To understand the impact of inflation on the US dollar, it’s helpful to compare its purchasing power to gold over time. Fifty years ago, the dollar’s value was quite substantial, but over time artificially low interest rates and money printing by the Fed have helped erode the greenback’s potency. In contrast, gold’s unique ability to preserve wealth and purchasing power is easy to see when compared to the dollar over the same time period.
The following infographic shows the difference between two different savings scenarios:
An American stores $3,500 in a safety deposit box in 1967 and takes it out in 2017.
An American stores $3,500 worth of gold (100 oz) in a safety deposit box in 1967 and takes it out in 2017.
If each person then went on a spending spree, here’s what could they buy.
The central struggle since the inception of the Republic has been about the control of money. Since the U.S. Constitution clearly defines coinage, the objective of the mercantile elite was to circumvent the law and establish a National Bank. Woe to any defender of President Andrew Jackson for abolishing the Second Bank of the United States and rendering the Bankster Nicholas Biddle to his ignominious place in hell. This victory for the common man was ultimately betrayed when the Federal Reserve Central Bank was instituted with all the ills of fractional reserve banking.
Since this treachery, the country was placed completely under the bondage yoke of debt created money. In the age of J.P. Morgan, the Jackals of Jekyll Island were able to implement the Rothschild scheme of the issuance of money by a private bank with the passage of the 1913 Federal Reserve Act. The inevitable reduction in purchasing value of Federal Reserve Notes and increase in the national debt provided the backdrop to the conditions that resulted in Black Tuesday October 29, 1929. Continue reading
The Fed’s minutes came out today, and they were yet mildly hawkish in that vague sort of way that has preceded twenty-nine of the last two actual rate increases.
There is a theory about that because of the failure of the EU and alternatively China, the inflows of monies into dollar assets are bound to continue to drive the major stock indices higher, and will prompt the Fed to raise rates higher than many think.
This is a variant of the ‘money on the sidelines’ theory that, for whatever reasons, will be compelled to toss their wealth into overpriced assets because they have ‘no other choice.’
Now of course this is possible. The real question is, ‘how probable.’ And what sorts of things might we watch to determine if this particular scenario is genuinely falling into place. Continue reading
When President Trump signed an executive order shortly after taking office designed to weaken the Affordable Care Act, some questioned whether the instructions to federal agencies to look for ways to ease the law’s burden on businesses and individuals would have any real bite.
But on Tuesday, there can be little doubt Trump is succeeding in hastening the demise of a program that currently insures more than 9 million Americans. That’s because the Internal Revenue Service responded by weakening the health care law’s requirement that individuals either acquire health insurance or pay the penalty. Continue reading
Dear Imperial America: the lifestyle you ordered is permanently out of stock.
Our extraordinary misallocation of national treasure and political power has set a banquet of consequences that few are willing to face, much less address head-on. If we had to sum up this vast misallocation, we might start by characterizing it as the result of a multitude of elites playing Empire with money borrowed from future generations.
We can start the list of extraordinary misallocations of national treasure with the Neocon’s endless wars of choice. Ten years ago, estimates of the total cost of the Iraq misadventure were $3 trillion: Cost of Iraq War: $3 Trillion; Cost of Solar Plants to Power all 105 million U.S Households: $500 Billion (April 10, 2008) Continue reading
It’s an unfortunate historical anomaly that people think about the paper in their wallets as money. The dollar is, technically, a currency. A currency is a government substitute for money. But gold is money.
Now, why do I say that?
Historically, many things have been used as money. Cattle have been used as money in many societies, including Roman society. That’s where we get the word “pecuniary” from: the Latin word for a single head of cattle is pecus. Salt has been used as money, also in ancient Rome, and that’s where the word “salary” comes from; the Latin for salt is sal (or salis). The North American Indians used seashells. So, money is simply a medium of exchange and a store of value. Continue reading
The only possible output of low social capital is rising inequality.
One of the themes I’ve been addressing since 2008 is the neocolonial-plantation structure of the U.S. economy. The old models of colonial exploitation that optimized plantations worked by cheap imported labor (or situated in peripheral nations with plenty of cheap labor) have, beneath the surface, been adapted to advanced capitalist democracies.
