How to Reduce the 2020 Inflation

Inflation surged in the second half of 2021 as the effect from the Covid which began in Q1 of 2020.

Covid forced the world to go on lockdown which killed the normal US economy. Because of neoliberalism, as an effect of the dominance of the Negative Force, the US economy is the economic engine of the world (the mercantile republic).

This put pressure on Joe Biden to revive the economy ASAP. And so he used the main tool used by neoliberals and Keynesians – stimulus cash, as “retail money” as opposed to “wholesale money” which is from open market operations and quantitative easing.

How Stimulus Cash Killed Production and Caused Inflation

He gave free money to people which the people were supposed to use to buy and sell real goods and services.

But because of the Negative Force, the people were driven towards self-preservation. They used the money to buy cryptocurrencies and NFTs as assets for themselves. This caused a surge in the crypto prices.

The money that was supposed to go to circulate the real economy was funneled into a virtual casino that inflated crypto prices without producing any real utility.

This is similar to quantitative easing money (wholesale money) being used to inflate stock prices. This manifests as tech companies having huge valuations.

The rise in crypto prices gives the people who bought them a false sense of economic security. It makes them rich on paper.

This makes them quit their jobs, leading to unfilled job openings. This then reduces production which leads to scarcity which actually creates real price inflation.

The rise in asset prices gives the people who bought them a false sense of economic security

With both wholesale and retail money going into non-production, output falls, causing inflation.

The 2008 Financial Crisis Versus 2021 Crypto Crisis

The Negative Force in financial institutions, as wholesale money, created the 2008 Financial Crisis.

• This caused the stagnation from 2009.
• The culprit was predatory lending sourced from investment banks.

The Negative Force in the consumers, as retail money, created the 2021 Crypto Crisis and the 2021 US Banking Crisis.

• This caused the inflation from 2021.
• The culprit was crypto scams from crypto startups, backed by banks such as Silicon Valley, Silvergate, and Signature.

In both, the Negative Force operates through the medium of money which is a static object that has quantities instead of qualities. In fact, money has very few qualities:

• electronic versus non electronic (physical classification)
• wholesale versus retail (money supply classification)

Cryptocurrencies are merely an electronic token that can be given value by the mind. This gives it the same dynamics as money, and thus falls under electronic money.

The Solution: Barter-Credits

Since the money is the cause of both crises, the solution is to replace money with barter.

• Barter valuation was anciently done with rice or wheat, which represents life, a dynamic, non-static concept.
  Therefore, this solution replaces a lifeless token with an actual living thing. It is this life that guarantees the dynamism of the new economy which we call a supereconomy.

Quick Fix: Ban Crypto

The switch to barter will take a long time since the systems are not in place yet.

To bring back money into productive uses quickly, crypto mining and transactions must be banned in countries experiencing inflation.

This is because the only productive labor that crypto mobilizes is that of blockchain developers, which we classify as ‘value-adding skilled immaterial effort ’.

This will also eliminate crypto scams.

But what will happen to blockchain developers?

The government can force such developers and marketers to register in a government database, as a blockchain professional, in order to allow them to receive payments in crypto.

In this way, blockchain development is selectively allowed in a similar way that weapon-making is.