Good Morning Middle America, your King of Simple News is on the air.
U.S. NEWS: I like to start the day with a joke and some good news; today I can do both at once. A new report by some deranged economists says a recession in the U.S. is unlikely. Now that’s funny!
Here’s another one liner, “Congress is grilling the financial sector over fiscal improprieties.” I’ll give them this; Congress certainly has the experience to conduct such an investigation.
Funny stuff, but I promised to talk more about inflation today and that’s not so funny.
I know I’m boring those of you who have read my book, but a recap is always good. Inflation is a necessary part of the government scheme to mask the true economic status of the U.S.
What exactly does inflation do? It raises prices of everything, due to making the dollar worth less. So exactly how does that benefit government? Let me count the ways.
First, if all goods and services rise in price, and GDP (Gross Domestic Product) is measured by an increase in the total cost of goods and services; GDP could appear to be rising while productivity and real wealth accumulation was going down. This is often called the smoke and mirrors approach.
Second, inflation is normally artificially induced by lowering interest rates and flooding the market with new currency, which in turn increases borrowing and spending, but creates no savings and no real wealth accumulation. In other words, it appears things are getting better when in actuality the long term situation will get much worse.