Any good Six Sigma expert uses what ifs and the 5 whys to get to the bottom of things. The what ifs I outlined for you are the questions I asked myself and then I did the analysis to find out that my suspicions were dead on correct. It's not like the Fed really hides anything. It's all there for anyone who cares to look. However, they sure can spin like there is no tomorrow and 99.9% of the people never bother looking under the covers. So the majority simply believe what they are told: there's no inflation.
Here's an experiment for you. Ask around. Ask 20 people whether their groceries cost more now than a few years ago and how much more. You shouldn't be surprised at the answers you get. The bottom line is that inflation is rampant. If you eat, drive, pay for lodging, pay for college for yourself or your kids, or use healthcare, then you know inflation is rampant in all the things people care about. The Fed saying there's no inflation is more than just propaganda. They are making policy decision based on a very flawed metric. That should scare the bejesus out of any rational folks.
However, I get it. We live in an era where folks have forgotten their history. They believe socialism is good for lifting the standard of living. Most believe that printing money and incurring massive deficits are long term good for our economy. Couple that with the unwillingness of Americans of today to put up with the short term pain that the clearing process of short recessions brings. So we let the Fed and Politicians administer the heroin injections that feel good today, but kill us in the long term.
Most today have forgotten the lessons of economic history. Ignorance, willful or not, won't protect people from the consequences of the lower growth that socialism brings and the economic calamities and volatility that leverage and monetary debasement brings. Capitalism and sound money are how long term prosperity is created. Indeed, free and fairly regulated markets and freely floating currencies, unmanipulated by central governments, are what makes for a free country. That warm blanket the Fed is giving you is a straight jacket. |
