Inflation

Inflation really is THE key economic problem.  The ability to create money underlies the stability or fragility, the justice or the abusiveness of any economic system.  Stable money and free markets throw off wealth.  Funny money and intrusive governments create and continue mass poverty.

I was thinking about Keynes the other day.  He amassed himself a small fortune in currency speculation.  I actually think that is how Soros made most of his money too, come to think of it.

Keynes understood how inflation is the effect of covert wealth transfer.  He stated this clearly in his first book, “The Economic Consequences of the Peace”.  Afterwards, he obviously got to thinking, then realized all the totalitarian plans he was attaching himself to could be facilitated by getting control of money.

I will note he played a major role in the creation of both the IMF and the World Bank, both of which have, in general, failed to achieve their goals of aiding development.  But who have they benefited?  It is a good question I can’t answer at the moment.

The already rich is nearly always a good guess, though.