Friday, March 31, 2006

Inflation all around you

I liked the opening of this editorial by Richard J. Greene, so I thought I'd include part of it here. I think it really sums up what is really going on with inflation, and succinctly describes the phenomenon that the man in the street is starting to notice.

"The man on the street is increasingly beginning to figure it out that the Government has been lying to him and, in effect, stealing from him. The retired person is finding out because after his cost of living adjustments he is just not making ends meet. The purchaser of inflation-adjusted securities is noticing that after his return of capital the capital does not purchase what it once did. The sender of a Federal Express letter can find a fuel adjustment charge of $4.13 now for just a single letter! Even producers of gold and silver, the ultimate defense against inflation, notice the price of steel and fuel are rising even faster than their end products. These are all dead giveaways that inflation is higher than reported and the masses are waking up in larger and larger numbers that it is a matter of survival to keep pace with inflation".

The full piece, entitled, "Central Banks, Weimar Germany and Gold" can be read at the Financial Sense website.