Quantitative Easing: It sounds so technical, but it is quite easy to understand. What it means is devaluing the currency. Your dollar aint what it use to be.

For those of use who have a job, wages are stagnate (unless you are in a public union). This would be OK if inflation was stagnate too, but it is not. As I have suspected for a long time, we are heading toward a period of inflation. It took longer to start then I expected. This is because the economy was weaker than I thought. The Consumer Price Index was up 0.4% in August after rising at 0.5% in July.  This trend extended over twelve months means that inflation now stands at 5.4%.

As with every economic circumstance…some will win…and some will lose.

Inflation will help the government pay off its debt, but it will come at the expense of those who have saved.  If you have racked up $10,000 in credit card debt, don’t worry. Inflation will make it easier to pay off $10,000 in the future.

Debasing the dollar has the effect of hurting those who have produced and saved for the future. It rewards those who have lived beyond their means. It is a destructive policy that must be curbed before it gets unsustainable (a word that is applicable far too often these days).

 

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