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I have written many times about inflation.

Inflation: mainstream versus Austrian view
The US is bankrupt
Iceland: a preview of our future?
Tsunami of Inflation
Credit Default Swaps (CDS)will be the big story of 2009
Hyperinflation 101

My underlying premise is that inflation is only the outcome possible because central banks and governments will do everything and anything to make it so. Under a free market deflation is the natural mechanism to purge the excess of recent decades. Unfortunately deflation will never be allowed to occur because it threatens the financial system and therefore the power base of Banksters who ultimately control governments. Remember the Federal Reserve is privately owned institution who greatly benefit from inflation. They receive a 6% dividend for every US dollar printed. Click here for an informative but shocking video about the Federal Reserve Ben Bernanke the current Fed Chairman has written papers and made countless statements that deflation can always be avoided because they have access to the printing press. Recent quantitative easing policies should leave no doubt the printing presses are in full production, not only in the US but around the globe.

To further illustrate government bias toward inflation take a look at this gem of a video from 1933. Remove the gold standard and inflation is made oh so easy.......

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