2. 1
How has shifting to an inflationary
money affected food?
1. Fiat financing affects:
a - Farm financing
b - Dietary guidelines
1. Time preference affects
a- Farm production choices
b- Food consumption choices
3. Fiat Farms
● 1971 closing of the gold-exchange window allowed
a large margin of inflationary expansion
● The inevitable result was price increases for goods
and services
● In particular, food and fuel, which are highly liquid
and competitive large markets
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4. ● Fortunately for governments, the inflation that raises the
prices of essentials allows governments to finance
academics to come up with rationalizations other than
inflation
● Modern macroeconomics (and fiat sciences in general) are
mostly a large coordinating gaslighting campaign to try to
convince the world that inflationary credit expansion in the
1970s was not the cause of price rises.
● All kinds of specific supply & demand factors happened to
affect all goods at the same time everywhere.
● The inflation also allowed the government to spend a lot to
influence food and energy markets to try to understate
inflation
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5. ● In 1971, Nixon appointed Earl Butz as secretary of the
Department of Agriculture.
● "Get big or get out"
● Extend credit to larger corporations, consolidate small
farms into large industrial farms
● Lowered costs
● Destroyed nutritional value of food, and the health of the
soil
● HIGH TIME PREFERENCE
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6. ● Industrialization can increase the calorie content of
food, and to make cheaper food
● But it has not increased nutrition
● Food got cheaper but also less nutritious
● People had to constantly replace their food with
cheaper less nutritious alternatives
● THAT is how CPI can be kept under control
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7. ● As prices rise, people cannot afford to keep increasing
their expenditures
● They instead consume cheaper substitutes
● Measuring inflation happens through CPI, which
measures the change in the price of an "average
basket of goods"
● But if the basket of goods is changing as people
consume cheaper substitutes, price inflation is
understated
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8. ● If you eat a ribeye a day for $10
● And then hyperinflation happens and the price of the ribeye
rises to $100
● You cannot afford to buy a $100 ribeye, you substitute with
a soyburger for $10
● Your "basket of goods" has not increased in price
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9. ● The CPI is a mathematically invalid measure, because
it has no unit
● It measures changes in the value of money, as
measured by a basket of goods, whose composition is
determined by the changes in the value of money
● It's a mathematical tautology
● Promoting cheap foods & subsidizing them helps keep
CPI down
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10. Fiat Diets
● Dietary guidelines are the central planning of diets,
and it fails for the same reason
● Instead of individuals deciding what works best for
their bodies, bureaucrats decide for everyone
● Special interests hijack the process.
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11. Three main drivers of US dietary guidelines:
1. Making the CPI basket of goods cheaper
2. Anti-meat religious movements
3. Agribusiness
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12. They all agree you should eat cheap, highly
profitable and processed plants
● American Dietetics Association
● American Medical Association
● Schools and prisons' menus
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15. Fiat foods
1. Polyunsaturated and Hydrogenated “Vegetable” and Seed
Oils
2. Processed Corn
3. Soy
4. Low-Fat Foods
5. Refined Flour and Sugar
● All of these were heavily subsidized and promoted as cheap
substitutes to the foods humans ate for millennia worldwide
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18. ● Obesity is not a sign of overfeeding.
It is malnourishment.
● Nutrition is about far more than caloric intake. It is
about securing sufficient quantities of essential
nutrients for the body, which come in four categories:
proteins, fats, vitamins, and minerals.
● When nutrient intake is insufficient, body converts
calories to body fat.
● Obesity is just the way fiat poverty manifests itself.
Industrial technology allows everyone to eat as their
money is getting destroyed, but they eat badly.
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19. ● One cannot find a more apt representation of the
impact of inflation and unsound money: the paper
wealth of Americans is increasing and the statistics
show that their quality of life is rising. In reality,
however, the quality of their food is degrading
because the quantity of nutrients they consume is
declining, and their mental and physical health are
deteriorating.
● Instead of nutrients, Americans are increasingly
subsisting on drugs and toxic industrial products.
The ever-growing variety and quantities of flavored
industrial sludge filling Americans’ refrigerators is
not food, nor is it a satisfactory substitute.
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20. ● Americans’ increasing obesity is not a sign of affluence but
a symptom of deprivation. The level of spending and
income in America may be increasing according to
government statistics, but if Americans work longer hours
than they ever did and their basic nutrition is deteriorating,
there must be something seriously wrong with the money
they are using, both as a store and measure of value.
The Faustian bargain of fiat money did not deliver the free
lunch its cheerleaders promised. Instead, it brought
industrial concoctions of soy sludge and high fructose corn
syrup, light on nutrients, high on empty calories, and
extremely costly to the health and well-being of its
consumers. The ever-increasing cost of medication and
healthcare cannot be understood without reference to the
deterioration of health, diet, and soil, and the economic and
nutritional system that promoted this calamity.
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21. Sound food
● What would food look like
without the fiat century?
● Weston Price
● Unique multi-decade
global study of nutrition
and physical degeneration
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22. ● One purpose of Price’s trip was to find “native
dietaries consisting entirely of plant foods
which were competent for providing all the
factors needed for complete and normal
physical development without the use of any
animal tissues or product.”
● But after scouring the globe, Price did not find a
single culture that subsisted on plant foods
exclusively
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23. ● Another important conclusion from
Price’s work is that the diseases of
civilization that we have accepted as a
normal part of life largely began to
appear with the introduction of modern
processed foods, in particular, grains,
flours, and sugars.
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25. ● It is unquestionable that a large part of the
problem of modern industrial diets lies in the
availability of modern high-powered machinery
capable of efficiently and quickly processing
plants into hyperpalatable junk food.
It is very difficult to argue that the fiat money
experiment of the last century has not massively
exacerbated the impact of modern industrial foods
by heavily subsidizing them, and subsidizing the
miseducation of generations of nutritionists and
doctors who promote them.
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26. ● In a world without fiat, nutrition science would
understand all of these important ideas by now,
and doctors and nutritionists would not be telling
people to eat industrial waste.
● In a world without constant inflation, there would
be no need for government to tell people to eat
cheap waste.
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27. Fiat Soils
● Soils are a form of capital, and as fiat raises time
preference, the incentive to consume capital
increases
● The world's soil is heavily depleted after a century of
high time preference farming
● With money failing to hold its value, there are no easy
ways to provide for the future, which is increasingly
uncertain
● As uncertainty increases, time preference rises and
future discounting increases
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28. ● Low time preference farming: gain a small sum
today and keep the soil productive for the future;
rotating grazing animals with crop farming
● High time preference farming: maximize profits
today at the expense of the soil's health tomorrow;
industrial intensive farming with added fertilizer
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29. ● Price identifies the first third of the twentieth century
as the time when soil quality degraded rapidly
● As with his architecture, art, and family, fiat man’s
food quality is constantly declining, as well-
marketed, addictive, and toxic fiat “food” replaces
the healthy, nourishing, traditional foods of his
ancestors. The soil from which life and civilization
spring continues to get depleted, and its essential
nutrients are replaced by petroleum-derived
chemical fertilizers marketed as soil by fiat.
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