Inflation and Those Who Love It – Western Voices World News

Time to replace this rotten system? Inflation hurts and we all know it. How do you plan your future when each
dollar buys less as time goes on? It is like climbing a greased pole. <o:p />

Heck, it hurts everybody; well almost everybody. Certain financial interests
have first access to newly printed money from the Federal Reserve. They
are able to buy things cheaper, before the price increases hit. <o:p />

That is why Wall Street cheers every time the Fed ‘Cuts Interest Rates’
(‘cuts in interest rate’ equals printing new dollar bills); they are among
those who will get to use these new dollars FIRST before the
newly printed money starts to buy less. <o:p />

Most folks share an illusion that the Fed prints money and it gets spread
across the whole economy evenly like peanut butter on bread. But that
picture is all wrong. Whenever the Fed ‘injects liquidity’ one should think of
molasses being poured from a pitcher into certain sectors of the economy
while other sectors will receive it later – when the dollars are worth less and
buy less. <o:p />

Banks, Wall Street and vested interest sectors that the Federal Government
pumps money into get first crack on those dollars. The folks on Main
Street, the rank and file Consumers, get them much <o:p />later about the same
time we notice that everything seems to ‘cost more’.

The media provides wrong explanations from the ‘economists’ of these
first-in-line-Banks-and-Wall- Street-boys. They report in error that
prices are going up because (and here are only two examples) the price of oil
or corn may be going up. <o:p />

That is wrong information and bad economic reporting, but it persists.
Prices do not go up First. First, the Money Supply is increased. Then, certain
‘Cones’ get the money early after it is released into the economy, and then, later,
prices go up. <o:p />

The Consumers are left holding the bag. 
The most important thing folks have not learned about Money Inflation is that
it is a form of theft, transferring real wealth from the poor, middle class and
elderly to those who are first in line to receive the Fed’s newly printed Fiat
Money. It is important to not blame Price Inflation on rising oil or corn
prices. This confuses people. 
In the 1970’s it was widely reported that high oil prices were causing all
other prices to rise; that to fix this the Fed needed to create more and more
money to fix the economy and bring prices down. Well the Fed created more and
more money and the fix never came. Instead we got higher prices, and slower
economic growth. They called it "stagflation" — inflation combined
with a stagnant economy. The necessary fix came, later and painfully,
after the then Fed Chairman, Volker, took away the punchbowl from the
Money-Inflation-Party. <o:p />

You can’t fix higher prices by printing more fiat money; think pouring water
into milk. <a href=”http://clicks.aweber.com/y/ct/?l=JlN8S&m=1cSJu_ffI2lNSX&b=2cssBmxhmFr_QkfyPAIVSg”>Source</a> <o:p />

2008-12-04