Patriot1208 wrote:50% inflation in five years? Bro, you need to stop watching beck.
cool response bro, you're totally gonna make an awesome lawyer. good choice instead of working with money. currency devaluation =/= inflation, but they are interconnect and functionally achieve the same ends. "there existed a bi-directional causality between money supply growth and inflation and between currency devaluation and inflation." inflation is kind of a retrospective measurement of currency devaluation. our currency is currently being devalued, whereas in inflation is a comparison of a basket of good over a historical time period. as the effects of devaluation getworst, that time period required to show "significant" change (as in its technical use) decreases until you have a hyper inflationary episode where you have a change in a basket of goods from one day or hour to the next.
"From the year 2001, the Dollar has declined at a compound rate of over 7% per year to the Euro. In terms of the British pound, the dollar has declined at a compound rate of over 5.5% per year. The same is true of an index of major currencies against the dollar as compiled by the Federal Reserve System." -WSJ
since you are obviously really on top of economics and did a lot of research for that answer, i'll do some work for you. a decline of 7% compound over 10 years. that would mean $1000 in 2001 is worth $1,967.15 now, relative to the euro, despite the euro's hard decline and multiple countries going bankrupt. $1,708.14 against the pound. so there's 70.8-96.7% loss of value over 10 years.
you'll probably have to read this to have a basic understanding of what we are talking about: http://useconomy.about.com/od/tradepoli ... _Value.htm
1. most people have some understanding that the debt is bad. fiat currencies have value based on the perceived strength of the national government, stability of economy, and its ability to repay its debts. following the flow of money after the japan earthquake/tsunami/reactor meltdown, coupled with the rise of violence and instability in the middle east, went to mostly australia and canada. the japan crisis, as the 3rd largest economy in the world, is a total global crisis in terms of economic growth e.g. the car companies in the us/germany/all over the world that had to stop producing to conserve parts made in japan. the same goes for computer companies.
2. exchange rate is above
3. the largest purchaser of US treasuries are the FED. this is a pretty circular system. it is called quantitative easing. It is an inflationary move. we are on qe2, and qe3 is going to happen. That is the only thing currently driving stock market through speculation with easy cash. unemployment/income/gdp growth hasn't changed despite this monetary policy. this is also what japan did during its lost decade (1990's) and caused years of stagflation hmmm that sounds kinda familiar with the FED printing money but unemployment remaining high as well as rising oil costs.
4. us dollars aren't being held in emerging market's currency reserves as hedges against their high rates of growth and inflation. india, china, russia, brazil, and indonesia have been selling dollars and buying gold or RMB. selling off of dollars decreases value pretty hard when we are talking about trillions of dollars. http://seekingalpha.com/article/261865- ... re-at-risk
-the dollar has depreciated 39% against gold in under TWO AND A HALF YEARS. see as how gold is the universal standard/store of wealth, that's pretty heavy. this article also has analysis on the dollar relative to most foreign currencies and commodities since 2009.
the commodities are important for 2 reasons. they are customarily used by hedge and mutual funds as hedges against inflation and unstable markets. they are also input costs. as input costs like oil and silver (its in almost all high tech devises, medical garments, etc.) increase, it is an economic growth killer. we aren't going to "grow" out of debt. we are going to inflate/devalue it away.
these are forerunners and more current/accurate measurements than your customary CPI basket of goods inflation measurements.
pick up an econ textbook or run a business before making some idiotic quip about shit you obviously don't know anything about. fucking glen beck.