Monday, December 24, 2012

The Nature of Credit (III)

Please read this article and you will realize that the Fed has an amazing amount of power.

In addition, this article also shows that the government uses the Fed's powers to shift economic perceptions in ways that are not only dubious but also dangerous. Our perceptions of inflation (high) are different than  government's (low). In the end, we cannot be both right at the same time.

To bridge this gap the government and the Fed are keeping the flow of credit at very high rates while calculating a CPI below reality. No matter what we do as individuals, we will have the invisible hand of inflation gap rob us of our own wealth and see it being transferred to cover the government incompetence.







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