A friend and I were talking over IM about how paychecks just don’t seem to stretch as far as they used to. He was telling me about another friend of ours who couldn’t understand why his money didn’t seem to buy as much while the inflation indicators were so low.
My friend and I both know why inflation appears to be so low. They don’t track food, fuel or housing.
Lets face it, 7 years ago $100 would get you pretty far. Now it gets you pretty much nothing. A banana was 33 cents a pound less than four years ago, now they approach 80 cents a pound which rings in at 242%.
Gasoline was around $1.19 back then, now it’s around $2.70, a 226% increase.
And housing is the big one. Prices for homes have accelerated to the point that average salaries cannot keep up with them.
I believe I’ve told the story of how a $35,000 home in 2000 was bought for $350,000 in 2006. That’s a 1000% increase in price.
I’m reading a very good book right now, it’s called “The Creature from Jekyll Island: A second look at the Federal Reserve” by Edward Griffin. The Federal Reserve is anything but Federal. It’s a cartel of all the major banks in the U.S. Their policies and procedures move us towards war, they create rampant inflation, etc.
I’d like to see the world moved back to the gold standard. If you can’t pay for it, you can’t do it.