Stop the Fed and get more Doritos

Another gift from the Federal Reserve: Frito-Lay recently started putting fewer chips in a bag of Doritos, cutting the weight of a bag about 5% from 9.75 ounces to 9.25 ounces in the process, which made the bag lighter by 5%.

The Consumer Price Index from the US government shows that prices have gone up 7.9% in the last year. This statistic shows the highest rate of growth in 40 years, but it still understates how much prices have gone up. This is because the statistic is manipulated to make it less likely that prices will be reported as going up.

"Shrinkflation" is a form of inflation that doesn't show up on the radar. The term "shrinkflation" is used when businesses cut the size of a product so the price stays the same. Earlier this year, Frito-Lay changed the way they put Doritos in a bag. They started putting less chips in it, which made the bag lighter by 5%. There is no doubt that charging the same for less is a way to raise the prices.

In the last week, the Federal Reserve pushed up the interest rate by a quarter of a percent. This, it said, is a step in the fight against inflation. Another thing that the Fed said was that it plans to raise rates six more times this year. Rates will only go up to about 1.9 percent even if the Fed follows through with this plan. This isn't going to work very well to fight inflation. The Fed also said that it was going to start cutting back on its almost nine trillion dollar balance sheet, even though its official statement didn't give any specifics, like when the Federal Reserve would start cutting back on holdings.

They are in a situation that they made. Rates should not be kept low any longer. This will lead to a crisis in the dollar's value. then it could cause an economic meltdown that is worse than the Great Depression. It would be very bad for the federal government if the Fed raised rates to anything close to where they would be in a free market, though.

The only reason Congress and the Fed haven't caused a major economic crisis is because the dollar is the world's reserve currency. The use of the dollar in the international oil market is one of the things that make the dollar important. The "petrodollar," on the other hand, may soon be out of date. Saudi Arabia may sell some of its oil for Chinese yuan instead of US dollars. Russian rubles and Indian rupees could be used in trade with Russia, as well as for buying Russian oil. This will make it easier to get around U.S. rules. People will stop using the dollar because they don't trust the US economy and because they don't like how we do things in other countries.

There can be a lot of political turmoil when the economy is unstable. This can lead to violence and more support for authoritarian movements. This could happen if people who know the truth spread the ideas of liberty. When a lot of people want fiscal responsibility and limited government, the politicians will do what the people want.

Putting an end to the welfare-warfare state can be done by cutting the military budget, ending all corporate welfare, and closing down all unconstitutional cabinet departments. The money saved can be used to pay off debt and help those who are truly dependent on government programs, while the responsibility for providing aid goes back to local institutions and private charities in the area.

By auditing the Fed and then ending it, Congress should also restore a sound monetary policy. They should also repeal both legal tender laws and capital gains taxes on precious metals and virtual currencies. This will help the economy. This means that ending the era of the welfare-warfare state and the use of fiat money can lead to a new era of liberty, peace, prosperity, and full bags of Doritos.


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