Quote from: Tytanowy Janusz on Today at 11:40:28 AM

Imagine a scenario in which, through hard work, in 20 years, you managed to save $200,000 by saving an average of $10,000 per year. The dream house you want to buy is worth $250,000 today. You sould be able to afford it in 5 years right? No. In 5 years it will be worth $300,000, so you will be missing exactly as much as you are now ($50k)... You get the idea? The point of inflation is to keep you underwater.

This is spot on. Precisely what the plan behind having a central bank was. Being able to consistently steal from the people with the shield of the government and Keynesian scientism.

Quote from: HeRetiK on Today at 11:26:44 AM

The thing is, it's all just numbers and inflation wouldn't be an issue if salaries would keep up with the rest of the market. Alas...

Salaries can't keep up due to Cantillon effect. When new money enters circulation, it does not spread uniformly among the people in the society. Think of the central bank as the source of a river, where the water begins; the wealthiest people are the closest to the source, and they get the first benefit before inflation sets in. As the water goes downstream, it spreads out to other parts of the economy, like investors and entrepreneurs. Once they get the water, then follows middle class. So, until that point, prices have already gone up and their wages cannot be adjusted quickly enough to undo the loss.

Quote from: davis196 on Today at 12:21:50 PM

I thought that the Federal Reserve was created in 1913, not 1910.

The act passed Congress in 1913, but it was conceived in 1910, in Jekyll island.