The Simplest Explanation Of Inflation Ever
Babe Ruth Cards
(Listen to audio version of me reading👆)
The ONLY Babe Ruth card in existence…
If I gave you the ONLY Babe Ruth rookie card in existence you might be pretty pumped up about it.
I would venture to guess that it’s worth a pretty penny, as they say.
You looked years and years and years for this one card and you finally found it.
The card truly has infinite price potential and you think you “have it made.”
You’re thinking about the generations of your family that you’ll pass it down to and the value just created for your family.
Then one day, Topps trading card company or Upper Deck comes to you and they say they want to chat.
They say they’ve had a lot of inquiries about Babe Ruth rookie cards.
They’ve fielded a lot of calls about people saying that it’s “not fair” that there’s only one in existence, and that none of them can get their hands on it.
Unfortunately, most people grow up not being told or understanding that life isn’t fair.
Life is about working and creating value.
Proof of work.
But unfortunately, that’s not the world we live in anymore, we live in a world of trying to make everything a “fair and equal outcome.”
Instead of worrying about making things an equal playing field, we take the opposite approach.
You are stunned…
Inevitably, like any good modern zombie company, they cave under the cancellation peer pressure and make the decision to print 1 trillion more of these Babe Ruth rookie cards.
You are listening to them as they tell you this and your jaw hits the floor.
You can feel your stomach doing turns and come up in to your throat.
You cannot believe what you were hearing.
But you better believe it in this life of making everything fair and lowering the living standards and rising costs across-the-board.
You just learned about inflation really quick.
“Inflation in one lesson,” you might say.
Now, the one extremely rare Babe Ruth rookie card that you had is now rendered valueless.
In one fell swoop it lost all of its intrinsic value as there are now 1 trillion other copies of the same exact card.
Now replace this card with one American dollar or any other fiat currency you like.
If you have the only one in existence it may hold some decent value.
However, if the government came to you and said they’re going to print 1 trillion more you might be kind of upset.
That’s exactly the system we live in where every single dollar that you hold is constantly being devalued each and every day as government prints more and more of these fake pieces of paper into existence.
Nowadays it happens even easier by typing digits into a computer stealing a fraction of the purchasing power from every single existing dollar.
Because your dollar is worth less and less each day, inflation means that it causes you to find more and more of these dollars to buy the same product or service.
Money is an economic container for your time and energy.
You can’t just print value or wealth into existence.
It must be worked for and earned.
So the counterfeiting of that new currency must extract value from something or someone else.
When central banks and governments print currency, they are stealing a fraction of everyone’s time and energy that they toiled away from their family and loved ones.
They suck it out of your economic container and give the new dollars or digits that were just brought into existence and hand them to someone deemed more important than you. (Generally a politician through a pet project of some type etc..)
The big question:
When you hear government/central banks say that inflation needs to be 2% a year or inflation is much higher than we anticipated.
Now all you need to do is question them:
Why we would need inflation at all?
Why is it that our money should be stolen at any rate per year, and why prices should continually be rising?
Why not have deflation each year?
Can this system be stopped or runaway costs and increasing wealth gap?
If not, then what could fix it?
Stay strong,