Well I bought a dam peach the other day for 82 cents.. Just one medium sized peach.
Anyway, the more I learn about economics and inflation, the more and more I realize we aren't really heading for a road bump so much as a brick wall.
One recent fact I have learned is that printing a dollar is not the same as printing a different currency. You see, the value of an Austrailian dollar is based on the actual number of Austrailian dollars in circulation inside of Austrailia. But the American dollar is different because it is used globally. There are MANY dollars in circulation around the world. Not just in America. So when the fed prints money (or digitizes it. Same thing) or when money is created through fractional reserve banking, the effects of inflation are spread evenly throughout the world. THIS is how we are able to live beyond our means and why the poorest Americans are richer than 80% of the human population. We export our inflation like no other nation can.
This system works amazingly so long as your currency doesn't have any competition. Say for instance the Chinese Yuan.
What happens when people realize Uncle Sam isn't 'good for it' anymore and they start trading their oil in something else? We are left sitting on trillions of debt with nothing to export and a shattered economy.
And this train is almost at the end of the line and it won't change course or stop as long as people don't realize what is going on. As long as it doesn't effect them, as long as they can go to their job every day and watch their reality television at night they are perfectly content. Try to talk to them and they just roll their eyes And say, 'oh you.. You've been listening to to much of that Glen Beck nonsense.' Well I've got some bad news for you sunshine. Pink isn't well and he's back at the hotel. And they sent us along as a surrogate band. Tonight we'll find out where you fans really stand.
