THE THEFT OF YOUR PURCHASING POWER
One doesn’t need to be an economist or savvy in finance to see that prices are climbing. In a nutshell, inflation is the increase in the money base or the amount of money in existence. Rising prices are but a symptom of this process of devaluing our money.
This is a chart from the St. Louis Federal Reserve. It is the job of that branch of the Fed to track and report the money supply. As you can see, the money base has been inflating since the early 1970s when Nixon took the U.S. off the gold standard, allowing unfettered money creation.
Now that our dollars no longer represent the value they once did, such as a piece of paper exchangeable for gold or silver, they are called Federal Reserve Notes. Note is another term for an IOU. In addition to these notes, ‘money’ has been created in many forms of electronic debt, resulting in the shenanigans we have today and the inevitable disastrous outcome.
As a consequence to us, the little guys, our dollars don’t stretch nearly as far in terms of buying what we want and need. Over the years this enormous inflation has largely been buffered as America has been successful in exporting the worst of the effects of money creation to other places, mostly developing countries. We have been able to do this because the U.S. Dollar has been the world’s reserve currency, which means at the end of each day almost all nations settle international trade in dollars.
…click on the above link to read the rest of the article…
