Posts tagged inflation
Michael Snyder: Next Great Wave of Economic Crisis – Gold, Silver, Grow Food, Alternative Energy (Video)
Published by Greg Hunter
Published on Nov 20, 2013
http://usawatchdog.com/michael-snyder… – Michael Snyder, Publisher of TheEconomicCollapseBlog.com says the next crisis, “will be like 2008 on steroids. . . . We’re living in the greatest debt bubble in the history of the planet.” Snyder suggests people need to take steps to protect themselves against this debt bubble bursting. Snyder says, “Learn how to grow good food, get alternative sources of energy, and hold gold and silver for the long term.” Join Greg Hunter as he goes One-on-One with investigative reporter Michael Snyder.
Fake Employment Numbers – And 5 More Massive Economic Lies The Government Is Telling You
According to a whistleblower that has recently come forward, Census employees have been faking and manipulating U.S. employment numbers for years. In fact, it is being alleged that this manipulation was a significant reason for why the official unemployment rate dipped sharply just before the last presidential election. What you are about to read is incredibly disturbing. The numbers that the American people depend upon to make important decisions are being faked. But should we be surprised by this? After all, Barack Obama has been caught telling dozens of major lies over the past five years. At this point it is incredible that there are any Americans that still trust anything that comes out of his mouth. And of course it is not just Obama that has been lying to us. Corruption and deception are rampant throughout the entire federal government, and this has been the case for years. Now that some light is being shed on this, hopefully the American people will respond with overwhelming outrage and disgust.
The whistleblower that I mentioned above has been speaking to John Crudele of the New York Post. In his new article entitled “Census ‘faked’ 2012 election jobs report“, he says that the huge decline in the unemployment rate in September 2012 was “manipulated”…
In the home stretch of the 2012 presidential campaign, from August to September, the unemployment rate fell sharply — raising eyebrows from Wall Street to Washington.
The decline — from 8.1 percent in August to 7.8 percent in September — might not have been all it seemed. The numbers, according to a reliable source, were manipulated.
Two years earlier, the Census had actually caught an employee “fabricating data”, but according to this whistleblower the corruption at the Census Bureau goes much deeper than that…
And a knowledgeable source says the deception went beyond that one employee — that it escalated at the time President Obama was seeking reelection in 2012 and continues today.
“He’s not the only one,” said the source, who asked to remain anonymous for now but is willing to talk with the Labor Department and Congress if asked.
The Census employee caught faking the results is Julius Buckmon, according to confidential Census documents obtained by The Post. Buckmon told me in an interview this past weekend that he was told to make up information by higher-ups at Census.
Well, is it really such a big deal that some of the unemployment numbers were faked?
After all, hasn’t the unemployment rate been consistently going down anyway?
Unfortunately, as you will see below, that is simply not the case. The following are five massive economic lies that the government has been telling you…
“The Unemployment Rate Has Been Steadily Going Down”
According to the official government numbers, the U.S. unemployment rate has fallen all the way down to 7.3 percent.
That sounds really good, and it would seem to imply that a higher percentage of the American people are now working.
Sadly, that is not the truth at all.
Posted below is one of my favorite charts. The employment-population ratio measures the percentage of the working age population that actually has a job. As you can see, this number fell dramatically during the last recession and since the end of 2009 it has remained remarkably flat. In fact, it has stayed between 58 and 59 percent for 50 months in a row…
At the moment, the employment-population ratio is just one-tenth of one percent above the lowest level that it has been throughout this entire crisis.
So are we in an “employment recovery”?
Absolutely not, and anyone that tries to tell you that is lying to you.
So how is the government getting the unemployment rate to go down?
Well, they are accomplishing this by pretending that millions upon millions of unemployed Americans have disappeared from the labor force.
According to the government, the percentage of Americans that want to work is now supposedly at a 35 year low…
If the labor force participation rate was still exactly where it was at when Barack Obama was first elected in 2008, the official unemployment rate would be about 11 percent right now. People would be running around going crazy and wondering when the “economic depression” would finally end.
But when people hear “7.3 percent”, that doesn’t sound so bad. It makes people feel better.
Of course if you are currently unemployed and looking for a job that doesn’t exactly help you. At this point there is intense competition even for minimum wage jobs in America. For example, according to Business Insider you actually have a better statistical chance of getting into Harvard than you do of being hired at a new Wal-Mart that is opening up in the Washington D.C. area…
The store is currently combing through more than 23,000 applications for 600 available positions, reports NBC Washington.
