Every time a central bank turns on the printing press, it signs a death warrant for the welfare of yet unborn children. We live in an era of financial gerontocracy, where "easy money" policy has become a tool for intergenerational robbery on a massive scale. The modern monetary system isn't just an inefficient mechanism for resource allocation; it's a well-disguised machine for pumping wealth from future generations to current ones. And while economists in expensive suits discuss "inflation targets" and "monetary stimulus," we silently agree to the largest redistribution of wealth in history - from those who cannot yet vote to those who already control the political system.
Anatomy of an Inflationary Crime
What is inflation really? Forget economics textbooks. Inflation is financial alchemy in reverse, turning gold into lead, only slowly so you don't notice the substitution. Imagine every dollar or ruble in your pocket as a tiny battery that gradually discharges, losing 5-10% of energy annually. Only new "batteries" are no better than old ones - they are born already partially discharged.
When the government borrows money it cannot repay, it instructs the central bank to perform a financial miracle - creating money out of thin air. The "money printing press" is not just a metaphor. Since 2008, leading world central banks have printed more than 25 trillion dollars. Translated into human language: they diluted your savings, like a dishonest bartender dilutes expensive whiskey with tap water.
But even scarier is that this intergenerational robbery is disguised as "stimulating the economy." In reality, every printed dollar is a claim against the future, a promissory note that our children will have to pay. When inflation eats up 50% of money's value over 15 years (corresponding to annual inflation of about 3%), an entire generation is robbed by half, and no one goes to prison for this crime.
Think about it: if someone stole half of your savings, they would be imprisoned. But when inflation does the same job, economists call it a "necessary evil" or, more cynically, a "target." Central banks even set themselves a goal to devalue your money by 2% annually and call it stability. Imagine a robbery that is planned publicly, announced in advance, and no one can stop it.
Gerontocracy and Financial Cannibalism
Our political system has turned into a gerontocracy - rule by the elderly, where the average age of politicians in leading countries approaches 60-70 years. These people make decisions with consequences they probably won't live to see. Older voters demand more social guarantees, pension payments, and medical care. And who will pay? Naturally, those who are currently in school or not yet born.
Global debt has reached an astronomical 300 trillion dollars - more than 350% of world GDP. Every child born today comes into the world already with a debt noose around their neck. And while politicians of various stripes promise new programs and benefits to their voters, the debt burden grows geometrically.
This financial cannibalism is disguised with beautiful words about "intergenerational solidarity" and "social responsibility." But let's call things by their proper names: we are eating up our children's future. We borrow not to build roads or universities that future generations will use, but to maintain an incredibly expensive social security system for an aging population.
As one cynical economist noted, "modern democracy is two wolves and a lamb voting on what to have for dinner." Only in our case, the "lambs" are not yet born or have no right to vote. And the "wolves" vote to live it up now and pass the bill to their descendants.
Fiat Systems as Time Machines for Wealth Theft
Modern fiat money is essentially a time machine for stealing prosperity from the future. By untethering currency from the gold standard in 1971, we opened Pandora's box. Without an anchor restraining emission, governments gained the ability to create money virtually without limits.
Each new dollar, euro, or yuan created out of thin air doesn't just dilute the existing money supply. It imperceptibly takes a tiny piece of wealth from every currency holder and redistributes it to those who receive new money first - governments, banks, corporations. This is the Cantillon Effect, named after an 18th-century economist who first described this mechanism.
As a result, we live in a paradoxical society where more money is created, but its real purchasing power for ordinary citizens falls. Stock and real estate prices rise to the skies, making the rich even richer, while young families cannot afford even modest housing. This is not an accident but a direct consequence of monetary policy.
Particularly cynical are central bankers' statements about "temporary inflation spikes" and their promises to "restore price stability." History shows that once triggered, inflation rarely returns to previous low levels. Instead, "step inflation" occurs - prices rise in jumps, then stabilize at a new, higher level, preparing for the next jump.
Generation "Boomers" vs Generation "Doomers"
The gap between generations has never been as deep as it is now. "Boomers" (born between 1946 and 1964) entered adulthood in an era of unprecedented economic growth, cheap education, affordable housing, and reliable pensions. Their children and grandchildren face a completely different reality.
Generation Z ironically calls itself "doomers" (from doom - fate, destruction), and there is more truth in this dark humor than might appear. They face living in a world with depleted resources, astronomical debts, unstable employment, and a broken social security system. It's no surprise that many of them become economic nihilists, refusing to play a game whose rules are knowingly not in their favor.
Statistics are merciless: in the 1970s, the average house in the US cost about two annual salaries, today - more than eight. In Russia, the housing affordability ratio in metropolises exceeds 15 years of average salary. Education has transformed from a social elevator into a debt pit. Stable employment becomes a privilege of the chosen, not the norm.
At the same time, "boomers" control more than 70% of all financial assets in developed countries. They vote to preserve the status quo, resist structural reforms, and, paradoxically, accuse youth of "laziness" and "insufficient determination." This looks like mockery from a generation that took all the cookies for themselves and suggests collecting crumbs from the floor.
We have created an economic system where the past devours the future, where accumulated rights are more important than new opportunities, where debts grow faster than the ability to service them. And the scariest thing is that we continue to pretend that this is normal.
Digital Salvation or How to Break Inflationary Chains
But history is not determined, and future generations have a chance to break out of this trap. The digital revolution creates not only new challenges but also new opportunities for financial liberation. And cryptocurrencies occupy a central place in this revolution - the first money in many decades that is not centrally controlled and cannot be arbitrarily devalued.
Bitcoin, created after the 2008 financial crisis, became the first response to the monetary madness of central banks. Its limited emission (never more than 21 million coins will be created) makes it a digital analogue of gold - rare and not subject to inflation. However, the first cryptocurrency has its limitations - high volatility, lack of internal economy, and periodic cyclical falls of 80%.
The new generation of cryptocurrencies goes further, offering not just alternative money but entire ecosystems with internal economies and mechanisms protecting against inflation. One such project is DeflationCoin - the first currency with algorithmic reverse inflation, functioning in a global diversified ecosystem.
Unlike Bitcoin, where emission is merely limited, DeflationCoin actively burns coins not entered into staking after purchase, creating real deflation and stimulating long-term storage. This approach forms an investment culture of long-term holding instead of speculation, and the smooth unlock mechanism excludes the possibility of emotional and mass sales.
Of course, cryptocurrencies are not a panacea for all modern financial woes. Fundamental changes in approach to government finances, pension systems, and social policy will be required. It's necessary to rethink relationships between generations, moving from a "life in debt" model to a sustainable development model. But the first step to healing is awareness of the disease.
As long as we continue to pretend that we can infinitely shift the financial burden to future generations, we doom our children to economic slavery. True intergenerational justice begins with creating a financial system that doesn't steal the future for the present. And technologies for this already exist - all that's needed is political will and public awareness of the scale of the problem.
The inflationary gap between generations is not just an economic phenomenon; it's the moral question of our time. And how we answer it depends not only on the financial future of our children but on the very idea of the social contract between generations.