Get a 5.4 percent raise in the past 12 months?
If no, then your earned income’s purchasing power is being diminished by the federal government’s dollar debasement policies.
You see, according to the Bureau of Labor (Lies?) Statistics, consumer prices increased 5.4 percent over the past year. So if earned income didn’t increase by a commensurate 5.4 percent, then you are earning less than you were just one year ago, in terms of purchasing power of that hard-earned dollar in your checking account.
The fact is, price inflation, as a result of an expanding “money” supply is a hidden tax. It’s the government’s underhanded way to increase spending without increasing taxes directly. Yet the tax still takes place, as the dollars in your biweekly paycheck purchase less and less goods and services, in fact becoming worth less and less (approaching worthless).
The primary culprit of rising prices is the over issuance of federal reserve notes (aka U.S. Dollars) by the Treasury via deficit spending. This debt based fiat money (fiat means by decree) enters the economy through government transfer payments (stimulus checks) and other spending programs (food stamps, e.g.). In the economy, it competes with the existing “stock” of currency (fiat “money”) to buy goods and services (seemingly less and less of these; wait for a seat in a restaurant recently?).
Prices, measured in fiat, rise accordingly.
Through the first 10 months of Washington’s fiscal year (1Oct-30Sep annually), the federal government has run a budget deficit of $2.54 Trillion (check out demonocracy.org to get a feel for how much this really is). Of this, $800 billion – or about a third – of this debt was purchased by the Federal Reserve with credit created from thin air (they literally typed it into a ledger on a computer, with no effort at all).
Since July 2020, the Federal Reserve (a privately held central bank staffed by bureaucrats and academics) has bought $80 billion of Treasuries per month. Why isn’t the open market buying them? Rock bottom interest rates is one reason.
You see, interest rates are the price of “money” and credit. Low interest rates means few want the product. Low interest rates also means the banks don’t want your dollar savings in the bank. Wonder why that is?
The failure of these dollar debasement policies to support a balanced and healthy economy is evident today. Asset prices have been inflating for over a decade, without the value in the assets. Simultaneously, wages have stagnated. This results in a massive wealth gap, and you can look back to 2020 when billionaires added trillions to their collective empire.
Still, for the control freak, super focused central planners, operating within the monetary constraints of a stable money supply and the fiscal constraints of a balanced budget are unattainable.
To somehow correct this disparity, the federal government is proposing another spending boom. Just this week, the Senate agreed to $1 trillion infrastructure spending. The bill approves $550 billion in new spending, which is in addition to $450 billion already approved.
What’s in it? Few know for sure. 2,700 pages of Congressional quid pro quo is surly full of abject waste. It doesn’t end there, though!
The $3.5 trillion human infrastructure social spending bonanza is in the batter’s box. And all of it will be injected into an economy that hasn’t produced additional goods and services for all that new currency to chase.
The government doesn’t draw enough in tax receipts to cover the new spending. The new debt to be added to the massive $28.6 trillion national debt is far too big to be honestly repaid. The “printing press” is the only way, which is inflation of the fiat currency; that is, the stealth default of dollar debasement and erosion of your purchasing power of any cash, savings, or financial instrument measured in fiat.
Curiously, in this environment of rising consumer prices, massive deficits, and immense money supply expansion, the dollar, in relation to foreign currencies and gold and silver, is rising.
In August of 2020, an ounce of gold was over $2,000 per ounce. Now it’s at $1,755, a 12 1/4 percent decrease. Year to date, the dollar, as measured by the dollar index, has appreciated 3.41 percent. Doesn’t make sense, does it? But remember, your purchasing power…it’s losing big time without that 5+% raise to maintain pace with the inflationary cost increases.
But gold will ultimately shine. Not because of its luster. But, rather, out of necessity. It’s been around for 5,000 hears, a majority of the world still see it as such, and central banks globally have been adding more gold bullion to their positions. Why would they if it weren’t a valuable store of value?
Unlike gold, which has no debt obligation or counterparty risk, dollars – and dollar based debt instruments, like bonds and stock equities – can expire worthless when their promissory obligation is defaulted on or a liquidty crisis happens.
Alternatively, they can be inflated to nothing when a desperate Federal Reserve, in concert with an overpromised Treasury, moves to dropping suitcases of money from helicopters over major urban centers (stimulus checks, increases in food stamps, and the like).
Without question, government finances are completely out of control. How we got to this disagreeable place is a long story. But one of the major milestones in this misadventure was reached nearly 50 years ago, when President Nixon was force to default on the dollar standard anchored by gold.
Big Government Statists Despise Gold - It Limits Their Power
Gold to paper currency conversion placed limits upon the public purse before 1971. The Treasury, in concert with the Federal Reserve, could not issue unlimited debt based money under that restriction.
Prior to 1971, as determined by the Bretton Woods international monetary system since July 1944, a foreign bank could exchange $35 with the U.S. Treasury for one troy ounce of gold. After the U.S. defaulted on this contract, when foreign banks turned in the U.S. Treasury valued at $35, they received $35 bills in exchange, not a troy ounce of gold.
The lie that $35 dollars were equal to one ounce of gold could no longer stand up under the weights and measures called for by the Constitution, after the inflation (increase in currency supply) from the 60’s war and efforts to put men on the moon.
The weight of reality, and U.S. increase in the currency supply, had overwhelmed it.
The fact of the matter is, this financial and monetary system is a domestic threat, and it exists on the back porch of every US Military Family, and in their bank accounts and retirement accounts that are completely exposed to the dangerous financial system. Not only that, pensions are being eroded away due to their calculation based on chained COLA (Chained-CPI) calculations produced by the Bureau of Lies and Statistics.
At the end of the day, big government statists despise gold backed money because it limits the scope and scale of bureaucratic reach. Alas, as the academcigicians and bureacrooks destroy the dollar, new schemes will be rolled out, and they won’t be rolled out to take care of you and your family. This will likely be in the form of government issued digital dollars that track and influence when and how you spend your money, a total and complete enslavement of the population.
Desparate times call for desparate measures, and a desperate political class brought up through academics and bureaucracies, with little real world experience, won’t forgo the opportunity to take full advantage to gain evermore power.
And to further erode the Constitution and Bill of Rights.
I took an oath of office that includes “…defend the Constitution against all enemies foreign and domestic…” and the community’s focus on foreign has distracted us all.
Liberty Accelerator Program will free you from the shackles of the dollar enslavement…or go it alone, and be afraid.