Inflation

Expressions researched:
"inflate" |"inflated" |"inflates" |"inflation"

SB Canto 1

SB 1.17.39, Purport:

According to Śrīmad-Bhāgavatam, gold encourages falsity, intoxication, prostitution, envy and enmity. Even a gold-standard exchange and currency is bad. Gold-standard currency is based on falsehood because the currency is not on a par with the reserved gold. The basic principle is falsity because currency notes are issued in value beyond that of the actual reserved gold. This artificial inflation of currency by the authorities encourages prostitution of the state economy. The price of commodities becomes artificially inflated because of bad money, or artificial currency notes. Bad money drives away good money. Instead of paper currency, actual gold coins should be used for exchange, and this will stop prostitution of gold. Gold ornaments for women may be allowed by control, not by quality, but by quantity. This will discourage lust, envy and enmity. When there is actual gold currency in the form of coins, the influence of gold in producing falsity, prostitution, etc., will automatically cease. There will be no need of an anticorruption ministry for another term of prostitution and falsity of purpose.

SB Canto 2

SB 2.7.38, Purport:

The saints and the higher castes or orders of the society are judged by their proportion of knowledge in the science of God, or tattva jñāna, and not by any kind of birthright or bodily designations. Such designations, without any knowledge of the science of God and practical knowledge of devotional service, are considered to be all decorations of dead bodies. And when there is too much inflation of these decorated dead bodies in society, there develop so many anomalies in the progressive, peaceful life of the human being. Because of the lack of training or culture in the upper section of the social orders, they are no more to be designated as the dvija janas, or the twice-born.

SB Canto 4

SB 4.16.10, Purport:

In Kali-yuga, however, the king or government has no well-protected treasury, and the only means of circulation is currency notes made of paper. Thus in times of distress the government artificially inflates the currency by simply printing papers, and this artificially raises the price of commodities, and the general condition of the citizens becomes very precarious. Thus keeping one's money very secretly is an old practice, for we find this practice present even during the reign of Mahārāja Pṛthu.

SB 4.20.21, Purport:

Unable to check such illicit smuggling, the government has decided to manufacture the liquor at cheaper prices so that people can have their supply of intoxication directly from the government instead of purchasing it in public lavatories. The government failed to change the hearts of the citizens from indulging in sinful life, so instead of losing the taxes they collect to inflate the treasury, they have decided to manufacture liquor to supply to the citizens who hanker after it.

SB Canto 9

SB 9.14 Summary:

Lord Brahmā was born from the lotus that sprouted from the navel of Garbhodakaśāyī Viṣṇu. Brahmā had a son named Atri, and Atri's son was Soma, the king of all drugs and stars. Soma became the conqueror of the entire universe, and, being inflated with pride, he kidnapped Tārā, who was the wife of Bṛhaspati, the spiritual master of the demigods. A great fight ensued between the demigods and the asuras, but Brahmā rescued Bṛhaspati's wife from the clutches of Soma and returned her to her husband, thus stopping the fighting.

CC Adi-lila

CC Adi 5.22, Purport:

A part of ego is the sky, a part of which is air, a part of which is fire, a part of which is water, a part of which is earth. Thus one universe inflates to an area of four billion miles in diameter. A yogī who desires gradual liberation must penetrate all the different coverings of the universe, including the subtle coverings of the three qualitative modes of material nature. One who does this never has to return to this mortal world.

General Lectures

Lecture to Technology Students (M.I.T.) -- Boston, May 5, 1968:

Do you know any science of botany?" He said, "Sir, we are ordinary laborer. What do we know about botany?" "Oh. Then seventy-five percent of your life is useless." In this way the student of technology was asking the boatman, "Do you know this? Do you know that?" And he said that "I am ordinary man. What do I know all these things?" Then all of a sudden there was a black cloud, and there was storm, and the river began to be inflated, and the boatman said, "My dear sir, do you know swimming?" "Oh," he said, "no." Then he said, "Then your cent percent knowledge is spoiled. Now you have to go down to the river. Your life is finished." In this way they dropped in the river, and the technological student, because he did not know how to swim, so the storm and the waves grabbed him.

