Debasement/Inflation

Debasement and Inflation how do they work together?

For debasement and inflation see post on January 10, 2011, now to continue…

So what are we to do if the monetary system is debased and that causes inflation? So our dollars buy less and less. Which means that in the future (20 years), around the time I want to retire my retired income will have to be twice what it is now, ouch!

So forget this Crazy Idea that I will have less income in retirement or that I will Need Less. Not possible.

We could need double our current income if inflation is only 4% - Now that’s real inflation, not the cook the books CPI number.

[yes, the way CPI is figured keeps changing so CPI indexed payments From the Federal Government can be kept down]

Double is just to keep up our lifestyle, What if our health costs are elective, for quality of life, and not ”approved” how do we pay for that?

Who started that Idea anyway? Uncle Sam ? a Wall Street firm (before they needed TARP)?

If the amount of energy in a community or country (no I will not get metaphysical) is finite until acted upon buy humans, which create more and improve what is stagnate, then we have a rate of increase which may be variable. Politicians being politicians, just like a steady amount of increase in which they have control over. Or get credit for giving away. Can you see why the founding fathers distrusted government as a general rule and the Constitution is a list of restrictive powers for government? Anyway, in order do control or give away more stuff you have to get control of more stuff, If taxes are taxed too much we will have a Revolt,( see American Revolution and English taxation). Soooo government debases in order to have more tokens that are called coins or dollars to pass out and get credit for passing out. Then they (Government) preach that the economy is growing because we have more dollars moving around (GDP). But wait a cotton pickin’ minute these things that look like dollars have less value than a full dollars, but they value only because we are told to accept them as dollars. Poor Keynes thought this was a okie dokie idea as long as he got popular for the idea.

How do we get off this merry – go- round? No politician that is electable is going to fall on their sword to change this.