Post by PapaSmurerf on Dec 8, 2007 0:43:35 GMT -5
Monetary Inflation Rate Equals an Inflation Tax rate of at least 15%
in·fla·tion (¹n-fl³“sh…n) n. 1. The act of inflating or the state of being inflated. 2. A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.
Let's call the 'persistent increase in the level of consumer prices' Price Inflation. and let's identify the 'increase in available currency' as Monetary Inflation.
Also, realize that Monetary Inflation precedes Price Inflation.
The Consumer Price Index (CPI) is a US government BLS produced lie, er, statistic that the formula for calculating has changed greatly from 1980. If the 1980 CPI formula was still being used, (why did it change?) fixed income SS recipients would be getting about 70% higher checks than they presently do.
Present CPI calculations put Price Inflation between only 2-3%. The 1980 formula puts the current Price Inflation rate at 11%. Wow! 11%! Isn't that more like what you're seeing when buying gas & groceries, and paying for tuition and garbarge pickup? Yet the USG line for years is that 'there is no inflation' whether it's been a Democratic or Republican administration going back to Bush Sr.
Want to conserve a dwindling Social Security fund and still use it to 'balance the budget'? Fudge the CPI. 2% is hardly an accurate Cost Of Living Adjustment!
So if the CPI is really running at an 11% rate and Monetary Inflation precedes Price inflation, what's the Monetary Inflation rate? Oh, about 15% as measured by M3 which is the rate new money is added to existing money.
This is the Inflation Tax that Dr. Paul wants to reign in by restoring Constitutional gold and silver backed money and phasing out the private, foreign owned Federal Reserve Boondoggle. How can the bankers charge for more productivity than what is produced? By mortgaging our grandchildren's future.
Early American administations were careful to finance any government debt so that it could be paid off in the generation that financed it. They deemed future generations paying for the current generation's debts as immoral.
To hide the Inflation Tax, the FRB stopped reporting M3 as of March of 2006. This graph extrapolates M3 using other means to gauge the rate the FRB is adding to the money supply. This is how the pols fund guns AND butter. Guess who pays?
Graphs from Shadow Government Statistics
in·fla·tion (¹n-fl³“sh…n) n. 1. The act of inflating or the state of being inflated. 2. A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.
Let's call the 'persistent increase in the level of consumer prices' Price Inflation. and let's identify the 'increase in available currency' as Monetary Inflation.
Also, realize that Monetary Inflation precedes Price Inflation.
The Consumer Price Index (CPI) is a US government BLS produced lie, er, statistic that the formula for calculating has changed greatly from 1980. If the 1980 CPI formula was still being used, (why did it change?) fixed income SS recipients would be getting about 70% higher checks than they presently do.
Present CPI calculations put Price Inflation between only 2-3%. The 1980 formula puts the current Price Inflation rate at 11%. Wow! 11%! Isn't that more like what you're seeing when buying gas & groceries, and paying for tuition and garbarge pickup? Yet the USG line for years is that 'there is no inflation' whether it's been a Democratic or Republican administration going back to Bush Sr.
Want to conserve a dwindling Social Security fund and still use it to 'balance the budget'? Fudge the CPI. 2% is hardly an accurate Cost Of Living Adjustment!
So if the CPI is really running at an 11% rate and Monetary Inflation precedes Price inflation, what's the Monetary Inflation rate? Oh, about 15% as measured by M3 which is the rate new money is added to existing money.
This is the Inflation Tax that Dr. Paul wants to reign in by restoring Constitutional gold and silver backed money and phasing out the private, foreign owned Federal Reserve Boondoggle. How can the bankers charge for more productivity than what is produced? By mortgaging our grandchildren's future.
Early American administations were careful to finance any government debt so that it could be paid off in the generation that financed it. They deemed future generations paying for the current generation's debts as immoral.
To hide the Inflation Tax, the FRB stopped reporting M3 as of March of 2006. This graph extrapolates M3 using other means to gauge the rate the FRB is adding to the money supply. This is how the pols fund guns AND butter. Guess who pays?
Graphs from Shadow Government Statistics