Excellent commentary John ! I'll take it one step further to what I see as the next logical step. People need to see that as they devalue the currency (which is the store of your hard physical labor) They are really stealing your hard labor from you with no compensation. Lets call it what is. This is theft of labor (as measured by the devalued currency) which equals slavery whether monetarily or physically it's the same Stealing labor is slavery to benefit a bloated govt. and banksters ! Until people stand up and demand that their labor is their own this is going to continue. The main purpose of a currency is to retain stored value. This allows you when young to save excess labor you are able to do quite easily for a time when you are old and perhaps are unable to work or wish to not work as hard as say when your 18. Their "desired 2% inflation rate" is far from low and stable.
I know some here at Agtalk may tire of my endless links to Market Ticker material. Not wanting to hear about it does not change anything. The math is never wrong no matter how much you want it to be some other outcome. However, I don't see anyone better than Mr. Denninger in the media who is able to distill these complex issues into simple terms that anyone can understand. Mr Denninger is far more skilled and able to illustrate and discuss these ideals than I am. I'm merely re-iterating his points here and until the masses wake up from the bread and circuses parade and realize they are being enslaved then it needs to be hammered on continuously.
Info below credited to Mr Denninger's post located here.
"The Fed Mandate is for stable prices, not 2% inflation. Need I remind everyone that a 2% inflation target, if met over a 45 year working life (age 20 - 65) results in a price increase of 144%? Of course the actual performance of The Fed historically is closer to 3% inflation. That's a 278% inflation over the same 45 years. Put another way if you earned $1 in purchasing power at age 20 and saved that dollar, you have about 35 cents left at age 65. And this is Bernanke's intent." |