Big corporations will sell cheaper, less quality product, or product with less amount of substance in order to circumvent the effects of inflation. Their motive for not just selling the same quality product at a higher price, is to not be seen as greedy villains who take advantage of the consumer, which would inspire the public to lash out in betrayal and damage their branding. They could not possibly explain to their loyal customers the finer details of their ever-increasing business overhead. So, they act with moderate deception.
The unintended consequence of manipulating the product instead of the price is the whitewashing of the horrors of devalued currency. In some other situation, in some other nation, the posted prices may increase so that the consumer may start to eventually understand the problem, justifiably begin to panic, and withdraw all of their checkings and savings, creating a national crisis for the sake of salvaging worthless paper money.
Smaller banks are not required to keep any of the deposits on their books in the vault. Medium-sized banks are only required to reserve three percent of deposits. Larger banks, only ten percent. This is the bare minimum of the ‘reserve requirement.’ The rest is loaned out to clientele. The bank profits on all of the interest of those loans. When there’s a ‘run on the bank‘ through mass, fiscal panic, that fraction of a fraction of the deposited assets cannot possibly cover the withdrawal claims. All of the money is already loaned out and no bank owner is going to cough up the profits made on the interest of the loans made with other people’s deposits. The bank’s insured, anyway. When a bank is called upon to pay back more money it has borrowed from clients than it has in reserve, it borrows the deficit from a bigger bank. Ultimately, from the Federal Reserve. This relationship is determined by an FDIC relationship, though the Reserve is just as ready to loan to non-FDIC approved institutions when called upon.
But, as is good banking practice, the Reserve does not loan out the profits it makes on interest rates. Rather, the Reserve has the exclusive right and favored practice of printing more money, and loans it out to keep banks from declaring bankruptcy. It inflates the market with valueless currency as a solution created by valueless currency that has already been inflated by scenarios just like this.
Take the big corporations. Or any corporation. When, for whatever reason, a corporation must file bankruptcy, there may be an incentive for the US Government to bail it out. Of course, the government is also bankrupt. But, because it is always expressing a vested motive in accruing more of a controlling interest in, well, everything, it borrows from the Federal Reserve, who prints more valueless currency to loan to the government so it can purchase and further own businesses that already contractually exist by its permission. Not only does the bail-out fund go to inflate the economy, but the interest for the bail-out loan is deferred to the taxpayers as well.
This cycle of inflation, devaluing the economy, going into debt through applying for loans, just to have the economy further devalued through hyperinflation as a supposed solution to inflation, can never prevent the inevitable: a collapsed market, a ruined society, a starving people with wheelbarrows full of life savings that cannot even afford a loaf of bread.
This is the damnation culminating from the broad path of sinful socialism, the road that leads to destruction. The end result of human civil bondage created by human civil government, and its socialist institutions that make merchandise of men, compelling them to sacrifice their liberties and equity in exchange for debt notes. A covetous, idolatrous, morally bankrupt people, who defer their responsibilities to civil institutions in social contracts, will only ever incur a fiscally bankrupt society. This is a cautionary tale that has been repeated by every major culture since the introduction of sin. From Babylon, to Rome, to Venezuela, and eventually, to the United States. The bill always comes due. There is always weeping. There is always gnashing of teeth.
The United States does not have a capitalism problem because fiat currency cannot be said to resemble capital. It has no equitable value for the same reason Chuck E. Cheese tickets have no viable wealth. Even most, if not all, of what is considered property: from land to housing to vehicles, are all possessed through legal titles where the US-backed socialist bureaucracy retains the equitable rights as the true owner. It also retains the rights to play arbiter over your occupation and recreation through Federal Identification with social security registration, income taxation and licensing, including giving permission for corporations to even exist and operate legally. It even retains the equitable rights to your children through birth registration and social security, granting you the privilege of having stewardship through legal guardianship while being its true father, provider, and source of discipline.
By voluntarily rendering unto Caesar that which is God’s, the people have found themselves in a socialist problem forfeiting all capital and equity in exchange for debt notes and legal titles. This is the nature of the social contract which binds men together by force in a mutual economy of ever-depreciating value.
‘Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal:
But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal:
For where your treasure is, there will your heart be also.’ (Matthew 6:19-21)
The Kingdom of Heaven on earth features no fiat currency that can be inflated. It requires real equity, allodium, and commodity money belonging to the people, and not some centralized, institutional government. Lending is rare, interest forbidden. Its currency is love, expressed through charity, and when that charity comes up short, it is subsidized by the charity of Heaven, miraculously multiplying its citizens’ humble offerings, whether or not those offerings are just loaves of bread and some fish. This relationship is fundamentally different than the ways of the world. This is the road to life, and life more abundantly. Life everlasting. This is the road enjoyed by the early abolitionists whose kingdom of God on earth only grew more wealthy and prosperous as the kingdom of Rome collapsed into moral, social and financial ruin.
Federal reserves ruin nations. Or they allow nations to physically ruin themselves after abandoning the law of God as a recompense. One of the most famous acts of King Christ was to turn over the national bank of Judea from the political world over to a repenting people learning to provide for each other a more fruitful society. Many people believe that it is time to ‘End the Fed’, but Jesus Christ, first born of all creation, accomplished that feat in the first century.
The way of Christ is the only way to salvation. The American way leads to death, destruction, and damnation. Believe on the Lord Jesus Christ and the campaign promises of His Gospel, so you may be baptized into his kingdom and out of the kingdoms of this world, and be saved from their inevitable collapse and ruin. Today is the day of salvation.