Long Live the Almighty Dollar
The saying goes: “The grass is always greener on the other side.” But is it really?
US dollar supremacy is something to which we have become accustomed. It’s easy to take for granted that the dollar is still the world’s reserve currency despite relentless efforts made by central bankers and governments to destroy it.
Few born in America have ever experienced what would be formally called “hyperinflation.” To most, hyperinflation is only something we hear about in other countries like Venezuela or Zimbabwe, those unfortunate countries whose currency was legally counterfeited into oblivion by those in charge of the printing press. The list of nations with an undesirable currency is long, but Lebanon has now joined the group of nations experiencing fiat destruction, as reported by Reuters, using the definition of hyperinflation as a period of time where a country's inflation rate exceeds 50 percent per month. Per the press release:
Now, Lebanon has been gripped by the phenomenon, becoming the first country in the Middle East and North Africa to suffer from rapid, runaway price rises for goods and services.
For some inexplicable reason, all over the planet and throughout history we find instances of perpetual inflation and hyperinflation appearing as the rule, not the exception. Central planners claim inflation in America has remained stubbornly low for a very long time. If anything, they’ve found a risk of “deflation” to be the concern; the cost of living and affordability of life for the average person would decline in such dramatic fashion that it would be a terrible thing for the economy.
Fortunately the “problem” of inflation may finally be solved within in a few short months, as CNBC explains in an eye-catching breaking news headline:
The Fed is expected to make a major commitment to ramping up inflation soon.
It starts slowly:
In the next few months, the Federal Reserve will be solidifying a policy outline that would commit it to low rates for years as it pursues an agenda of higher inflation…
The ideas get progressively worse from there, as neither the mainstream media nor mainstream economists understand inflation:
The Fed and other global central banks have been trying to gin up inflation for years under the reasoning that a low level of price appreciation is healthy for a growing economy.
Even the Chicago Fed president, Chris Evans, weighed in and said he would like to:
keep rates where they are until inflation gets up around 2.5%, which it has not been for most of the past decade.
So stay tuned! We may soon find, come September’s Fed meeting, that our monetary planners are set to embark on a formal policy of more inflation. Despite the fact that economists have struggled with “low inflation” for the past decade while neglecting the majority of Americans, who are struggling with a high cost of living, low savings rate, and high debt levels, those in charge of monetary policy will soon find reasons to further weaken the purchasing power of your dollar.
In countries like Zimbabwe, Venezuela, and now Lebanon, there are those who look at their bankrupt nation and wonder how those in charge could lead them astray, while in America we think the government will forever wield the Almighty Dollar, printing as many dollars as needed at essentially no cost. In other news, gold has reached its all-time high…