Posted on 11/30/2009 5:26:11 PM PST by LikeLight
It's 2012 and it's payday. You're tired, but after work you drag yourself straight to the grocery store to load up on a couple weeks worth of provisions for your family. You're shocked at tonight's high prices, but you know they'll be even higher by morning. You used to keep some money in the bank for a rainy day, but now you've learned to spend it all as soon as you get it, before it loses buying power.
On the other hand, the huge salary raises you keep getting have made it pretty easy to pay off the old credit card balances you were carrying, and even your student loans from college. Those loan balances used to seem big, but with your wages going up so fast, the amounts you owed just sort of melted away to almost nothing compared to your hefty new income.
Welcome to the strange upside down world of runaway inflation. It may be here sooner than you think.
Washington's out of control frenzy of government spending, ballooning national debt, and reckless expansion of our money supply have many economists and financial policy experts forecasting a surge in prices. Inflation. Possibly severe inflation. Maybe even the dreaded hyperinflation, where prices rise so fast money becomes almost useless and people are forced to resort to primitive barter.
In the Bible, James was confronting a different aspect of economic injustice, but his words paint a vivid picture of the potential effects of inflation as well: Look here, you rich people: Weep and groan with anguish because of all the terrible troubles ahead of you. Your wealth is rotting away, and your fine clothes are moth-eaten rags. Your gold and silver have become worthless. James 5:1-3a (NLT).
In the United States, we haven't faced serious inflation for more than
(Excerpt) Read more at crosswalk.com ...
Peace and blessings, Steve (LikeLight)
Good article!!!!!!!!!!!
Good article.
Thanks, and I appreciate the liberal (small l) use of exclamation points!
Good article. I hope my cheap company will increase our salaries when inflation hits. I have a feeling I will have to change jobs to get a raise.
Thanks. I believe we're on an economic precipice. Deflationary pressure now, then a sudden explosion of inflation.
And everyone else will be doing the same thing, so the pressure will be on employers. Historically wage and price inflation have soared in tandem, but you never know. Jobs are awfully tough to come by. Hopefully we don't experience a decoupling of wages and prices.
That is a practical, concise insight into inflation, and a good read.
If history holds, wage inflation will lag price inflation six months to a year.
Thanks!
Do you anticipate that history will hold this time?
I think we have the possibility of that Carter-era phenomenon; stagflation.
That's an ugly word. In many ways it does seem that we're reliving the Carter era. Hope not.
What else is there to stock up on?
wives?
you've got to be kidding, I can't imagine living with more that one woman.... can you say "hell on earth"!
Well, ya better stock up on houses too then.
I'd stick with just the one wife, despite other suggestions to the contrary. You've been blessed.
Are you sure about that?
I believe that the M3 money supply (that good ole' George Bush stopped measuring just before the bubble) has now collapsed.
So the overall money supply may actually have gone down even with all of the recent excesses in spending.
That is why we may still have more to worry about from deflation than inflation.
you can never have enough ammo...
then there are tools - of all sorts...
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