Thread by @DominicFrisby

1/ Governor of the Bank of England Andrew Bailey has blamed #inflation on everything from companies putting up prices to old folk retiring.

He has not once pointed the finger at the bank itself nor mentioned its system of money. With #fiat inflation is inevitable. A short 🧵

2/ This table shows the price of various items in 1970 compared to their price today (actually 9 months ago when I put the table together).

Average wages have gone up 22x. Houses 69x.

If wages had gone as much as houses, the average salary would be £100k. More in London.

3/ The supply of housing, thanks to planning laws, is limited. The supply of labour, especially with large scale immigration, has not been.

Then there is debt - which is intrinsic to the fiat system. Fiat economies need ever-expanding debt to function.

4/ We use mortgages to buy houses. Often as much as 90%. Newly created money enters the housing market and pushes up prices.

If housing was a cash-only market prices would be MUCH lower.

5/ Cars are obviously a lot better today than in the 1970s. But their supply is not finite. Better factories mean they should get cheaper to produce. Yet the average car is 32x higher. Why?

We use finance to buy cars. Debt has pushed up car prices too.

6/ We don't use debt to buy milk or eggs. Productivity has improved. The price rises are more muted.

Petrol and beer prices less so. They've experienced much higher taxes.

Look at the impact of improved tech communication costs. Highly deflationary. Great for users

7/ It was not always this way. In 1816, after the war with Napoleon, we went back to a gold standard - ie no debt-based fiat money. Prices halved. They fell by 50% over the following decades. They did not go up 69x nor any such stupidity.

Meanwhile look at prices under the crappy fiat standards of the 20th century.

None of this will change until the money system changes.

Sorry, but barring exceptional circumstances, you will never be able to buy a house as nice as your parents'.

This won't change. Our technocratic overlords love fiat because it enables them. & they know better than you

If you liked this thread, please subscribe to my Substack, the Flying Frisby. I write about this kind of thing a lot.
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And you can read the above article - What really causes inflation? - by clicking the link below (you can also hear me reading it)
open.substack.com/pub/frisby/p/w…

I accidentally typed "inglation" rather than inflation into Midjourney. It came back with this. It kind of works.