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Your silver has become dross, your wine mixed with water. Your rulers are rebels, friends of thieves - (Isaiah 1:22).
In 750 B.C., the prophet Isaiah warned the people of his kingdom of widespread corruption that was threatening to tear society apart. It was his belief that sin was the root cause of the problems. The rulers were criminals, jewelers were debasing the currency, and winemakers diluted the wine.
Society was in shambles.
We are thousands of years beyond Biblical times and are experiencing eerily similar problems to those that Isaiah described above. Our rulers (politicians and central bankers) are tearing apart the fabric of modern society through money printing.
I want you to imagine a winemaker in 2022. He takes pride in the grapes he grows and the detailed process used to perfect his product. His only concern in life is to make the best wine in order to provide for his family. By working hard and honing his craft, our winemaker reasonably prices his product and maintains a loyal customer base. But one day, a small powerful group of elites decides to drastically increase the money supply.
Our winemaker begins to notice the cost of supplies going up. Irrigation, bottles, and barrels are all costing more, enough to put a strain on his bottom line.
Our winemaker must do something or he won’t be able to provide for his family. He brainstorms three options.
Option A: Work harder and produce more wine to cover the costs.
Option B: Raise his prices at the expense of losing customers.
Option C: Dilute the wine by just enough to make up for the increase in costs.
Inflation has forced the winemaker to sacrifice his time, business, or morals to protect his family. This is the contagion of inflation. The decision to expand the money supply has serious trickle-down effects. Should the winemaker work twice as hard for the same results? Should he raise his prices and risk losing business? Or should he dilute the wine and hope that nobody notices?
Inflation infects everything, much like it did in Biblical times. Our kingdom is no different.
Imagine the barbers who are forced to decide between the quantity and quality of their cuts. Or the accountants who no longer have time to uphold the best practices needed for every client.
The problems caused by inflation run deep.
Central bank policy has brought this disease to our nation and we are all feeling the effects. Like a virus, inflation is a contagion eating away at the health of our economy. A virus that none of us can escape.