Inflation Hits 17-Year High
On many occasions I have warned that the government’s monetary policies would lead to more inflation, a hidden tax that destroys the value of savings and harms the poor and those on fixed incomes the most.
Type “inflation” into the search box and you can see the many references that I’ve made to it in the past.
Today comes the news that inflation is at a 17-year high.
When you look at all the new money that the Federal Reserve and other banks have created out of thin air to bail-out big financial interests it is absolutely shocking. It appears from the chart that the Fed has created more money in the past few months than they have created in their entire history.
Creating new money that is not backed by anything, commonly known as counterfeiting except when the government does it, cheapens the value of money already in circulation. Whenever a bank, including the Federal Reserve, makes a loan they are making new money from nothing. As the money in circulation is devalued, the value of real assets goes up in relation to the paper money. To consumers that looks like prices going up. It is also the value of their money going down. That is a direct result of the relentless creation of new money out of thin air by the Federal Reserve and other banks.
(Click on the link above to see the full-sized chart.)
As for inflation, I can only say you ain’t seen nothin’ yet.
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