We need inflation. Just listen to any of the central bank inflation-creators, the puppet politicians, the charlatan economists, or the mindless parrots in the mainstream media. The perverse irony, of course, is that while these liars and idiots lament that we need more inflation, high inflation is already raging around us.

Why do we supposedly need inflation? The answer from these liars/idiots would be funny if it weren’t so tragic – because people actually believe it. We supposedly need inflation to help our economies grow, which (if it were actually true) would lead to a rising standard of living. With a bigger “pie”, everyone gets a larger slice.

As is generally the case in the Wonderland Matrix, the truth is precisely opposite to this mythology. We expose the mythology and learn the truth by starting (as always) with definition of terms. What is inflation? If you listen to the bankers, politicians, economists, and media parrots; inflation is some mysterious, exogenous force, which only appears (if we’re lucky) via the arcane rituals by the shamans of our central banks.

In the real world, we can explain inflation much more simply. The correct, economic definition of inflation (i.e. the only definition) is that inflation is an increase in the supply of money. Our monetary base is “inflated” as the central bank shamans conjure more of their funny-money. Thus the lie that we don’t/didn’t have enough inflation is instantly exposed by showing the Bernanke Helicopter Drop – the most-massive infusion of inflation into the global monetary system in history.

In turn, once the central bank shamans have created their inflation via conjuring more of their funny-money, we see price inflation – the inevitable consequence of conjuring funny-money. When you dilute the money-supply by conjuring more currency, the purchasing power of that currency is reduced, causing prices to rise. It is actually this price inflation which the liars/idiots tell us that we “need” out of one side of their mouths, while they pretend that it doesn’t exist out of the other side of their mouths. Once again, this is a lie which is quickly and immediately exposed.

Food prices are spiraling higher at the fastest rate in our history. Housing prices are spiraling higher at the fastest rate in our history. Food and shelter: the two most-indispensable categories of consumption in our economies. In any rational view of our economies, there is already far too much (price) inflation. So let us summarize this fantasy world, as stated by the liars and idiots.

The only “inflation” in the world is the price inflation which results from conjuring funny-money. We (supposedly) need this inflation to help our economies grow. However, supposedly, there is no (price) inflation despite the central bank shamans having conjured more funny-money than at any other time in our history. We have exposed all of this as nothing but infantile lies, except for the underlying myth of these liars and idiots: that we need (price) inflation.

Do we? How do benefit from prices marching higher, relentlessly, forever, while wages stay stagnant? Understand that none of the charlatan economists or central bank shamans want to see wages rising with inflation. When wages and inflation rise together, the charlatans and shamans have their own term for that. They call it a “wage/price spiral”, and they tell us it is the worst, possible fate for any economy.

What we supposedly “need” is for (price) inflation to spiral relentlessly higher, while the wages of the workers stay flat. Conversely (and perversely) when wages soar higher for the Fat Cats at the top – as is currently happening – the charlatans and shamans see nothing wrong with this. Higher wages, we are told, are only “bad” for the workers, the Little People. Let’s illustrate this with a simple, hypothetical example: the life of the Little People.

Let’s take a worker who earns $1,000/week. At first; his/her monthly expenses are $500/week. Then the central bank shamans go to work by conjuring their funny-money. They wave their magic wand, create more price inflation, and suddenly the worker’s expenses are $600/week, then $700/week, then $800/week, and so on. But the worker still only earns $1,000/week.

How is this beneficial? Obviously it is not. Creating price inflation helps no one, except for two, small groups. It helps the Big Banks (and their owners), because they are the direct recipients of all this new funny-money, for free. And it helps the Fat Cats at the top of the corporate ladder. With oceans of funny-money floating around our economies, the Fat Cats simply take much more of this for themselves (in the form of higher compensation) while passing along none of this to their own employees – the Little People far, far beneath them.

The truth is exposed. “Inflation” (i.e. price inflation) helps no one, except for roughly a 10% minority at the top. Another small sliver of our populations, the affluent 10% below the Fat Cats manage to tread water, economically. They don’t benefit, at all, from any of this price inflation, but they are positioned close enough to the top that they don’t suffer either.

For the bottom-80%, the vast majority in every society, (price) inflation is an unmitigated evil. Prices go up and up and up. Wages don’t. Less surplus is left over at the end of each month. Soon there is no surplus at all, and the Little People start to go into debt – just to survive. Their standard of living goes lower and lower and lower. Their debt-levels go higher and higher and higher.

