Printing money is only the first layer of inflation (taking of the value from holders without them realizing it). However, there are at least 7 main layers of inflation that allow those in power to steal value from unsuspecting public:
- money printing (devaluing, plus manipulating interest rates to create boom/bust cycles);
- government borrowing (adding borrowed money into circulation, burdening future generations without their consent);
- fractional reserve banking (recursive lending of the same money);
- taxes (legalization of fiat money, redistribution of funds to large shareholders under the opposite slogans);
- company IPOs (15% float sets the price for the remaining 85% of shares, which are then used as collateral or payments);
- stock market (the same shares owned by multiple parties through recursive borrowing for shorting);
- derivatives (selling something you don't have or that doesn't exist).
Bitcoin fixes much of this as long as people bypass custodial services.
I don't know if this is a layer or not, but there is also this effect:
The first people to receive the extra units of currency-- most likely The Banks and their favored partners-- can take advantage of yesterday's prices today. That's because it takes time for that money to become part of "the economy" we keep hearing about.
Once that extra money is integrated in "the economy," all other prices are affected. Same amount of goods, only now more money is out there: that's the textbook definition of inflation. Too much money chasing too few goods.
By the time those extra units of currency reach us, we're stuck having to pay higher prices and possibly higher fees.
Once again we discover the truth of of the adage, "it's expensive being poor."
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Yes, I totally agree, @grampo !
It's layers upon layers of scams and corruption, I was just aiming to keep my post short for a change, lol. Thanks so much for enumerating all these, very helpful input.
And good point about bypassing custodial services too. Thanks again for your insights here. 🙏