The adaptations have been so successful that not only do we not even recognize the Plantation structure–we love our servitude within it. Continue reading
Things Are Happening That Usually Never Happen Unless A New Recession Is Beginning
Is the U.S. economy about to get slammed by a major recession? According to Gallup, U.S. economic confidence has soared to the highest level ever recorded, but meanwhile, a whole host of key economic indicators are absolutely screaming that a new recession is beginning. And if the U.S. economy does officially enter recession territory in 2017, it certainly won’t be a shock, because the truth is that we are well overdue for one. Donald Trump has inherited quite an economic mess from Barack Obama, and it was probably inevitable that we were headed for a significant economic downturn no matter who won the election. Continue reading
Americans who unexpectedly find they can’t pay their bills are at a greater risk of dying, according to a new research report from the Federal Reserve Bank of Atlanta. The research also found that a significantly improved credit score can lead to an increase in life expectancy.
The report determined that people’s mortality rates rose by 5 percent when they suddenly fell behind on their debt payments due to a sudden macro event such as a recession. But the risk of death was reduced by more than 4 percent if an individual’s credit score increased by 100 points.
Delinquency had the biggest impact in the short term. Individuals were far more likely to die from an immediate debt shock than from lingering debt. Continue reading
“A private central bank issuing the public currency is a greater menace to the liberties of the people than a standing army. We must not let our rulers load us with perpetual debt.” ~ Thomas Jefferson
A common sense approach to bankruptcy is the recognition that no matter how much money you will be able to acquire you cannot possibly ever pay it back to your creditors. This is not what is required for a government regulating agency to declare a banking facility bankrupt, but it is a valid depiction of the state of our national debt and our ability to reduce it to a manageable quantity. The level of taxation that would be required to eliminate our national debt, which is climbing by astronomical numbers, would put such a strain on the fiscal ability of most Americans to survive we would instantly revert to a third world status. This is the danger we are confronted with by a free spending government unwilling to restrain its reach. Continue reading
All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation. ~ John Adams
Aside from those who don’t have much of it, money is one of those things people take for granted. People open their wallets, or purses, and pull out a couple pieces of paper/clothe and expect that they will be able to exchange it for a certain amount of goods or services. But what is that stuff you carry around and use to make purchases? Money you say? I don’t think so.
The Sixth Edition of Bouvier’s Dictionary of Law defines money as: gold, silver, and some other less precious metals. What you hold in your wallets and purses is currency; and you should at least know a basic history of how it came to replace real money. Continue reading
Don’t you find it appalling that there are people who claim they are “serving the public” yet fleece the taxpayer every chance they get?
They say they can’t afford the cost of tax cuts as if the money they are talking about is theirs. They say they are against earmarks but they fight tooth and nail to obtain them with no shame of their hypocrisy. They can’t produce a balanced budget, they have run a debt that cannot be paid and they continue to expect respect for being the equivalent of a mobster. They talk of killing a PFC who obtained some information that showed what a posh ineffectual bunch we have in the Diplomatic corps and they learn nothing when their party gets a “shellacking”. If this sounds like a tirade against just Democrats this is not the case. The Republicans learned nothing from the shellacking they got in 2008. Iowa’s own Senator Grassley pushed for continuing the ethanol subsidy (pure pork barrel earmark) and Senator Harkin was siding with Bernie Sanders in avoiding a vote on stopping the tax increase. Continue reading
The United States Post Office and/or The US Postal Service has just had a “PRICE INCREASE THAT I DO NOT RECALL SEEING OR READING ABOUT ON NATIONAL NEWS OR MEDIA OUTLETS OR VIA THE “INTERNET”…….
On December 12, 2016 I sent a Priority Package from Morehead City, NC to Centennial, Colorado for $31.44 and was confirmed by my receipt.
On December 27, 2016 I sent another Priority Package from Morehead City, NC to Centennial, Colorado at a cost of $35.59……the same item was in both packages. Continue reading