Higher Wages Won't Necessarily Lead to Inflation

There is a false belief out there that higher #wages cause inflation. This is most definitely not true. It is actually the other way around, higher wages are needed to keep up with inflation due to credit. It is the credit that causes the inflation as it forces people into bondage. This is why I stopped being a libertarian. They cannot understand this concept because they are aligned with the bankers.

This is how credit works. Money is created out of thin air and lent out to people. This free money causes consumers to bid up the price of commodities and wages. The higher wages don't go to consumers, they go to the companies who hire the consumers. Sooner or later the lowly paid wage earner cannot afford to pay his creditors if his wage is not increased. This is how recessions happen.

The only way that inflation can be caused by higher wages is if the wage earner has not increased his productivity yet he still got a higher wage. This is what Chairman Mao did and that is how he caused inflation in China. Working more and more often is inferior to working less and smarter. So shouldn't someone who is smarter get paid more?

The real danger in higher wages comes not from the wage earner himself but from the credit companies who are willing to lend out more free money to him for his higher wage. It is this massive increase in credit that causes people to bid up everything around them. Sooner or later the bubble of credit will burst since it will be impossible for the consumer to pay his creditors for junk he bought at a higher price than what it should have cost him, to begin with.

The libertarian myth that corporations and bankers save and invest while consumers spend frivolously on junk is nothing more than a myth. This myth was invented by bankers who wanted to screw over the middle-class wage earners. The problem with this way of thinking is that there is a lot of assumptions about middle-class wage earners which just simply is not true. As someone who has studied philosophy, I can easily tear this whole myth apart at the seams until I finally cause it to fully collapse.

The first assumption is that corporations and bankers know better than everyone else when it comes to saving, spending and of course investing. If you study your history "correctly", (I punctuated this to show you its importance) you will easily see that these people have been the worst savers, worst spenders and of course the worst investors. This is why they are habitually bailed out and this is where our true "National Debt" came from.

Let us look at the corporations first. They use their increase in revenue from consumer credit to take out debt themselves, so that they can purchase their own stock which is based on something called "The Greater Fool Theory" (a game of hot potato) and/or to pay out dividends. This is not what I would call a good saving strategy or a good investment strategy of any sort. So in the end, these companies will sooner or later be taken over by bankers who are their creditors.

Now, this may lead you to believe the libertarian myth that the bankers themselves are good savers and good investors. That would be a huge mistake on your part if you truly believe this. The financial crisis and of course the Great Depression is proof that they are "the" number one worst savers and investors.

The First thing you need to look at is where are the bankers saving their money. It is in a ten percent deposit cap, is it not? They then create ninety percent free money from this ten percent deposit cap and lend it out to consumers. This puts the middle-class saver at risk cause if the bank goes bankrupt it is their savings, not the bank owner's savings that is at risk. The banker will always pull out all of his money on time.

As I've stated before this creates inflation. Now let us look at where these bankers are investing their money. It's in the stock market, right? Well, do you know how this whole stock market thing really works? It has nothing to do with the financial state of the company. It is based on a game of hot potato as I have stated before, its called the Greater Fool Theory. This game is actually worse than a casino since it is completely and utterly manipulated. These bankers are part of the manipulation process and they can cause recessions whenever they want to. Look at Bernie Madoff who created the Nasdaq. He admitted that he was only a small fry compared to his banker buddies.

Notice that both corporations and bankers are far worse spenders than the middle-class wage earner and that they can cause far more harm and of course higher inflation. So why are the politicians favoring these bankers and corporations over you? They are in on the game and the media is owned by the bankers. So you can never ever get any representation from any of these people!

Now with the issue of the governments which bring in immigrants both legal and illegal to lower wages. The banker's media claims that this is necessary to keep inflation down because it lowers wages. As I have clearly shown you, lowering wages causes people to turn to credit to pay their bills. Whereas before they used credit to buy things they didn't need, now they use credit for necessities.

Using credit for necessities is a very dangerous game. Why? There will come a time that the creditors will take notice of this and they will stop giving out more credit. Another danger is that more cheap labor leads to more credit at a time when interest rates are rising. You need to ask yourself "Why is inflation rising when the market is being flooded with cheap labor?". This is it, this is the problem, there has been an expansion of credit to pay normal everyday bills. Consumers are also cutting back on things they do not need. This is why Sam's Club and other stores closed down.

This expansion of credit just to cover everyday bills has become a necessity for those living in overcrowded apartment buildings. The raising of interest rates will make the homeless problem a lot worse than what it already is. The Fed has no choice but to increase interest rates or the dollar will collapse as it currently is collapsing.

What the Fed and their banker friends have done is paint themselves into a corner where they now must walk all over everything they just painted. What do you think the consequences will be when this credit bubble bursts? The Federal Reserve and its banker buddies can only keep manipulating commodity prices for so long. Many nations are now dumping the dollar because of this and they are beginning to start their own commodity exchanges.

This is why our government the USA has surrounded Russia, China and other nations around the world with their military. They are trying to stop these nations from dumping the dollar and bringing back commodity prices to where they should be.

This will cause World War Three because those nations are tired of having their economies destroyed by the US manipulators of commodities. Russia now has nukes that can easily penetrate all of our defenses which I am sure they will share with their allies.

This leads to another banker malinvestment project. The term all wars are bankers wars is true. Without the financing, wars are hard to come by and they usually don't last very long. Can we all agree that war financing is most definitely the worst place to invest your money?

There is another false belief that bankers make a lot of money from war. This is not true, they make their money by lending money to a government that engages in war. Thereby enslaving the public which is at war. The Last thing this poor public need is to pay more taxes to bankers when they are trying to rebuild everything back from the war. This is also another way that bankers make their money from war. Guess who is lending these poor people credit to rebuild after the war?