This particular sentence caught my eye in an article on
today, "U.S. Economy: Consumer Prices, Industrial
Fed Bank of San Francisco President Janet Yellen warned yesterday it’s “not acceptable” for policy makers to allow inflation to fall “to
levels that are unhealthy.”
This is one of those unguarded comments by a (relatively) minor PTB that reveal just how the game is played.
We've all been taught that inflation is bad, and it is: it eats away at your earning power and enfeebles your savings.
But what's this? A Fed regional president telling us (well, actually, just those who read Bloomberg, not us
) that inflation is actually a good
thing, and must be preserved. Why?
Well, inflation is actually a godsend for big business and banks. The money they borrow now, will, with the magic of inflation, be repaid with cheaper
dollars in the future, making them a tidy profit.
In fact, inflation is the foundation of our current monetary scheme; without it, the Federal gov't couldn't indebt itself to such extraordinary
levels without going bankrupt, as the debt itself depreciates due to inflation, magically shrinking as it grows.
So, in an unguarded moment, a Fed regional president spoke the truth. They
need inflation to keep their scheme working. It makes them money,
while bleeding us dry. Nice set-up.