[quote=philip]> . . .but then I look at our economy and wonder what happens if someone really stops to think about why $1 still buys you the same $1 worth of stuff it did 6 months or a year ago. That's what confuses me the most I guess.
IMO, Manipulation. The reality curve will be very steep when it hits.
$.02, $.20, $2.00, never mind
Manipulation is right. That's the whole idea behind how our Federal Reserve operates.
Our Federal Reserve has attempted to manage growth historically by seeking to manage the amount of money flowing in the economy and by seeking to manage the cost of money. The Fed lends money to banks at low interest rates. Of course, this allows banks to add capital at inexpensive rates for periods of time.
I also have issues with how our government even calculates the rate at which the economy grows or shrinks, but I will be getting political if I write more, if I have not already.
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