Bitcoin Forum

https://www.youtube.com/watch?v=wrcszolEW0s

Short video. What are people's thoughts on this? Do you guys anticipate a "panic" occurring at some point?

Any sane person should prefer a currency backed by science over a currency backed by nothing

It was half a year ago, so 5 years in Cryptotime.

While I do believe there will be a major US dollar devaluation in the (probably) near future. I don't think it's going to "crash" and become almost worthless like a loaf of bread costing $100. While I know that the US dollar is becoming less important to the world economy, it's still the biggest player and will be for quite a while still.

In fact, the dollar has lost 99% of its value between 1914 and 2014

Related:

Dead dollar walking (https://www.youtube.com/watch?v=dQdmsL147j0)

Capitalism hits the fan (https://www.youtube.com/watch?v=TZU3wfjtIJY)

The American Dream (https://www.youtube.com/watch?v=tGk5ioEXlIM)

Wealth inequality in America (https://www.youtube.com/watch?v=QPKKQnijnsM)

http://www.small-business-goldmine.com/images/MeltingDollar-1913.gif

http://g.fool.com/img/editorial/Inflation%20vs%20Wages.JPG

http://i.huffpost.com/gen/258375/WAGES-PRODUCTIVITY.jpg

http://asteroidsclub.org/wp-content/uploads/2013/01/graph-rising-inequality.png

http://smartpei.typepad.com/robert_patersons_weblog/images/household_debt_us.jpg

http://contraryinvesting.com/wp-content/uploads/2010/09/national-debt-per-capita.png

Something has to give at some point. I am not sure there is a way back for the dollar. If they try to strengthen it by shrinking the supply the debt we owe becomes worth a lot more and crash the system. On the other hand the slower destruction of QE makes us all poorer. I wonder if it would be best for future generations to swallow the medicine now so they can have a stable economy in the future.   

It is less costly to solve problem now than piling it down the road.

All fiats die..all fiats die.....btw all fiats die!!!

 Dollar is in decline and will eventually disappear . It may well take a few decades for that.  I suspect cryptos whether bitcoin or Government/ financial Institution created will replace all fiats over time as they are just BETTER in so many ways and less expensive to use.


"Every 30-40 years the Reigning Monetary System Fails and has to be retooled"

http://georgewashington2.blogspot.com/2011/08/average-life-expectancy-for-fiat.html

According to a study of 775 fiat currencies by DollarDaze.org, there is no historical precedence for a fiat currency that has succeeded in holding its value. Twenty percent failed through hyperinflation, 21% were destroyed by war, 12% destroyed by independence, 24% were monetarily reformed, and 23% are still in circulation approaching one of the other outcomes.

The average life expectancy for a fiat currency is 27 years,

Agreed, the problem is that no one can convince the aristocracy of that fact. Those of us "in the know" can only keep protecting ourselves by getting our wealth out of fiat currency.  

Hasn't the british pound been around though, for hundreds of years?

I like it

Something to ponder: why is it named the 'pound'?

A loaf of bread in 1900 cost about $0.07.  In 2014, about $2-$4 (depending on the loaf etc).  It happens gradually so people don't notice overnight it going up so dramatically from $0.07.

:-)

Good question.

A pound of sterling silver.  So a pound of silver today would cost about $340 ($21.25/oz* 16 oz).  The pound is not worth $340 US dollars. :-)

still, it seems the pound is still around, so people that say "every fiat dies" aren't being totally accurate.

Interesting in the UK that there is a study stating that 97% of money was credit (FRB money).  Seems like all the decline to currencies is related to private banks creating money out of thin air.

Granted the central banks also do print money but it's a trivial amount compared to how much money is made cooking the books and lending out money which doesn't exist.

These banks are all "too big to fail" (interconnected) and essentially own each other's money - so I don't see the system coming down anytime soon, unless there's some global bank run and the results of that would be catastrophic (it would be equivalent to an EMP attack).

I think you are confused as I wasn't responding to anyone saying it was dead or not, just about why it was called a pound.

One pound of silver that used to cost "1 pound" now costs about 200 "pounds".  For all intents and purposes it is worthless in comparison to its original self.

Just no. The pound is no longer a pound. It is now a fiat currency. Accordingly, the fact that there is still something called the pound in monetary use, cannot be used as an example of a fiat currency lasting a long time.

Exactly. Calling it the same name does not mean it is related to the original currency in any important way. Just another soon to be worthless fiat currency. 

ok, how long has the fiat pound been in circulation?

