True Patriot Love - Explaining the “Inflation Tax”： How Money Creation Affects Prices

Length

1 minute

Words per minute

189.08

Word count

232

Sentence count

Summary

Inflation is one of the most undemocratic forms of taxation in the world. The central bank creates new dollars right out of thin air, buying financial assets, largely government bonds, and financing massive deficits in order to keep prices going up.

Transcript

00:00:00.000 let me just explain the inflation tax real quick because um this is really one of the worst forms

00:00:05.120 of taxation um it's it's a fundamentally undemocratic form of taxation and make no

00:00:10.080 mistake about it it is a form of taxation and that's when the central bank creates new dollars

00:00:16.080 right out of thin air uh buying financial assets largely government bonds i you know financing

00:00:21.840 massive deficits in ottawa okay and the the key problem this is where inflation really stems

00:00:27.680 Because throughout the economy, you can get some prices going up, but if you're not creating new

00:00:32.420 dollars, then other prices would go down, right? If there's only so many dollars in the economy,

00:00:37.140 one price goes up, another price goes down. Now, what creates this general increase in inflation

00:00:43.420 year after year after year is the money printer, okay? The fact that through the central bank,

00:00:49.560 the government can essentially create a new dollar out of thin air with a click of a keypad.

00:00:53.920 So through the central bank, and we saw this big time during the pandemic, where the Bank of Canada printed up more than $300 billion out of thin air, is that you create the perfect storm of inflation, which is too many dollars chasing too few goods.

00:01:09.320 And oh, by the way, Canadians never voted on that.

00:01:12.000 That is the inflation tax, folks.

True Patriot Love - December 22, 2025

Explaining the “Inflation Tax”： How Money Creation Affects Prices

Episode Stats

Summary

Transcript