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!

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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.