Monetary inflation, the increase in the supply of money, tends over time to lead to price inflation. The relation between the two is not clear to the general public, and so when price inflation does hit, merchants often are blamed for increasing prices rather than the real culprits, the special interests, politicians and central bankers who lobby for and practice debasing the currency through monetary inflation. Currency debasement is, of course, immoral and nothing short of institutionalized theft. Both those who practice it and those who support it with intellectual arguments are guilty of breaking the eighth commandment, you shall not steal.
Inflation transfers wealth from savers to debtors. Gordon Clark understood this when he wrote,
But if life is an equal value to all, there is something strange, when war comes and large military expenditures are necessary, in requiring the person who has saved for a life insurance policy to lose half its buying power by inflation, while the spendthrift loses nothing and enjoys high wages to boot.
– A Christian View of Men and Things, pp. 101-102
Unlike Gordon Clark, those who set monetary policy in our country demonstrate utter contempt for savers while bailing out their friends among the too-big -to-fails. The Fed’s announcement Wednesday of the ex nihilo creation of 600 billion dollars, while good for the politically connected, is a frightening and naked abuse of power that bodes ill for the value of our savings, our retirement and our paychecks.
Lux Lucet 
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