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Artificial Inflation

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Artificial inflation pertains to methods and mechanisms that can artificially inflate value in market function. Especially relating to system manipulation.

Factors that contribute to artificial inflation:

  • Anti-trust violations
  • Price Fixing
  • Price Gouging
  • Market Monopolies

Preventing Artificial Inflation

What does it take to prevent artificial inflation from degradative market disruption and influence?

Let’s look at that in parts:

    1. One is transparent competitive markets. That is a capital market that has sufficient transparency and product availability through multiple vendors to enable market competition efficiencies. 
    2. To achieve this, there must be sufficient regulation to reduce the degradative influence of market monopolies and price gouging.
    3. There must also be rules that prevent market price fixing which effectively destroys market efficiency by removing capitalism from the equation.

Corporate Artificial Inflation

This has to do with special interests unduly influencing policy to favor political agendas at the local, state or0 national level. The influence of money in politics can cause dramatic artificial inflation and assist in locking up markets.

Corporate controls on politicians also disable normal capital market operation by cutting out competitive practices and replacing them with policy directives that favor said special interests. This is not only anti-American, as it reduces market entry ability on a competitive playing field, but also inflates prices.

Securities Artificial Inflation

This also falls into the special interest category, or the swamp as it has come to be known. Again we see special interest influence favoring corporations and ignoring capitalism. Keep in mind, by ignoring fair market competition and creating opacity in market structures…, well, when the mouse can bypass the cat, the likelihood of missing cheese increases.

Market Opacity Artificial Inflation:

  1. Complex accounting creates loopholes and arguability.
  2. Corporate regulations that enable the foxes to guard the henhouse.
  3. Security exchange rules that favor opacity and loopholes

All these factors contribute to artificial inflation by reducing competitive open market capitalism.

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