Diamond Author
Let me explain a problem I see concerning the use of so-called "inflation" data to trigger a control mechanism with a Central Bank to raise interest rates, or tighten money supply to prevent the fear of runaway inflation. We all know what inflation is, but my use of the term "artificial inflation" is a concept whereby fake manipulations in markets, or industries trigger higher prices, not because the buyers or consumers have vast amounts of money to blow, but because the sellers are cheating the system to force the higher price.
You see, Artificial Inflation can occur quickly when there is commodity manipulation in mining, oil, or other resources, even corn now due to its co-use as fuel. If the price of Oil is manipulated by OPEC (a cartel) or through game playing in Chicago on Sweet Crude this causes ALL industries that use fuel to raise prices. Transportation, Shipping, Airlines, Food, and anything that has to be brought to market due to increased inherent costs to move it from place to place.
It's like a tax on over all society, eggs cost more, lumber costs more, agricultural products cost more, everything almost costs more, even school budgets hurt due to costs to bring kids to school in buses. City buses raise prices, garbage collection, you name it everything is affected. But it isn't inflation from a strong economy, its inflation due to manipulation or someone throwing a wrench in the wheels of commerce or the balance of supply and demand.
Now, although I am not an economist, I have been watching all these games for many decades now, and I keep seeing reoccurring trends, and policy decisions which make no sense for a vibrant and lasting economy. You can see why I call this "artificial inflation" and if the FED our US Central Bank or any central bank raises interest rates due to the inflation they see from increased prices from a commodity manipulation then in reality they slow down the economy when it's already lost its efficiency from being manipulated.
This is a Double whammy, leading to more drag, stalling out the economic flight we need for capitalism to work. And although we cannot regulate morality and since we all know that sellers will always work to get the highest price for their products and services. Unfortunately, things like oil, raw materials, communication, education, transportation, food, healthcare, water, energy, and other essentials to survival often are manipulated causing a false alarm.
This Inflation Blimp is nothing more than an airship flying under a false flag, and should be dealt with appropriately - shoot it down, don't shoot the economy in the foot. Please consider this philosophical debate.
About this Author
Lance Winslow is the Founder of the Online Think Tank, a diverse group of achievers, experts, innovators, entrepreneurs, thinkers, futurists, academics, dreamers, leaders, and general all around brilliant minds. Lance Winslow hopes you've enjoyed today's discussion and topic. http://www.WorldThinkTank.net. Have an important subject to discuss, contact Lance Winslow. http://www.aircraftwashguys.com/bio_history.shtml.
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