1973 Conversations and Morning Walks

Morning Walk -- December 31, 1973, Los Angeles:

Prajāpati: Actually, I was concerned this morning about inflation. The government and the newspapers, they say the biggest problem today is inflation. From our Kṛṣṇa conscious standpoint, how can we cure this problem of inflation?

Prabhupāda: It is very simple. Don't accept paper currency. It must be gold or some metal worth. Just like one dollar, it must be worth one dollar metal. Then it is solved. But they want to cheat. How it can be solved? Because if I pay you one dollar, I must pay you value for one dollar. But it is the cheating process is going on, "I pay you one dollar, a piece of paper. That's all." So you accept cheating, and I also cheat. Government allows. So how the problem can be solved? It is cheating. But the government allows it as law. And you accept, I accept. Then how they can be solved, solution? This is the solution.

Morning Walk -- December 31, 1973, Los Angeles:

Prabhupāda: Any... It must be value. According to the market price, it must be value. Whatever it may be. Gold is taken, because gold is the most valuable metal. A small piece of gold, it can carry two hundred dollars. But if I give you iron, then you have to bring another, what is called, bus, to carry it. (laughter) So therefore gold standard is accepted everywhere. There is a standard price of gold, so when I pay you money, it must be, carry the value in gold. That's all. Then there is no inflation. The people want to be cheated, and people cheat. That's all.

Morning Walk -- December 31, 1973, Los Angeles:

Prabhupāda: The sinful activities have increased because the world has produced too much wealth. Because they can purchase sinful activities. And that is being increased by inflation. False money I have got, and with that false money I can purchase all this illicit sex, wine, intoxication, and... It is just like nowadays, bank is giving you a card, "Americard..." What is that?

Karandhara: Charge card. Bank Americard.

Prabhupāda: Ah. So you simply show the card, you get the goods. So to exchange, it has become very cheap. So cheaply you can purchase. Therefore cheaply you can purchase sinful things also. The people are becoming sinful. The modern economy is, "Engage people in hard working to produce, and by artificial cheating, secure the goods, commodities." This is modern economy.

Morning Walk -- December 31, 1973, Los Angeles:

Prabhupāda: God consciousness. Then everyone will be honest, and everything will be adjusted. Everyone can understand this is pure cheating. I give you a hundred dollars, a piece of paper. That's all. And you accept it. You want to be cheated. You thought, that "I have got now daily, hundred dollars. So let me work very hard." He does not consider that "I am not getting a hundred dollars. I am getting a piece of paper." So people have no brain to understand even. "This is not hundred dollars. Give me cash, hundred dollars." Then everything, solution will be... There will be no inflation. Because I know that paying you a piece of paper, I can cheat you, therefore I am printing notes, to cheat so many people. Therefore inflation. But when there will be no possibility to cheat you, then there will be no inflation. Here I have got the opportunity, because I know that pushing forward a piece of paper, I can cheat so many people. So there must be inflation. Is it not? This is not psychological? If I know that I can cheat you by this instrument, so why shall I not increase that? That is inflation. What do you think, Karandhara?

Karandhara: That's the basic principle, yes.

Prabhupāda: Yes. I am cheating you, and people accepting my cheating.

Karandhara: The governments actually started the whole thing. They instituted paper money and they instituted it because it is a cheating process. But everyone is participating. So it is just going on and on. That is the real cause of inflation.

Morning Walk -- December 31, 1973, Los Angeles:

Karandhara: The inflation rate is higher than the interest rate. If you earn 5 3/4 % interest in a year, the inflation has gone up 6% in a year. So actually your money, at best it's kept the same.

