[The following post is by TDV Chief Editor, Jeff Berwick]
“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” – John Maynard Keynes
Yes, that quote is by John Maynard Keynes the hero and savior of the likes of Ben Bernanke, Janet Yellen and Paul Krugman… all of whom are proud Keynesians.
And while there is some awakening to the evils of the Federal Reserve and central banking as a whole, notably with the “End the Fed” protests and rallies, for the most part the “not one man in a million is able to diagnose” part is true. It may be closer to one man in a hundred now, though, so there is some hope.
Let’s look at the two most evil facets of communist-style, centrally planned, central banking.
IT DESTROYS LIVING STANDARDS
“It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” – Henry Ford
The people in the U.S. are starting to wake up to the fact that there are massive problems… resulting in things like Occupy Wall Street and fast-food workers going on strike for a higher minimum wage. What most of them don’t get is what the real problem is… the Federal Reserve and money printing… AKA. Quantitative Easing.
The real problem is that the standard of living of your average household in the US has been massively decreased since 1971 when the last vestige of gold backing was taken away from the US dollar.
The US Census Bureau releases stats on the “Median Household Income” and it adjusts it to “inflation”. But, by inflation, they mean the Consumer Price Index (CPI) which is a government statistic that all but takes most of the real inflation out of the CPI as we’ll show below.