Feeling a little pinched when you gas up the old Suburban lately? Does a trip to the grocery store suddenly deprive you of your appetite? Your whole family needs to go on a diet anyway, right? We found this great video tutorial over the weekend whilst googling, which explains what's happening to the rapidly decling purchasing power of your personal pocketbook.
Don't be like the Standard-Examiner editors, and blame across-the-board "price increases" (it's not just oil prices that are going up) on greedy commodity producers. The chief problem is the falling (fiat) dollar, which is being intentionally "devalued" by the privately-operated U.S. monetary authority -- The Federal Reserve Bank -- as it dumps trainloads of cheap printing press dollars on the sagging world economy. The video:
As an added bonus, we link this fine Mish's Global Economic Trend Analysis blog post, which deals in detail with the history of debased currency and fiat money.
We already know some of our readers' eyes glaze over, every time we discuss the subject of economics. In that context we ask: Shouldn't you all learn a little more about economics, while your purchasing power is being flagrantly ripped off by the banking establishment and our compliant government?
Just because it's a slow Emerald City news day, it doesn't mean we can't all learn something new.
Right?
Comments, anyone?
8 comments:
Here in this city we have a mayor who is still trying to give the golf course away because it cost to much to run it. But in the same sense the mayor does not care how much his staff spends for a new vehicle. A year of so ago Mark Johnson bought a new Humm Vee and brought an embarrassment to the Mayor, and now this month the same Mark Johnson and the Police chief senator Jon Grenier have gone out and bought with our tax money brand new Cadillacs escapades SUV's.
Why doesn't the Mayor really pay attention to the real waste to the city through his own administration? What's up with this Mayor. Please tell us the truth about this Issue. I think that you should cut back on all the pork in your administration before you cut the public services.
So give us a break. Will you.
The Fire Chief got a new Toyota Sequoia, I think thay are around 45k.
Such waste to get new vehicles every two years, and the police cars and fire engines are falling apart because they are so old.
Priorities....
Good point from the article: In a barter economy, pieces of papyrus with numbers would have no purchasing power.
Also liked the '65 silver quarter for a gallon of gas example from the video.
I remember when Nixon finally closed the gold window. I was working as a young woman at SLC's biggest drug and variety store at the time. Within months, we were spending hours a week changing price tags at the store every time a new shipment of merchandise came in. The inflation was quite immediate.
Thanks for the article.
A great video.
Perhaps I can add some facts.
There is a 99% mathematical correlation between growth of the M3 money supply and inflation. Year over year, M3 is running at 20%!
The Bush Federal Reserve quit publishing M3 when it soared into double digits. Now, M2 money supply is running double digits too. (M3 is still calculated by private firms so we know what it is.)
Yet, inflation is reported as only 5% year over year. Why? Because during the Reagan and Clinton administrations they changed the way they CALCULATE inflation, while they were deregulating the banks into casinos! If you want to know what it really is, buy gas, milk, flour, etc.
By the way, nowadays the Fed likes to use the "core" inflation rate, not counting gas and food, the things that are going up! It's crazy!!
When inflation on all items catches up with the money supply growth, watch out.
Of course, if the economy implodes into a depression, the money supply will shrink. That's the game of chicken the government is playing right now.
Either way, we are in great trouble.
Interestingly, when Nixon implemented price nationwide price freezes (remember?) inflation was running about 5%. Now, if they calculated it right it would be 20%.
Note that the Euro central bank is not slashing interest rates like the US Fed. They are much more responsible.
Yes, the falling dollar is the cause of the inflation, and the doom of the world economy.
When the madmen run the asylum . . .
I can't emphasize how serious this is. Tell me I'm wrong.
The End of M3 – Hiding the Truth About Inflation
From the "mish blog" article:
"In short, a free market medium of exchange/store of value can only be something with an already established demand. No worthless object would ever emerge to function as money in a free market."
Ask yourself why you've been conned into accepting inherently worthless paper in exchange for your goods, services and labor.
Are modern Americans dumb, or what?
Just asking,
It was when the government decreed that they would accept paper currency as payment for taxes that gives it it's hard legitimacy. So the government in it's tyranny to raise taxes indentures us into it's scam and entrenches our loyalty and subservience. Nice thought...
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