Two great articles about what the moves of the Federal Reserve will mean for you and your family.
One is written by Gonzalo Lira, entitled "The Boiling Frog: The effects of QE2 on the bottom 80% of the US population." Here is a sample:
"The first claim I would venture to make—and one that I don’t think will be particularly controversial—is this: Any household spending more than two-thirds of their after-tax income on food, housing, clothing and transportation will suffer an immediate, negative impact from the Fed’s efforts at induced inflation.
That covers pretty much the bottom three quintiles of American households. So 60% of the U.S. population will suffer an immediate effect of rising prices—the stated policy goal of Ben Bernanke’s QE2."
The second article is a guest post on zerohedge.com by Simon Black, writing about all the little things businesses are doing to decrease value of a product in order to save money, but not yet raising prices. He calls this "value deflation". This means you get less for the same money.
Any way you see it, we make the same or less money at work, and the money will go less and less far.
If you get a chance, thank Ben Bernanke and the Federal Reserve Board of Governors yourself.