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How has inflation effected the us?

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causes, effects, items that have gone up in price

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  1. The ways inflation has affected the US is by making prices of goods go up.  While we still make more money than inflation the eventully with all of our on-line toys I am begining to see more and more people slipping into debt.   The causes of inflation are the weaking or strenghting of a money source around the globe.  The EURO is one of the economic super powers right now and maybe its their turn to take over for a while.  Items that have gone up in price are affected differently.  You have seen that gasoline has been going up without ceasing and other things are going up but not at that rate.  Oil almost directly affects the price of everything we buy, because the employees don't want to take the cost of shipping out of theie check.  Also you see on TV that a when purchasing a when you have $100,000,000 in 1909 for example you then have $200,000,000,000 in todays money.  That's inflation for you.


  2. Inflation has effected us all, by causing prices to rise.  This has two negative effects on the individual:  first, it destroys savings.  Any money that you have been able to save, has lost purchasing power, and secondly:  you may find yourself in a higher tax pracket, even though your standard of living has not risen.

    Inflation is caused by printing currency.  Real money cannot be created by governments and central banks.  Real money has real value, like gold and silver.  There is nothing wrong with paper currency, as long as it is redeemable in real money, which our Constitution defines as gold and silver.

    Many people never seem to ask how new currency comes into circulation.  If we see the results of inflation (higher prices, and higher wages), we should wonder how all the federal reserve notes got into circulation.  

    It is the result of deficit spending, by our politicians.  They spend more on government programs, than they receive in taxes.  They have three alternatives:  raise taxes (never a popular political move), borrow (the US government is currently borrowing a billion dollars a day), or monetize the debt.

    Monetizing the debt means printing more currency.  Just as a counterfeiter benefits by printing currency, and the rest of us suffer by having our dollars diluted, when governments introduce more currency into the economy, the purchasing power of the dollar is diminished.  This is what inflation is.  More federal reserve notes in circulation, with no more to buy.  Naturally, prices will rise, and people will demand higher wages.

    But it gets worse!  The Treasury doesn't just print new currency, the Treasury sell treasury bonds, which pay interest, to the Federal Reserve.  The Federal Reserve pays for these bonds with federal reserve notes that it creates out of nothing!  So besides having our money inflated by the addition of these new federal reserve notes, we have to pay the Federal Reserve interest on these inflationary notes!

    If this sounds like a criminal scheme to you, I agree.  The beneficiaries of this arrangement are the stockholders of the Federal Reserve (large, international banks), and our politicians who get to spend these new "dollars" before their inflationary effect raises prices.  The losers are people like you and me.  

    The cure for inflation:  Abolish the Federal Reserve, and follow the Constitution, which states that only gold and silver are lawful tender.  We need to return to honest money.

    As to which items have gone up, they are all going up.  Foreign products rise first, as the value of the dollar is reduced in comparison to other currencies.  We see this in the prices of oil, and of course, gold and silver.  Eventually, everything will go up, as the value of the dollar continues to drop.

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