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.
The rate that Federal Reserve banks and the U.S. administration create dollars (and stealth-tax your wealth and earnings.)
The total dollars and how quickly the banks double the quantity. Dollars are worth half as much, when the quantity doubles.
See the new page about how measuring profits with dollars does not show if you really made a profit. As an example, consider a home sale valued in dollars versus lunches. The goal of making a profit is so you
The annual inflation rate of Federal Reserve Dollars is 7.3%. As you can see in the chart, usually Federal Reserve reduces the inflation rate after a series of high increases, but since 2014, the rate has remained level at about
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