The View From 1776

The Fed Plans Deliberately to Steal Your Savings

The Federal Reserve’s policy target of 2% annual inflation, recently proclaimed by Vice Chairman Donald Kohn, will reduce the purchasing-power value of your savings 15% every decade.  Inflation is, in the liberal-progressive-socialist religion, believed to be essential to insure full employment.  Because of it, thirty six years from now, when you hope to bequeath something to your children or grandchildren, your savings will be worth only half what they are worth today.

What the Fed’s socialist planners are doing in reality is supporting the Democrat/Socialist Party’s labor union voting bloc.  Unions have cost-of-living adjustment clauses in their labor contracts, so they don’t suffer from inflation.  The vast majority of American workers, who are not unionized, are paying for non-competitively high union wages and gold-plated health and retirement benefits with inflation, which amounts to an unlegislated tax on everyone but the labor unions who supply the money and free manpower to elect Democrat/Socialists.

Read John Tamny’s Forget Inflation Targets, Go For Dollar-Price Stability on the Forbes Magazine website.

 

Posted by .(JavaScript must be enabled to view this email address) on 04/27 at 09:40 PM
  1. Two percent annual is historically a very low rate of inflation. (Remember the Carter years of 20%?)

    Considering the mega billions being pumped into the economy by the Stimulus Packages, if we could achieve a two percent annual inflation rate it would be much better than a sharp stick in the eye.
    Posted by .(JavaScript must be enabled to view this email address)  on  04/27  at  10:40 PM
  2. When the FED talks about 'targeting 2% inflation' thay have abandoned any pretense of maintaining price stability. If unemployment doesn't come down, what's the next act? Sorry, they don't have one. Look for inflation down the road like we've never seen or crazy levels of unemployemnt. Companies are already leaving the country.
    Posted by .(JavaScript must be enabled to view this email address)  on  04/27  at  11:20 PM
  3. The problem is they under report CPI and thus, we keep losing buying power.

    quote:
    Because Social Security payments are indexed to inflation, government statisticians suppress reported inflation, and thus their need to increase monthly SS checks, by arbitrarily eliminating from their calculations products that are rising too quickly in price. If they were adjusted for the true cost of living, today
    Posted by JanPBurr  on  04/28  at  11:19 AM
Commenting is not available in this channel entry.