Prabhupāda: The money is to be kept in cattle and grains. That is Indian economy, cattle and grains. If you have got many cows, you get milk. Milk preparation. And if you have got grain, then where is your problem? You prepare your foodstuff at home and eat and chant Hare Kṛṣṇa. Where is your problem? You want to eat and live peacefully. So if you have got grains and milk, you have got enough food and there is no problem. You haven't got to go fifty miles for your work, and then you require a tin car. So many problems. But if you get your food at home, then eat them and chant Hare Kṛṣṇa and go back to home, back to Godhead. Simple thing.

1974 Conversations and Morning Walks

Morning Walk at Villa Borghese -- May 25, 1974, Rome:

Bhagavān: Now with paper money, any country can print any other country's money.

Prabhupāda: Yes. That is going on. Therefore inflation. Suppose I am an enemy. I print dollars like that, and distribute. So the inflation is there. And the price is increased. If you get money for nothing, you will be prepared to pay anything. Suppose there is one mound of rice. I have got these printed notes. You are offering ten rupees. I will say twenty rupees.

Atreya Ṛṣi: That's inflation.

Morning Walk at Villa Borghese -- May 25, 1974, Rome:

Prabhupāda: That's all. Because I did not earn this money, I have printed. I am prepared to twenty rupees. So he says, "Why shall I pay ten rupees? I must wait for the customer, for twenty rupees, and hoard it." Even there is sufficient stock, he will not sell. Therefore the other man, who is honest, he is suffering. This is going on. So to stop this inflation, the government must stop this paper currency. Then the inflation... There will be no more inflation. But that they will not do. They want to cheat people. "In God I trust. Take this paper and you be satisfied that you have got thousand dollars." That's all. This cheating is going on. Why should you pay me paper? Give me real dollar, in gold. That they have none. They haven't got. That's all. They will employ laborers and cheat them by paying these papers, and this rascal will think that "I am getting more money." That's all.

Morning Walk -- May 27, 1974, Rome:

Bhagavān: Now, recently, in the last war in the Middle East, Saudi Arabians raised the price of the oil over double now, I think, as a pressure to the western countries to do things in their favor. Now they realized that the market for oil is in such great demand that they don't have to lower the price after the war, but they are going to keep the price. And actually the price is still increasing. So this is causing inflation.

Prabhupāda: So this problem will be solved as soon as we are localized. Petrol is required for transport, but if you are localized, there is no question of transport. You don't require petrol. Suppose in New Vrindaban, we stay, we don't go anywhere. Then where is the need of petrol?

Morning Walk -- June 2, 1974, Geneva:

Prabhupāda: The price is the standard, not that goods are required. They want money for purchasing wine. This is the difficulty. They are not satisfied simply by eating sufficient. They want money for woman and wine. This is their philosophy.

Bhagavān: In the United States that same problem was there, that the prices were all going up. Everything was having inflation.

Prabhupāda: So if they had sense, they should have exported where there is necessity of this milk, butter, grain. Then the world will be happy.

1975 Conversations and Morning Walks

Morning Walk -- October 16, 1975, Johannesburg:

Prabhupāda: Government is taking labor from you. You ask, "If you pay me three hundred dollars, then I shall work." "All right, I shall give you. Work." Then what is that three hundred? I print and pay you, and you rascal, you accept it, three hundred dollars. What is that three hundred dollars for government? Printing press. And you are so rascal, "Yes, I have got now three hundred dollars." This is going on. This is artificial inflation. Why there is inflation? Now you have got three hundred dollars without any hard labor. And when you go to purchase—I haven't got three hundred dollars; you have got—"All right, I shall pay this price." So price is increased because the seller will see: "Who pays me large price?" So you have got unnecessary money. You offer him large price. So I am poor man; I could not purchase. This is going on.

Morning Walk -- October 16, 1975, Johannesburg:

Prabhupāda: Yes. Yes. I have seen it. I have seen it during last wartime. One Chinese man was coming to one of my friends, my business friend. So he would give, immediately coming, a bunch of notes, maybe ten thousand.

Puṣṭa Kṛṣṇa: Indian notes?

