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Inflation Is the Real Parasite: Why the Fed Fears Deflation Like Fire

EDITOR'S NOTES

They keep telling you inflation is “healthy,” that a little monetary erosion keeps the economic engine running. But here’s the truth, scraped raw: inflation isn’t a feature—it’s a parasite. And the Fed is its host.

Frank Shostak’s original article over at Mises Wire does a hell of a job laying out the logical fallacy that is modern monetary policy. I’ve taken his core message, turned up the heat, and ripped the mask off this bureaucratic scam. What follows is your guided tour through the twisted logic of central planners and the truth they hope you never understand.

The Lie of "Healthy Inflation"

Let’s start with the lie so many of us are force-fed like livestock: “A little inflation is good for growth.” According to the priesthood of mainstream economists, the Fed needs a bit of inflation to keep its toolkit sharp. They argue that if prices drop—or God forbid, stay flat—it will paralyze spending, raise real interest rates, and throw the economy into a deflationary death spiral.

Why? Because they’re terrified of what happens when money actually gains value over time. In other words, they’re afraid of the system working without their manipulative hands all over it.

How the Scam Works

The central bank's playbook is built on a fake equation:

Real interest rate = Nominal rate - Inflation rate

So when inflation drops to 0% or negative, they claim the Fed can’t go low enough with interest rates to “stimulate growth.” If inflation hits -1%, they want to set interest rates at -1.5%—which means punishing savers and rewarding the elite borrowers and spenders who helped build this house of cards in the first place.

They see deflation not as a healthy correction or an increase in purchasing power—but as a threat to their control.

The Dirty Secret of Inflation

Here’s what they’ll never admit in polite company:

Inflation isn’t rising prices—it’s counterfeit money.

When central banks pump out dollars with nothing behind them, they’re not stimulating the economy—they're robbing you in slow motion. Inflation is just a side effect of theft.

New money, conjured out of nothing, allows governments and politically connected institutions to steal purchasing power from the rest of us—those who save, produce, and build. That’s not economics. That’s organized looting.

And when inflation finally does show up in prices? The blame gets passed down the chain—to businesses, supply chains, even consumers themselves—anyone but the money printers.

Why Deflation Is the System’s True Kryptonite

Deflation doesn’t kill economies. It kills parasites.

When prices fall because of increased productivity, innovation, or the collapse of unproductive zombie businesses, that’s not a bug—it’s a feature. Deflation means your dollar goes further. It means value is being created, not diluted.

During the late 1800s under a gold standard, prices fell by 30%—but real incomes rose by 85%. Why? Because back then, money was real, and the economy wasn’t a casino run by unelected bankers.

In other words, prosperity doesn’t come from inflation. It comes from production and savings—not debt and decay.

The Bottom Line

The Fed doesn’t fear inflation—it needs it. Like a junkie needs a fix. Inflation gives them room to "maneuver," which is code for manipulating the economy, crushing savers, and bailing out their friends when the next bubble pops.

Deflation is their enemy because it exposes the rot. It forces bankruptcies, liquidates garbage assets, and shines a light on decades of bad policy.

And that’s why they’ll do anything—anything—to avoid it.

TAKE ACTION NOW

If you still think the Fed is trying to “stabilize the economy,” you’ve been had. The only way out of this slow-motion collapse is to protect your wealth and reclaim your autonomy.

Download “Seven Steps to Protect Yourself from Bank Failure” by Bill Brocius now. Don’t wait until your dollars are worth less than toilet paper.

👉 Click here to get the guide

The war on your wallet is already underway. Time to fight back.

—Derek Wolfe