One of my readers (don’t pretend surprise now, I do have occasional readers) told me he ‘skimmed’ my inflation article, then sniffed “too high-brow for me.”
I replied that people having to choose between food and medicine because of inflation isn’t high-brow.
I received no reply – crickets. (Sigh!)
So, since I’m sure he’s not the only one, let’s make it personal so you’ll suddenly have the time for this.
To wit: if there was no inflation, interest rates would drop about three percent.
Your five percent mortgage would now be at two percent, saving you hundreds of dollars every month.
Still with me? I thought so.
Bankers, in determining the amount of interest they attach to a loan, take future inflation into account. So, if inflation is running at three percent, they will tack on three percent and a four percent loan becomes a seven percent loan.
As you can see, therefore, inflation causes you to pay more.
Conclusion: inflation is not a good thing.
So why on earth do we have inflation? Because it’s good for the federal government. Why is it good for the government? I’ll explain that later. Trust me, if it wasn’t good for government, it would go away tomorrow.
If you look into history, you will find that for one hundred thirty years the United States had no inflation, and in Great Britain there was no inflation for over two hundred years. This means that it is possible to have a non-inflating dollar, regardless of what the Fed and its “experts” say because we had it in the past. History proves it.
So, don’t pay attention to their confusing “high-brow” responses – demand a non-inflating dollar!
Can you imagine what would happen to the economy if interest rates declined by three percent because the head of the Federal Reserve, Mr. Bernanke, with bitter tears in his eyes, moved the United States back to a non-inflating currency? There would be an economic explosion and, most importantly, you would have hundreds of dollars more in your pocket each month.
Is this too high-brow for you? Hmmmm?
I thought not.
Grimgold