Notable Quotable: Milton Friedman On Inflation

As inflation continues to rise, you may wonder how much more you'll have to shell out for weekly groceries, gasoline expenses, utilities, childcare, and all the other services you depend on. One thing is obvious—your dollar isn't buying as much as it once did.

Although we're told inflation is caused by various unforeseen events such as COVID or, most recently, Iran's hijack of the Strait of Hormuz, the reality is more sinister.

If you trust your leaders are on top of things, how would they not game out such events before they happen and foresee the inflationary outcome? Such events have happened throughout history, and the outcomes are well known.

How would the president not know that you'd be paying for the global tariffs he imposed? Of course, he knew, but he didn't want you to know.

And, of course, he knew Iran would retaliate just as it did by closing access to the transport of the world's oil supply. That's a no-brainer. Iran had threatened this previously. And does anyone think our satellite intelligence wouldn't have noticed hundreds of mines being laid in the strait? Of course the President knew.

So, why would he deliberately pull the trigger on such inflationary events?

As Milton Friedman once said, inflation yields revenue to the government by paying off part of the government's debt.

Bottom line, inflation is the government's way of getting you to pay down the national debt without the scorching political cost of raising your taxes.

President Trump has made clear he has big plans to memorialize himself in perpetuity. That involves huge costs. On top of that, there's now a new obligation to pay $300 billion for Iran's reconstruction fund.

How does all that get paid? We, the people, will shoulder it.

Learn more about the shrinking dollar shell game in this video.