Inflation is a Bad Thing

If you have been watching any TV or reading any popular web traffic, you have seen claims that the "target" inflation rate of the FED is about 2%. There is much more to the story than that.

There are two definitions of "inflation." Money supply inflation refers to the amount of cash/dollars in the economy. With the FED pumping in $50 Billion per month, money inflation is already underway big time. Then there is price inflation. That's the rise in prices of good and services that we experience when we shop. That, too, is well underway - especially for groceries and gas.

The FED and government propaganda machine would have us believe that price inflation is about 2%. You and I know that it more like 10% or more. For example, at my local store, bananas were 49 cents/lb last year; this year they are 69 cents/lb. Grapes were $1.50; now they are north of $2.00. Gasoline was $3.25 or so; now, it's $4.25.

The FED's Janet Yellen testified recently that they are seeking a 2% target for inflation, as if that's a good thing. The current TV "economists" seem to think that there is some magic inflation figure that must be maintained.

I say that the lower inflation is, the better. Can you think of a reason you'd like to pay more for the stuff you buy next month than now? How would inflation benefit you? The answer, for anyone with two brain cells to rub together, is quite simple: Inflation does not benefit you and me at all. Inflation, in any amount, is a BAD thing.

You won't hear this sort of sacrilege on TV or in The New York Times, but it's so obvious I thought someone should say it. Sooo, Just sayin'...