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 ...
Tell me more, seriously. I've been thinking it was the unexpected decrease in velocity that was bumping us toward deflation in the near term, and that we are in imminent danger of rapid inflation when velocity returns to "normal" - - - but you're suggesting the trouble is really the money supply, not the velocity?
Blessed??? Anginal Jolie was blessed, (lucky sperm club) Me....working 12 hours/day, driving Old junk cars and finally wrangled one woman to join me. Blessed?? Ah,, well,,, better than jail I guess. But,, we've never been hungry, so... I guess your right.
Tools... I love tools... I have most every tool ever made,some from the 1800's, some from the 1900's and many others... I'm a mechanic... but thanks for the advise.........
Good night to all thread bump...
why think it will be any different?
they've changed the CPI that it does not reflect true inflation....
not only that, but people usually don't get raises every month or day..they get them once a year and that goes for COLA as well....
I see the American worker falling very much behind...
Thaks! I appreciate Crosswalk and I appreciate the article. Very good.
Blessings!!!
In certain sectors I agree. Overall, though, I see American workers suffering from real wage erosion more because of pressures from globalization than from inflation. But, granted, what happens to American workers in an era of continued globalization AND inflation might not be pretty.
You're welcome, and blessings to you as well!
how about wood working tools? a schnitzelbank, for example...
I'm in the deflation camp (at this point) because of the decreasing velocity - the Fed is "pushing on a string" with vengeance and it is STILL going down. The majority who still have jobs, for the most part, have the "There but for the grace of God" attitude as they see their compatriots get laid off in batallion strength. So, they defer all but needed purchases.
Combine that with those who have been laid off and have little spending power, and the Feds can create money up a gum stump and get nowhere. Top it off with the MASSIVE, and in many cases incalculable, debt that sucks up liquidity like a sponge and that light at the end of the tunnel is really a Black Hole in disguise.
That's me, exactly.
Old junk cars?
Quit stocking up on those. Try stocking up on old nice cars.
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