18.  PERMITTERS OF INFLATION

Inflation must be one of the worst problems facing mankind.  More and more people are talking about it everyday.   Unfortunately, most of the talk is doing no good.  People do not distinguish between the causes, the effects... and the permitters.  Confusing the causer of and the permitters of inflation delays solutions that stop inflation.  Something may CAUSE a little inflation but PERMIT a whole lot.  An analogy perhaps will clear up the difference between what is causing and permitting our economy to be killed by inflation.  A malevolent dictator rarely causes more direct deaths than he indirectly permits.

In the case of America, the modern politicians do not cause that much inflation as a ruling process.  However, through legisflation (legalized inflation) the corrupt and incompetent politicians permit a lot of inflation to occur in America outside of government, in the private sphere.  While the politicians are not personally the cause of inflation, the politicians permit inflation to maim and destroy the economic body of the nation.

Said another way, there is only one agency in a system of production that can be the permitters of inflation.  The guilty agency is the one foremost entrusted with the well-being of the society and the economy, namely, the top policy making agents.  In our case, the inflationary policy making agents are the modern politicians.  Whatever inflation the Federal bureaucracy causes directly pales in comparison to the inflation indirectly permitted, fertilized an nurtured by corruption and incompetence.  Government permits inflation in the private sector-monopolies, price gouging-because the legalized inflation benefits the elected officials.

Excessive attention on the inflation caused by government obscures and obstructs an understanding of how the politicians permits a greater amount of inflation.  A prim example of the media misdirecting the public;s attention is the following quotation:

Despite big talk about holding dow high living costs, that engine of inflation--the federal government--keeps prodding the spiral automatically.

With government polluted by politicians, the amount of inflation cause by mismanagement and imbalancing of the national system of production.

Discussion of how government cause inflation acts as an insulator to the discussion of the inflation which government permits in private enterprise.  Because this distinction is not made between the role of government as a cause and as a permitter of inflation, the greater inflationary injustices within the private sphere are overlooked.  Sometimes, the futile obsession with the role of government as the causer of inflation will initiate policies that exacerbate the causes of inflation.  An example of the latter is Reaganomics which automatically assumes that government is bad that private enterprise is good, despite the record of bribes, price-gouging, and inflationary policies of unprincipled businessmen.  Most of Reagan's deregulation of public bureaucracy will obscure and potentate the greater amount of inflation within the private sphere, e.g., energy price deregulation.

Understanding and eliminating inflation requires that causes and permitters not be confused.  Of apples are confuses with oranges, the bread basket will continue to be less bountiful.  The foremost causes of inflation are in the private sector and are sanctioned by special -interest legisflation.  the legisflation is legitimized by the corrupt and/or incompetent modern politicians.

The Sieve

Probably the most prima facia example of inflation being permitted is the government's cornerstone, actually sieve, in its fight against inflation--a monetary policy.  The politicians reliance on a monetary policy can be traced to their over-simplification of what inflation is.  A monetary policy reflects the belief that inflation is merely a rise in the amount of currency above the production of goods.  consider the comment by the an influential conservative economist:  "Controlling the growth of money is important because, ultimately, inflation is a monetary phenomenon--nothing else."  When one realizes that this particular economist won the Nobel Prize for his monetary musing, one can grasp the extent of global civil ignorance that must be change if humanity is to effectively stop inflation.  As ling as man concentrated on the proverbial tip the inflationary iceberg, the ignored mass will continue to gore larger ships of state.

Any attempt to control inflation by a monetary policy based on counting the quantity of money is doomed to fail.  More important than the quantity of scribbled-on paper products (money) is the quality of money, that is, what other production is stimulated by how the money is used.  if money is diverted into non-essential activities because of tax laws or business activities, then the essential quality of money will be less and less.  this reduced essential value will show up as sinflation in the cost of essential goods and services.

Massive inflation results with a stable money supply if the money is diverted from production so as to cause shortage inflation.  the necronomic monetarists try to control inflation through the quantity of one human product (money).  they apparently think that they can stop inflation without concern for how non-symbolic production is collapsing, especially essential production.

Another reason for an inevitable failure of an inflationary program based on controlling currency, i.e., "fine-tuning the money supply", is that it is one of responses, of defense, and after-the-fact.  Fine-tuning is not offense.  fine-tuning implies something becoming "untuned".  In other words, some inflation occurs and the government must react to stem or stop it.  Unfortunately, the manner in which the government attempts to stem inflation creates more inflation than if they did nothing.  An example is given in the white elephant called the wind-fall profit tax on oil.

The government will not solve inflation by trying to fine tune the monetary supply in response to changes in the economy.  by the time the government reacts to some inflationary sequence, it is too late.  Most inflationary sequence gives cause for its own price change by breeding and creating inflationary pressures that rise in parallel or before.

An Infiltrated Army Not Worth Infiltrating

One might ask, "Well, why doesn't the government go on the offense against inflation; after all, an offense is the best defense."  Or, "Why doesn't the government prevent the leaks of buying power before they begin"?  the following quotation shows that the politicians recognize that the need for offense; it also shows, however, one reason why the offenses don't work:  they don't last.

