According to the inflation calulator at http://www.westegg.com/inflation/infl.cgi –
“What cost $1560 in 1945 would cost $18472.59 in 2008.”
Most people are fooled into thinking inflation means rising prices. That fails to distinquish cause and effect. The cause is government creating money out of thin air; the effect in this case is to bid up all prices.
There are many things that serve as money in a modern economy: not just cash but bank balances, credit card spending limits, many kinds of bonds, etc. This gives the Federal Reserve many options on how to insert money into the economy. Do it one way, consumer prices go up. Do it another, and the stock market goes up. And most recently, housing prices explode and set the stage for the current crisis.
But nowadays folks are not aware enough of market economics to understand that putting the government in charge of the money supply is putting the fox in charge of the henhouse. People don’t even think that’s a problem, and their minds are closed to the disirability–and historical fact–of privately issued money which the government cannot manipulate for political ends.
I understand that you can go on eBay and buy Zimbabwean money. I recently saw a Zimbabwean 100 TRILLION dollar bill. Worth a few bucks. I don’t believe the U.S. will go that far, but folks, get ready, because when the effects of a trillion dollar American deficit kick in, Jeff’s annual salary will seem like pocket change, and Obama’s promise not to raise taxes on people making less than $150,000 will be worthless since that will become an average salary.
According to the inflation calulator at http://www.westegg.com/inflation/infl.cgi – “What cost $1560 in 1945 would cost $18472.59 in 2008.”
Most people are fooled into thinking inflation means rising prices. That fails to distinquish cause and effect. The cause is government creating money out of thin air; the effect in this case is to bid up all prices.
There are many things that serve as money in a modern economy: not just cash but bank balances, credit card spending limits, many kinds of bonds, etc. This gives the Federal Reserve many options on how to insert money into the economy. Do it one way, consumer prices go up. Do it another, and the stock market goes up. And most recently, housing prices explode and set the stage for the current crisis.
But nowadays folks are not aware enough of market economics to understand that putting the government in charge of the money supply is putting the fox in charge of the henhouse. People don’t even think that’s a problem, and their minds are closed to the disirability–and historical fact–of privately issued money which the government cannot manipulate for political ends.
I understand that you can go on eBay and buy Zimbabwean money. I recently saw a Zimbabwean 100 TRILLION dollar bill. Worth a few bucks. I don’t believe the U.S. will go that far, but folks, get ready, because when the effects of a trillion dollar American deficit kick in, Jeff’s annual salary will seem like pocket change, and Obama’s promise not to raise taxes on people making less than $150,000 will be worthless since that will become an average salary.