The perception of currency inflation is derived through the contextual prism of our daily lives. For my neighbors who burn a lot of gasoline commuting more than 40 miles each way every work day, the perceived inflation rate is more than 30%, per annum. And for my #1 Daughter, who’s main commercial interaction involves .22 cartridges, the perceived inflation rate is more than 200%, per annum. And for almost everyone, the fact that 32GB iPods are deflating in price because of economies of scale is a meaningless abstraction, when groceries have risen around 20% since last year. We don’t buy an iPod every week. But we do buy bread, milk, eggs, and 89 octane.
Jim W. recommended: Hoarding Alternative Money & Reforming Banks. The article begins: “Argentina is going through the classic stages of economic collapse. The government seized all pensions. They are destroying everything that gives the people incentive to be a society that emerges from the cooperation of everyone. When government turns against its own people, even as the USA is currently doing, you end up with deflation insofar as the economy collapses and wages are not available, while hoarding emerges as does barter.”
Gee, this was inevitable: Canada to tax Bitcoin transactions. Of course it is mainly the cash-outs and other transactions with the mainstream banking and credit system that can be tracked. Private (peer-to-peer) transactions are still invisible. (Thanks to B.B. for the link.)
Items from The Economatrix: