How Money Printing (Inflation) Promotes War – May 2022

It’s this simple.

What if governments didn’t possess a magic printing press?

They would only be able to spend money on the most important endeavors. And when it came to going to war, they would have to determine whether it was worth the treasure they would expend, (or gain).

But when you can just make money via digital keystroke, you can engage in all kinds of financial and moral destruction – war being the most egregious. It is now affordable, at least in the short term. Sure, it may bankrupt the country in the future. Your children, grandchildren, and the unborn will bear the consequences. But it’s affordable today, so, “CHARGE!”

There are many interest groups that benefit from wars. These include but are not limited to banks, defense contractors, politicians, and top military officers, some of whom expend great energy, financial and political capital promoting wartime operations.

When the world abandoned the gold standard, war financing was no longer limited to the value stored in countries’ treasuries. Now, “running out of financing was not enough to end the war; a sovereign nation had to run out of its people’s accumulated wealth expropriated through inflation.” * This has led to more frequent, longer, and more costly wars.

In other words, a long time ago, if a government had $100, it was forced to make decisions on how to use that money. Once it was gone, it was gone, and could only be replenished through taxes or conquest. Now, a government can spend on whatever it wants with no limits, because it just creates the money out of nothing.

This is Keynesian economics. This is Modern Monetary “Theory,” with apologies for disgracing the word “theory.” This system kills millions of people through wars otherwise not fought. It grotesquely distorts markets, by allowing terrible financial enterprises to be spawned and grow while suppressing other sound ventures. It creates booms and busts, and then allows the elites to create “solutions” for the problems that they themselves created in the first place. It is insanity.

It also explains why we have inflation, and why we will never not have inflation. Inflation allows governments to spend. It allows big business to amass the gains when colossal risks taken hit pay dirt, but avoid the consequences when these risks lead to economic ruin (the taxpayers are the bailout plan).

Though they may say otherwise, banks, corporations, universities, and especially politicians love inflation. If you understand this concept, you can make financial decisions to protect yourself.