To my knowledge it was called the 'pound' (short for pound sterling) precisely because it had no silver backing.

It's somewhat akin to calling snack foods 'cheeze doodles' even though they have no cheese in them(note spelling :) ).

-bm

Inflation in the UK has caused the british pound to lose value verses the value of silver. It is still the same currency, as if you had a bank note from several years ago you could still tender it for payment today.

But when it stands for one pound of sterling silver, and then doesn't and is worth 0.5% of a pound of silver, then is it really the same currency?  If I photocopy a GBP note, is it still a pound?

It's what a lot of people think. They think 'Oh the pounds been around for ages' but NO, The pound used to backed by real money - originally a pound of silver & since then it's backing has progressively decreased. Around 1940 it was pegged to the $ but at that time the $ was still backed by gold.

It was only in 1971 when Nixon said 'Oops we don't really have the gold' that the $ & by extension all currencies pegged/linked to it became just paper.

The $ has had a good run, the average life expectancy for a paper currency is only 27 years & the $'s been going for 45.

But it's been partly backed by the 'petrodollar' meaning a lot of oil producers agree only to sell their oil for $ thereby keeping demand for $ high. However when Saddam Hussein decided to sell Oil for Euros they had to go attack him to keep everyone else in line, same with Libya, he was about to start selling Oil for a new gold backed currency he was creating. It's getting a bit messy there though, trying to install and keep $ favourable leaders in power as well as create believable excuses to attack them.

If you want to know why bankers & Government love fiat currency it's because controlling the money supply and rates let them extract the wealth from the population. (See how their fortunes used to be tied directly to the private sector) till after the fiat transition followed by deregulation in the seventies...

http://img.qz.com/2014/04/compensation-per-worker-private-industries-finance_chartbuilder.png?w=1024&h=576

If you photocopy a GBP note then it would be a worthless counterfit. Like any currency inflation has decreased the value of the British pound. If you were to measure a the british pound (or any other major currency that has been around for 200+ years) by what it buys in terms of standard of living then inflation has not taken as bad of an effect. In other words, if you were to live the same way that one lived 100 years ago, then it would not take that much more money to have the same living standards.

FRB isteslf is not bad, as it serves as a mechanism to organize capital.

However the allocation of FRB dollars is very bad, because banks have a monopoly and as we have seen are taxpayer backed.

So the generally siphon of all value from you to them, and are not exposed to market forces/diciplien, rather you are on their behalf.

FRB by central banks lacks any form of competition.

To put it one way, if fiat money was valuable, you should be allowed to counterfeit printed money perfectly,

why cant you, because this would inflate the currency, but that's good as it shows the paper is worthless. Go ahead try and counterfeit BTC.

counterfeiting is a public good because is exposes the currency and economic system to market forces

BTC has actual value even in that.

The problem is when it has no value. All paper currencies become completely worthless within an average of 27 years.

So a currency can survive hundreds of years if it becomes a receipt that is redeemable for less and less amount real money.

But once it stops being backed by real money at all, a 'fiat' currency it's game over, completely worthless within 50 years.

http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2009/3/25/1237999328897/Zimbabwe-One-Hundred-Tril-001.jpg

http://savingtherepublic.com/blog/wp-content/uploads/2014/02/weimar_hyperinflation.jpg

having said that no one keeps there saveing in fiat over 30 years, they go into property or shares.

I think there is some confusion between real wealth and day to day transactional needs.

When you start earning over a certain amount you soon realise that you will be going backwards by leaving your savings in FIAT. So you are forced to invest esle where.

This is something some BTC'rs miss they are the same as LTC on GOX, eg BTC on amazom/ebay whatevs.

The real wealth is not there, its in currency swaps, balancing the nightly, interbank reconciliation, buying houses, project fiance etc, of about minimum $100M amounts, and more routinely $1+ billion amounts.

This is why things like peercoin will likely take the market.

You know how BTC'rs struggle to communicate to the FIAT masses...

Its like this trying to communicate to BTC'rs and most other crypto's about where the value really is.

This is largely because most are used to small transactions, eg buying everyday needs.

Most don't deal with capital raising and debt markets, interbank issues and currency swaps.

the closet most get to a big purchase is a house.

I think the one error here is that it's difficult to pass off a good counterfeit bill ~ especially the high tech new bills we are seeing in some countries.

