Inflation
This phenomenon happens in stages which are caused by changes in the demand for money:
1. While the government has been printing money, prices have started to rise to reflect the fact that there is more money in circulation. People save their money hoping that prices will come back down.
2. After realizing that prices probably aren't coming back down, people who were holding off on purchases start buying and the dollar is being circulated more, which causes prices to rise. The $10 bill is getting passed around more than it was in stage one, thus meaning it's doing the work of several $10 bills.
(You are here.)
3. The dollar is clearly losing its value, and people begin trading it for anything they think will retain value, whether it be precious metals, commodities, or foreign currencies.
And now a presentation from Catherine Austin Fitts, former asst. HUD secretary, and Wall St. veteran in clear terminology on what is really going on with our economy. This is entitled The Looting of America, but it could also be called The Tapeworm Economy:
(Please take note of my Red Mike quote on the sidebar to illustrate to yourself that the more things change, the more they stay the same. )
Part 2 Part 3 Part 4
If that's too dry for you, however I find it fascinating, here's a Jesse Ventura episode of Conspiracy Theory I came across at Lew Rockwell. This episode exposes some of the tentacles of the "vampire squid" with dramatic flair.
Part 2 Part 3
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