Economics & Inflation, the most insidious tax of all

I have long said that inflation is the most cruel and insidious tax of all, and contrived inflation has been a policy of our government in cooperation with the Federal Reserve System ever since the onset of the Roosevelt administration during the Great Depression. We are now drowning in that policy of “deficient spend ‘n print money.” The light at the end of the tunnel is an oncoming train. I copied this from the “Comments” chat room at the end of the article written by a person identified only as “Robd”. He or she is right on. As a nation we have been had by our leaders. Read the following very carefully.

FROM: Wall Street Journal - MarketWatch - Dec. 23, 2010 - Weekend Investor

www.marketwatch.com/story

Science is pure math with substances which prove out 100% in logic. Arts are enjoyable and provide beauty and prove out 100% with regard to what it is and where it came from, same as science. Economics is a whole different story, it's about 50% logical sublative and 50% BS. The problem with economics is the gains and losses are not accounted for equally. They establish the concept of demand and supply and we account for change in value of assets without proper timing to true gains and losses. Constantly under stating the rate of inflation has proven to be the hallmark of our nation's ability to manufacture wealth. Here is a prime example of Wall Street and our Government avoidance of true economic accountability. Take a new car manufactured by Toyota in 1977, a Corolla which retailed for $2700. In the year 2000 that same model car sold for $16,800. That is a 522% increase in price in 23 years. That means the average annual inflation compounded daily was 11.87%. Check the government average rate of inflation in those years and you will get on average 4.72% So with that revelation you see that our nation has overvalued the GDP growth rate by nearly 3 times every year for 23 years. This economic system of valuation is so contrived and manipulated, they have robbed most of America and appear to have lots of the wrong people in jail. It's insane that this process has gone on for so long. How do you think they created stock equity markets that produce incredible values of wealth from thin air? When you can mask such fraud and have the government's blessing, there is no stopping this train until the return of the one who will judge them all.