Foreign Affairs, the house organ of the globalist Council of Foreign Relations, has an idea on how to save the economy — give away paper money to the 99 percenters.
“Rather than trying to spur private-sector spending through asset purchases or interest-rate changes, central banks, such as the Fed, should hand consumers cash directly,” write Mark Blyth and Eric Lonergan.
The free money scheme is predicated on government insistence that inflation is low, thus adding trillions of dollars to the economy will not have an adverse effect. The authors insist that “in recent years, low inflation rates have proved remarkably resilient, even following round after round of quantitative easing.”
Peter Schiff notes that the Consumer Price Index (CPI) used by the government and the Federal Reserve “is no longer a tool to accurately measure inflation, but an instrument of propaganda the government uses to hide accelerating inflation from the public and financial markets.”
“The true rate of inflation is probably somewhere between 7 percent and 10 percent, not the 1.5 percent officially measured by the CPI.”
“Given that the CPI is calculated secretly, is no where near comparable to monetary inflation, and doesn’t even meet its own definition of inflation, we should use our common sense to count the value of our cents, not the CPI,” writes Perianne Boring.
Currently, the real marker measuring inflation is food, as a trip to the grocery store will demonstrate.
Chriss Street writes that “annual U.S. food inflation is now running at +22% and rising.”
“The real culprit for food inflation is the $940 billion of additional monetary stimulus from the United States Federal Reserve’s quantitative easing over the last twelve months. Inflation has been in hibernation for a long time, but it is wide awake now.”
As Street notes, inflation is directly attributable to government monetary expansion, that is to say increasing the size of the nation’s money supply — its liquid assets, i.e., dollar bills — which is politically exploited to increase government expenditures.
While printing up tons of devalued dollars and handing them out will undoubtedly be popular, it will seriously exacerbate inflation and work to undermine and eventually turn the middle class into a pauper class.