What Government Is Doing To Our Money
Since 1990, we've heard about what a low rate of inflation we've experienced. In some ways, it might appear low compared with what we experienced in the late 1970s. The dollar of 1976 was worth only 63 cents by 1981, once the Nixon-Carter inflation had done its evil.
The cultural and economic consequences were devastating. A generation was punished for having saved and accumulated capital. Debtors were rewarded for their profligacy — the government the biggest debtor.
This period of our financial history was called the Age of Inflation. But did it really come to an end? The problem is that we've continued to live through the late 1970s, just stretched out over a greater period of time. The dollar of 1990 is today worth 64 cents. And yet we call this a low rate of inflation. Thus was the same level of devaluation accomplished.
In some ways, it is perverse that we should be sanguine about inflation. It would be as if we screamed bloody murder if someone broke into our houses one night and stole all our flatware, our electronics, and our precious metals. But if the same burglar had the key and came in every day to just grab a fork, an iPod, and a Krugerrand, should we happily announce that we are experiencing a low-burglar rate? FULL ARTICLE
Comments (7)
Brilliant and right on the money.
I've read "What Has Government Done to Our Money?" but I haven't read "The Case Against the Fed". Does that work talk about what to do with the dollars held by foreign governments? If the government is to trade back to the whole world gold for dollars what will it do about potential counterfeiters? Does it simply state a specific amount of dollars that it is going to redeem for gold and then declare a cut off?
How long will it take before the US is ready for something like this? I'm doing my part in educating almost all of the people I meet, but it seems like no matter how many are convinced it's never enough. It gets very discouraging.
Published: September 18, 2006 10:56 PM
"Since 1996, wireless telephone service has dropped by 40 percent. Personal computers and software accessories have fallen by more than 100 percent. ...."
I'm looking for a new computer, preferably one that comes with $200. But I'll settle for $100 if necessary.
Regards, Don
Published: September 19, 2006 12:22 AM
About the 70's inflation: I don't have memories of America during that time, but were people really, genuinely suprised when the dollar devaluation was followed by huge price increases? Even a the highest level of the Fed? And were they really surprised that when they put in price controls, during this monetary inflation, candy bars started shrinking?
Published: September 19, 2006 8:41 AM
. . . I like that, "low-burglar rate". That about sums up the apologies for inflation.
As a reply to "person" asking if people were really surprised in the 1970s when dollar devaluation was followed by price increases; yes they really were. I recall having a discussion with two people who had graduated from the same university, but had degrees in economics - - they were arguing that price controls were absolutely necessary, and what did I know with only an engineering degree?!
As usual, price controls didn't work, and again people were surprised. I guess attitudes like this allow the state to maintain power. The attitude of the majority of people is that these gangsters running the state know what they're doing. Maybe they do, but whatever, it's not in our interests.
Published: September 19, 2006 2:40 PM
Bud,
What is sad is there are still so many today that would be suprised by the damage caused by price controls.
Published: September 19, 2006 5:15 PM
Really excellent work as usual, Sir.
So few really understant the FED, who owns it, and what it does, and the fundamental underlying issues of a debt based fiat currency system.
The choices for the end game of this mega credit bubble are likely only three.
Japan, Turkey, or Argentina.
Japan:Deflation with stocks and real estate down 60-75%, lose a few banks, insurance companies, etc.
Turkey: Hyperinflate and default on sovereign debt, and lop Six zeros off the new paper with ink on it for the new paper with ink on it.
Argentina: Default, currency goes worthless overnight, banksters take all currency out of banks, and lock the doors. New / old currency.
I sincerely believe that Greenspan's old speech needs lots of repeated distributions.
http://www.financialsense.com/metals/greenspan1966.html
Published: September 20, 2006 1:10 PM
I think people assign too much credit to Greenspan, and the Fed by association, for that article, "Gold and Economic Freedom". It is more likely he was simply serving as Ayn Rand's stenographer.
Published: September 28, 2006 11:28 PM