Over time, our currency becomes worth less, and one day, it will be worthless.
-Me
A fun fact:
Inflation = currency heading towards worthless.
Disinflation = currency heading towards worthless, but at a slower pace.
Deflation = currency clawing some value back. But how many times does the chart go below zero?
Deflation would have to persist for 100 years to ‘go back to how things were’. Not saying that’s required, or ‘how it should be’. Simply pointing out that our economy is a super-tanker (is that a pun?). It means they take a looooong time to turn around.
Note: In the FRED chart, everything above zero on the Y axis is ‘heading towards worthless’.
ANY inflation amount greater than ‘zero’ reduces value. Any policy that seeks to make something less valuable usually isn’t smart…but it IS useful if you’re….leveraged to the absolute max. Meaning you owe more than you make *cough* US debt to GDP ratio *cough*.
Fun fact #2: The US Gov stopped reporting ‘as often’ on the growth of the money supply (M1 and M2). Why would they do something like that…?
They did it to obfuscate this. Obviously.
If you want to hide the horrible stuff you’re pulling, well…stupid, first things first: Stop advertising it to everyone.
Word for the day:
