The Deflation MenaceSubmitted by AustinDave on Tue, 01/21/2014 - 21:17
Peter Schiff breaks down the global propaganda machine that spews government and bankster lies about the dangers of deflation. The ones that benefit most from inflation are governments and banksters. Governments use inflation to keep spending recklessly while lowering the real value of their debt by stealing it from its citizens. The large banks that get the newly printed dollars, before a larger money supply is realized, get to buy up assets at a cheaper real value than anyone else. Corporate media spreads their propaganda.
There is this never ending cycle of crippling the poor while the middle class is pushed to join them in poverty. Hardly anyone can afford to retire from savings alone due to inflation. These are all large factors in the cycle as public funds are used to assist in supporting about half the country. Add in the jobs that older skilled workers will retain until they die because they can never afford to retire and you begin to see a dark picture of not only what we are dealing with but also the lack of opportunities for those who need them most.
Anyway, enough of my rant. This is my favorite part of the article but the whole thing is fairly short and worth sharing.
For the first 120 years of the existence of the United States (before the establishment of the Federal Reserve), general prices trended downward. According to the Department of Commerce’s Statistical Abstract of the United States, the “General Price Index” declined by 19% from 1801 to 1900. This stands in contrast to the 2,280% increase of the CPI between 1913 and 2013.
While the 19th century had plenty of well-documented ups and downs, people tend to forget that the country experienced tremendous economic growth during that time. Living standards for the average American at the end of the century were leaps and bounds higher than they were at the beginning. The 19th Century turned a formerly inconsequential agricultural nation into the richest, most productive, and economically dynamic nation on Earth. Immigrants could not come here fast enough. But all this happened against a backdrop of consistently falling prices.