The Federal Reserve and the Treasury Department have been printing up and pumping out fiat dollars and ‘zero-interest credit’ since late 2008. The resulting erosion in the value of the U.S. Dollar does not show up much in the official CPI reports (where “CPI has averaged only 2% since the end of the Great Recession in early 2009”).
In the real world, “many basic commodities have soared since then. Gold was $930 an ounce when the recession ended, and today it’s just over $1,600. That’s an increase of 70% in four years, or an annualized rate of over 14%.
“The Reuters CRB Commodity Index, which tracks the prices of energy, coffee, cocoa, copper, cotton, etc. is up 38% over four years, or 8.6% at a compound annual rate.
The price of gasoline has gone up from $2.60 a gallon when the recession ended to around $3.70 today nationally. That’s a 41% increase in four years, or an annualized rate of 9%. Taxes have gone up almost as much. Federal, state and local income taxes have risen 35% over four years, an annualized rate of 7.8%.”
“Then there’s the so-called “Big Mac Index” that was popularized by The Economist some years ago. McDonald’s hamburgers are available in many countries and their prices reflect the cost of food, fuel and basic labor. The price of a Big Mac, therefore, can be yet another indicator of inflation in a particular country. Since the recession ended, the cost of a Big Mac in the US has risen from an average of $3.57 to $4.37, or 5.2% a year.”
Otherwise, how well has the government’s “print and credit’ agenda for major banks worked out for American families?
“Real median annual household income in January of this year was $51,584 – or 92.7% of the level in January 2000. Incomes inched up early in 2012 but have been treading water since May, according to the Household Income Index. While household income ticked up slightly in the past year, it remains well below the $54,008 level seen at the start of the recovery roughly four years ago.”
While the “headline Consumer Price Index has hovered around 2% for the last four years,” other key measurements are in the “5%-8% range.”
“Keep in mind that “our government has a record $16.7 trillion in debt it is paying interest on. If interest rates rise, it costs Uncle Sam more money. If inflation rises, interest rates follow. Obviously, the government has incentives to manipulate [ or massage] the official inflation rate lower than it really is.”
With the massive ($85 billion/month) on-going Fed printing agenda, there will be continued erosion of the Dollar, and American families will continue to get ‘squeezed’ by the inflationary impact.
The Leviticus 25 Plan offers substantial debt relief at the family level. And this would be an important first step in shielding American families from even greater “ inflationary winds” which are certain to blow in over the months and years ahead.