By SD Contributor AGXIIK:
Inflation as we know it is well embedded in this country with annual increases for the last ten years of 8-10%. The Fed will never reveal the truth, necessarily, as the average person would revolt at that thought. With 48 million people on food stamps, able to buy free food with SNAP and EBT cards, they won’t complain until the buying capacity of these cards is insufficient to buy even the basics. The middle class is so hammered and dispirited at their plight, they have yet to complain, choosing instead to reelect one of the people chiefly responsible for this problem. They probably still think he will produce a miracle to stem inflation. The knowledgeable wealthy can work around inflation of 8% by investing in assets that beat inflation (like gold and silver).
The reason we have yet to see the really heavy foot of inflation is the velocity of money. It is as low as it has been in the last century, even lower than during the Great Depression. When the movement of the $5 trillion plus involved starts in earnest, the inflation will be undeniable and massive. This is when the people and businesses begin to lose confidence in their stale and static accounts stuffed with FIAT and begin to spend it in an attempt to front run the inflationary effects they see. [Read more...]