Inflation Is Not A Monetary Phenomenon. It’s Planetary

Inflation is because we’re actually running out of ‘supply’, and demand more than ever

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Behold how the Horseman of Famine carries scales. Food is available, it’s just too expensive. Albrecht Dürer, The Four Horsemen, probably c. 1496/1498

When I took intro economics — which, in hindsight, was akin to a Hitler youth rally — they showed us supply and demand curves. If there was less of something, the prices would go up. This is one of the times the otherwise stopped clock of economics is right. What we have today is global ‘supply’ of resources running out, and the corresponding increase in prices. Inflation is not a monetary phenomenon, nor is it momentary. It is the planetary bubble that has been inflating ever since colonialism, and which is now about to burst.

Eat The Poor

The political solution to this problem of late capitalism has been simply pricing out masses of poor people so the rich can keep the charade going a little longer. For example, in my country the IMF ‘solved’ a debt-crisis (they helped cause) by simply kicking nearly a million people off the electricity rolls, with hundreds of thousands increasingly unable to afford water. Our unelected comprador government put on a Christmas light show while an entire generation has neither energy in their house nor energy in their stomachs. Problem solved!

This whole approach, which is globally applied under the Imperial Monetary Fund, is akin to locking people in steerage on the Titanic as it goes down. The point is not even to get to the lifeboats, what lifeboats? The point is to enable the ‘business class’ passengers to have this last dinner and cigars without being disturbed by the poors. Oligarchies masquerading as ‘liberal democracies’ are doing this all over, increasingly doing away with the facade of elected governments entirely (Pakistan, Peru, the UK). The global rentier class of usurers (now called ‘investors’) must be continually bailed out while the working-class and poor must be waterboarded, over and over. This is how the Titanic goes down — with the lights on and the band playing — with nobody even thinking about lifeboats, and killing women and children first.

The punishment is inflicted not by ration cards, which would mean the government was actually trying, but by pricing, which means the market is just saying ‘eat the poor’. This is why the…

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Indrajit (Indi) Samarajiva is a Sri Lankan writer. Follow me at www.indi.ca, or just email me at indi@indi.ca.