Wile political leaders have been quick to declare war on inflation, Wall Streeters contend, they have repeatedly proved unwilling to fight the actual battle.

Wall streeters are clearly right about politicians being unwilling to wage an effect ware on inflation.  Ironically, the Wall streeters fail to recognize that the politicians will stop inflation only if they eliminate the massive inflationary decapitalism that is centered on Wall street.  the politicians do not cause as much inflation with the sacred cows of politics as they permit with the inflationary sacred cows of economic privileges for a fewer few.

In its battle against inflationary gains and losses, the government is logistically like a platoon of myopic clowns surrounded by an army of better-armed lifers.  Anyone who thinks that government had the best career personnel is a dreamer, a dreamer of the wrong sort.  The "best"always go into business...not always for the best of reasons, however.  For example, traders [using tax straddles] are convinced they have the IRS outgunned.

"The IRS is employing $14,000 auditors to catch half-million dollar accountant," one say.  "The odds are stacked".

Not only are the best--the doers--armed with the latest in telecommunication, better equipped than the government, but the doers use it to solve how to get more money with or without production...inflation.  Not only is the government equipped with overaged tools, but the modern politicians misuse the equipment, especially the newer tools:

In this election year, some 523 million pieces will be mailed form Capital Hill--a 62 percent jump over 1979, a nonelection year.  Public cost:  More than 50 million dollars.

To improve the effectiveness of their mailing, legislators can dip into their expense accounts to purchase address lists and letter-duplicating equipment.  Congress has spent millions of dollars on computers that can churn out individualized letters at high speed...

To get a perspective on the cost of election-year economics through misuse and over-straining the postal system, recognize that the annual salaries of the 535 legisflators in Congress is only $33.5 million, only 60@% of what they appropriated for themselves for postal costs.

Has the political use of telecommunication solved the inflationary problems of the land, or merely an incumbents election problems?  Every time one sees telecasted proceedings of Congress or its committees, one sees an abuse and misuse of modern technology.  Is the equipment used to collect, filter, and percolate problem-information from the suffering public?  or is it used mainly for political exposure?  Do you really think that our problems will be solved by one politicians at-a-time standing in front of 434 representatives, boring half of one politician at-a-time standing in front of 434 representatives, boring half of them to distraction or absence?  Congress has an information flow problem.

Do you know of any large national enterprise that uses such a slow clumsy process?  No.  any private enterprise would have folded before it bloated so large as the federal government.  Of the politicians did not have tax powers to subsidize their corruptness and incompetence, Congress would have folded long ago.  As is, they have corrupted the land with illogical legal laws so that there is no longer an expanding tax-base from which to subsidize their poor problem solving.

Besides the reason of logistics, politicians will no eliminate the private source inflationary suffering because of personal corruption.  The following quotations not only show the manner of this corruption but also why private industry is better manned than government.

It is the sam old story, repeated on lower levels throughout government Justice Department lawyers join the companies they are suing... All this happens usually because of the contacts these people make on the private side and the contacts they still have on the public side- and usually t salaries that are in multiple of what they were earning in government and before they went to Washington.

Lobbying groups are willing to pay dearly for the services of an experienced ex-senator of House member, particularly a former chairman or senior member of a top committee.. for such prized catches, offers many exceed $2000,000 a year, plus generous fringes--a cry from the %60,663 they earned as public officials.

To many, Congress is no longer the capstone of a career, but the steppingstone to establish themselves as lobbyists or to join good law firms--without having to come up the hard way.

Politicians will not stop the inflationary price-going by private enterprise.  As the above quotation show, politicians would be cutting their expected future earnings if they cracked down on those who able to offer the likes of "$200,000". for the "contacts" that an ex-politician offers.  Through these contacts, private laws are passed which legalize inflationary gains for a few that greatly exceed the cost of buying an ex-politician and his influence.

The source of inflation is in the private sector which the politicians permit, for their future finances are geared toward skimming some of these inflationary gains.  However, they don't have to wait until they retire to reap dollars from the private  inflation chaser; in exchange for fees, politicians frequently give speeches to audiences that they are suppose to be regulating.  Politicians will not bite the hand that feed them, no matter how dirty and corrupt that hand is.  Thus, politicians will not slap the hands that are taking the money out of people's pockets through inflationary business practices.  Politicians corruptly permit more inflation than they incompetently cause.

The government has a policy of reaction--fine tuning--which is no defense against the surging inflationary force grounded in the private sector, a force which from choice and necessity will not retreat.  Secondly, any hopes of stemming the rising flood of inflation by such a policy is doomed to failure.  Fortunately for America, the "Thatcher experiment" in England is showing what will happen if Ronald Reagan implements his campaign economic program.  Unfortunately, most Americans won't take time to read about monetarism in england: necronomics that promotes free trade among companies that gain from inflation rather than profit from production.

