Inflation is theft – now I understand

What is inflation? What causes inflation? What does inflation cause?
I used to take it for granted that inflation was a common economic
phenomenon easily understood by the majority until I observed the troubles
those in authority go through in trying to rein i

t in, and the seemingly
hard time commentators and analysts have when trying to expound it.
Inflation is not the general increase in prices, nor too much money chasing
after non-existent goods. Price increases do not cause inflation – but
inflation causes price increases.
Inflation is ‘invisible’ taxation or plain theft of citizens’ value/wealth
by an arrogant government.
How is it done? It all started with the advent of paper money. Paper money
came into being when ancient GOLD KEEPERS, modern day bankers, used to issue
written documents (money) certifying that they had in store so much gold,
representing wealth, for so and so. In time, with the advancement of
civilization and trust in such documents, they were issued in broken down
denominations and generally accepted as the value of the gold that they
represented. Any attempt to issue certificates without the gold would sooner
or later backfire to the issuer.
All governments have got the power to coerce the Central bank “gold keeper”
to issue certificates (money) falsely certifying that it has value/wealth
stored with it.
Take for example a nation that has got 100 units of wealth, 90 are owned by
the citizens and 10 by the government. This wealth is represented by a
certain amount of money. If the government uses all its wealth within its
borders, the wealth goes back to the citizens in one way or the other and
the wealth of the nation remains at 100 units as represented by whatever
currency used by the nation.
If, for any reason, the government finds itself in a tight corner with its
bank balance at zero, the only solution is to go to the Central Gold Keeper
(governor) and be issued with certificates (money) falsely certifying that
it has the wealth so represented. Say, for example, the false certificates
amount to 20 units of wealth. Without any creation of new value/wealth, the
nation now appears in terms of paper money to have 120 units of wealth when
in actual fact it has only got 100.
What all this means is that the government has stolen from or invisibly
taxed its citizens 20% of their wealth. With 20 units now in the hands of
the government and total national wealth still at 100 the citizens now have
only 80units. Now 20% poorer.
With paper money in circulation now falsely representing 120 units, when in
actual fact there are only 100 units, the prices of all goods in the country
increase by 20% and our currency looses by 20% against all stable
Although the formula for calculating inflation should be fake money printed
over total national wealth, for political reasons governments prefer the
Consumer Price Index – which is very easy to doctor, i.e. falsify.
I have tried in this presentation to show that nothing except government in
collusion with the Central Bank can cause inflation. Inflation causes price
increases, poverty, and devaluation of currency and not vice versa.

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