If the cause of the increased price is supply and demand, they should be happy - the increased demand and prices of the goods they sell will be converted into profits. But if the prices are going up simply because there are more dollars chasing fewer real assets, they're in trouble with the rest of us.
If the latter is true (and I believe it is undeniable), the price of production will also skyrocket - and any money they have invested, saved, or even earned (at least in dollars) will have less buying power.
In the end, their increased wheat price is just an illusion, a consequence of a decreasing dollar.
This is why the Federal Reserve manipulation is sinful: Prov. 11:1. Paper money is a "false balance." Hard currency is a "just weight."
Bingo! And the speculators who benefit are those closest to the top of the food-chain, those with government contracts and close connections to the central bank. By the time the money makes it into circulation for everyone else and cycles through the economy, inflation has already taken a bite.
BTW, I have some friends who live in Catawissa (PA).
I'm completely against it. Governments routinely transcends what their constitutions legally limit them to.
Government's job is not to regulate my intake of hot fudge sundaes or discourage me from smoking or watching TV.
But I think the direct tampering with weights and measures (one of which is the dollar) is outright dishonesty and theft, and it was so rampant in the ancient world that Scripture specifically addresses it many times.
And it is even worse then the state does it.
If Winn-Dixie has a dishonest scale in the meat department, I can always to to Breaux Mart or Sam's Club instead. But when the government is in cahoots with the central bank manipulating the value of the dollar - there is no escape. Everybody simply has to raise prices of everything, and that is nothing other than theft from those who save.
It is a "dishonest scale" - and CG above is right - those with their fingers on the scale benefit, the rest of us are victimized.
That sounds like a political argument (which I agree with), but from a moral/Scriptural perspective do you view, say, a child credit the same way you would the manipulation of the money supply?
Wholesale prices rising? As long as the price of wheat goes up my farmers will be somewhat happy.
ReplyDeleteSomehow the price increase never seems to make it back to the farmer. It gets eaten up in the cost of doing business.
ReplyDeleteThe speculators make the money, the farmer and the consumer pay the bills.
Dear Eric:
ReplyDeleteIf the cause of the increased price is supply and demand, they should be happy - the increased demand and prices of the goods they sell will be converted into profits. But if the prices are going up simply because there are more dollars chasing fewer real assets, they're in trouble with the rest of us.
If the latter is true (and I believe it is undeniable), the price of production will also skyrocket - and any money they have invested, saved, or even earned (at least in dollars) will have less buying power.
In the end, their increased wheat price is just an illusion, a consequence of a decreasing dollar.
This is why the Federal Reserve manipulation is sinful: Prov. 11:1. Paper money is a "false balance." Hard currency is a "just weight."
Dear Catawissa:
ReplyDeleteBingo! And the speculators who benefit are those closest to the top of the food-chain, those with government contracts and close connections to the central bank. By the time the money makes it into circulation for everyone else and cycles through the economy, inflation has already taken a bite.
BTW, I have some friends who live in Catawissa (PA).
What do you make of the manipulation of taxes (and credits) by the government to encourage specific behaviors.
ReplyDeleteDear Eric:
ReplyDeleteI'm completely against it. Governments routinely transcends what their constitutions legally limit them to.
Government's job is not to regulate my intake of hot fudge sundaes or discourage me from smoking or watching TV.
But I think the direct tampering with weights and measures (one of which is the dollar) is outright dishonesty and theft, and it was so rampant in the ancient world that Scripture specifically addresses it many times.
And it is even worse then the state does it.
If Winn-Dixie has a dishonest scale in the meat department, I can always to to Breaux Mart or Sam's Club instead. But when the government is in cahoots with the central bank manipulating the value of the dollar - there is no escape. Everybody simply has to raise prices of everything, and that is nothing other than theft from those who save.
It is a "dishonest scale" - and CG above is right - those with their fingers on the scale benefit, the rest of us are victimized.
End the Fed!
That sounds like a political argument (which I agree with), but from a moral/Scriptural perspective do you view, say, a child credit the same way you would the manipulation of the money supply?
ReplyDelete