On the other hand - it's incredibly easy to counterfeit money if you are a bank.  All the bank executive has to do is type "+$10.000" on the keyboard and lend that money out to people as mortgages and credit.  Yes all that money will swap hands but in the end of the day most of it remains electronic / digital.  Bank runs can only happen if everyone tries to withdraw.

Hey it happened in Bulgaria but Bulgaria is a former Communist country which hasn't experienced decades of bank panics and doesn't have rules to stop them.

Occupied Wallstreet tried to incite bank runs across America?  What happened?  Banks reacted quicker than the protesters by issuing banking holidays, withdrawal freeze or lowered the withdrawal limits to a few bucks.  Banks have had decades to figure this stuff out and they know how to stop bank runs.

Fractional reserve banking is here to stay until it's made illegal.

At this end this stage of the fiat game you are not going backwards leaving your savings in Fiat you are insane.

Many Western countries have rapidly agreed on measures for handling Bail-Ins (Deposit confiscations) in the last two years, Cyprus was just a test case, you're next..

https://lh3.googleusercontent.com/HUKktPpbhRps3b8CFzSP8xcyQZg4-ATXt8Hpw8gtpYxP9_Re3GUNmXS38x2w-_XMJPFUjWUTGFvSDJtlMCbPKXiBEOZHcC4YvBAFgZQtkHFQu6vr6JeYx82DL1Y44w

The most successful and longest lasting fiat and a notable exception..the pound..is arguably in the "waiting to die" phase





 Founded in 1694, the British pound Sterling is the oldest fiat currency in existence. At a ripe old age of 317 years it must be considered a highly successful fiat currency. However, success is relative. The British pound was defined as 12 ounces of silver, so it's worth less than 1/200 or 0.5% of its original value. In other words, the most successful long standing currency in existence has lost 99.5% of its value.

But the pound has only been free-floating worthless paper since 1971, before that it had some backing or was pegged to a currency that did.

So I'm using this definition -  


Using those two definitions (Which is what our currencies are now) no currency has lasted more than fifty years and there have been more than 3000 attempts at it throughout history.

With no limits on their spending (The currency they create doesn't have to be tied to anything that is limited like Gold/Silver/Bitcoin) usually either governments/banks run up huge debts that cause the currency to collapse.

Luckily that's not happening this time  :P

http://www.youtube.com/watch?v=OgNb83Y0CoY

I agree..pound is the same fiat for 300 years in name only..it has been altered a number of times eg going on the gold standard..coming off the gold standard...decimalization etc. and may therefore fall into the "monetarily reformed" category

 Twenty percent failed through hyperinflation, 21% were destroyed by war, 12% destroyed by independence, 24% were monetarily reformed, and 23% are still in circulation approaching one of the other outcomes.

http://en.wikipedia.org/wiki/Monetary_reform

Here is an interesting paper on it for those that wish to delve further into the topic

http://www.jamesrobertson.com/book/monetaryreform.pdf

So - as well as national currencies, continental currencies and a
global currency - we should be encouraging currencies issued by
local government authorities for local circulation, and non-official
payment systems set up by local community groups (like
LETSystems), local social service groups (like Time Banks), and
local business groups (like the WIR co-operative in Switzerland).
In technical terms, whereas paper money could have been
accepted as the new basis for the monetary system in Attwood's
time, electronic money can now make it convenient for us to use
different currencies for different purposes

Yeah fair enough.

Also people these days don't realise the value of an asset backed (Gold/Silver/Bitcoin) Currency with no central bank.

In the 100 years before the Federal Reserve got control of the American money supply.
The value of the $ actually doubled! Meaning your 1$ bought you twice as much as it did a hundreds years before!
It's only since the Federal Reserve that $1 from only buys you $0.04 of the stuff it bought you 100 years ago.

Lots of people think inflation is inevitable or good but America had deflation 1800-1900 and became the greatest most profitable country in the world in the hundred years since they've become the most indebted and the $ has lost nearly all it's value.

The dollar has lost 97 percent of its value. The end stages of a paper currency always goes very rapidly. Although its been gradual for these hundred years there is going to be a day that I expect there could be a panic out of the dollar, then the Bitcoin issue is going to be a much bigger issue." - He called it the Bitcon issue..

The word "issue" has traditionally been used to mean "topic" and not "problem."

The problem is related to fiat losing it's value because of bitcoin- he's historically and obviously bullish on alt-currencies, crypto or otherwise.

Is it a problem?

Well, we do have an issue with cons in this community.

