Editor's Note- In this article Olivier Garret, CEO of The Casey Report shows us the massive extent of the bailout compared to every major Government expenditure from the Revolutionary War and the Louisiana Purchase to the Iraq War in inflation adjusted terms and the results are pretty scary. Based on the magnitude of the bailout expenditures it appears Hyperinflation is already baked into the cake. You thought WWII and Iraq were expensive? You "ain't seen nothin' yet. The current bailout is larger than all the major government expenditures since the revolutionary war combined.And lest you think that is because the bailout is comparing inflated dollars against more valuable (and thus smaller … [Read more...]
Inflation Moderate? Who Does The Fed Think They Are Fooling?
By Charles Delvalle Just when you thought reality was setting in at the Fed, you get reminded how silly that idea really is. I say that because lately the Fed has been talking about how bad inflation is, and how they need to be ‘vigilant’ so that inflation expectations don’t deteriorate. If you talk to anyone on the street, I bet they have noticed that prices are higher for just about everything. I don’t know about you, but I sure think that inflation expectations are already pretty bad. So, you would think they’d be really hawkish about inflation at the meeting. Maybe that’ll happen at another meeting, because it sure didn’t happen at the one on Wednesday. … [Read more...]
Zimbabwean Hyperinflation Officially Estimated At 2.2 Million Percent
This is a textbook case of how to create hyperinflation by thinking you can print all the money you want. It is interesting to note that Mugabe blames Britain for trying to undermine his regime when in fact while under British control, Zimbabwe was Africa's second richest country (behind South Africa). But under Mugabe's reign Zimbabwe has become a basket case due primarily to misguided economic policy. Several years ago Mugabe nationalized the large farms and took control from productive farmers and gave control to his cronies (who knew nothing about farming) and then he wondered why farm production fell. Duh? Now inflation is increasing so fast his central statistical office can't keep … [Read more...]
Cumulative Inflation by Decade
How Much Inflation have we had since 1913? Just like compound interest compound inflation grows faster and faster. The average annual inflation since 1913 is "only" 3.42%. But as you can see from the chart to the right compounding something for almost 100 years at 3.42% will result in over 2000% inflation. A 2071% increase is a hard concept to grasp so to put it another way, something that cost $1.00 in 1913 would cost $21.71 today ($1 + $20.71 inflation). Or conversely a dollar today is only worth 4.8¢ in 1913 dollars. In other words the government over the years has stolen 95.2¢ out of every dollar. … [Read more...]
Confederate Inflation Rates (1861 – 1865)
The Chart below shows the Annualized Confederate Inflation Rates. The Annual Inflation Rates are calculated from information provided by the Richmond Civil War Centennial Committee on the purchasing power of Confederate Notes. The table below shows the actual Confederate Treasury Note Inflation data that was used to develop this chart. The method used was to create an index setting January 1, 1861 equal to 100 and adjusting the following months to come up with an Inflation index figure for the first of each succeeding month by interpolating from surrounding months if necessary to fill in the blanks. Note that some months have additional Inflation data for the 15th of the month while … [Read more...]