That means that Wal-Mart will be able to hire one person for every 38 applications it receives — i.e., just 2.6% of applicants will walk out with a job.
That’s more difficult than getting into Harvard. The Ivy League university accepts 6.1% of applicants.
“Inflation Is Low”
This is another lie that government officials love to tell. In particular, the boys and girls over at the Federal Reserve love to try to convince all of us that inflation is super low because it gives them an excuse to recklessly print lots more money.
But anyone that goes to the grocery store or pays bills on a regular basis knows that there is plenty of inflation in the economy. And if we were being given honest numbers, they would show that.
According to John Williams of shadowstats.com, if the U.S. inflation rate was still calculated the exact same way that it was back when Jimmy Carter was president, the official rate of inflation would be somewhere between 8 and 10 percent today.
But the Federal Reserve certainly doesn’t want everyone running around talking about “Jimmy Carter” and “stagflation” because then people would really start pressuring them to end their wild money printing schemes.
And without a doubt, what the Fed is doing is absolutely insane. The chart posted below shows that the M1 money supply has nearly doubled since the beginning of 2008…
“Quantitative Easing Is Economic Stimulus”
How many times have you heard the mainstream media tell you something along these lines…
“The Federal Reserve decided today that the economic stimulus must continue.”
There is just one thing wrong with that statement.
As I showed in a previous article, it is a total hoax.
In fact, a former Federal Reserve official that helped manage the Federal Reserve’s quantitative easing program during 2009 and 2010 is publicly apologizing to the rest of the country for being involved in “the greatest backdoor Wall Street bailout of all time”…
I can only say: I’m sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed’s first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.
Yes, quantitative easing has most certainly helped Wall Street (at least temporarily).
Meanwhile, median household income in the U.S. has fallen for five years in a row.
Meanwhile, the federal government is now spending nearly a trillion dollars a year on welfare.
Meanwhile, 1.2 million students that attend public schools in America are now homeless. In fact, that number has risen by 72 percent since the start of the last recession.
“Obamacare Is Going To Be Good For Middle Class Americans”
There were three giant promises that were used to sell Obamacare to the American people…
#1 We would all be able to keep our current health insurance plans.
#2 Millions more Americans were going to be covered by health insurance.
#3 Most Americans would be paying lower health insurance premiums.
Well, it turns out that all of them were lies.
And so far only about 100,000 Americans have actually signed up for Obamacare, so that means that the number of Americans with health insurance has dropped by about 3.9 million since the beginning of October.
Good job Obama.
Meanwhile, Americans all over the country are being hit with a massive case of sticker shock as they start to realize what Obamacare is going to do to their wallets.
According to one study, health insurance premiums for men are going to go up by an average of 99 percent under Obamacare and health insurance premiums for women are going to go up by an average of 62 percent under Obamacare.
And if you are a young man, you are going to get hit particularly hard. At this point, it is being projected that health insurance premiums for healthy 30-year-old men will rise by an average of 260 percent.
“The U.S. National Debt Is Under Control”
The mainstream media would have us believe that the budget deficit is now under control and the U.S. national debt is not a significant problem any longer.
But that is not the truth.
The truth is that we are on pace to accumulate more new debt under the 8 years of the Obama administration than we did under all of the other presidents in all of U.S. history combined.
Every single hour of every single day, our politicians are stealing about $100,000,000 from future generations of Americans. It is a crime so vast that it is hard to put into words, and it is literally destroying the economic future of this country.
Over the last 13 and a half months, the U.S. national debt has increased by more than 1.12 trillion dollars.
If you were alive when Jesus Christ was born and you had spent a million dollars every single day since then, you still would not have spent that much money by now.
And most Americans don’t realize this, but the U.S. government must borrow far more than a trillion dollars each year. Trillions more in existing debt must be “rolled over” just to keep the game going.
For example, the U.S. government rolled over more than 7.5 trillion dollars of existing debt in fiscal 2013.
So what is going to happen someday when the rest of the world pulls out and stops lending us trillions of dollars at ridiculously low interest rates that are way below the real rate of inflation?
Our financial system is far more vulnerable than we are being told. We are in the terminal phase of the greatest debt bubble in the history of the planet, and when this bubble bursts it is going to be an absolutely spectacular disaster.
Please don’t believe the mainstream media or the politicians when they promise you that everything is going to be okay.
This article first appeared here at the Economic Collapse Blog. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.
