money, but it doesn’t create assets, so buy assets to maintain your illiquid purchasing power.

Investing is the only tool you have at your disposal. So please, buy assets.