The Great Robbery with no thief

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  1. Oil imports and exports - U.S. Energy Information Administration (EIA)
  2. Monthly Oil Market Report
  3. Biden announces release of oil reserves, but says gas prices will not drop overnight
  4. Oil prices have soared. Why won't Opec bring them down?
  5. ENTSOG - Transparency

Episode 0: KISS island

In my imaginary world stands a special island, a place I enjoy traveling to whenever I need to understand an economic concept, a place I call KISS Island (Keep It Super Simple Island), a place I’d like to take you if I may, to talk about inflation, but from a different angle.

“ Ladies and gentlemen, on behalf of KISS Airlines, it’s my pleasure to welcome you aboard Flight Zero, where we’ll try to understand a hidden inflation factor. Not the most used one to explain the phenomenon but the most plausible and easy one to implement; While “money printing” remains our economic teachers and right’s experts favorite factor they all enjoy talking about, we’ll try during this flight to explore another one.”

Episode 1: A fragile but working economy

KISS island do not host more than 10 citizens, each 2 citizens are separately producing 1 useful product for this small society that doesn’t need any additional product to live in harmony. Concurrency is voluntarily intended to prevent anyone from manipulating the market and making its product rarest in order to get additional & unjustified margins. Therefore, 1 of the 5 available products seems to be needed to produce the 4 other ones and is consequently considered as special by all the community.

Episode 2: Breaking the trust

On a beautiful starry night, one of the two Special Product producers invited the other for a dinner, after a short conversation about weather and on how to increase their both margins, one of them proposed a brilliant idea that would allow them to quickly achieve this goal and even to decrease their current expenses at the same time. Such a solution existed indeed and was easy to implement: Both agreed to split their productions by half starting from the next day. Making their product rarest in the island’s market would certainly raise its price, and would help them both reaches that additional & unjustified higher margin they always wanted to achieve, in a very short term.

Episode 3: The raise of prices

The next morning, the 8 other citizens woke up on the rumor and surprisingly discovered the new price of that Special Product the 4 other products requested in order to be built. As a first reaction, citizens had no other choice but raising separately their 4 products prices in a desperate but natural attempt to preserve their existing margins. Citizens didn’t suspect anything wrong at that particular moment, prices were naturally correlated with product’s availability and the Special Product was rarest indeed that day. Also, the 8 citizens assumed that concurrency was loyal between all producers and no alignment was made between some of them to manipulate the island’s market trends, they trusted each others, and trusted the Special Product producers as well.

Episode 4: The versatile behaviors

During the next evening, everybody noticed that all 5 products prices raised simultaneously and that most of citizens couldn’t afford all the products anymore. Despite its necessity, and as a 2nd consequence, the 5th product couldn’t be afforded that evening by most of the citizens whom decided to delay this action to a near future and to live without, for now.

Episode 5: The fall of values

The 3rd consequence arrived by night when both citizens producing the abandoned 5th product declared themselves as jobless, and couldn’t afford the other island’s products for the same reason.

Episode 6: The unescapable unemployment

The 4th consequence started the day after when nobody in the island was able to sell anything anymore causing the most higher level of unemployment ever noticed in KISS island.

Episode 7: The unforgettable Hell

None of them really understood what happened that day but all were feeling the absence of the money that suddenly disappeared from their pockets nor from the island itself. Despite all their tentatives, they never figured out where did the money go and even less how to get it back. They just accepted to suffer for years from the consequences of that sad event that KISS island richest named “Stagflation” but that all citizens will always remember as “The Great Robbery with no thief”.

Conclusion: US and Them

We, passengers of Flight Zero will eventually never land on KISS island but are able to deduce the fraude by now: Money did never disappear from the market as it only moved from 8 citizens pockets to 2 allies ones, as an additional & unjustified margin.

We, passengers of Flight Zero will eventually never land on KISS island but are able to get back home by now, to our real world, where the Special Product cloud be nothing but Gas and where the allies could be nothing but OPEC+.

“ Ladies and gentlemen, Zero Flight welcomes you back to the real world. Local date is June 19, 2022 accross earth, humanity is suffering from a worldwide inflation and a worldwide stagflation is about to begin. For your safety and the safety of those around you, please remain aware and seated with your knowledge belt fastened and keep the aisles clear until we are parked at the next civilization revolution … “