The wrecking ball of hidden inflation and Fed based strategies – food inflation far outpacing overall inflation and eating away at the purchasing power of 46,000,000 Americans on food stamps.
The Federal Reserve has openly called for a steady growth of inflation. This almost dogmatic view on inflation is problematic because it is detached to the lack of wage growth being experienced by working andmiddle class families. What you do not hear articulated from the Fed is that they would like to encourage wage inflation as well. The inflation growth is really a shadow bailout of the banking sector in our economy that still requires billions and billions of dollars for horrible bets and poorly placed gambles. If the beat of inflation marches on, these debts can be washed away simply because purchasing power is lost moving forward. Yet this is bad policy for the vast majority of Americans. Inflation has crept into the daily lives of Americans because of this policy. Food prices have increased steadily while energy remains expensive. The cost to go to college still continues to increase in spite of a bubble in student debt. Inflation is a double-edged sword and the Fed is aggressively pursuing this option largely to aid their banking allies.
Inflation is already here for working and middle class Americans
Inflation is already hitting the wallets of most Americans. After the liquidity crisis and trillions of dollars infused into the system, inflation is now on an upward march:
The inflation rate for nearly 1.5 years is now running between 3 and 4 percent. So the Fed is getting a desired result by also putting the US dollar at risk. While the inflation rate inches along the wages of Americans are going sideways. So a 3 to 4 percent rate might seem modest if we were also seeing a similar rate of increase in overall wages. But with the unemployment rate above 8 percent and the underemployment rate around 15 percent, slack in the workforce makes this an employer’s market and they are seeking out low wage employees.
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