Posted on 02/24/2011 8:17:24 AM PST by FromLori
Edited on 02/24/2011 8:19:09 AM PST by Admin Moderator. [history]
The stakes have seldom been higher. With the unemployment rate still above 9%, and federal debt at record levels, this latest error by the monetary authorities is likely to be the most costly since the Great Inflation of the 1970s. Monetary instability will slow employment growth and further erode confidence in government at the same time that higher interest rates will add billions of dollars to the interest cost on the national debt. Yet, failure to act in a timely basis will lead to an even greater crisis.
(Excerpt) Read more at blogs.forbes.com ...
Tie a knot at the end of your ropes and hang on gang!
Unless spending is reduced now, the dollar is gonna get smacked around like a rented mule; and that’s the good news.
Silver still looks good, even though it just made a 31 year high this week.
To fight against increasing rates, check out TBT, PST and TBF.
-Rex
I see higher oil as a poison pill for the economy.
The bright side is it’s also a poison pill for Baraq’s re-election campaign.
“Who uses food or energy, really?”
lol I like the way you put that made me chuckle. There are people on here who will tell you that nonsense too and argue with you that they do include it.
Before we climb out of this Jimmy Carter's malaise is gonna look pretty good.
Yet, somehow, inexplicably, reflexively...
Americans will still blame Bush.
It seems like a joke to me to treat inflation as something that only happens occasionally. When McDonald’s first opened, hamburgers were a nickel. The first rock concert I ever went to (in 1981) cost $12.00. When I was a kid, gasoline was 69 cents a gallon. Grandma used to tell me about going to the movies for a nickel. When ISN’T there inflation?
12% inflation doesn't.
That’s our dollar being devalued. At least in the past Americans had jobs and incomes were rising to keep pace that’s not the case now. Those who have jobs are not seeing their income increase and many have had to take lower paying jobs. Dollar devaluation is a form of inflation in itself but this article is referring to immediate inflation.
The administration is happy, because they did all they could to pave the way for rising prices.
Rising prices help the government in many ways.
1. One way is bracket creep. You now have more worthless dollars and have to pay a higher percentage of them to the government.
2. Your savings and investments lose their value and make you dependent on the government.
3. Government and its media can crow about how the economy is improving, cuz the numbers are higher, representing more worthless dollars.
4. Government can give more worthless dollars in “benefits” and can crow about the “increase” they’re giving you.
5. They can blame rising prices on “inflation” which requires a hell of a nerve because rising prices ARE inflation.
And the Fed is more then happy to help obama they are monetizing our debt. One could even say they helped bring about the middle east situation since obama was warned about food inflation. It’s a two fer he gets to keep on spending and the Fed. gets to keep on propping up it’s member banks at our expense.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.