Wednesday, January 16, 2008

Inflation in 2007 Shot up by the Largest Amount in 26 years

What decreases the value of our money? If you have been reading my posts you already know that it's an increase in the supply. (Or decrease in demand, unlikely the demand for money will decrease.)
  • Consumer Debt (Credit Cards and Mortgages)
  • Government Debt ("the national debt")
  • Recirculation of Previously Frozen Money (Like money China has been saving in vaults.)
  • Counterfeit Money (very small percent)
Counterfeit Money is stealing because it makes every one's dollars worth less. So what do you call it when the Government spends trillions of dollars that don't exist and make our dollars worth less? TAXATION!

So, what are you going to do about it? Find out what your presidential candidate is going to do about inflation. Let's give tax breaks to those who need them, but does it matter if all of our expenses go up by 7%?

We have to be smarter consumers and voters.

Read the Article: Wholesale Prices Soared Last Year

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