August 28, 2007

Inflation Creates Poor People. – Grim

Filed under: Uncategorized — grimgold @ 3:40 pm

Inflation is not prices going up. That’s a result of greater demand or short supply.
Inflation is the dollar becoming worth less, because the government is printing more of them. Obviously, if the dollar is worth less, all prices will rise – but not because of market forces.
FDR took us off the gold standard and began printing fiat money in an attempt to get the country out of the Great Depression. This was supposed to be a temporary answer, not permanent, so don’t blame FDR.
But for whatever reason, we’ve had fiat currency and the resulting inflation ever since. Do I think we need to go back on a gold standard? Not necessarily, but we need a currency that has a net zero inflation because inflation slowly, silently, insidiously, creates more poor people as their buying power melts away. Today’s dollar is worth about four cents.
This is a problem all democrats should be concerned about because it adversely affects the poor and elderly.

I’m exempt, of course. Being an evil republican, I’m supposed to be concerned about the needs of the rich (just a minnit, lemme take a sip of my martini… ahhh!).

The fact is that only the federal government benefits from inflation. Everyone else suffers especially the poor and those on fixed incomes. Inflation creates poor people and the Fed can put a stop to it any time it wants to.
Inflation should not “be under control.” That just means the poor are being screwed more slowly. Inflation should be non-existent.
Please think about this – it should be an issue.
Inflation creates poor people.

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