How Inflation Destroys Civilization

By: Nick Giambruno
Chief Analyst, The Casey Report and Crisis Investing

Polls suggest that the majority of millennials (people born between 1982 and 2004) now favor socialism. And a growing number favor outright communism—if it’s implemented “correctly.”

By next year, millennials are expected to surpass baby boomers as the nation’s largest living adult generation. This is one of the reasons Bernie Sanders and other socialist politicians are growing in popularity.

The Chair of the Democratic Party recently declared a young millennial socialist who won a New York City primary “the future of our party.”

On top of that, Sanders and his fellow socialists are offering a dangerous gimmick. It’s something called a “universal basic income.”

It’s where the government gives you money… just because. There’s no requirement to work or even display a willingness to work. You could sit at home all day, watch TV, and still get a check from the government.

Remember: Even people living under communist regimes have to work. But with a universal basic income, the government simply hands out “free” money to everyone for doing absolutely nothing.

All of this points to an increasingly radical political environment that will have serious financial consequences. And I believe I know the cause…

Pure Fiat

Inflation is the primary factor driving this trend. Americans feel squeezed because the cost of rent, medical insurance, and tuition—as well as other basic living expenses—is rising much faster than their wages.

This creates very real problems for ordinary people. In response, more and more people turn to Santa Claus politicians that promise supposed freebies, like a $15 minimum wage or a universal basic income.

This is all a predictable consequence of the U.S. abandoning sound money.

By every measure—including stagnating wages and rising costs—things have been going downhill for the American middle class since the early 1970s.

August 15, 1971, to be exact. This is the date President Nixon killed the last remnants of the gold standard.

Since then, the dollar has been a pure fiat currency. This allows the Fed to print as many dollars as it pleases. And—without the discipline imposed by some form of a gold standard—it does precisely that. The U.S. money supply has exploded 2,106% higher since 1971.

From: Casey Research.  Read more here

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