Growth Hiccups Vex Fed Yet Again – Latest weak data show how sluggish economy remains prone to shocks – WSJ
I could use this article as another opportunity to bash the Obama economy. As an example, I could say “Why on earth would this economy improve given the stewardship and messages continually sent by the White House?”.
But let’s use this as an educational opportunity.
Most people don’t know what inflation actually is. They just think of it as things costing more money over time.
And from a very simple perspective, that’s not a bad definition. The “why” is what’s important. It’s because your money is worth less than it was yesterday and this pattern continues for an extended period of time. But why does money become worth less over an extended period of time?
There can be extreme, intense moments of hyper inflation where a country’s economy falls apart and a loaf of bread that cost 10 shekels yesterday costs 1000 today. But typically it’s caused by a period of steady, slow decline in an economy. Something we’ve had for 7 years now.
And yet we don’t have inflation. Yes, some things like food cost more money but there are other pressures causing that. As an example, liberal geniuses who think it’s a good idea to put part of our food supply into our gas tanks while Mexicans starve.
So, our economy has been on a steady downward decline. AND we are printing money like there’s no tomorrow. And we have been for several years. When you have more of something in existence, those things are typically worth less individually.
And yet despite a failing economy and money being printed in the trillions, we’ve had very little inflation. Think about that very, very carefully.
That wealth has to be going somewhere, yes? Where is it going? Somewhere out of our economy. But where? And with the enormity of the capital we’re talking about here leaving the economy, a lot of powerful people have to know about it.
But nobody talks about it.