reply to post by pianopraze
Someone is stealing wealth and this is very upsetting.... You poked fun at people to downplay the inflation rate. You said it doesn't hurt you
unless you are one of those people who stuff their money in a mattress.
Bernanke will do anything possible to downplay the massive scam that is inflation. It's hurts more than just savings, it is the single greatest cause
for rising prices. Things don't actually get more expensive unless the resources used to create that product are becoming more and more scarce, such
as oil. Things are actually supposed to get cheaper and cheaper, because we get better at making them and our manufacturing techniques become more
streamlined. That is exactly what has happened with computers and other electronic devices. But if you look at something like milk or bread or other
foods and commodities, the prices always seem to be rising.
With most of these types of products you will find that the manufacturing techniques have remained the same for a long time, so if anything those
types of products should remain at relatively constant prices unless we lose some large crops or something - which doesn't really happen often. So
even though the resources required for making those products do not become more scarce very often, and in fact are probably becoming more abundant, we
still see a consistent rise in prices. The reason these products are always rising in price is quite simple: it's not that they are becoming worth
more, it's that the dollar is becoming worth less, and it's doing so at an incredibly frightening pace.
When you hear on TV "sick of the rising prices?", the way you should really understand that is "sick of the falling dollar?", because that's exactly
what is happening. The real value
of most commodities doesn't change very much, what actually changes is the price
of those commodities
relative to the purchasing power of the dollar. When the dollar becomes worth less, you need to pay more of it in order to supply the same amount of
. Ron Paul thinks a gold standard would work because gold holds its value very well, and the reason for this is that the amount of
gold on Earth is limited. No one knows how to create more gold out of thin air, thus no one can make the rest of the gold worth less by making more of
However, I still believe a gold standard currency has its flaws... and if you're paying attention you'll note that there is nothing wrong with fiat
currency. The problem occurs when you create too much
of said fiat currency and continuously devalue the rest of the currency by doing so. That
shouldn't be allowed to happen, and the ability to do so certainly shouldn't be given to a quasi-government entity such as the FED. They are nothing
but criminals in suits and they've worked very long and hard to get their way. They intentionally manipulated the economy so they they could create
artificial panics and convince the Government to allow them a monopoly on money creation, through which they could create the Federal Reserve Note.
See this thread
for a more in depth analysis on fiat money.
edit on 29-2-2012
by ChaoticOrder because: (no reason given)