Inflation and its Ill Effects
As Alan Greenspan once said that in the absence of gold standard, there is no way to protect ones savings from confiscation in the form of inflation. Inflation in short is simply robing people of its money; it takes in a form of a gradual and subtle reduction of people’s purchasing power through paper currency devaluation.
It has also been foreseen by the late president Thomas Jefferson that that entrusting a countries financial issue to bankers is too dangerous. As he once said “I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around (these banks) will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”
As we currently experience the ill effects of inflation and dollar devaluation, we can say that Jefferson and Greenspan’s words on inflation is true. The reality about inflation is that it is indeed a theft since its gradually an ongoing basis that diminishes people’s purchasing power.
But despite this current dilemma of the people, still the Federal Reserve’s goal is to engineer and maintain inflation (through certain policies) for their greater advantage. They rob people the worth of their money, and transfer it to bankers who can borrow large sums of money on a lower or zero interest rate. As a result we now have a higher consumer price index rise than before the gold standard was abolished. Meaning, products that you could buy for only $10 way back in 1913 now cost you more than $220.
Basically higher inflation rates enslave people. It steals from savers, it results in higher taxes, it puts lenders on a disadvantage position that results in higher risk investments. With the ongoing increase in oil price, global geopolitical conditions and tensions between certain countries, it is presumed that inflation is unavoidable and will still continue to rob us blindly. All of these are due to our dependence on fiat money currency.