1
THE PURPOSE
You will Learn & Understand the truth about inflation and how to escape it to grow Rich.
Before we begin – Here are some words of wisdom from the great scholars of economics
“Politicians do not cause inflation by accident. They cause it because printing money is a politically easy way to pay for government spending without raising taxes directly.”
– Thomas Sowell
“If you listen to people in Washington, they will tell you that inflation is produced by greedy businessmen, or by trade unions, or by spendthrift consumers… But none of them produce inflation for the very simple reason that neither the businessman, nor the trade union, nor the housewife has a printing press in their basement.”
– Milton Friedman
“The most important thing to remember is that inflation is not an act of God, that inflation is not a catastrophe of the elements or a disease that comes like the plague. Inflation is a policy. Government is the only institution that can take a valuable commodity like paper, and make it worthless by applying ink.”
– Ludwig von Mises
“Inflation is probably the most important single factor in producing class hatred and strife… It is the continuous expansion of credit, orchestrated by government policy, that lays the groundwork for every major economic disaster.” (Summarized from Law, Legislation and Liberty)
– Friedrich Hayek
“With the exception only of the period of the gold standard, practically all governments of history have used their exclusive power to issue money in order to defraud and plunder the people.” (Denationalisation of Money, 1976)
– Friedrich Hayek
“Inflation is a quiet tax. It is the method by which governments take away the purchasing power of their citizens’ money without having to pass a tax law to do it.”
– Thomas Sowell
2
THE PROBLEM
Things don’t get expensive overtime, the government steals them from you through “INFLATION” which is a Government made disaster & crime against humanity,
perpetrated by the Bankers & Governments of the world.
Here’s how
Just like a Person or a company needs money to live and continue operations,
So does a Government with its own Income and Expenses
A financially healthy Person or Company makes more money than it spends,
Then saves & invests the surplus amount to increase its reserves.
And a Financially weak one is the opposite who spends way more than they earn and Deficits and debts keep piling up, ultimately leading to bankruptcy.
A well run government have competent leaders with well designed policies that ensure Economical stability and growth along with great governance.
But Majority of the Governments are not that lucky,
as they are filled with a mix of competent, well-intended, incompetent, Ill-intentioned Politicians, public servants & officers.
Along with many inefficiencies & corruption.
Which leads to Governments spending way more than they earn
and the gap between the income and expenses is called “Deficit” and that deficit is filled by printing more money through their Central Bank. And they conveniently call it Government Bonds, T-Bills
Then the Government uses this money to fund itself.
What’s wrong with printing more money? you ask.
With every new dollar or Rupee printed, All the money you have now or will make in the future become more and more diluted and value less, like Mixing increasing amounts water in Milk.
You will end up with more and more diluted water they call Milk.
Now you need to understand that you, your loved ones and you little children depend on Milk as the only way to survive. That is money.
The governments are stealing it from you through this dilution,
They do not care about you, they will gladly let you and you children die, if it means more Power & Money in their pockets.
Here is a Table of Government’s Balance Sheet
Most of the Government revenue should come from
1. Taxes collected from people and organizations
2. Income from Assets, businesses & services the government owns and provides.
3. Other/ Miscellaneous sources (Investments, Fines, Fees, etc.)
But Instead, Governments are increasingly relying on Borrowings to meet their budget deficit
In 2024 United States Government issued Treasury bonds, notes, and bills worth $1.83 Trillion which is 27.15% of total revenue that is Deficit funded by issuing Treasury bonds, notes, and bills to investors.
And how did they Create those bonds? – Out of thin air by the Central Bank (Federal Reserve)
Same trends in India,
FY 2024–25 the government issues securities worth ₹16,13,312 Cr which is 33.47% of the total Revenue
Worse than the American Government.
Every year inflation goes up by 3-9% or more, which mean they steal 3-9% of your money & wealth from you every year after you have paid multiple taxes.
They try their best to lie about inflation and its numbers to make it seem like a small and unavoidable problem and side effect of capitalism & growth but THAT IS A BIG LIE.
Reality of Inflation
There are three reasons why things to get expensive.
1 – Supply and Demand
2 – Government Regulation and Taxes
3 – Inflation
And Inflation is the odd one out because it is permanent and irreversible unlike the first two,
Change in Supply and demand, supply chain disruptions and weather events like Droughts, rainfall are only natural unless a supplier is controlling & manipulating the supply & its prices.
Government regulations and taxation on the sectors & products can be a good or bad policy depending on how well designed the laws are to protect the consumer and they can be changed to improve prices and supply.
But Inflation serves no purpose and is a completely unnecessary & avoidable disease that should have long been eradicated.
Inflation comes from one thing – Government Printing more money,
And they are not printing more money for you or your benefit,
they are doing it to fund their own government expenses and ambition by stealing from you the people,
The more they print, the more less you have.
But Why do they do it?
Simple answer is Control, Greed & Fear.
They want Control over the money supply,
They are Greedy for more & fear running out of money,
They Fear that raising taxed will cause revolt & regime change,
The Fear that if they don’t, then other governments will, and surpass them in Economic & Military capacity.
It is purely a Power play.
