Another inflation article.

For those of you who are my regular readers, you already know I harp on inflation alot. Its like a never ending story.

The reason I keep writing about it, is because the average person doesnt really know what it is, and if you dont know what it is, there is no way to understand why fiat money sucks (see, steal from the common man and give the money to government and banksters), and why gold and silver backed systems of money are honest.

I ran across an interesting comment by a poster on a highly trafficked financial message board:

“Listening to 40’s music on XM and they had the news for January 10, 1941 on. A loaf of bread 8 cents. Gallon of milk dropped to 42 cents. Ford car prices went up $100. Brand new Pontiac costs $900 now.”

The next comment though, was that he didnt understand how a loaf of bread could stay at a price of 8 cents.

The only way it could of course, assuming a consistent supply/demand equation in bread, is if there was a stable currency.

The $USD has in fact lost over 98% of its buying power since the inception of the Federal Reserve system, and handing over the power to issue currency to a private bank.

This entry was posted on Sunday, January 11th, 2009 at 1:02 am and is filed under Archived. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.