This economic mess is getting bigger. The cost-of-living pain being inflicted through the destruction of our currency is staggering.
Its called wealth transfer, I call it confiscation.
The government creates the myth of inflation, that prices can only go up, while in fact their money printing and easing is the inflation.
***Get that: the printing/easing/debasement is the inflation, higher prices the result***
(remember money is a commodity, subject to the same laws of supply and demand as anything else, more supply and its value falls)
Printing & Easing = Lower Dollar
Lower Dollar = Higher Prices
Higher Prices = Less purchasing power
Less purchasing power = lower standard of living for avg. Americans
The daisy chain goes something like this:
*Govt. overspends and over benefits itself, going hugely in debt (remember a govt. does not create or make anything, they live off our taxes, off our hard work).
*Govt. prints money, trying to hide its debt (inflate its way out of overspending).
*Prices rise because of the printing & easing, the Govt. claims its from real demand, but is phony.
*Now the govt. claims that costs have risen, that running the govt is more expensive, so they need to raise taxes.
*Govt. kicks back some of the money to the unions, wealthy and other connected individuals to ensure re-election (Many forms: subsidies, tax breaks, campaign advertising, pork barrell projects, etc, you name it).
*The gravy train recipients use the taxpayer money and lobbyists to get their causes at the top of the next political agenda.
*Repeat, over and over!
The rich and politicians keep more and more. Every printing and easing cycle allows the well-to-do and connected, to increase their wealth.
As the dollar gets devalued repeatedly, on a relative basis the wealthy can still spend and consume, buying up more and more of the means-of-production (relegates average citizens to servitude/serfdom in a way).
The latest example is the housing market. A large percentage of the average population is stuck renting apartments and leasing, as the wealthy run around buying up all of the property (cherry-picking) at great prices (transfer of wealth). And, NO people not paying their mortgages are are not justified either, that is just as wrong.
Happens over and over, its just a different asset class each time.
Tell the govt. to stop devaluing your money. Stop creating bubbles. Remind them that they work for you, the taxpayer. Make them live with in a budget.
Why do I write this. I must share it! It feels like a duty. I only hope that in some small way it helps others by creating awareness.
"I am only one, but still I am one. I cannot do everything, but still I can do something; and because I cannot do everything, I will not refuse to do something that I can do. "
Helen Keller
Reading for those interested in learning more: (no particular order)
The Economy Is Sliding Into a Stagflationary Spiral
Big Five Most Vulnerable to Derivatives
Taleb Says Fed Doesn't Understand Risks of Quantitative Easing
(Video) DJIA Priced in Gold: What It Means for the Long-Term Trend
Inflation (monetary) Is Not Inflation (price)
The Accidental Egalitarian: Technology and the Distribution of Income
Private equity's egregious tax loophole
Bill Gross: The leader Treasury, Fed needs Commentary: We need new blood to save investors, retirees
