Thursday, February 3, 2011

Inflation, Food price, and the Federal Reserve

Many years ago, Federal Reserve Chairmen tried to protect the dollar's purchasing power. Many decades ago, they didn't even exist. America used silver and gold to protect our purchasing power.

Ben Bernanke, the current Federal Reserve Chairmen, seems to believe that a rising stock market will produce rising employment. However, by printing more money and increasing the United States debt, he is also increasing inflation.

When inflation causes prices to increase, especially food prices, civil unrest occurs. Fiat money loses its value and it becomes worthless. People will want food and tangible assets.

However, for a short period, Ben Bernanke will have achieved his objective of a rising stock market.

Then the economy and the stock market will collapse.

We must stop printing money and spending money that we do not have.

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