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Inflation and wage and price controls have been more or less a constant fixture in civilization for the last forty centuries.
Inflation and wage and price controls have been more or less a constant fixture in civilization for the last forty centuries.


Inflations are psychologically destabilizing, contribute to the maldistribution of scarce resources, aid some people while harming others, by design, are one of the important causes of wars and revolutions, and create the climate for complete government intervention—that is, complete government control—and the control of the government is always the control of the economy. Once the government controls the economy, the abundant life, the free flow of God’s energy from the source to man, it controls the life of its citizens.   
Inflations are psychologically destabilizing, contribute to the maldistribution of scarce resources, aid some people while harming others (by design), are one of the important causes of wars and revolutions, and create the climate for complete government intervention—that is, complete government control. Once the government controls the economy, the abundant life, the free flow of God’s energy from the source to man, it controls the life of its citizens.   


[[Lenin]] correctly noted that the quickest way to destroy the capitalist society was to debauch its currency.<ref>Theodore B. Dolmatch, ed. ''Information Please Almanac, Atlas, and Yearbook,'' 1980, 34th ed. (New York: Simon & Schuster, 1979), p. 127.</ref> It has also been said that “Ruin and revolution are the normal consequences of inflation.”<ref>William Reese-Mogg, ''The Reigning Error: The Crisis of World Inflation'' (London: Hamish Hamilton, 1974), p. 50.</ref>
[[Lenin]] correctly noted that the quickest way to destroy the capitalist society was to debauch its currency.<ref>Theodore B. Dolmatch, ed. ''Information Please Almanac, Atlas, and Yearbook,'' 1980, 34th ed. (New York: Simon & Schuster, 1979), p. 127.</ref> It has also been said that “ruin and revolution are the normal consequences of inflation.”<ref>William Reese-Mogg, ''The Reigning Error: The Crisis of World Inflation'' (London: Hamish Hamilton, 1974), p. 50.</ref>


[[Hitler]] rose out of the ashes of the German economy that was destroyed after World War I not by the war but by the inflation. Inflation causes the poor to suffer most. It does the work of [[Marxism]] and causes people to become so insecure that they turn to political extremists, usually a Caesar type.<ref>E. McMaster, Jr., ''Cycles of war: The Next Six Years'' (Kalispell, Mont.: War Cycles Institute, 1977), p. 14.</ref>
[[Hitler]] rose out of the ashes of the German economy that was destroyed after World War I—not by the war but by the German hyperinflation from 1921 to 1923. Inflation causes the poor to suffer most. It does the work of [[Marxism]] and causes people to become so insecure that they turn to political extremists, usually a Caesar type.<ref>E. McMaster, Jr., ''Cycles of war: The Next Six Years'' (Kalispell, Mont.: War Cycles Institute, 1977), p. 14.</ref>


== Causes ==
== Causes ==
We must have a realistic attitude towards inflation. We must see that it does not come from a rise in prices but that inflation is caused by the expansion of the money supply by the Federal Reserve system.<ref>Antony C. Sutton, ''The War on Gold'' (Seal Beach, Calif.: ’76 Press, 1977), pp. 67–68.</ref>


People in high places in and out of government often treat inflation like a mysterious plague, something perhaps from outer space. Yet only government can stop inflation because only government can start inflation.
People in high places in and out of government often treat inflation like a mysterious plague, something perhaps from outer space. Yet only government can stop inflation because only government can start inflation.
No inflation is ever started without an increase in money supply. No inflation has ever ended without corrupting society in proportion to the degree of the inflation itself. In recent history, it has destroyed more lawfully constituted governments than any other force except war itself.<ref>Rees-Mogg, ''Reigning Error'', p. 66.</ref>


According to Austrian School economist Dr. Murray Rothbard, credit expansion (i.e., easy money) coupled with interventionism beginning in the 1920s interfered with natural business cycles of the free-market system, resulting in the stock market crash and Great Depression.  Rothbard cites inflation as the primary cause of the depression. Rothbard states:
According to Austrian School economist Dr. Murray Rothbard, credit expansion (i.e., easy money) coupled with interventionism beginning in the 1920s interfered with natural business cycles of the free-market system, resulting in the stock market crash and Great Depression.  Rothbard cites inflation as the primary cause of the depression. Rothbard states:
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We must have a realistic attitude towards inflation. We must see that it does not come from a rise in prices but that inflation is caused by the expansion of the money supply by the Federal Reserve system.<ref>Antony C. Sutton, ''The War on Gold'' (Seal Beach, Calif.: ’76 Press, 1977), pp. 67–68.</ref>
No inflation is ever started without an increase in money supply. No inflation has ever ended without corrupting society in proportion to the degree of the inflation itself. In recent history, it has destroyed more lawfully constituted governments than any other force except war itself.<ref>Rees-Mogg, ''Reigning Error'', p. 66.</ref>


== The Federal Reserve system ==
== The Federal Reserve system ==
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