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Inflation:
If
you can't steal the money,
steal the value out of the money.
Inflation
is the loss in value of Fiat Money.`
It has two and only two causes:
1) Deficit government spending
2) The interest charged of the "borrowed
money."
Commonly,
people say the price of such and such a product has risen. This is
not true! What actually happened is the value of the money has gone
down. But don't expect those in charge of the
monetary systems to tell you the truth. This is just one very minor,
very simple example of control by deception and mis-education.
Eisenhower's
Economic Con:
In
the 1950's President Eisenhower made a bid public hoopla about trying to
find the cause of inflation. He said he had hired the best economic
experts he could find and none of them could figure out what caused
inflation. The public bought the scam without so much as a
whimper. Today, the government bureaucrats are still peddling the same scam, only now they
are not so blatant about it. Let's examine this con game more
closely.
An
Economic Analogy:
Think of the economy as a very
large auction house with many sellers and many buyers. Imagine an auction house that sells food,
clothing, and shelter. Imagine that the buyers are like the average person in that they have a rather limited
amount of money to spend. The prices of the items sold will
be rather stable and everyone has a reasonable equal opportunity to
purchase items. Buyers will select the items they want and
bid with their limited dollars on those items.
The
auction house sellers have a the choice of creating and selling a rather large
supply of a wide variety of goods and services. The overall
capacity of the auction house sellers to create and sell products has its limits
so the sellers in the auction house chooses to sell the goods and services that bring
them the most profit.
An
Example: Among the million of items for sale in this auction
house, let's focus on a sixteen-ounce, loaf of bread. At the
moment, the sellers are willing to put
their time, effort, and resources into baking and selling bread at
nineteen cents a loaf. (In 1951, a loaf of bread and a quart of
mild each cost nineteen cents) The buyers are willing to pay nineteen
cents a loaf, so everyone gets to buy as much bread as they want at
nineteen cents a loaf. Everything is fine.
Now imagine one group of
buyers in the auction house suddenly having a lot more money to spend than
everybody else. Two things start to happen. First,
they will begin buying more goods and services.
The Law of Supply and
Demand tells us that if the supply stays the same and the demand increases, the
price will
rise. Second, a wise seller will come along and in looking for a way to
make more money, he'll put his bread in a bag and say, "My
bread is better than everyone else's, and I'm selling it for only 25˘ per
loaf." The advertising and the bag cost him a penny more per
loaf but his higher price gives him a net gain of 5˘ per
loaf.
Those with the extra money will
start buying what they are told is the better bread at 25˘ per
loaf. Pretty soon other sellers follow suit and when the market stabilizes
again, everyone winds up paying 23˘ a loaf for bread. All buyer are now
paying not only for the bread, they are paying for the bag and for a bunch on
image peddlers telling everyone that this or that loaf of bread is
better.
Because the wealthy people are inclined to bid more for the
item than those who have a lesser amount of money, the above
principle applies to all goods and services, particularly for products
that have a limited supply such as land and houses As a
result, everything ends up being sold for more dollars.
The Producer of Inflation: In the above example, the
government agents are the people that suddenly have all this extra money to
spend. Because they control the fiat money supply, they just declared
themselves to have more money. They say they borrowed it. When
the government "borrows" money and spends it, it is not actually
borrowing anything. It is simply, arbitrarily, increasing the fiat
money supply and dumping it into the auction house.
The resultant rise in prices is
called inflation. What inflation actually does is take the value out of
fiat money. For example, a sixteen ounce loaf of bread that cost
nineteen cents in 1950 now (in 2005) cost anywhere from a dollar to two
dollars. The relative value of goods and services, when compared with
each other, has remained rather stable. What has drastically changed
is the value of money. So the next time someone tells you the price
of such and such product has risen, you'll know that really what has happened is
that the value of your money has gone down again. Those who control
your government have applied an age old con artist trick:
If
you can't steal the money,
steal the value out of the money.
Bush Secretly Stealing Your
Money. Here's another thing that
most people don't understand. Under our present economic
circumstance (March 2005) the average person is finding it much
harder to be financially solvent, to make ends meet, to pay all his/her
bills. Why? Again it goes back to the government deficit
financing. You and I are paying more dollars for our goods and
services, opportunities are
fewer, jobs are paying fewer dollars, and all the rest of our economic wows are the
indirect and thus hidden result of Bush and his cronies deficit spending the 500
billion dollars a year that they don't have.
Historical Precedence? The concept of
printing fiat money (paper money with no intrinsic value and nothing, like gold
of sliver, to back it up) goes all the way back to Benjamin Franklin. He
and his American revolutionary compatriots printed over two-hundred million
"dollars" in fake money. They knew that the more fiat
money they printed, the less value each note had. By the end of the
war the printed bills were almost useless. The same thing happened in
Germany in 1922 when the government printed so many bills that all of them
became virtually worthless.
The same thing is happening (is
currently in process) today in the United States. As you must have
notices, the value of the American dollar is shrinking rapidly. Here's how
the scam works. The main difference between today and Ben Franklin's
day is that instead of printing paper money, most of the so-called money
is simply entered into a computer-equivalent of a ledger sheet as an
asset.
The Government then buys huge
amounts of military hardware and the like from the people who own the
corporations that finance elections. The corporations spend or
otherwise distribute the money into the economy. They get current value
for their money. This huge glut of new fiat money pumped into the
system causes value of all the dollars to go down. Those who receive the
money spend it at a reduced value. In other words, for the second
cycle of money spenders, it now takes more dollars to buy the same amount
of goods and/or services. They cycle keeps going until there is no
value left in the fiat money.
In the mean time, the wealthy
people buy tangible goods such as real estate, gold, silver, fine art, and the
like. When the dollar declines, their holding maintain their
value. Another trick is to buy real estate and mortgage it as much
as possible. Then later, pay off their mortgage with the nearly worthless
dollars.
The bottom line is that, in
today's economy, (2007) the average person gets ripped
off. Everyone holding assets in the form of dollars or promises of
future payments in dollars, or in any way dependent upon dollars as a measure of
value gets swindled. All perfectly legal, and all set up by
our handy dandy, so-called leader. And all morally and ethically bankrupt.
The Gold Standard: If you read the
American constitution, you'll notice that only gold and silver were considered
money. Why? Because gold and silver have an intrinsic value;
they are worth something in and of themselves. You can't manipulate and
steal the value out of gold and silver. This is why the original
paper money was guaranteed by what was called the gold standard. In
your great grandparents days, they could go their bank and buy an ounce of gold
for thirty-five dollars. The value of the paper dollars were
guaranteed.
Today, that guarantee is gone
and your dollars are only worth what someone else will give you for
them. Simple supply demand economics tells us the the more dollars
there are, the less each one is worth.
If
you can't steal the money,
steal the value out of the money.
Why does the Economy look
good? Because Bush
and company are pumping a large portion of the 500 billion make-believe dollars every year into the
section of the economy that manufactures military hardware and other tools
of destruction. They build tools of destruction and then
destroy them so they don't need
consumers, they don't need people
with money to buy this type of
product. They also
spend more fiat money rebuilding what they have destroyed. Here
too, they don't need you and I to buy this type of
product. (Unless of
course, you are in the market for a bridge or a power plant.)
Teachers, health care workers, the elderly,
the general public, and you and I are simply left out of the
loop. We pay all the bills for our so-called
leaders. We just do so behind several degrees of separation.' We do the dying
in the useless wars! We do the suffering! We experience
the misery and the deprivation.
Perhaps it's wakeup time.
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