A Government has three levels of existence
1 – Local within its borders
2 – Military & Defense in & around its borders
3 – Global – Geopolitical Arena
Each level costs a lot of money to maintain and upgrade the operations.
Governments almost always spend more than they earn, and then desperately find ways to fill that gap.
the way they can make more is by increasing the taxes, but if they increase the tax beyond a level, people and business push back or leave the country,
I mean, TAX INCREASE was the reason Americans kicked the British Empire out of the continent.
To avoid such fate, Modern Governments cover the Deficit in a sneaky & dirty way – it is done by printing more money – disguised as Government Debt.
And they tell you it is an unavoidable part of capitalism and economic growth, how cute.
This is not just a modern Disease
Throughout history there are many examples
Rome, 1st–3rd century AD.
The denarius, Rome’s standard silver coin, started at roughly 95–98% pure silver under Augustus. Over the following two centuries, a series of emperors — needing to fund wars, building projects, and military loyalty payments — repeatedly melted coins down and re-minted them with less silver and more copper. By 265 AD, silver content had fallen to well under 1%. Prices across the empire rose by an estimated 1,000% over that period (Visual Capitalist, “Currency and the Collapse of the Roman Empire”). No central bank was involved — just a government quietly debasing its own coin.
3
THE SOLUTION
They only way you can fight Inflation and preserve the value your money & wealth is by beating the inflation rate.
Investing and owning high value Assets is the only way.
Not just any investment,
Most Debt based Fixed income investments like Fixed Deposits and Bonds do not beat the real inflation values
They may be called safe due to their low risk factor but What makes them low risk is what makes them low return asset class.
That said, the worse thing you can do is keep all your wealth in cash and cash equivalents.
The Best Assets (If brought at the right price and managed well.)
- Equity (Stocks, Private Equity & Venture Capital)
- Real estates
- Commodities & Resources
you can do it yourself or through a trusted investment company and their funds
In an economic system with inflation,
Chasing returns is not a luxury, It is a Necessity.
If you don’t, You will lose everything.
Grow Strong & Invest Wisely
The End.
Sources:
- FRED, Federal Reserve Bank of St. Louis — M2 Money Supply (M2SL): https://fred.stlouisfed.org/series/M2SL
- Reserve Bank of Australia — “Causes of Inflation”: https://www.rba.gov.au/education/resources/explainers/causes-of-inflation.html
- Visual Capitalist — “Currency and the Collapse of the Roman Empire”: https://www.visualcapitalist.com/currency-and-the-collapse-of-the-roman-empire/
- Study.com — “Price Revolution Definition, History & Inflation”: https://study.com/academy/lesson/price-revolution-timeline-causes.html
- Frontiers in Political Science (2025) — “From gold to debt: comparative lessons from the Spanish Price Revolution and U.S. post-2008 monetary policy”: https://www.frontiersin.org/journals/political-science/articles/10.3389/fpos.2025.1635005/full
- Wikipedia — “Price revolution”: https://en.wikipedia.org/wiki/Price_revolution
- Milton Friedman quote — widely documented statement from Federal Reserve historical archives and published interviews/speeches, 1960s–70s (no single canonical link; commonly cited across Fed and academic sources)
Here is a clean list of all the direct links referenced in this discussion: - U.S. Federal Budget & Treasury Data Congressional Budget Office (CBO) 10-Year Budget Projections:
https://www.cbo.gov/publication/59946
CBO Updated Budget Outlook:
https://www.cbo.gov/publication/60419
U.S. Department of the Treasury Monthly Reports:
https://www.fiscal.treasury.gov/reports-statements/mts/ - Indian Central Government Finances Press Information Bureau (PIB) – Union Budget Highlights:
https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2035609
PRS Legislative Research – Union Budget Analysis (Web Summary):
https://prsindia.org/budgets/parliament/union-budget-2024-25-analysis
PRS Legislative Research – Union Budget Analysis (Full PDF Report):
https://prsindia.org/files/budget/budget_parliament/2024/Union_Budget_Analysis_2024-25.pdf - Economic Literature Archives (Inflation & Monetary Policy) Mises Institute Archives (Ludwig von Mises):
https://mises.org/
Hoover Institution – Milton Friedman Papers:
https://www.hoover.org/profiles/milton-friedman
Institute of Economic Affairs – F.A. Hayek (Denationalisation of Money):
https://iea.org.uk/publications/research/denationalisation-of-money
Hoover Institution – Thomas Sowell Profile:
https://www.hoover.org/profiles/thomas-sowell - Global Governance, Reserves & Economic Prosperity Indexes World Bank – Worldwide Governance Indicators (WGI):
https://www.worldbank.org/en/publication/worldwide-governance-indicators
World Bank – Income Level Classification Standards:
https://datahelpdesk.worldbank.org/knowledgebase/articles/906519
World Bank – Fragile and Conflict-Affected Situations List:
https://www.worldbank.org/en/topic/fragilityconflictviolence/brief/harmonized-list-of-fragile-situations
Legatum Institute – Legatum Prosperity Index:
https://www.legatum.com/prosperity-index/
IMF – Foreign Exchange Reserves Database (COFER):
https://data.imf.org/en/dashboards/cofer%20dashboard
Fund for Peace – Fragile States Index:
https://fragilestatesindex.org/
