You can avoid the banks grasp and theft (by theft we mean inflation) and even benefit from it. The
answer is simple, don’t save. Bring your spending forward, even better if you borrow, because your
debt will be eroded away by inflation.
No wonder society doesn't have enough for retirement, abysmal savings rates and a housing bubble.
We are slowly spending ourselves out of prosperity.
Inflation is not inevitable. The problem is how can firms and individuals plan when the central bank is
messing round with prices. It’s a nightmare for business and investment, resulting in fewer jobs for all.
It also causes endless conflict between employers and employees about how much their pay should
increase by each year, quite often building resentment and destabilising the workforce.
The reason itself for the inflation target is laughable – it’s price stability, but if they really wanted price
stability they would set the inflation target to 0, not 2%!
Inflation is not inevitable.
The bank causes reckless acts
The bank enables government deficits
When the government does not have the courage to raise taxes, it taxes by stealth. The
favoured method is printing money. This is part of the cause of our current economic woes.
Government debt is rising at an eye-watering pace. We are slowly spending ourselves out of
prosperity.
The bank enables bailouts
Bailouts are a transfer from the poor to the rich. The central bank guarantees deposits, so that people
don’t care how dodgy the organisation they bank with is, leading to moral hazard. Banks also
know they will be bailed out, meaning they are more likely to engage in risky behaviour. This
should be obvious to all given recent events.
The central bank is a ponzi scheme, pure and simple.
A ponzi scheme is where those who partake at the beginning benefit at the cost of those who
partake last. The central bank could never exchange all the pounds for items of similar value. It is a
form of child abuse.
Interest rates are set at the wrong level.
If you set interest rates too high or low, you will have a mismatch of lenders but no borrowers.
This stagnates the economy, as those who would have borrowed money and employed others
will not do so or loans will be harshly rationed.
For a Central bank who cannot even meet their own inflation targets, what hope do they have of ever
getting the interest rate right?
