By: Todd Wheatley
(c) IQ-2k   12-18-21

Forty years ago the U.S. was nearing the end of a high inflation period. The Arab Oil Embargo (1973-1974) and the Iranian Revolution (1979) sent the price for crude oil through the roof. INTEREST RATES skyrocketed to a record 20% in the 1989s to combat the rising prices. In direct contrast to today. The price of food and consumer goods were high while education and healthcare were affordable.

Prior to the 1990s middle-class families could afford a college education without substantial debt. Today that same education is about 5 times as expensive. Talk about INFLATION! The same is true with pharmaceuticals. As a result, prescription medication has become a serious burden. While these two segments of the economy never reached HYPERINFLATION status the price hikes were truly offensive. Yet little to no action has been taken leaving most of the burden at opposite ends of the age spectrum. Today the price of a college education is out of reach for most young adults and the elderly routinely trade off other necessities for medication.

During the same forty year period, the wider population experienced a mix of inflation pressure. Though many consumer goods and electronics actually declined in price as globalization took hold. Over the long term, food products and automobiles have seen tepid INFLATION. While the inflation in housing has been much the same throughout U.S. history .... location, location, location. In fact, the only universal inflation worry has been the cost of healthcare and insurance. Education notwithstanding.

With that bit of history, one should use caution when applying INFLATION as a "blanket term". The real economics can be nuanced if not difficult. As a matter of PUBLIC POLICY, however, "inflation" holds the key to a domestic agenda. Many governmental decisions have roots on the basis of "inflation" or lack thereof. For more than 100 years (1913) the U.S. Bureau of Labor Statistics has reported the (monthly) Consumer Price Index (CPI) and has included more calculations over the years to note the difficulty in describing "inflation". CORE INFLATION, for example, excludes the volatility of food and energy, and has been one of the more popular numbers. More recently (2002) the CHAIN-CPI has come into broader to help calculate government benefits. The Chain-CPI typically runs lower than core inflation which decreases governmental assistance payments.

During the Great Recession (2009-2012) DEFLATION was the greatest worry. Many feared that falling prices would send the ECONOMY spiralling downward. Therefore "rapid" price moves in either direction make INFLATION/DEFLATION a "hot button" issue that draws media attention. This article by DR-KNOW (aka. Todd Wheatley) is an acknowledgement of the economic concern. Few things in life are as much a source for chaos as a broken economy. Take the HYPERINFLATION of Weimar Germany (1920s), for example. That social disruption opened a door for Adolf Hitler and World War II. More recently the economic trouble in Venezuela (2016) has sent that nation on the road to ruin. More importantly, other countries in South and Central America will fall like dominoes if Venezuela collapses.

Have you heard about Turkey last week?? That NATO ally is about to go straight down the crapper. It's yet another sign that human intelligence is devolving. To wit: the leader of that country is doing the exact opposite of what needs to be done because he DOESN'T BELIEVE economic wisdom. HE "FEELS" that INTEREST RATES CAUSE INFLATION .... so he is going to lower interest rates to make money more available.

(see.the.companion-article ... in the Apocalypse Clock)


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