Prabhupāda: Yes. And a list of goods. He was his purchasing agent. So that bunch of notes was printed in China. You see? And he brings it and gives to a merchant here, and he gives him real goods, and he takes it out. This is inflation.

Devotee (2): Could he spend that money?

Prahupada: Yes. I print ten thousand dollars' worth currency note, and I give you, and I take you, actual goods from you, anywhere.

1976 Conversations and Morning Walks

Room Conversation -- June 17, 1976, Toronto:

Hari-śauri: The thing that came up when we were into doing the political thing a little bit, they were asking..., one of the major issues always in political battles is how would you control inflation, how would you solve the inflation problem?

Prabhupāda: Inflation problem, I suggested, make gold coins as medium of exchange.

Room Conversation -- June 17, 1976, Toronto:

Prabhupāda: If I have to pay you, if you don't accept paper, then I'll have to give you gold or silver, and international exchange is going on. Then there is no inflation, because you'll not accept paper, so what is the use of printing notes? They are printing notes without any gold reserve.

Morning Walk -- August 11, 1976, Tehran:

Ātreya Ṛṣi: Iran at that time was even cheaper, much cheaper. Because you had the British in India, you were...

Prabhupāda: Yes, when India was native state, they were cheaper. In India, this inflation was caused by Mr. Churchill. During the war he wanted men to join the fighting, so people were not coming. So artificially...

Ātreya Ṛṣi: Printed money?

Prabhupāda: No, artificially increased the price. So they were obliged to join.

1977 Conversations and Morning Walks

Conversation and Instruction On New Movie -- January 13, 1977, Allahabad:

Prabhupāda: Gandhi helped to stop the British capitalist in favor of the Indian capitalist. The consumer remained in the same position, rather, worse. The foreigners, they are thinking that "These people are poor. They cannot pay more to me." And these rascals, Indian capitalists, in the name of nationalism, Birlas and others, they exploit. And they give contribution to Gandhi, Gandhi's staff, Jawaharlal Nehru's staff. And they took the opportunity that "I shall pay this rascal one lakh, and I shall utilize the ten lakhs." That's it. So the object of exploitation remained the same. Rather, by artificial inflation of money market put common men in plight, because the other day I was calculating... The things have gone high priced, thirty times, but the income has not increased thirty times. The other day I was calculating. My father's income was, utmost, three hundred rupees. So we had no scarcity. In our standard of life there was no scar... What standard of...? That standard of life is still... Now that three hundred rupees is... He calculated.

Room Conversation -- January 21, 1977, Bhuvanesvara:

Prabhupāda: Anyone has got money... It is fact. And what is this nonsense, keeping some paper and thinking he has got money? How cheating it is going on, from government's side. And therefore artificial inflation. You can print, so the price is increased. Because you haven't got to pay him real money, you print and pay him, and he will ask, "Give me this money. Then I'll supply." "All right, take." You print and pay.

Room Conversation -- January 21, 1977, Bhuvanesvara:

Prabhupāda: That barter system. You have got rice; I have got something else. So I give you something; you give me something.

Hari-śauri: But isn't inflation possible even with coins? Even if you have gold coins, isn't inflation still possible?

Prabhupāda: No, gold is acceptable by everyone.

Room Conversation -- January 21, 1977, Bhuvanesvara:

Hari-śauri: So you can alter... Say, you have one gold coin. You can alter what it...

Prabhupāda: No. If you introduce real metal coin, then there will be no inflation.

Hari-śauri: There's only a certain amount of metal.

Prabhupāda: That's all right. The exchange... The more demand, more price. So suppose here is a spectacle. I am demanding ten rupees. So both of you are customer, and you are asking for this spectacle. Then I am increasing my price. So if you can pay me by printing paper, you'll accept any price. That means artificially price is increased. Is it not?

