{"id":28101,"date":"2017-11-17T19:17:59","date_gmt":"2017-11-18T00:17:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=28101"},"modified":"2017-11-17T19:17:59","modified_gmt":"2017-11-18T00:17:59","slug":"how-uncle-sam-inflates-away-your-life","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=28101","title":{"rendered":"How Uncle Sam Inflates Away Your Life"},"content":{"rendered":"

How Uncle Sam Inflates Away Your Life<\/a><\/h3>\n
\n

\"\"<\/a>\u201cInflation is always and everywhere a monetary phenomenon,\u201d once remarked economist and Nobel Prize recipient Milton Friedman. \u00a0He likely meant that inflation is the more rapid increase in the supply of money relative to the output of goods and services which money is traded for.<\/p>\n

As more and more money is issued relative to the output of goods and services in an economy, the money\u2019s watered down and loses value.\u00a0 By this account, price inflation is not in itself rising prices.\u00a0 Rather, it\u2019s the loss of purchasing power resulting from an inflating money supply.<\/p>\n

Indeed, Friedman offered a shrewd insight.\u00a0 However, he also accompanied it with an opportunist mindset.\u00a0 Friedman saw promise in the phenomenon of monetary inflation.\u00a0 Moreover, he saw it as a means to improve human productivity and economic growth.<\/p>\n

You see, a stable money supply was not good enough for Friedman.\u00a0 He advocated for moderate levels of monetary growth, and inflation, to perpetually stimulate the economy.\u00a0 By hardwiring consumers with the expectation of higher prices, policy makers could compel a relentless consumer demand.<\/span><\/p>\n

This desire to harness and control the inflation phenomenon has infected practically every government economist\u2019s brain since the early 1970s.\u00a0 Over the decades they\u2019ve somehow come to a consensus that 2 percent price inflation is the idyllic rate for provoking economic nirvana.\u00a0 The Fed even tinkers with its federal funds rate for the purpose of targeting this magic 2 percent rate of price inflation.<\/p>\n

Shadow Stats<\/strong><\/p>\n

On Wednesday the Bureau of Labor Statistics (BLS) published its October Consumer Price Index (CPI) report.\u00a0 According to the government number crunchers, consumer prices are increasing at an annual rate of 2 percent<\/a>.\u00a0 Of course, anyone who lives and works in the real world knows prices are rising much faster.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

How Uncle Sam Inflates Away Your Life \u201cInflation is always and everywhere a monetary phenomenon,\u201d once remarked economist and Nobel Prize recipient Milton Friedman. \u00a0He likely meant that inflation is the more rapid increase in the supply of money relative to the output of goods and services which money is traded for. As more and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,426,11763,534,536,954,13351],"class_list":["post-28101","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-inflation","tag-mn-gordon","tag-monetary-policy","tag-money","tag-money-supply","tag-price-inflation"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=28101"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28101\/revisions"}],"predecessor-version":[{"id":28102,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28101\/revisions\/28102"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}