The pound has only been fiat since 1935. Before that it was backed by silver. So give it a little time, when the USD falls it will take most other fiats with it. And there are no more backed currencies in existence. So assuming it isn't so catastrophically fast as to cause a grid-down scenario bitcoin becomes one of the better hedges.

I really think we are in a race against time at this point. Can we get the economic infrastructure built in time for bit coin to be a natural alternative? This could reduce a lot of the pain associated with the meltdown.

Yes, almost all the currency released by countries are have devaluation issue.

It appears devaluation is a race and this is actually Govt policy in most cases , forced upon them by economic realities..but they do not advertise that fact , naturally :)


The Federal Reserve's Explicit Goal: Devalue The Dollar 33%

http://www.forbes.com/sites/charleskadlec/2012/02/06/the-federal-reserves-explicit-goal-devalue-the-dollar-33/

https://www.google.com.ph/search?q=devaluation+race&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb&gfe_rd=cr&ei=Sxi6U6SfK-iJ8QfHqYCwDQ#channel=sb&q=devaluation+race+zero+hedge&rls=org.mozilla:en-US:official

https://www.google.com.ph/search?q=devaluation+race&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb&gfe_rd=cr&ei=Sxi6U6SfK-iJ8QfHqYCwDQ#q=dollar+devaluation+race+&rls=org.mozilla:en-US:official

Thats not what he is referring to. He is referring to people dumping their dollars for Bitcoin.

Can people please stop trying to promote alt-coins too? I hope that you realize that if you would like Bitcoin to be successful, you cannot have all these altcoins just chilling around everywhere. It's akin to the US Dollar and then a bunch of monopoly play monies!

They're fun to play with, sure... but most of them don't fix anything. They do not have a real cause. They're good for learning, and that's it. Look at this guy who lost 37,000$ on Dogecoin because he thought that it was going to go through the ruuff? If he bought bitcoin in January, because he didn't have other stupid options, then his value would have deflated from 900$/BTC to 625$/BTC, as of the 24 hour low today.

Imagine if more people like this guy saw BTC, and purchased BTC instead of some other altcoin that doesn't have a purpose? At least AuroraCoin was gov't backed... or something.

Bitcoin was made to act as a decentralized, deflationary currency, backed by the value that our peers give to it. We need people to understand that backing an altcoin that doesn't solve a problem will not fix anything -- the only difference, in most cases, is: block reward, confirmation time, the maximum amount of coins able to be found, and the block halving time. Litecoin falls into this category, but isn't actually a joke coin and is often times referred to as the silver to Bitcoin's gold. Ironic that Bitcoin is yellow, and Litecoin is silver (I do not own a single LTC, and I never have. Don't even keep up with the price)?

Tenarlty picked up on the fact that Ron Paul said "Bitcon" by mistake at the end of the video. Notice "con" instead of "coin." My comment is going along with that as a joke.

I think it's just his accent  ;)

me too, he's done it before.
the "bitcoan"  ;)

No, it's because he's a 112 years old. He looks like a cadaver. What happened to his lips - they're missing. The guy is rolling in money, can someone please hire a beautician to fix the old mans eyebrows.

This is only an issue if you're treating the dollar as a long-term investment. After all, we're talking about a timespan of 101 years here.
Nobody has their retirement money or investment money in savings accounts. If they have them in government backed securities at all they'll be in treasury bills, whose returns have greatly exceeded inflation. $10,000 invested in a 10-year treasury fund 10 years ago would be worth $17,000 today.

Agreed..but....

1 If they know or worse target a 33% devaluation in 20 yrs or 2% per year and fix interest rates at negative  or zero and by printing money and other economic policies that they cause inflation and particularly food inflation

The Real Inflation Fear - US Food Prices Are Up 19% In 2014

https://www.google.com.ph/search?q=food+inflation+2014&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb&gfe_rd=cr&ei=iF66U529JMuE8Qf08IGwAg

and these people are public servants elected by the population and with an obligation to protect and warn from /of issues that adversely effect the electorate. If they do not publicly and prominently warn the public ( like on cigarette packets  health warnings) that their policy is to devalue and the effects that it will have on savers (get out of fiat) pensions, cost of food and utilities etc will lead to loss of purchasing power/standard of living, then they are not fulfilling their obligation and arguably should be party to a class action suit by the electorate for recovery of the billions in losses incurred by those affected parties LOL!!!!!  accompanied with windfall taxes on the financial entities "in the know"  or with preferential treatment that these policies allow to make billions out of almost no assets or assets "created" by the Fed for their use.

inflation/ devaluation of currency is a normal part of the financial cycle and world..the difference is they are targeting it by policy without  the necessary "health/ wealth" warnings to the layman who make up the majority of their electorate and for the benefit of a tiny few financial institutions at the expense of their voters  !!! :)

What percentage of voters know how or have the means to invest in treasuriy bills to protect themselves?  might I suggest less than 5% or possibly even 00.5%?

