Reserve of Saint Louis:
It?s taken from
today?s column by Thorsten Polleit at
Mises.org. Polleit points out the
dangers of government monetary intervention and this graph really drives home
the point. The Fed expanded the monetary
base by over 70% in 2008 ? which means that the wealth of all Americans was
subjected to an effective 70+ percent tax last year.
No doubt
government officials will look to rein in hyperinflation with more government ?solutions?
such as price and wage controls.
And to think, there is concern about CPI-based deflation because of a fall in consumer demand as well as deleveraging. Will this mean even further expansion by the Fed?
