Standard of living, meet falling US dollar – how a falling US dollar benefits banks at the expense of working Americans.
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There is certainly a cost to a falling US dollar. Many Americans are living the consequences of this multi-decade long trend. The Federal Reserve has only added fuel to this trend but many families are now realizing that there does come a cost to unrelenting debt based solutions to fiscal problems. Shopping at the local grocery store I’ve noticed that some items have doubled in the last few years. Fueling up is also more expensive. The issue with living on a low dollar policy is that eventually, you end up in a low wage capitalist system. The easy money slowly inflates away especially on global items. We are seeing this in the US in various arenas especially with higher education. The end result is that the standard of living for the vast majority of Americans has fallen dramatically in the last few decades.
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The seems to be a basic stupidity in human beings as to the devastating impacts of “inflation” (i.e., counterfeiting by a central bank).
As an injineer, we can’t have a “standard” that varies.
As a football fan, imagine if a yard was redefined each football season as 2% less. 35.28 inches. Easier to make a first down. Records would be meaningless. And, eventually, in 30 years, they’d play on a one inch field.
So why is it different for money?
In my lifetime, the “dollar”, whatever that is, has lost 99% of it’s value. Gasoline that was 30¢ per gallon was $3.75 last night. Has gasoline become more expensive? Those evil oil companies. No!!! Based on the price of silver, gas is actually ~30% cheaper.
<<Those three silver dimes in 1960 bought a gallon of gas. Today those three dimes are worth about $6 (conservatively) to $10.50 (speculation). So either 28% cheaper or 65% depending upon your value of those dimes.>>
Why can’t “We, The Sheeple” see it?
And, in the general inflation (i.e., loss of value of the money), wages don’t go up. Those on fixed income are so screwed. And, the poor get poorer. Savings are a joke.
Also even the stock market gets “hurt”. Sure the stock prices go up, but never as much as the inflation rate. We’ve seen this in the Carter disaster. Then, stocks went up in the single digit %s, but the inflation was 25 or 30%. Hence the real value went down.
How does a tin foil hat view the world? Always price things in silver or gold. Makes it obvious.
A new men’s outfit in Rome was two ounces of gold. Today, you can buy a nice outfit for 3500$! Clothing has gotten “cheaper”.
A new car in the 60′s was 6 ounces of gold. (I know a bought a Chevy Nova brand new for 1200$). Today, 10,500$ won’t get you a new car. Cars have become more “expensive”. Gas we’ve already said has gotten “cheaper”.
What do you buy that’s changed?
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