Yesterdays post and today's zero hedge re-post ( to view opinion below the article) on the future of the $

The Dollar As We Know It Will Be Gone Within 6 Years

http://www.peakprosperity.com/podcast/86044/mike-maloney-dollar-we-know-will-gone-within-6-years

http://www.zerohedge.com/news/2014-07-06/mike-maloney-dollar-we-know-it-will-be-gone-within-6-years

Timing may be incorrect but eventuality has a high probability?

and while we are here and I have a bee in my bonnet

If you are NOT a bitcoin investor below the $200, $400 or $600 level :)

Why You Feel Poorer

You feel poorer because you are poorer.

http://www.zerohedge.com/news/2014-07-07/why-you-feel-poorer

In the last fourteen years, has your income increased over 50%? If you think it has, has it done so after taxes? Even if it has, you likely have not kept up in terms of inflation.

Government has killed the golden goose and in an attempt to hide the obvious is debauching the dollars. Government tries to hide their own failure with phony statistics and a welfare state designed to placate the masses. Bread and circuses are deceptions not progress.



Cryptocurrency is the eventual likely savior of these "men in suits" irresponsible, negligent (corrupt? probably) and greedy actions.

AAAaaah.. Got that off my chest!

As much as i'd like for fiat to die horrible death, i know that in process ALOT of people will loose all they have and probably there will be some blood spilled too so i cant really say i'm hoping it comes as soon as possible. Changes like that are volatile and very unpredictable. Yes, change is much needed but i dont really know how is it possible to make it slowly and paynless. Once people start jumping from fiat to whatever alternative (hopefully bitcoin), process will start slowly (or it already started) and will gain speed as it goes. Once it reaches certain treshold, it will go so fast that most of the common people wont have time to react and alot of value that those people have in fiat will dissapear.

I suspect that IF the powers that be ( financial and political) want to have a mild transition from fiat to crypto they can do it IF they want to

Why/how?

1 most people in the World are not affected by value of  fiat savings

a) Half just have NO MONEY at all !

Almost half the world — over three billion people — live on less than $2.50 a day.

http://www.globalissues.org/article/26/poverty-facts-and-stats

A slightly older report

http://worldcentric.org/conscious-living/social-and-economic-injustice

b) of the other half in Western "rich" LOL societies like the USA, 76% live from pay check to pay check


Roughly three-quarters of Americans are living paycheck-to-paycheck, with little to no emergency savings, according to a survey released by Bankrate.com Monday.

http://money.cnn.com/2013/06/24/pf/emergency-savings/

c) Those rich who are not "dumb" will monitor the situation and hedge their bets once they accept that this is good for everyone, including them in the long run and that it can no longer be stopped. The honest and/or wise ones will not lose much, in fact they could well gain wealth in the process.

So , arguably, only a minority of the worlds total population would be adversely affected if a well organized and gradual transition takes place.

I can see a scenario where governments eventually embrace crypto currency..introducing their own.

It has some fantastic advantages that we have heard about before like frictionless/ cost efficient etc. and for this reason they would want it but only WHEN it is no longer possible/ acceptable to inflate by printing and it may well take a global fiat crash to get to that point in time. That crash will not be because of the emergence of cryprto's but due to their reckless policies over decades and the pain/ blood on the streets will occur for that reason. Crypto currency would make a good solution once that scenario happens.

A transition to a new National crypto could be be a boon for Governments....All money in BANKS and financial instruments ( legal money) will be exchanged automatically at the government rate. All money in private hands would be exchanged at authorized institutions.. all illegal money such as from crime/ undeclared for tax purposes will have problems getting exchanged ( though not impossible) but it will have a cleansing effect to some degree.
I have been through this type of scenario when the UK went decimal in 1971 so I know it works and can be managed without too many problems.

http://en.wikipedia.org/wiki/Decimal_Day

Quick decision

But remarkably it took the government only seconds to decide to get rid of the currency that had served Britain for thousands of years.


http://www.bbc.co.uk/news/business-12346083

summary

I believe a global transfer to crypto currency is a matter of when..not if

The percentage of the worlds population adversely affected in a transition would be (well) under 20%

Bitcoin will co exist with new National/ or economic block Cryptos eg north American/ ASEAN

It would be nicer to have them plan and manage the transition well ( and I am 100% sure that there are people studying/ working on this)  because it is just BETTER than fiat and not wait until there is too much "blood on the streets"

it is backed by the law AKA threat of violence

real honest money is always free money, in your country there used to be such a thing as free coinage and actually the US constitution supports that ... but the constitution is not being honored by your government.

