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In 1928 the cost of one postage was one cent, the labor for a vehicle tune-up was one dollar, along with labor cost to overhaul the engine and transmission was about $25. These facts strengthen the case for the dollar debasement that Austrian School economists have been creating for decades. Currency debasement is a consequence of monetary inflation.

The Universal Law of Cause and Effect countries which each and every Effect has a Cause, also that each and every Cause or Action has a Effect. As like the Expansion of money distribution is the Cause which has a predictable, and Effect known as Currency Debasement.

Thus, what is Inflation following all? In easy School terms, inflation would be the constant increase in the money supply in circulation which leads to a constant decrease in purchasing power. Such event (trigger) may and it does, actually exist before its effects are seen. Make no mistake, inflation and price increases are not the identical thing, one is trigger and the other is effect. The increase in the money supply happens it represents the Cause. The cost increase occurs it represents the result. The conventional wisdom may be that the price increase should be less relevant to the general well-being of society because salaries increase thus a balance between the two has been attained.

However, Murray Rothbard and other known School intellectuals were quick to point out that it's those first in line to get the newly created money that are the winners, because they get to invest this money before everyone else. In other words, people who are getting their hands on it get to pay it before the increase in costs takes effect. From the time the rest of the people get it - 99 percent of the population - the costs of products and services have already gone up. While we are kept busy with immaterial news, we are in effect being distracted from figuring out what really is going on with the things which ought to be significant to us.

Monetary expansion, government expansion, government's debt and its own inability to function on a small budget, unnecessary bailouts, and international wars are being replaced with news of the latest movie celebrities drama or the latest national threat to our liberties from foreign lands. It's, after all, considerably more entertaining to read about the intricacies of Angelina Jolie's marriage to Brad Pitt compared to comprehend the "boring" events at the Fed. In the meantime we are assured the small guy's voice has been heard and action is being taken to address his problem. So far, it is Smoke and Mirrors and the abandoned man is again.still abandoned. Although you want to do anything about it, but believe that you are too little to make a difference you might consider joining the Ron Paul revolution.

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