Room Conversation with Ratan Singh Rajda M.P. 'Nationalism and Cheating' -- April 15, 1977, Bombay:

Prabhupāda: So we have to touch all these. Then poverty... And "Drive away poverty. Give them more money." More money means cheating. You are employing; I am employed. Begins from government. More money and printing, they are coming. If I have got power to print paper and distribute it as money, you are dissatisfied, getting hundred rupees, you want two hundred, so what is to me? I print and give you. This is artificial inflation.

Room Conversation with Ratan Singh Rajda M.P. 'Nationalism and Cheating' -- April 15, 1977, Bombay:

Prabhupāda: What is that? The idea is cheating. The cheating business begins from the government. And why people will not learn to cheat? This is cheating. I am giving you one paper, one hundred rupees, dollars, and you are happy: "I have got so many ..." I am giving you check, ten thousand dollars. You got ten thousand dollars. Now I give you a paper. But it is going on. We have made machinery in such a way that it will go on in hundred rupees or ten thousand rupees. Just like this fixed deposit. I am giving actual money; they are giving a receipt. And it will increase. What increase? The same paper. And gradually inflation is going on. They'll pay at the inflation rate.

Conversation Pieces -- May 27, 1977, Vrndavana:

Prabhupāda: Just like the rogues and thieves, they by force take money from us, these rascal, under some law, they'll take, this government. They will live at any cost. Never mind forty rupees (indistinct) a week. They have got cheap money. Print note and give him forty rupees. What is that? "You want forty rupees? Eh, take forty rupees." This is artificial inflation. They have got power to print notes. "Pay gold forty rupees." "No, that is illegal. Take paper." Means a cheating business from the government. He's giving him piece of paper, and the rascal is thinking, "I am making one thousand rupees." Formerly, in our childhood, we have seen a currency. They will offer, "What you want, gold, silver, or currency?" These three things were offered. If you want gold coins, take gold coins. If you want silver coins, take silver. And if you want currency, you take. We have seen it.

1968 Correspondence

Letter to Jadurani -- Los Angeles 25 December, 1968:

Setting of the scene: Vasudeva saw that all of the doors were opened and that the gate-keepers were asleep so he went outside of the house and came to the bank of the Yamuna. He sees that the river is inflated with rainy season water and he thinks, "How shall I cross?" Then he saw a jackal crossing the river and Vasudeva realized that the river was shallow and only up to his ankles. So Vasudeva, holding little Krishna in his arms follows the jackal across the Yamuna River. So this night scene of walking across the river is the fourth picture.

1969 Correspondence

Letter to Madhavi Lata -- Los Angeles 13 January, 1969:

Setting the scene: Vasudeva saw that all of the doors were opened and that the gate-keepers were asleep, so he went outside of the house and came to the bank of the Yamuna. He saw that the river was inflated with rainy season water and he thought, "How shall I cross?" Then he saw a jackal crossing the river and Vasudeva realized that the river was shallow and only up to his ankles. So Vasudeva, holding Little Krishna in his arms, follows the jackal across the Yamuna River. This night scene of walking across the river and following the jackal is the fourth picture.

1974 Correspondence

Letter to Balavanta -- Tirupati 28 April, 1974:

As for political speaking, first of all, don't go so much into the details of the affairs. Our message is that people should elect pure God Conscious leaders, that is our main statement. We cannot go into details. As a side touch you can speak on inflation.

Yes inflation is due to paper currency. As for land ownership, in the Vedic civilization the land was given to the people for cultivation not for ownership, and a tax was collected which was 25% of the person's income. The land belonged to the state and the man would cultivate it and pay 25% to the state. If he has no income then he doesn't have to pay.

Letter to Hamsaduta -- Bombay 1 December, 1974:

From my own experience I have seen when first class rice was selling at 8np. per kg, and now that is being sold at Rs. 8. That means that it is 64 times higher, but still people are eating, and the man who lives in care of the footpath he is also eating. So the man in care of the foothpath, and the man on the 30th floor of the sky scraper, they are living and still the inflation is going on. Man-made laws cannot work any rupture in Krsna's plan. Better let us remain now under Krsna's shelter fully dependent, and we shall remain unaffected by all the man-made difficulties.