HOW GOVERNMENT-CREATED INFLATION BECAME POLICY - By Peter Schiff

by Peter Schiff :

The process of dumbing people down so they’ll buy official figures showing inflation “under control” at levels of 1 to 2 percent or so (when it is actually more like 8 to 9 percent) is actually a fairly recent development. Back in the early 1970s, the market basket of consumer prices tracked by the CPI, although not a perfect indicator, was at least relied on by the government itself as a guide. We were still on the gold standard, meaning the money supply had to be managed conservatively. When inflation then
reached 4 percent, it was considered a serious enough problem to warrant wage and price controls, a misguided policy to be sure, but at least a recognition that a problem existed.Today real inflation is much higher and we’re told it’s virtually nonexistent.
The Ford administration was the first to face real problems with government-created inflation, and its strategy, inspired by a young Alan Greenspan serving then as chairman of the Council of Economic Advisors, was to blame the inflation problem on the public. Remember the WIN buttons, standing for “Whip Inflation Now”? As though individual businesspersons could beat inflation by simply refraining from raising prices.
Peter Schiff in his book ' Crash Proof how to profit from the coming economic collapse'
Peter David Schiff, president of Euro-Pacific Capital, is a Connecticut-based brokerage firm have correctly predicted the U.S. stock-market collapse , the home mortgage meltdown and the credit crunch .
Peter Schiff discusses politics, world economies, and investment strategies and is now running for a Senate Seat in his native Connecticut , Peter Schiff is Author of the Best Seller Crash Proof How to Profit From the Coming Economic Collapse