Internal beauty, my friend ;-)

Hire a psychiatrist to fix the other politicians brains  :D

"The dollar has lost 97 percent of its value..." is a sensationalist headline. It only matters if dollar is hoarded long-term. Yes, currencies also work as a store of value, but in our system it's not supposed to be a longterm store of value and everybody knows that.

There are more important things to look at.

no, not everybody knows that.

if they did, more people would be using Bitcoin already.

The middle class and the upper class knows that, but many of the working poor do not.  Inflation is a tax on the poor, is the old saying.

+1

Not just a saying but a truth and it is a tax , this has been admitted by  Ben Bernanke and Ronald Regan amongst others

http://www.youtube.com/watch?v=D4yBrxmEOkY

http://theeconomiccollapseblog.com/archives/inflation-is-a-tax-and-the-federal-reserve-is-taxing-the-living-daylights-out-of-us

This tax  disproportionally affects the poor!!!

It is grotesque when the government puts a bigger bite on the poorest citizens.

http://www.dailyworld.com/article/20121219/NEWS01/212190302/Inflation-tax-poor?nclick_check=1

Worse ...they KNOW this full well and have adjusted the calculations ( frequently) to make it look lower than those used in previous administrations ( look  .. CP inflation is at only 2% better than in 1980/90  we are doing great job)

If it was calculated the same way it was in 1980 inflation is running at 10%..not such a great job and a horrible "hidden" tax on the poorest

http://www.shadowstats.com/alternate_data/inflation-charts

If this was not a bad thing then why "cook the books" in order to hide that ??

Well inflation has affected much of the middle class but it's generational - older people who bought homes before the 1990s are now sitting on $300K to $1 million dollar properties, since assets held their value against $Fiat and in some ways even went up in value (due to commodifying money).

The US dollar is backed by the US economy.

Those that could afford to buy homes..65% of the population of which 29% of those are mortgage free have gained from their ownership if it was prior to 2007/2008

Those whose daily lives are  most impacted by inflation tax are the 35% + that do not own and the 17% of mortgages that are seriously under water...that's a LOT of families.

http://www.housingwire.com/articles/29696-of-homes-with-a-mortgage-seriously-underwater

for most middle/upper middle income groups a high inflation rate will not mean they have to cut back on basic food/ entertainment clothes gifts driving etc.

for the 35%+ poorest a 19%- 22% food inflation for 2014 (so far) denies them the ability to do many of those things and worse puts and KEEPS them in the "poverty trap" of welfare.

http://www.infowars.com/the-real-inflation-fear-us-food-prices-are-up-19-in-2014/

http://www.breitbart.com/Big-Government/2014/05/24/U-S-Food-Inflation-Running-at-22

As a larger percentage of their income is spent on food than that of the middle/ upper classes..Is that not disproportionate?

Which of those groups will not have decent appliances, smart clothes nice cars etc because of having to spend more of their limited funds on feeding their family?

Whilst inflation "tax" affects all, only the poorest have to sacrifice on a major scale. In a free market  these things happen ..there are winners and losers..but this does not need to be compounded by government policy ..giving greater benefits to the rich..banks and financial institutions bail outs/ printing money and 0 interest to certain institutions at the expense of inflating and inflation leading to increased hardship for the least fortunate of society

http://www.zerohedge.com/news/2014-06-20/inflation-only-if-you-look-food-water-gas-electricity-and-everything-else

and cooking the books is dishonest whatever spin they want to put on it

http://www.forbes.com/sites/perianneboring/2014/02/03/if-you-want-to-know-the-real-rate-of-inflation-dont-bother-with-the-cpi/

In fact, the dollar has lost 99.99% of its value between 1914 and 2014. but still no need to panic, why should we?

All fiat currencies, every one of them in history have eventually gone to their intrinsic value. Zero.

I assume you are not including the fait currencies that every single country on the face of the planet currently use? Your statement is like saying 'every species of animal in history have eventually gone extinct.'