You're like many middle to upper-middle class middle aged Americans. You own a paid-off home, a couple of cars and zero your cards monthly. You don't owe a dime. You might have some cash and stocks and maybe a net worth, not including your home, of a few hundred thousand. You also earn another hundred thousand a year, so you're not doing too badly.
You voted for Biden- couldn't stand the arrogant orange. You knew Biden was going downhill and, of course, he's not doing so well. Opening the border and shutting down American oil wasn't too smart. You're worried about inflation. You see prices rising but then, so are some of your stocks. You know the BBB bill is a disaster but, he has to do something- doesn't he? It will be OK. What the hell, it's a nice day. You decide to go golfing with a couple old buddies.
But then, one Monday morning, you wake up to find that over the weekend the dollar has collapsed. It's no longer accepted as a means of exchange. The world's central banks colluded and decided the US dollar had become worthless and took it off their exchanges. You had heard about this possibility but, like most, failed to do anything about it. You assumed that somehow someone would figure something out! They didn't!
Is that even possible? Considering there are more than a hundred fiat currencies that have failed, it most definitely is possible. Zimbabwe actually had a billion dollar bill. The WWI German Deutschmark inflated to a point that it took a wheelbarrow full to buy a loaf of bread. Once a fiat currency has become hyper-inflated, it quickly becomes totally worthless. So, the several hundred thousand dollars you had is now valueless. No one will accept it for anything of value. You can't even buy an apple for all of it.
Beginning back in 1944, the nations of the world fighting against Hitler came together at a small hotel in Bretton Wood, New Hampshire. Delegates from 44 Allied countries met to come up with a post-war system to manage foreign exchange. The delegation decided that the world’s currencies would no longer be linked to gold but would instead be pegged to the U.S dollar because the greenback was, itself, linked to gold.
This fact made the years up to 1970 relatively stable and helped make America the wealthiest country in the world. Unfortunately, in August of that year, Richard Nixon decided that he wanted to print more money to buy more votes but, he couldn't without having a percentage in gold. He understood that something had to change. It did. In August, he took America off gold completely making our money NOTHING BUT PAPER! Of course, over the prior years, the feds had already debased the currency such that to print a dollar they had to have only .40 cents in gold- meaning that before Nixon totally destroyed it, the government had already wiped out 60% of the value of our money.
How bad is it? Well, since Nixon, your dollar today, compared to the 1944 dollar, is now worth a bit less than 1.5 cents. Back in 44 a can of coffee was about .50 cents and a gallon of gas .15 cents. In 1958 a new VW bug was $1,800.00. The last year they were built the cost was over $21,000.00. Listen, today it costs more in ink, paper, printer time, labor, administration and overhead to print a dollar bill than it's worth. That says is all!!!
The insidious thing about inflation is that wages never keep up. The population keeps getting poorer as the dollar gets weaker and everything costs more while salaries remain relatively the same. Why? That's the big question. What causes inflation? First, simply printing money that no one worked for, meaning it's not labor or profit, just paper, makes every fiat dollar fairly earned less valuable.
To be sustainable as a means of exchange paper money (fiat currency) must reflect something of value. Labor is value, profit is value. A guy works and sweats 8 hours for ten bucks an hour, he earns $80 bucks. That's real. Ten guys work building ten chairs at a cost of $10 bucks each in material and labor. The chair company sells the ten chairs for $20.00 each. Subtracting costs, the owner nets $100.00. That' profit! That's value. The paper money reflects both! It's not a good as gold but at least-it reflects value!
When the treasury, under orders from the low IQ politicians, is ordered to print up and distribute a trillion unearned paper dollars that money winds up diluting the total money supply, lessening its value. It's like pouring water into good whisky- making it less potent. Too much unearned paper money in circulation always increases the costs of goods and services. Wages have to increase a little and they do- but never enough to stay even and the population as a whole gets poorer.
Businesses that need to buy parts from other companies wind up paying more and then have to increase their prices to maintain profitability. Of course, at some point, customers can't afford the product and sales fall off. The company winds up laying workers off and making less. Maybe they stop paying dividends and maybe the stockholders find anther company to invest in. There's less money for new products and maybe the stock falls and maybe the company goes out of business all together. That happens and that's another effect of inflation. Of course, the parts company loses a customer and sells less parts, making less money and maybe it too lays workers off .......and so on.. Got it?
State governments are not allowed to spend more than they take in. The Federal government can somehow legally print and spend far more than they take in and the idiots have been doing so for decades. The mistake, back when the constitution was written, was not to limit the feds to only what they get from taxation and other legal and agreed upon revenue sources. Why the hell did the founding fathers not address this? Good question. I assume it was because they never imagined that people could be that stupid! They were obviously wrong!
In the early days, most all who formed our government and helped write the constitution were seriously well-educated, highly Intelligent and gifted people. Man for man, they were far above 90% of the genuine bottom-feeders we see in congress and government today. I assure you that, back in the day, the dim-witted dolts and criminals the likes of Omar, AOC, Swalwell, Schiff and Pelosi et al would never be tolerated. Tragically, they today are!
Year after year, the fools on the hill have ruined our currency and are today literally, on the thin edge of utterly destroying the country and everyone in it. They can't maintain the level of expenditures they stupidly voted for. They have created, over the years, a totally unaffordable and un-fundable budget that can only be sustained by endless printing of increasingly worthless paper money. Most of them are actually so stupid that they don't really understand what in hell they have done and are doing. Over the last 15 years, the fools have more than tripled the debt to where it stands today at something approaching $30 trillion dollars. (which, by the bye, is more money than exists today in the entire world)
The dumbest of all are on the left, totally incompetent, uneducated, mindless progressives, none of whom have any right to be in any office. If they were asked to explain "quantitative easing ex nihilo and monetization of the debt," (the terms used to create cover for counterfeiting and robbery) not one of them could. Few of them even know the difference between debt and deficit- nor do they care.
So, on that fatal Monday morning you wake up virtually penniless. You own your home of course but you have only a week of food and no way to buy more. The food stores are guarded and barricaded- same with gas for your cars. The stations are closed. No one will sell anything for worthless paper. What to do? You never bought silver or gold, you never invested in freeze-dried food. You thought "preppers" were ignorant, beer-guzzling back-woods, stump-jumping Trump-bubbas.
But food is running out. Hey, maybe you can barter? You use up some precious gas to get to the food store. There's a long line. You wait. Finally, the owner says "what you got?" You show him your gold watch. He nods, takes it and lets you in. You get a little food and you leave. In the parking lot five teen-age blacks jump you, beat you senseless and leave you in the dark lot semi-conscious. They take your car and food. You wake, your ribs are broken, your skull's cracked, you're bleeding, you suffered a massive concussion, you don't remember your name. It's cold and raining, people pass by, no one helps- a kitty Genovese moment. Two hours later you stop breathing...It's over!
A week later, finding your address in the glove box, the same black gang invades your home raping and murdering your hysterical screaming wife, taking what little food and things of value they find and torching your house. Now, that's inflation! That's your progressive government! Not that you care anymore...