Another one of those remarkable Karl Denninger comparisons:
The so-called “increase” in your wages are an intentional chimera which is thrown to you to make you “feel good” about your earnings “going up.” But in point of fact they’re not going up at all, they are going down because the divisor, the total number of dollars in the system that are available to buy the goods and services are rising much faster than your earnings are.
The fraud you’re being sold is exactly identical to going into a bakery and ordering a sheet cake. The baker asks you how many pieces you would like the cake cut into; your options are 2, 4, 8, 16 or 32. He then tells you that if you’re really hungry you should choose 32, because that way you can eat more pieces.
You’d either laugh at the baker or string him up by his necktie were he to pull that crap, yet this is exactly what Ben Bernanke along with all the politicians have been selling you for the last 30 years.
When I was in fourth grade, I read Mark Twain’s A Connecticut Yankee in King Arthur’s Court, which makes similar economic points. It’s stuck with me for half a century. No wonder students don’t read it anymore.
(Via Bayou Renaissance Man.)