Modest inflation is a good thing. Except if you're a trust fund kiddie I guess. Although if you are a trust fund kiddie and you're all upset about a little inflation you probably need some perspective.

Energy Secretary Steven Chu’s testimony today before the House Science Committee reveals that he remains thoroughly committed to his comment in 2008 that somehow “we have to boost the price of gasoline to the levels in Europe.” When Congressman Jim Sensenbrenner (R-WI) asked Secretary Chu at the hearing today if he would retract his 2008 statement he refused. This comes just days after Congressman Alan Nunnelee (R-Miss) asked Secretary Chu if it was the Administration’s goal to bring down gas prices. His answer was “no”


“Energy Secretary Steven Chu’s refusal to retract his statement in 2008 that their goal is to boost the price of gasoline to the levels in Europe, goes to show that, contrary to President Obama’s phony reelection rhetoric, he and his green team remain just as committed to their aggressive, ongoing war on affordable energy,”


they want $8 to $9 dollar-a-gallon gas because that is the only way they can force Americans into their dream of a costly green economy.


Again today he called for raising oil and gas taxes, of course failing to mention that these extra costs will just be passed on to consumers in the form of higher prices at the pump. He continues to say that drilling is futile using the same false rhetoric that we only have ‘2 percent of the world’s oil’, while ignoring the non-partisan Congressional Research Service which has revealed that America has the largest endowment of oil, gas and coal in the world. Developing these resources and approving projects like the Keystone XL pipeline would do more than anything to bring down gas prices and decrease our dependence on the Middle East. But President Obama and his green team are determined to keep our wealth of resources in the ground


http://www.canadafreepress.com/index.php/article/44979


Obama refuse to developing these resources and approve projects to drive up prices then blame the oil companies for $4.00 gas, then raising oil and gas taxes becouse they are evil ..then this nut come out and said hey look at me i have a sweet plain....you've got a bunch of algae out here," Obama said at the University of Miami today. "If we can figure out how to make energy out of that, we'll be doing alright

 

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Actually, not as long as your stupidity will last.

 

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Inflation increases the value of real things, decreases the long term value of currency.


BT seems insistant that real wealth is found in a pile of paper or a stack of shiny metal.


A bit of inflation can be negated by using your money or metal to build something that you can use to sell at higher prices in the future....a new store, a new production location, an education, etc.....


Im not sure how we would be better off if the country had been piling its gold bars under our beds for the last 200 years. BT thinks this would lead to awesome stuff and a bit of deflation is great for the economy because your pile of gold under your bed will buy you more stuff with deflation.


But deflation causes economic collapse as the incentive to build actual things is decreased. If you give a guy in Sudan the largest pile of shiny shells on earth....is he wealthy? BT says yes b/c he has a giant pile of shiny things. But since he has almost no real stuff in Sudan to trade his shiny shells for he is poor. If you convince him to keep building his shell pile and refuse the temptation to build a store and a farm...he only gets poorer.


Piles of gold are worthless. Piles of money are worthless. They are only good b/c they can give you claims on real productive things. Changing your policy to encourage larger piles of rocks/paper and fewer real production/service investment is the path to economic destruction. The best example of BT's economic policy is the gold deflation of the 1930's that crushed the western economies.


Long story short....moderate inflation is good. BT is confused.

One only has to look at the rate of poverty, the number of Americans on foodstamps, the labor participation rate, and the number of Americans on assistance. ... All at record levels, to see how wrong your statement is

 

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It also increases global average temperature apparently!

 

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Just the metal, history has shown us through the Continental, The Confederate dollar, and the US Greenbacks, that paper has no value.

From the 1880s till the start if the Fed-created bubble of the 20s, gold and silver ( unlike the are examples I provided ) retained and improved their value

One can see how gold is universally known as money even by socialists is in 1934, when FDR confiscated, not paper money, but gold.

His next act was not to devalue gold, but the paper money held by Americans mandated by FDR in his exchange for his extortion of their gold by 75%

One only has too look at prices since the 1790s when this country started to see that gold has held its value, buying the same amount of good an services ( if not more ) now as it did back then

Go back to just 1971, when goivernment decoupled the dollar from gold, and one can see how the paper dollar buys less now than it did back then


Paper money is a tool govrrnnments and banks use to steal from you, nothing morr

 

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The only way gas drops to $2.50 a gallon is if everyone buys a nissan leaf. Oil is becomeing more scarce by the day, so demand will only increase the price goig forward. The leaf will lower that demand and push prices down. If we all drove a leaf the price would tank.


Of course, if you drove a leaf you wouldn't even care about the price of gas!

 

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While technically this is true that oil is growing more scarce by the day. The REAL truth in practical application is that in the short term, if demand for fuel drops, production will drop in order to keep the price high.

This is where the whole economic motivation behind switching to alternative fuels falls apart. The powers controlling the cost of fossil fuels are not playing by legit rules. They are playing in a gamed system where they've written the rules.

We need to conserve and/or switch to alternative fuels, not for economic reasons, but for reasons of longevity of our species and the planet. Of course those are sort of abstract terms compared to discussing how much of your paycheck you pour into your necessary vehicle every week.

To illustrate the point, if we all drove Leafs, we might be using only 1/10th the gas we used to use, but production of oil and fuel would be decreased so that we were paying 10 times as much for that gas as we pay today... so yes, we'd still care about the price of gas until or unless we change a lot about the way this system has been gamed.

 

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Consider that the US gets it's money from the Federal Reserve which charges interest. Instant bill that doesn't have to be.

If money were produced the way the Constitution stated we would eliminate that issue.

The trick is that if you create more cash than you have goods and services to support then you are going to have an inflated dollar.

I don't understand why people cannot see through the used-car salesman scam that is our current system. I mean don't get me wrong, I'd LOVE to be able to be allowed to fleece folks in that manner, but that isn't the way it works.

As to the gold standard, it worked because throughout history, gold has been desired. Think of a gold standard as a "hedge" against future losses of purchase power by a dollar. You can trade gold anywhere.

It is very odd that so many "smart" people are fooled by the system of currency that we have in place. It really boggles my mind that they cannot see where the groups that control the Fed and the money supply have an advantageous position for gaining money and influence.

I guess it's easier for people to just kick their brain into neutral and believe that there's nobody out to screw them.

 

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