October 18, 2026
The REAL Causes of Inflation
Timothy Birdnow
As Vincent Price would say on Btman, "eggzactly":
FTA:
I too find that there are three oligarchs in our nation, but my three are significantly different from Sanders’s. The real oligarchs causing the biggest impact on affordability and the cost of living are the federal government, state governments, and local governments.
That’s a trifecta for sure, but with one key difference. Bernie’s anger is aimed at the private sector, where most Americans can choose to buy or not buy. That same decision is not available for citizens of a government oligarchy except at the state and local levels.
For instance, even Gavin Newsom understands that a wealth tax at the state level is disastrous, but he supports it at the federal level. He fully understands, and has seen, mass migration from California to less burdensome states. He clearly understands that a citizen can mitigate the oligarchy of the state and local government but not of the federal government.
The affordability crisis due to government is hidden in the form of price increases due to higher taxes and fees on the products and services we buy. When Americans talk about inflation, they usually talk about prices when we should be talking about affordability, which includes the government-imposed oligarchy costs.
And do not forget the big culprit, the Federal Reserve, who prints money as if it were water in the ocean. Inflation is a monetary problem, not a production problem. Sadly few people understand how inflation works, or how our monetary system works.
It used to be tied to gold (and then gold and silver) and the price of gold determined how many dollars went into circulation. That was the whole point of Fort Knox, to hold gold to back government spending. Now money is whatever the Federal Reserves decides it will be, and they are forever inflating currency by printing more, then they fiddle with interest rates to avoid "the economy overheating" as if demand is the problem. It's not; that is quasi-socialist thinking, the stupidity that came out of John Maynard Keynes and was employed by Nazis and Fascists and eventually the rest of us. It has been successful only because America has grown and keeps growing and so it can overcome the idiocy. But it won't forever and high prices now are just one of the early symptoms of the Western World's eventual collapse.
It's like saying we spend a lot of money on feed for the horse - why should we do that? Let's just SAY we feed the horse and it will be fine! For a time it is, then it gets weak and feeble and eventually dies. And the horse owner is stunned that the animal he took such good care of was so ungrateful as to croak on him.
That is essentially what the Fed is doing; making money out of nothing and seeing a booming economy so they say "why should we not make more money?" And it works for a time.
Because there IS NO WEALTH behind the money. It's just paper - or now just digits. There is no there there. It's a Ponzi scheme that eventually will leave someone holding the bag.
At any rate the author is correct; every level of government adds cost to most if not everything we buy. And a lot of it is wasteful. Do we really need libraries to host trans readings? Do we really need all of the "services" we are promised? DOJE found all sorts of stuff to cut when they were operating. Government is basically a welfare scheme for the politically connected.
We need to return to the traditional ideas of limited government. The Father Christmas approach to government is a failure; it's costing us way, way too much. Eventually it's going to crash and burn.
I just hope I'm gone when it does. I don't think the Ozark Hilton - my home-made cabin in the Ozark Mountains - is going to be adequate for me when nobody can spare a dime anymore.
Posted by: Timothy Birdnow at
11:46 AM
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