Monday, November 11, 2013

How's that Inflation?

Although official numbers show the recession ended in 2009, 72% of consumers still feel like they're in a recession.

That's inflation folks. It fudges the numbers so you can tell everyone everything is fine, but even if they can't put their finger on it people know it just isn't true. Wages may be going up nominally but the price of goods is going up faster. Portions are getting smaller. Purchasing power is decreasing.  And wealth is systematically getting transferred to banks and political cronies.

Why? Because monetary inflation is caused by Uncle Sam deficit spending and printing money to "pay" for it. This money goes to government contractors and banks first, where they can spend it before the market prices adjust to accommodate the new money competing for the same amount of goods.  The price of goods increases and then wages gradually trail along behind.

But the banks and cronies have already gotten their share of the pie. They spent the money before prices went up; the workers are spending it after. It's traditional buy-low, sell-high and the banks are keeping the spread.

Why can they do that? Because the politicians continue to spend money we don't have by counterfeiting it out of thin air. They keep lying to us that this is making things better and helping the economy.

Somewhere deep inside 72% of people know something is not right. But we'll keep reelecting the same liars until enough of us can finally see through their tricks.

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