Inflation Understated

Today we hear many politicians speaking about price inflation. They have solutions
such as price controls. We hear from democrats and republicans alike that price are
just much too high for the average American to survive. What these politicians
never tell us however is that the inflation crisis is there fault. I dont believe that
they did this on purpose. I actually think that politicians originally had good
intentions. As we all know, the road to hell is paved with good intentions.
There are two main issues with inflation today. The inflation today was caused by
politicians who had no merit for their actions. What I mean is that programs such as
social security and the student loan program are unconstitutional. Congress had no
authority to implement these programs. The issue is that a majority of Americans do
not understand just how illegal these programs were when they were created.
Congress only has authority over things that were already in the constitution. There
is no mention of student loans, or social security within the constitution. Big bailouts
for banks that failed during the financial crisis in 2008 were unconstitutional. They
literally took tax payer money, and then printed money through the Federal Reserve
to prop up big banks. This is a direct result of Americans not understanding that all
of this was illegal. The results of this however are felt by all Americans, and few
young Americans can understand why they are poor, and why prices continue to
rise. Not only is what politicians have done illegal, but it doesnt even make
economic sense and it is a major reason as to why we have debt, severe inflation, a
lack of innovation, and poverty today.
Lets take a look at some key data points. The consumer price index for urban
consumers for food and beverages was 34.8 in January 1967. That price index has
risen to 247.215 in December 2015. This is a 610% increase in prices for food and
beverages since 1967. I believe that through data and research that these prices
are actually understated and the increase in prices may actually be higher than this.
Here is a link showing this data on a time chart:
https://research.stlouisfed.org/fred2/series/CPIFABSL .
Along with the rise in prices, we have also seen a spike in the amount of US dollars
in circulation. Inflation is typically only a monetary event. An expansion in the
money supply is by definition inflation. Do not confuse this with price inflation,
which can result in minimum wage hikes. Monetary inflation does lead to higher

prices however as a result of an increase in the money supply.

One needs to look no further than this chart to see how quickly the money supply
expansion took place. Individuals always note that wages stop growing during the
1970s. For some reason people are blaming lower taxes on a wage decline for the
middle class. Low taxes however do not have an impact on wages and the two do
not directly correlate. The fact is that wages have actually increased at a fast rate
since the 1970s in dollar terms. The issue is that real wages have been declining
due to the increase in inflation, or the impact of the money supply. So when prices
increase at 610% even with nominal wage increases the net result is a loss in real
wages. This is what makes the Fight for 15 campaign so ignorant. Lets say that
minimum wage workers do get their 15 dollars per hour. The net effect as we have
seen in Seattle is a loss. Prices for fast food have risen over the past year at a 1.6%
average increase. In Seattle prices have risen at a 2% increase due to the minimum
wage hikes, and a majority of the businesses arent even paying $15 yet. So even
with a gradual increase in the minimum wage in the fast food sector you still pay
more in Seattle. The other issue to note is the lack of job growth in that sector in
Seattle. In the state of Washington fast food and restaurant jobs are actually
increasing at a rapid pace, but during the 3 rd and 4th quarter Seattle had a net loss

of 900 jobs in that sector. So while the rest of the state and the nation is adding
jobs, Seattle has been losing them as a result of the minimum wage hikes. When
you hear a politician promising higher wages and talking about how much growth
that we bring you should be skeptical because the data isnt showing that we are
seeing growth as a result in a sample study in Seattle.
So now after looking at charts we notice two things. The first thing is that prices
have risen at 610%. The second thing is that this correlates with the expansion in
the money supply. Lets dig in to why this is absolutely a horrible idea. This basically
means that the government has printed money to pay off its obligations. This is a
complete and utter corrupt scheme. We are actually cheating other countries that
lend to us because we just run paper off of a printing press. The Federal Reserve
has also used a lot of money to bail out big banks and keep interest rates low. You
must increase the money to supply in order to hit your target rate for interest Rates
at the Federal Reserve. The Federal Funds Rate was 0% for seven years. It is still
only .25% so imagine the amount of inflation that we have had since 2008, and
imagine how much prices will rise over the course of the next 20 years as a result of
the actions at the Federal Reserve.

Above is the current result of the Seattle minimum wage according to the BLS for St.
Louis. As you can see jobs in the rest of the state have risen at a large rate while
jobs in the Seattle area are in a declining trend channel. The only other times that
jobs have declined in a similar fashion are during recession years as you can see in
the chart below.

Not only have the politicians manipulated people, but they are bringing on a
recession in the Seattle restaurant industry. All of the workers who were working
those jobs are going to see job losses. And If jobs are being lost how are young
people entering the workforce even going to get jobs? They will be UNEMPLOYED!
I will show you one more chart to inform you that the rise in prices has been
government made. This is a chart of the value of the dollar over the course of the
past several years. Lets see what all of that money printing has done to the value
of our dollars.

AS YOU CAN SEE AFTER THE FEDERAL RESERVE WAS CREATED IN 1913 WE HAVE
SEEN A SHARP DECLINE IN THE VALUE OF THE DOLLAR. SO LET US THINK
CRITICALLY. IF THE GOVERNMENT IS PRINTING TOO MUCH AND CAUSING MONETARY
INFLATION WHAT ARE THE RESULTS? WELL AS WE CAN SEE A RISE IN PRICES DUE
TO THE DECLINE IN THE VALUE OF THE DOLLAR, WHICH MAKES IT IMPOSSIBLE FOR
PEOPLE TO SURVIVE. THEY ARE PRINTING US ALL IN TO POVERTY. WE ARE ON THE
VERGE OF A CURRENCY CRISIS AT THIS POINT. WHEN THE REST OF THE WORLD
REALIZES THAT WE ARE CHEATING THEM AND THEY STOP LENDING TO US ITS
GAME OVER.