The Red line measures a declining standard of living.
The Blue line measure a set standard of living
The current corrupt administration is trying hard to bring back rampant inflation.
Inflation is the statist’s gift that keeps on giving. When the value of money goes down, prices go up, including stock prices. Some mental midgets think that the DOW is the single index of how the economy is doing. When the DOW goes up due to money losing its value, the statists will crow that the economy is improving.
With inflation, the government pays entitlements in dollars that are losing their value; this enables the statists to claim that they are increasing benefits, while in reality they are just giving more worthless dollars.
Inflation doesn’t disturb the ruling elite’s benefits, (pay, health insurance, pension) which are adjusted for inflation.
Inflation turns savings into meaningless electronic digits, thus rendering poor all who have worked honestly and saved some money for their retirement.
Inflation makes all dependent on the state, except the ruling elite which doesn’t give a $h!+.
Out of control inflation can lead to a breakdown in the civil order, giving the statists an excuse to increase their control of the public or to do what they really want: establish at long last a Socialist Paradise.
The only reason why we don’t see more inflation is that the country is doing extremently poorly. This reduces demand on goods and keeps prices lower than they would have been.
I live in northern California, so I am no stranger to regulation and price increases, even when the government pronounced that there is no inflation.
This economist shows that while The Fed claims there is little inflation, prices are skyrocketing.
We’re Greece. This mess cannot continue. At some point all this debt is going to blow up in our faces and the economic bomb will explode.
I fully expect a transformational SHTF situation to begin showing its head this Spring and to get really bad before year’s end.
The economy is like a giant Rube Goldberge machine. Even though you see the printing presses running overtime and not much yet is coming out the end, as sure as night follows day the real economy (wages and prices) will in fact respond to changes in the general amount of currency.
But consider this: if 47% of Americans depend to some extent on government money, and if 50% of government spending is borrowed and if the Federal Reserve buys 90% of federal debt by printing air-backed money, how much are incomes and spending being financed by money-printing?
If one fourth of all spending is financed by money-printing, how much would prices and wages have fallen had the money-printing not been done? Those wages and prices are the real economy. The economy we have at this very moment is being held up in mid-air by money-printing. I contend that we already have massive inflation, but we can’t see it because we cannot see the real economy. And if the gnomes at the Treasury and Federal Reserve have their way, we will never, that is until they lose control and the Federal Reserve gets exhausted by money printing.
That day will come, and when it does, we will have to deal with an economy that is grossly out of whack and we have such distorted price metrics that nobody will be able to adjust to what prices really must be.