Federal Reserve Vice Chairman, Donald Kohn, stated that a roughly 2% inflation rate would be ideal for economic recovery. However, former Fed Chairman Paul Volcker, who crushed double-digit inflation with high interest rates in the early 1980’s, responded, “I don’t get it…[by setting 2% as an inflation objective, the Fed is] telling people that people in a generation that they’re going to be losing half their purchasing power.”

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During the Bush Administration, Fed Chairmen Alan Greenspan and Ben Bernanke devalued the Dollar by nearly 30%. At one point, under Bernanke, the dollar had lost 40% of its value since 2002.

And despite this inflationary tax on our money, Ben Bernanke remains Fed Chairman under the Obama administration, even though many top analysts believe his inflationary policies, in the form of artificially low interest rates and excessive money printing, were a primary cause of the massive bubble that is currently collapsing. Talk about rewarding failure.

Inflation robs Americans of their hard earned savings and erodes their purchasing power over time. It’s an insidious, invisible tax on the American taxpayer. It’s what the Federal Reserve does best.

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