A Nation of Lemmings
Most people know little or nothing about the actual Obama. In fact, most people understand probably nothing about finances and the use of money. We seem to have a nation of lemmings that are about to jump off the cliff. Most people have no knowledge about what happens with “monetary inflation”. Most people confuse “price inflation” with “monetary inflation”. Historically, “monetary inflation” precedes “price inflation” by about 18 or more months. “Price inflation” is when prices go up as a result of “monetary inflation”. The great price inflation in Germany started some time around 1920. In 1913 the German government started printing paper money to fund the first World War. During the period 1913-1919 the German government increased the money supply by 400% . The German government knew that if the German people found out about the indebtness that was being created they would not have allowed it. If the German government produced these funds for the first World War by taxation, all the German people would know up front what was happening. When the government is allowed to print money with no backing behind it, they are actually secretly stealing the peoples money (purchasing power). Most people in German thought they were getting rich because they had more pieces of paper and larger numbers on their paper money. Monetary inflation has been compared to durg addiction because it take more and more printing of money to keep up with the loss of value of the fiat currency (paper money with no backing). However, the German people were not actually able to purchase the same things with this paper money. The problem was that the value of the paper money was progressively devalued by by the monetary inflation. That is what the Federal Reserve is doing. They call it Quantative Easing (click below link)
It took until about 1920 before the German people understood that they were lossing purchasing value. In the spring of 1923 some of the German people broke into the Treasurer Dept and chained up those who were printing the Germany paper money. It took until the fall of 1923 for the German people to realize that their paper money as totally worthless. In the years between 1920-1923 that the government was progressively needing to print more and more paper money. Like in Austria, the cost of a cup of coffee changed from minute to minute. In Austria when a person asked for a cup of coffee, the waitress asked them how many cups they wanted. Why? Because the price of a cup of coffee would cost fourfold more once they had drank the first cup. If you want to find out what Obama is doing you need to do a research on “monetary inflation” and “price inflation”. Remember what the results of the monetary inflation did in Germany. It created the possibility for Adolf Hitler to take over the government in Germany. Do a google search on “German inflation”. Make sure that you find an article that deals with the period 1913-1930. I studied our problem back in 1970s and especially under Jimmy Carter’s Administration. Actually, the current economic problems all began with Jimmy Carter’s Affordable Housing Act, which ultimately forced lenders to sell realestate properties to people who could not actually afford it. Then later on some other politicians expanded that Affordable housing Act (Community Reinvestment Act) so that it actually became dangerous to the housing market.
Check out the following articles about inflation:
Hyperinflation http://en.wikipedia.org/wiki/Hyperinflation Hyperinflation in Zimbabwe http://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe
Thomas Sowell – A Great Black Economist and Intellectual
Thomas Sowell — Basic Economics
Thomas Sowell – Obama’s Vision
Thomas Sowell – Fallacies of Race
Thomas Sowell has a proven tract record and therefore should be believed regarding the matter of economics. He is a very wise scholar.