Back in 2006, inflation slowed dramatically to 2.4 percent and was 4.4 percent in 2008. Then a recession hit, and a new administration came to power. Inflation dropped significantly this year and now sits at 4.1 percent, about the level back in 2008, just before the recession. Bill Maher recently quipped that he wanted a recession as a means to push President Trump from power. Others may agree with Bill and are putting the gears in motion. See table below showing the growth in the quantity of dollars (aka inflation and aka money supply).
I am also cheering the lower inflation rate since creating new dollars steals value from all existing dollars. There is less theft.
Yet, I also dislike wild swings in the quantity of dollars as that confuses people. High inflation can lead to energy going into a specific business sector, then a sudden drop can cause those businesses to fail, as they had mistakenly planned on persistent easy money and loans, and the resulting high spending.
It’s best to have zero inflation. If we can’t get that, let’s have steady low inflation. But I do not want wild swings in the inflation rate and especially a swing designed to influence an election.
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 seven percent. Look for prices to continue to rise as the value of the Fed dollar falls. Learn more about these charts.
The inflation charts page has updated inflation data as of July 2017. Inflation is at 7.5 percent, based on revised Federal Reserve data. The rate appears steady. I was expecting the rate to decline so that ‘they’ could trigger another stock market crash, but maybe not. Still, a 7.5 inflation rate means…the value of the U.S. dollar has or will be worth 7.5 percent less than what it would have been worth if Federal Reserve and the U.S. administration had not created more dollars. This is despicable.
The inflation charts page has updated inflation data as of July 2016. Inflation is at 7.2 percent, based on revised Federal Reserve data. Inflation continues to fall, but there is still inflation so we have work to do. Inflation is when Federal Reserve banks, from the “central” bank to all its member banks, created dollars when they make loans.
The good news is that the U.S. inflation rate has fallen to 7.2%, down from a high of 14.4% five years ago. The bad news is that there still is inflation – meaning the Federal Reserve banks continue to create dollars and lend them out to governments, businesses, and so-called homeowners (people who rent money to buy homes). Inflation is when banks create dollars.
The company GoldMoney created a video highlighting the benefits of gold as a means to save one’s earnings. The video states the value of the dollar has declined about 66% over thirty years, while the value of gold has remained about the same. Nevertheless, I wish the video focused on a different food.
The annual inflation rate of U.S. Federal Reserve dollars has fallen to 7.2 percent, a pace not seen since 2009, about seven years ago. Federal Reserve IS slowing the economy. It’s banks are making fewer loans and this means fewer dollars in the system. However, fewer dollars means that all existing dollars will not lose their value as quickly; it will be a 7.2 percent decline in the value of the dollar versus the 15 percent decline seen in 2012. If there’s a 15 percent decline, then everyone must ask for a 15 percent salary increase to maintain their same standard of living, all other things being equal. But a better way to describe this is that by increasing the number of dollars by 7.2 percent, all salaries and savings will be worth 7.2 percent less than what they would have been worth had Federal Reserve banks NOT increased the number of dollars.
Most articles about U.S. inflation don’t mention U.S. inflation. That’s because they focus on price changes not the amount of Federal Reserve “dollars” in existence. The powers-that-be wanted to hide their devaluation of the money by simply changing the definition of the word most used to complain about the devaluation of the money. That word is “inflation.”
There may be articles about increases in the quantity of dollars, which is the real inflation, but most of the articles won’t use the word inflation. The authors might just be noting the change, without stating how an increase will harm anyone holding dollars. That is that an increase in dollars steals value from anyone holding dollars.
The Bureau of Labor Statistics estimates that overall consumer prices were down 0.2 percent in July from a year earlier, driven largely by a sharp decline in oil prices. Even after stripping out food and energy, prices were up 1.8 percent — or 1.2 percent, according to the Fed’s preferred measure, produced by the Bureau of Economic Analysis. That’s well below the central bank’s longer-term target of 2 percent.
The article is supposed to be about inflation, yet it focuses on prices changes. It also mentions the two percent inflation target of Federal Reserve, which is really a price change target.
They have done a good job of distracting attention away from the issuing of new dollars. And they need to do this because inflation was 14 percent in 2012 and is now about 7 percent in 2015. (See charts). Inflation is so bad that in just seven years, the banks (working with borrowers) doubled the number of dollars in existence. This means that the value of the dollar will soon be half of what it would have been if those new dollars had not been issued. That’s why a lunch sandwich costs about $10 when it used to cost five dollars about seven years ago, wouldn’t you say?
If you want to reach about inflation, visit this site, not Bloomberg or most of the corporate media. You should note that many media companies are owned by companies that want low interest rates on loans. Interest rates can be low if the banks are simply creating the money. If the banks actually had to borrow the money from someone else, than interest rates would rise and loans would cost more.