Thanks to the Federal Reserve and our government for their chase for a strong dollar policy, middle income workers are now forced to become money managers. A strong dollar cannot come from government or the Feds, only from the private sector; although elected officials have unlimited power to destroy it. It used to be that you can work, get paid, then allocate your money to a bank and let it sit without worrying. But now, in addition to a career, we work harder preserving wealth than creating it. Since the inception of the Federal Reserve the dollar has lost in 97 years over 95% of its value. It is reasonably certain the next 95% won't take as long, and is more likely to occur in our life time.
Middle income retirees, long before retirement have to risk handing their money over to "professional" money managers in order to preserve their lost purchasing power. The days of letting the money sit under the mattress are long over and it's the race to at least stay even. They say that the moment you drive a newly purchased car off the lot is the moment the car starts losing its value. With that in mind, the moment you receive your paycheck it will have long before started losing its own value. Knowing this many will have to become money managers in order to preserve wealth in which they have already labored for.
The ripple effect coming from monetary policy reaches each and every one of us. It is the money nexus that allows for a complex economy to evolve and allows unfortunate men and women today to live in a better manner than historic kings. Without a sound medium of exchange, it is a one step digression to barbarism. This is what makes a sound, worthwhile, medium of exchange especially significant and allows us to step away from primitive economies.
If the markets were allowed to function those middle income retirees could have retired long before they originally planned. Instead, they are delayed from retirement or the already retired are now forced into an extremely competitive job market. A free market currency preserves wealth, and from this our elders would be allowed to retire, and can free up jobs for the jobless.
It's a disgrace that a person who goes to college, gets a job, then gets paid will soon have to enter the stock market in order to keep up with inflation, as if life wasn't already tough. With government and Fed central planning, inflation will only get worse and life with it. Once serious inflation gets underway, money managing will get only tougher to maintain, and for those who cannot manage to keep up will join an already large club.
Sound money is essential for free markets to become more efficient, productive and speedier than most can understand. Sound monies are a natural human process that comes as naturally as a plant from a seed. For those who are misguided into believing that only government can fix economic disasters that government created, they are in for a surprise. They will also be surprised to find that money, and law comes from individual men and not government. Sound money and free markets is the shortest path toinevitable progress.
January 22, 2010