On the Causes of Inflation

"Just before winter sets in, the butterflies are most active."

"Can anyone deny the beauty of a butterfly? Or of the flowers on which it depends?"

Those are the words of Commandant Izu, a character in my work in progress, Our Lady of Kaifeng: Courtyard of the Happy Way. 

Does observing the beauty of the seasons help diminish suffering in the present? Do governments nudge those under their power by giving them things or taking things away? Should we be thankful for what we have, and if we are very full of gratitude for the little we have, will this ensure that we are compliant and do not rebel?

http://www.politico.com/agenda/story/2015/10/obamas-effort-to-nudge-america-000276

Of course, inflation is a massive government engineered nudge to force people to spend, rather than save money. But is that  merely a psychological manipulation? Can a single, isolated consumer resist the need to spend more on staple goods once the currency is inflated? Does scarcity cause prices to go up? Can rationing keep prices down?  Is the price of food higher because of inflation, or do we cause inflation ourselves when we spend more and more on the same foods? If we tried hard enough, could we just refuse to spend the money?

If the intended effect of food rationing is a fixed price on goods, can this intended effect ever be achieved, given that for every forbidden fruit, there exists a black market, where it can be purchased, if the price is right?

Related Posts

http://theodosiaandthepirates.blogspot.com/2015/05/the-purpose-and-effect-of-rationing-in.html

The Return of Rationing

Just as it was in Weihsien Internment Camp for enemy aliens, and in the United States under FDR during WWII, it seems we are arriving at an era of rationing again. There seems to be a mysterious shortage of eggs in certain parts of the United States.

http://www.wfaa.com/story/news/nation/2015/05/31/whataburger-breakfast-hours-egg-shortage/28287737/

Whataburger can serve breakfast only while supplies last, due to an egg shortage.

Now, eggs come from chickens, so a shortage of eggs implies a shortage of chickens. In most cases such shortages are government induced and are not inherent in the circumstances. People who raise their own chickens usually have a surplus of eggs, but are often prevented from selling them to other people who want them.

The current egg shortage is said to be due to an outbreak of avian flu among the nation's biggest producer of eggs in Iowa.

http://article.wn.com/view/2015/05/22/Egg_prices_surge_to_record_on_shortage_caused_by_bird_flu_1/

But the idea that egg production has to be so centralized that no other source of eggs could compete has something to do with the fact that small producers are not allowed to sell directly to the consumer without undergoing inspection and licensing.

http://smallfarm.about.com/od/chickens/a/How-To-Sell-Chicken-Eggs.htm

There are many movements afoot to discourage the eating of eggs and even buying them from one's neighbors.

http://www.theveganwoman.com/is-it-ethical-to-eat-eggs-from-home-grown-chickens/

And while many of these laws are local and vary from state to state, soon the the Federal dietary guidelines are going to contain a provision that food consumed has to be sustainable from a global standpoint.

http://health.gov/dietaryguidelines/2015-scientific-report/10-chapter-5

From the Government's Committee on Updating the Guidelines
http://health.gov/dietaryguidelines/2015-scientific-report/img/Figure-D51.png

"Support Universal Food Security" is one of the values the government is espousing, That is tantamount to saying that free market principles go out the window, and food will be rationed so as to be available equally to all, even people overseas.

This policy will not enhance biodiversity, even though that is another of their goals. Centralized planning is never good for biodiversity.