Why Do Prices Rise?

© MMXI V.1.0.4
by Morley Evans

Inflation: Why Do Prices Rise?

Vendors compete against vendors. Shoppers compete against shoppers. Vendors are always seeking to charge higher prices. Shoppers are always seeking to find lower prices. Shoppers bid against other shoppers when they want to buy something. Every market operation is an auction all the time. When vendors discover shoppers will pay more, prices rise because shoppers are willing to pay more. Shoppers will pay more if they have more money. They bid up the price. Shoppers will have more money when the government makes more money. The first people to get this new money will benefit most because they will be spending their new money to buy at the old lower prices. Government employees are some of the people who get the money first. In the beginning people will think they are wealthier, but soon everyone will be paying more for everything.

Gold is a desirable base for money because people (governments, kings and banks) can't make more of it. Paper money can be made as fast as it can be printed as every counterfeiting operation knows. Money today exists as numbers in computers, just add zeros and you have more money. Central banks create money out of thin air and loan it to governments, with interest. You are supposed to repay this debt, or they will take everything you own. Over half of the U.S. debt of 14 trillion is owed to the Federal Reserve. Where do you think the Fed got all that money? They didn't save it up. They made it out of thin air just like you could do if you had a printing press in your basement.

Do you think everyone would be rich if they printed money to pay for everything they wanted to buy?

The words of the banksters and their government, academic and media stooges are always false. They DO NOT "manage" the economy to benefit the people. They do not and cannot "manage" the economy at all. GREED and its creature, central banking, is the root of the problem. The Rothschilds, Rockefellers, Morgans and Warburgs were not your ancestors' friends. Their descendants are still not your friends. Strike the root!

Canadians love banks, the CBC tells us. Canadians think Canadian banks are wonderful. Canadians think the Bank of Canada is their friend. Canadians also think Canadian medicine is the best in the world. They love hockey too and the RCMP, according to the CBC. Canada is a stupid place, but not all Canadians are stupid.

Do you know that 95% of the American dollar has been STOLEN by the government and its banking cartel since 1913 when the Federal Reserve System was created? This was also the beginning of the Big Wars of the 20th century at the heart of which was the United States and Great Britain.

Wake up!

http://mises.org/daily/3687
http://en.wikipedia.org/wiki/United_States_public_debt
http://morleyevans.blogspot.com/2011/07/us-debt.html