Image credit: http://theeconomiccollapseblog.com
By Ron Paul
Federal Reserve Steals From the Poor and Gives to the Rich
Last Thursday the Senate Banking Committee held hearings on Janet Yellen’s nomination as Federal Reserve Board Chairman. As expected, Ms. Yellen indicated that she would continue the Fed’s “quantitative easing” (QE) polices, despite QE’s failure to improve the economy. Coincidentally, two days before the Yellen hearings, Andrew Huszar, an ex-Fed official, publicly apologized to the American people for his role in QE. Mr. Huszar called QE “the greatest backdoor Wall Street bailout of all time.”
As recently as five years ago, it would have been unheard of for a Wall Street insider and former Fed official to speak so bluntly about how the Fed acts as a reverse Robin Hood. But a quick glance at the latest unemployment numbers shows that QE is not benefiting the average American. It is increasingly obvious that the Fed’s post-2008 policies of bailouts, money printing, and bond buying benefited the big banks and the politically-connected investment firms. QE is such a blatant example of crony capitalism that it makes Solyndra look like a shining example of a pure free market!
It would be a mistake to think that QE is the first time the Fed’s policies have benefited the well-to-do at the expense of the average American. The Fed’s polices have always benefited crony capitalists and big spending politicians at the expense of the average American.
By manipulating the money supply and the interest rate, Federal Reserve polices create inflation and thereby erode the value of the currency. Since the Federal Reserve opened its doors one hundred years ago, the dollar has lost over 95 percent of its purchasing power —that’s right, today you need $23.70 to buy what one dollar bought in 1913!
As pointed out by the economists of the Austrian School, the creation of new money does not impact everyone equally. The well-connected benefit from inflation, as they receive the newly-created money first, before general price increases have spread through the economy. It is obvious, then, that middle- and working-class Americans are hardest hit by the rising level of prices.
Congress also benefits from the devaluation of the currency, as it allows them to increase welfare- and warfare-spending without directly taxing the people. Instead, the increase is only felt via the hidden “inflation tax.” I have often said that the inflation tax is one of the worst taxes because it is hidden and because it is regressive. Of course, there is a limit to how long the Fed can facilitate big government spending without causing an economic crisis.
Far from promoting a sound economy for all, the Federal Reserve is the main cause of the boom-and-bust economy, as well as the leading facilitator of big government and crony capitalism. Fortunately, in recent years more Americans have become aware of how the Fed is impacting their lives. These Americans have joined efforts to educate their fellow citizens on the dangers of the Federal Reserve and have joined efforts to bring transparency to the Federal Reserve by passing the Audit the Fed bill.
Auditing the Fed is an excellent first step toward restoring a monetary policy that works for the benefit of the American people, not the special interests. Another important step is to repeal legal tender laws that restrict the ability of the people to use the currency of their choice. This would allow Americans to protect themselves from the effects of the Fed’s polices. Auditing and ending the Fed, and allowing Americans to use the currency of their choice, must be a priority for anyone serious about restoring peace, prosperity, and liberty.
Economist Attacks Ron Paul
Recently, Ron Paul wrote a important piece, Chained CPI Chains Taxpayers. In the piece, Dr. Paul explains how the chained CPI “is an effort to alter the perceived impact of inflation via the gimmick of ‘full substitution.””
Economist David Henderson objects to this view. He writes:
By using the words “gimmick” and “perceived,” Paul makes it sound as if the purpose of the chained CPI is to trick people into thinking that their cost of living has not gone up as much as the old CPI said. That’s not true. The purpose of the chained CPI is to get a more accurate read on how much the cost of living has gone up.
But how can chained CPI not be a distortion? Henderson, himself, writes:
When the price of one good rises a lot and the price of another good rises a little or not at all, and those goods are, in many people’s minds, substitutes, people will tend to substitute out of the good whose price has risen more and into the good whose price has risen less. So the purpose of the chained CPI is to take account of that in order to estimate the cost of achieving a given level of utility.
First off, if the price of one good rises and therefore I substitute a lower priced good, my standard of living has indeed been altered. If I like steak, but the price of steak rises beyond my budget and I substitute a Mrs. Stouffer’s television dinner, Henderson may not see the decline in my standard of living that has occurred, nevertheless in my mind as consumer, the decline is pretty damn obvious. I have made a substitution, not because I see the two products as nearly identical but because the price increase for steak has pushed it out of my budget. Henderson is wrong in implying that because I am substituting one good for another that I see the two products as early identical.
