"Gold will impose discipline not just Monetary Policy, but Federal Budget Policy as well."
"If you can not finance deficits, you can not create them or sustain them."
- Alan Greenspan
Check out Mr. Greenspan give testimony on CPI:
http://www.c-spanvideo.org/program/Pric
Our ex-Fed Chairman Mr. Greenspan talked a mere 25 years ago about creating a CPI that accurately reflects changes to commodity prices. You know those commodity prices that follow the time-tested idea of supply and demand. Damn you rising prices! The Fed has a mandate for stable prices! How dare you not have a centrally planned index that takes into affect droughts, competition, wars, tariffs...
So how does CPI look...hmm....courtesy of St. Louis Fed:
Mr. Greenspan made this speech in 1987. If you follow this graph, to purchase $120 of goods in 1987 would cost you close to $230 today. Thats your dollar at work people!
Looks like inflation has done very well for those that benefit from Inflation: Those that have access to Money first, and the Government that can use cheaper dollars to pay off their debts.
Remember, Inflation is never good when it is Fed induced. Never.
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