No nation can grow if it stimulates freer trade among busynesses that acquire rather than capitalize production.  Like other words misuse by necronomists, e.g., capital, invest, profit, "free trade" is not automatically good.  Once there was free trade in slaves.  The modern decapitalistic free trade in acquiring, streaming, and vivisecting industry is no different.  Both forms of free trade enslave people to a lower level of life.

The government's defensive forces against inflation are weakening at a faster rate with each inflationary battle.  Such weakening is not the case with the inflationary forces.  each victory by the inflation chaser involves no losses; each victory morally and monetarily recruits more human resources.  By choice and from necessity, more people are forced to ignore production because of the presence of non-productive inflationary individuals and industries.

Previous chapters described how companies had to engage in fighting off take-overs even though they were not in the acquisition loans because the politicians, necronomists, and bankers have stacked the economy against production profits.  These forces have no respect for former virtues, virtues and mores addressed at election time by ignorant politicians for their re-elections, e.g., abscamery.

More Consultants For The Battle?

Some think that the government merely needs more consultant.  More consultants will not do.  The private cause of inflation not only have more consultants, but because private enterprise pays more, they have the best.  Some political bureaucrats recognize this.

"A bureaucrat like myself, with his butt in a chair all day long, does not know enough to make all economic decisions.  Those who know what to do are the ones who have skills, the ones willing to take the risks,"  [So admitted one top French presidential economic adviser.]

Besides, more consultant means more government cost:  Inflation.  even if it could fine-tune the economy, the tuning by government would always be in response to an inflation spurt.  Furthermore, a lot of these inflationary spurts come form private people arranging or finding loopholes, a sad reflection on humanity, but not as sad as the way the government "closes" the loopholes.

If the American people are to have more consultants, it must come from the political process consulting the American people about their problems.  America needs a consulting process that

collects, filters, percolates and hones

the problem solving information of , by, and for the people.  That process is colfiperhone, the logical process of AESOP * which should be the legal selection/election process of the land

for information, issues, and individuals.

Only colfiperhone can tap the intelligence of America as a alternative to the alienation of the politicized problem solving process in the nation's capital.

Price-gouging Joke

The way government closes loopholes is a sad joke on consumer.  take a look at price-gouging and the wind-fall profits tax on oil.  Price-gouging occurs when a busyness or collection of busynesses have a virtual monopoly on th production of a good or a service.  Invariably, a monopoly, or oligopoly raises the charge for their product far above their overhead costs because they have no real competition.  How does our government punish these corporations?  The government has to find and "fine" them.  [Humm? Does monetary fine-tuning mean a government by fines?]  Both the finding and the fining necessitate more government cost--inflation--as the following example shows.  

When a fine is levied after son judicial proceedings, inflation grows stronger.  Judicial proceedings cost the taxpayers not only through taxes but through higher lawyer costs added onto the consumer cost of products.  What a kicker!  What a rotten lot.  The consuming tax-payer is burned in tow-inflationary ways:

Higher taxes to discriminate, assess, and collect the fine,

and higher consumer costs to pay the fine and the corporate lawyers.

The reader surely doesn't think that all these corporate fines cone out of the pockets of the stockholders, directors, or executives.

One should realize the many ways that inflations permitted, aided and abetted by the modern politicians.  All of the inflation begins with politicians legisflating some type of monopolistic practice that allows opportunities for price gouging.  The initial and subsequent inflationary growth from legisflation are outlined below.

1.  Monopolistic capitalism initiates some price gouging.

2.  A government price-gouging "watch-dog" unit sounds the alarm with its operating cost that are inflationary.

3.  Accused price-gougers have to hire defining lawyers which leads to increased product cost--a company will maintain its price-margin if it has a virtual monopoly.

4.  Judicial system, used to prosecute and assess fine, increases taxpayers' load.

5.  Any fine does not cost the originators and perpetrators of the price-gouging, i.e., the corporate executives or directors; rather, the fine is passed onto the consumer as higher product cost.

6.  The dispensing of the fine and the printing of the Congressional proceedings cost taxpayers.

7.  The legisflators indulge in self-glorification for having "punished" the price-gougers; the legisflators use franking privileges, the Congressional Record, and air travel; this self-glorification costs the taxpayers.

If one considers the above list of inflation piled upon inflation because of corruption and incompetence, one can conclude that the political ramifications of price-gouging is a case of multiflation.  So, the next time a modern politician tells you how he voted for the fining of price-gouging (or wind-fall profit taxes) on any industry, remember ho many inflationary times this "friendly" action will cost you.

Under the tutelage of the modern politicians the tax-paying consumer is being pushed to the ledge of economic collapse.  Government deals with corporate politicians do not stop inflationary price-gouging but actually add more inflation to the burden of the citizen, we would be better off if Congress declared price g-gouging in the national interest... and left bad enough alone instead of making it worse.

Not only are the modern politicians the permitters of inflation in private enterprise, but a multiple of the inflationary hardship.  They symbolically deal with inflation rather than stopping the substance of inflation.  The substance of inflation comes from legisflation that legalizes inflationary income for a few special groups at the expense of most Americans.  Corrupt and incompetent politicians permit more inflation in the private sphere than government bureaucracy causes.

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