Audio Clips

22 March 2011

The Damage of a Floating Dollar

Seth Lipsky spoke at Hillsdale College recently and Hillsdale put it in their publication, Imprimis. (If you don't subscribe, it's free. And worthwhile.) He spoke about the damage to individuals that occurs because the dollar is not fixed to any particular value. Its value is simply whatever the market says it's worth. Since the Federal Reserve is able to just introduce whatever amount of dollars they want into the system, it devalues the dollars that already exist. Hence, inflation. As Warren Buffett has pointed out before, inflation is simply a hidden tax. He discusses some lawsuits that are going on that have the potential to ignite a national conversation on the buying-power of the dollars we earn. Check it out and let me know what you think.

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