Tuesday, May 15, 2012
The Rising Price of the Falling Dollar
Charles Kadlec of Forbes wrote "The Rising Price of the Falling Dollar". Nice to read that someone else has made the same economic observations that I have. Of course his article is better researched and more credible. But then I'm spewing out "casual observations". Unfortunately, I have been unable to convince the masses that inflation is an economic drag. In fact Bernanke views low inflation as an economic "positive" even though the price of a $0.05 candy bar of 1965 is close to a $1.00 now. To summarize the detrimental effects of inflation, Mr. Kadlec wrote: "Our common sense hides this source of higher prices because we view the dollar as fixed and prices as moving." This attitude resulted in many home-owner viewing their homes as ATM machines spewing out free money. Well that bubble burst and resulted in an economic crash in 2008. Eventually the student loan bubble will burst. In conclusion, Mr. Kadlec even throws in the concept that the falling dollar is steadily eroding our liberties.