Shrinking value of money

I heard a shocking statistic Sunday morning on WSB radio. Let me share it with you.

If you were fortunate enough to have amassed $22,000 in a money market account five years ago when the average money market rate was about 4.5%, it would have earned you $1000 taxable income over during a years time. Now in 2012, it takes $3,300,000. That's $3million three hundred thousand dollars in a money market account to earn $1,000 taxable income during a year.

That means that the value of any money you have accrued has 150 times less earning power than it had only 5 years ago. This is the problem with putting more money into our economic system without backing it withg any more value. It devalues the current value of money. Hence, a coming time of increased inflation. Gas at 150 time more than it was per gallon five years ago or around $270 per gallon or bread at about $179 per loaf.

Don't laugh at those numbers. Just look at the Weimar Republic of Germany just after World War I. But you say, we haven't lost a war--but we are in the midst of losing the economic battle. Adding trillions more debt  and just shrugging about it. The result of WWI was millions of dead, rampant inflation, hunger, no jobs, and sowing the seeds of WWII where another generation was wasted.