The Tumor of Inflation Must be Removed

Medical personnel understand the nature of tumors and usually advocate removing them unless the patient cannot withstand surgery or there are other mitigating medical issues that take priority. Inflation is like a tumor.

If it is discovered by accurate accounting it cannot be allowed to continue to grow. Just as a tumor may grow slowly with little or no symptoms, inflation can creep along for years at a small to moderate rate. People may grumble about the rising cost of living, politicians may obfuscate the issue by talking about the greedy private businesses that are raising prices ( in their view) arbitrarily. But the fact is the money is deteriorating in value.

There is too much money in circulation (by overzealous printing) for the goods and services available. Credit is too loose and speculation is rampant. Reminds one of the 1920’s and we all know where that led. A tumor may grow and invade and be uncomfortable but tolerable. But at some point the pain sets in and surgery is necessary. Or the tumor cells may metastasize and lead to the equivalent of hyper-inflation in the economy. Running willy-nilly about infecting and destroying at random cells and organs of the economy until the winds of revolution and dictatorial rule evolve from the cry for order. A surgeon would recommend the removal of an aberration of this nature and a wise patient would agree. We have no surgeons or wise patients that have any voice that will be heard or acknowledged. All we have are dreamers who like the foolish patient or the incompetent surgeon, pretend the growth is not sufficient to warrant any drastic action. They are contributing to the demise of the patient by their cavalier attitude and inability to recognize facts. The fact that they are obfuscating the symptoms by false accounting and declaring the rate of inflation is small via their bogus “ core rate’ puts them in the same category as the quack who tells you you only have a cyclical swelling due to poor diet.

We have observed first hand the horrors of hyperinflation in Venezuela and Zimbabwe. We have watched the store shelves set empty and people scrambling for simple necessities. We have watched chaos and pandemonium in societies where the attitude of indifference has prevailed. There were only lonely voices unheard of the impending problems. They were ignored and scoffed and they were right. The lament of “ if only we had listened” is all that remains. We are in the arena of a prognosis where surgery is required and the patient is in a condition where further delay will only translated into greater suffering. What is needed is a recognition of the condition that is being ignored. The false reporting of inflation, the apathy of the level of the national debt, the resistance to adhering to a debt ceiling and the never ending government spending all are the equivalent to the metastasis of a tumor that can no longer be classified as benign.

Whether the patient will insist or the surgeon(s) will schedule the necessary surgery is an open question. Man has free will and making poor choices cannot be discounted. But poor choices have poor results. We have seen what poor choices produced in Venezuela and Zimbabwe. A wise choice would be to avoid the results of the nations that have demonstrated where poor choices lead. Honest reporting of inflation, a debt ceiling that is absolute and an absolute end to government spending except for national defense, the courts and police to protect individual rights is the right choice.