I do know that I haven't gotten a raise for a couple of years and the prices at the grocery store are dramaticly higher in this time.
So you've had a pay
cut, courtesy of our friends at the Fed. Every time they increase the supply of currency, they give everybody a pay cut in order to
envalue (if you will) the new money they're bringing into existence. You see, the sum total of all the money in existence possesses X value (roughly equal to the value of every good, service, and product available for purchase at any given time). Each dollar's value is X divided by the number of dollars in existence (M). When you increase the number of the units of X, you thereby decrease the value of each unit accordingly (the number of units, or dollars (M), being the denominator, and X being the numerator). That decrease in the value of each unit (dollar) is where the value now residing in the new currency came from. In other words, you can't create new
value by printing new units of X (i.e., by increasing M). All you can accomplish by increasing the currency supply (M) is to
redistribute the total value of X that's already in existence.
This is why a nation cannot become wealthier overall by printing more currency. That only
redistributes the wealth from those who currently hold it, to those who receive the newly printed money, i.e., the banks, their partners in government, and the "too big to fails."
Expanding the currency supply ("printing") is a very sophisticated form of theft. It's why counterfeiting is a crime. It leaves the actual currency in our pockets untouched, but sucks out a portion of the
value of each dollar in our pockets and places it into the newly printed currency by simple operation of mathematics (X over M). It's a zero sum game.
