Author Topic: 2021 April 30, Dollar Decimation: How Biden’s Spending Spree Will End Our Curren  (Read 143 times)

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Offline Dena

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This is a Glenn special where he explains the path the government is taking with spending. Say you have an economy where you have $100 worth of goods and $100 of money to purchase the goods. Then a helicopter drops $100 on the community. In short order, it would cost $200 to buy what once cost $100. This happened as the result of LBJ starting the great society and dealing with the Vietnam war. You could once buy a Ford Maverick for $2,000 or a VW bug for just under $2,000. The government ran the printing presses overtime and the result was a triple inflation. What once cost $2,000 now cost $6,000. This cause great hardship for those on a fix income and the money you worked so hard to save was now only worth 1/3 what it was before. Inflation is a hidden tax on the people and the only ones to escape harm are the ones who invested in something that inflated with the currency. It could be land or the stock market but those with money in the bank which was pretty common at that time lost out.

What ended that cycle was during the Regain administration, the FED bumped the prime rate to 20% and that sucked the excessive money out of the economy and back into the FED banking system. I purchase my condo just at the end of that cycle and was lucky to get an interest rate of 8 3/8% variable. Don't even talk about fixed rates. Even a year before that, the rates were so much higher that the housing market was dead.

My interest in the economy dates back to when I was in HighSchool (about 1969) when I did a report on the National Debit. I figured that if everybody for a year handed their income over to the government to pay off the Debit, we could zero it out. Unfortunately it hasn't gotten any better.

Glenn shows a screen shot from Shadow Stats comparing the government reported inflation and the real inflation rate. I found this web site over 10 years ago and it's disgusting how much the government is cooking the books to make themselves look good. You have had a far higher tax burden for years and most likely haven't been aware if it.

Dollar Decimation: How Biden’s Spending Spree Will End Our Currency
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