There is a term for this in the real world: Debt Slavery. The economic model of infinitely increasing (price) inflation, flat wages, and relentlessly increasing debt is the goal of all the central bank inflation-creators, puppet politicians, charlatan economists, and mindless media parrots. They call this Debt Slavery “prosperity”, because in the fantasy world of the central bankers, politicians, economists, and media parrots, the only people who count are the Fat Cats at the top (and the bankers themselves).

Obviously, inflation and price inflation are unmitigated economic evils. Price inflation is an economic cancer, relentlessly eating away at our standard of living. The more “inflation” created by the central bank shamans, the faster our standard of living plummets.

This leads us to a tautology. If “inflation” is always and inevitably evil-and-destructive, then the opposite of inflation – deflation – must be benign and constructive. In fact, this is precisely what is preached in real, legitimate economic theory. It is precisely what we have observed empirically, throughout history.

In macroeconomic terms; deflation is the Great Healer of any economy. It is the bad-tasting medicine which purges all malinvestment and bad debt in any economy. The bad debt “deflates” to zero. The malinvestment “deflates” to zero. The economic cancer (caused by inflation) is excised from the economy, and the economy is then poised for a cycle of healthy growth – real prosperity.

In microeconomic terms; deflation causes our standard of living to rise. By definition, deflation means falling prices. Instead of the purchasing power of our funny-money relentlessly plummeting (toward zero) due to the price inflation created by the shamans; with deflation our purchasing power rises. We get more “bang” for every buck we earn through our labours – not less and less and less, as is the case with an inflation spiral.

Deflation = a rise in our standard of living.

The liars and idiots try to tell us this is bad for us. We’re supposed to want (price) inflation. We’re supposed to want relentlessly decreasing purchasing power from the wages that we earn. We’re supposed to wantDebt Slavery.

How? How have the liars and idiots managed to convince the majority of our populations (perversely) that deflation is “bad” and inflation is “good”? They rely upon two half-truths.

Over the short term, the economic healing process instigated through deflation will lead to some economic pain. But this is also true with respect to numerous physical illnesses and injuries with which we must cope in our own lives. When an athlete is injured, he/she must rehabilitate that injury through physiotherapy, and there is often an element of pain which accompanies such therapy.

In the world of health-care; we would never think of postponing treatment (or abandoning it altogether) because the medicine “tastes bad” or because our therapy produces some temporary pain. As responsible adults, we recognize that such medicine/pain is unavoidable. Only children seek to avoid the bad-tasting medicine and complain about the temporary pain caused by therapy

What happens if we refuse the bad-tasting medicine and/or refuse the painful therapy? With respect to a disease such as cancer, the answer is simple: we die. With respect to the economic cancer of inflation (and all of the bad debt/malinvestment it produces), if we refuse the bad-tasting medicine of deflation, the economy dies.

This is not a theory. This is not speculation. We have the ultimate empirical example to prove this principle of economics: Japan. For more than 30 years; Japan’s corrupt government has refused to allow its bad debts (primarily Big Bank debts) to deflate to zero. For more than 30 years; Japan has refused to allow its malinvestment to deflate to zero (primarily Big Bank malinvestment).

What has this refusal to ‘take its medicine’ led to? Japan’s economy has gotten sicker and sicker and sicker, and soon it will die. And the Corrupt West has now copied Japan, despite the solemn promises of the central bank inflation-creators and puppet politicians that we “would never copy Japan.” Our economies are getting sicker and sicker and sicker – and soon they will die.

The other half-truth that “deflation is bad for us” comes from the crimes and machinations of the Big Banks. To try to prove that deflation is “bad”, the Big Bank crime syndicate punishes our economies, every time the slightest whiff of deflation materializes under their smug noses.

They cut off credit to our economies when any deflation takes hold, in a credit-based world. A deflationary episode which would normally only cause a mild, and extremely beneficial recession in our economy (as it heals) is turned into a Depression by the Big Banks through maliciously starving our economies of capital. The pain increases. The economic healing takes longer. The mythology that “deflation is bad” persists.

Listen to the mindless, economic pablum spewed by our central banks, and we’re led to believe that inflation is the Ultimate Good and deflation is the Ultimate Evil. For those readers who live in the real world, and have some grasp of the fundamentals of economics, we know that the truth is precisely opposite to this.

Deflation heals. Inflation kills. Deflation leads to a rise in the standard of living for the People. It is only dreaded by the liars and fraudsters who populate our economies – i.e. the bankers.