Induced Inflation: A Tool of Oppression and Control

A critical analysis of an unjust system

Money, that seemingly neutral tool that facilitates the exchange of value between individuals, is actually a social construct that entirely depends on collective agreement. Its value does not come from the intrinsic quality of the paper, gold, or bytes that make it up, but from the common understanding that it can be exchanged for goods and services.

It is an agreement. And, like all agreements, it is subject to the will of those who uphold it. But what happens when that agreement is manipulated and used to exert control? This is where the fierce critique of a system that, far from being just, promotes tyranny and inequality begins.

What is money, really?

In essence, money is a technology, a tool created to facilitate the exchange of value. Its main function is twofold: on one hand, it acts as a medium of exchange, avoiding the complications of direct bartering. On the other hand, it allows for the accumulation of value over time, offering the possibility of storing wealth for future use. However, in the modern world, these functions have been distorted, and money has become the primary vehicle for economic control and manipulation.

The creation of modern money: A debt-based system

What most people do not fully understand is how money is created today. Rather than being backed by tangible assets like gold, modern money is generated through a debt-based system.

When banks issue loans, they are not simply transferring existing money from one customer to another. They are creating money out of thin air, thereby increasing the supply of money in circulation. This process of credit expansion is the engine that fuels inflation. As banks create more money, the value of each unit of that money decreases, meaning that more is needed to purchase the same goods.

Deliberately Induced Inflation: A tool of oppression

Inflation induced or deliberately caused by central bank monetary policies is not merely a rise in prices driven by supply or demand; it is an insidious form of erosion of purchasing power, a form of theft that primarily affects the most vulnerable classes.

As the value of money decreases, prices rise, and fixed wages struggle to keep pace. People with limited resources watch as their savings disintegrate before their eyes, and their ability to plan for the future is severely limited. This process is not accidental; it is the direct result of a system that benefits those with the power to create money and those who control the global financial system.

It is a structural evil that benefits the most powerful: governments, banks, and large corporations, while relentlessly punishing those with the least.

Inflation is the greatest evil humanity has ever known, and its impact is not just economic, but also moral. It allows modern tyrants, those who control the creation of money, to enrich themselves at the expense of the working class, savers, and everyone who does not have access to mechanisms of power.

If a government prints more money, it does not do so in a way that increases the actual wealth of a country. On the contrary, what it does is dilute the value of the resources of all citizens.

Money, in its basic function, is a medium of exchange. People work, save, and earn money with the hope that, in the future, that money will have a similar value to when they earned it.

Inflation breaks that promise. A simple example: if today you work to earn 1000 dollars, the value of that 1000 dollars in six months could be 900 dollars or even less, depending on the inflation rate, which, by the way, is never the one they tell us because it’s almost impossible to calculate.

In summary, your effort and savings lose value, and not because you’ve done anything wrong, but because a small group of people has the power to create money out of nothing.

Who benefits from inflation?

Governments: Inflation allows governments to finance their spending. When a government issues more money, it does so at the expense of all citizens, as this newly created money loses value quickly. It is like an invisible tax. Rulers can spend without having to ask permission from voters or raise taxes. Printing money allows them to finance wars, excessive social programs, or costly projects without people immediately feeling it in their pockets. However, the cost is clear: the wealth of the people is diluted.

Banks and large corporations: Banks have the ability to lend money, creating new money out of thin air, while most people do not have access to this power.

When a bank grants a loan, it is not transferring money from someone else; it is creating new money. By doing so, the money supply increases, which inevitably generates inflation. But the bank receives the money first, meaning they can spend at lower prices, while the rest of society pays the price of this inflated money.

Additionally, large debtors (such as governments or multinational corporations) benefit from inflation because their debts become easier to repay.

If a government has a debt of 10 billion dollars and inflation dilutes the value of money, that debt is effectively reduced in real terms. So, while large corporations and governments benefit from the “inflation tax,” the average citizen sees their purchasing power decrease.

The other side of the coin: those who always pay

Who are the ones who really suffer because of inflation?

The citizens, modest savers, and all those who do not have access to the spheres of economic power.

Inflation has a devastating impact on those with fixed incomes, such as pensioners, people living on wages, or those in precarious jobs. Imagine a worker earning 1000 dollars a month and spending 900 to cover their basic needs. If inflation rises by 10%, the same worker will need 1100 dollars to cover those same needs, but their salary remains the same. The difference is covered at the expense of their purchasing power, and what was once enough to live on is no longer sufficient.

Apart from salaries, inflation affects savings. Those who have saved money in the hope of improving their quality of life or buying a home someday see that money lose value. Banks, which keep the money in savings accounts, do not offer enough returns to offset the loss of value caused by inflation. As a result, money saved over the years is eroded by the same system that is supposed to protect it.

Inflation: An evil that destroys freedom

If there’s one thing we need to understand, it’s that inflation is not just an economic phenomenon; it is a tool of control. By allowing governments to finance their spending without having to resort to explicit taxes, inflation acts as a kind of “invisible tax” that primarily falls on those who have the least.

But not only that. Inflation turns rulers into tyrants by giving them the unlimited power to finance themselves through the creation of money. Governments, instead of being accountable to the people, become autonomous in their ability to finance themselves without citizen control.

Moreover, inflation fosters short-termism. Instead of being responsible with resources, people and businesses are forced to spend quickly, fearing that the value of their money will dissolve even further in the future.

This promotes a culture of “use and throw away,” where what matters is not the accumulation of value over time, but immediate satisfaction. This, in turn, promotes a mentality of scarcity and urgency, where there is no space for deep reflection or lasting creation.

Finally, we must not forget that inflation also facilitates the financing of wars and conflicts. In a system where money is created out of thin air, governments can finance themselves without facing popular rejection or parliamentary resistance. Resources for war, for military expansion, are financed through inflation, turning the people into victims of the geopolitical interests of the elites.

Inflation is not just a consequence of an economic system; it is a manifestation of the unchecked power of a small group of elites who control the financial destiny of humanity.

It is a form of covert taxation that allows governments and elites to enrich themselves at the expense of the people who suffer the consequences.

Inflation turns money into a tool of oppression, rather than a means of fair exchange. True freedom can only be achieved when people regain control over money, when the system that perpetuates economic tyranny is challenged, and when a more just, equitable, and sustainable model is sought.

Inflation is, therefore, the greatest evil humanity has ever known. It is not just an economic phenomenon; it is a virus that infects the very structure of society, undermining freedom, equity, and justice.

It’s time to wake up and question the system that has been imposed upon us. Only then can we begin to imagine a world where money is, finally, a tool in service of the people, not of the elites who control the destiny of all.