By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.
-- John Maynard Keynes, The Economic Consequences of the Peace
By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.
-- John Maynard Keynes, The Economic Consequences of the Peace
5 comments:
Inflation is not going to happen with real unemployment north of 15% throughout both the US and Europe and looking to stay that way.
Anyone trying to make you worry about inflation rather than unemployment under present economic conditions is part of the problem.
The government? And who provides the money to the government so they can raise inflation? The FED. And the FED, even being "Federal", is not a public entity.
So the real culprit is somewhere else.
Recommended watching: http://www.youtube.com/watch?v=ZPWH5TlbloU&feature=plcp
"Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild
You might want to read https://en.wikipedia.org/wiki/Debt%3A_The_First_5000_Years .
I believe that Governments fear inflation more than almost anything else. No one is fooled into thinking they are rich when their salary increases as they watch prices rise and rise.
Happily, inflation mostly isn't a problem right now:
world average 4.9% (2011)
developed countries 3% (2011 est.)
developing countries 6.3% (2011 est.)
A bigger problem appears to be austerity measures and countries who have given up control of their currency without getting protection in return.
> The government? And who provides the money to the government so they can raise inflation? The FED. And the FED, even being "Federal", is not a public entity.
Congress of the United States granted authority to the US Federal Bank in Washington the right to produce fiat currency.
For all intents and purposes the Fed _IS_ part of the government. The only source for their power, immunity, special privileges and the force necessary to maintain and execute their policies through the United States Government.
In other words; your distinction while technically correct is immaterial to the discussion and reality.
> Inflation is not going to happen with real unemployment north of 15% throughout both the US and Europe and looking to stay that way.
In the past couple decades or so we have seen a popularized the use of the term of 'inflation' as 'rise in prices'. However this is not how inflation was viewed by economists in years past and I suspect is mostly a gross over simplification for the sake of TV audiences.
Inflation was used to describe the rise in money supply.
That is were it really matters.
And inflation is a real thing.
In the 1990's the USA Government changed how it counts inflation just like how it changed how it counts unemployment.
You can see this as the really significant hit in quality of life.
In the late 1970s a average family only required a single income to maintain 2 vehicles and a household. New cars could be paid off within a year for most people. Many people just paid full price at the dealerships. Since then housing has done well over 250% inflation in cost. You could work a full time job in the summer and pay for a college education and graduate with almost no debt.
Now to maintain the same lifestyle most households require 2 incomes. Cars take many years to pay off. People graduate with crippling debt. Houses are astronomically expensive.
etc etc.
Fluctuations in prices happen over relatively short terms. Periods of a few months or a couple years will show prices up and down based on various economic indicators. People describe this as 'inflation', but the real effect of inflated money supply is felt over decades.
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