The Problem & Solutions
The item used as money, Federal Reserve ‘dollars’, increases in quantity dramatically year to year and simultaneously loses value. These new dollars take value from all existing dollars, like the ones listed in your bank account. (see graphic)
Why do prices rise? Since the value of the dollar decreases, companies raise their prices to get the same value. You’re not paying more value, but you have to pay more dollars because the dollars (the money) is worth less.
An increase in the quantity of dollars will decrease the value of dollars (all things being constant) and this will drive up the price of gold AS MEASURED IN DOLLARS.
2010 – You bought a home for $100,000 and your favorite sandwich costs $5. 10 years later… 2020 – You sell the home for $200,000 and your fav sandwich costs $10. (1) Did you make any money? (2) Did you
The dollar-price for a first-class postage stamp will rise 10 percent next year! That means the dollar will be worth 10 percent less than in stamps. If the dollar is worth 10 percent less, will thou get a 10 percent
If every year we become more efficient due to new technology and new production methods, should things cost more or less? Things should cost less. And the cost of things does fall, but the value of your money falls faster, so prices rise. Your money is worth less because banks create more each year. You need the freedom to choose other money. You need monetary choice. Continue
Inflation is when the amount of money increases. Inflation is not rising prices, though prices usually rise after inflating. When gold was used as money, a huge gold discovery increased or inflated the quantity of money. These days it is banks that create and inflate money. The U.S. inflation rate has been 12 percent per year since 2006. Your salary and savings are worth 50 percent less. Continue