Sunday, May 29, 2011

In which the Fort Worth Star-Telegram fails to ask the big questions

Jim Fuquay of the Fort Worth Star-Telegram has written a lengthy front page article about rising prices for food, fuel, and clothing. 

The print version explains that bad weather has driven up food prices. 

Mr. Fuquay says that  competition from China is sending fuel prices upward. 

Nowhere in the entire article does Mr. Fuquay ask the obvious questions....

"Why in the hell is the government printing so much money, and when will it stop?" 

Here's Ron Paul on the real cause of inflation:

Because no one understands that inflation is growth in the monetary supply, no one is able to combat it effectively. We hear all sorts of hand-wringing about increasing inflation, and all sorts of explanations about how rising oil and food prices will make inflation worse. At the same time, the fact that MZM, the closest approximation to total money supply that still is reported by the Fed, is still rising by almost 15% per year and that M2 is rising significantly as well is quietly ignored. The pundits have causation backwards: it is inflation that leads to rising prices of oil and food, and not vice versa.

Until the cause of inflation is understood, no effective strategy can be undertaken to combat it. The problem, however, is that the government does not want inflation to be done away with. Inflation benefits debtors and harms creditors, and the United States government is the biggest debtor of all. The United States government, the banking monopoly under the Federal Reserve System, and politically-connected firms and industries are the first entities to take advantage of new money injected into the system, before prices increase. As the increased supply of money begins to chase the same number of goods, prices rise, and the average American suffers. Poor and middle-class Americans are always the hardest hit by inflation, as the weakening dollar makes the imported goods that many Americans depend on more expensive.
Governments love to talk about "things" costing more.  They almost never talk about dollars being worth less.
Why is it that the unpaid bloggers are the ones who have to point this out? 

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