Second, Henderson pulls out of his hat the use of “utility” as though it were somehow a calculatable cardinal number. There is no such calculatable number. Austrian economics teaches us that all we can do is rank our values on a value scale.
As Murray Rothbard put it:
Ron Paul image added to original post.
By Ron Paul
Chained CPI Chains Taxpayers
One of the least discussed, but potentially most significant, provisions in President Obama’s budget is the use of the “chained consumer price index” (chained CPI), to measure the effect of inflation on people’s standard of living. Chained CPI is an effort to alter the perceived impact of inflation via the gimmick of “full substitution.” This is the assumption that when the price of one consumer product increases, consumers will simply substitute a similar, lower-cost product with no adverse effect. Thus, the government decides your standard of living is not affected if you can no longer afford to eat steak, as long as you can afford to eat hamburger.
The problem with “full substitution” should be obvious to anyone not on the government payroll. Since consumers did not choose to buy lower-priced beef before inflation raised the price of steak, they obviously preferred steak. So if the Federal Reserve’s policies create inflation that forces you to purchase hamburger instead of steak, your standard of living is lowered. CPI already uses this sort of substitution to mask the costs of inflation, but chained CPI uses those substitutions more frequently, thereby lowering the reported rate of inflation.
Supporters of chained CPI also argue that the government should take into account technology and other advances that enhance the quality of the products we buy. By this theory, increasing prices signal an increase in our standard of living! While it is certainly true that advances in technology improve our standard of living, it is also true that, left undisturbed, market processes tend to lower the prices of goods. Remember the mobile phones from the 1980s? They had limited service, constantly needed charging, and were extremely expensive. Today, almost all Americans can easily afford a mobile device to make and receive calls, texts, and e-mails, as well as use the Internet, watch movies, read books, and more.
The same process occurred with personal computers, cars, and numerous other products. If left alone, the operations of the market place will deliver higher quality and lower prices. It is only when the government interferes with the operation of the market, especially via fiat money, that consumers must contend with constant price increases.
The goal of chained CPI is to decrease the government’s obligation to meet its promise to keep up with the cost of living in programs like Social Security. But it does not prevent individuals who have a nominal increase in income from being pushed into a higher income bracket. Both are achieved without a vote of Congress.
Noted financial analyst Peter Schiff correctly calls chained CPI a measurement of the cost of survival. Instead of using inflation statistics as a political ploy to raise taxes and artificially cut spending, the President and Congress should use a measurement that actually captures the eroding standard of living caused by the Federal Reserve’s inflationary policies. Changing government statistics to exploit the decline in the American way of life and benefit big spending politicians and their cronies in the big banks does nothing but harm the American people.
Central Banks: The True Centers of Political Power
Mises Institute: Central banks keep increasing the money supply, and yet it looks like there’s still confidence in those fiat currencies.
Thorsten Polleit: Indeed. Policymakers obviously succeeded in taking panic out of the markets and, at the same time, creating the impression that their actions would “rescue” the economies without causing inflation. Their propaganda turns out to be rather successful.
MI: The strategy that the central banks have been using in recent years appears to be working so far.
Polleit: It clearly shows how far central banks’ manipulations can go to uphold the fiat money regime, which is actually a “monetary Ponzi game.” However, one should be aware of the fact that without severe market manipulations such as the suppressing of interest rates to basically zero, and the printing of new money for propping up ailing banks and governments, the fiat money system would presumably have collapsed already.
MI: So if the current strategy fails, what will happen?
Polleit: The critical issue is the demand for fiat money. If people are no longer willing to demand the rising supply of currency, the fiat money system starts unraveling. Treating devalued currency like a hot potato, people would try to exchange their fiat currency against non-fiat money assets. In this process, commodity prices would go up and the purchasing power of money go down. The extreme outcome of this process is hyperinflation: the heavy debasement or even an outright destruction of fiat money.
MI: Back in 2008 and 2009, there were fears of a wider collapse, but that never materialized. Why is this?
Polleit: I could imagine that back then many investors had ignored the fact that in an unfettered fiat money regime, central banks can provide governments and commercial banks with any amount of newly created fiat money, putting them in a position to service their debt in full. This is exactly what they did: “Default panic” was printed away by central banks. This was also the reason why the gold price fell from its all-time high of 1,900 US$ per ounce to currently around 1,300 US$ per ounce.
MI: So you still expect serious inflation?
Polleit: I sure do. Inflation will be one among other measures through which governments will try to get rid of excessive debt. You see, the fiat money regime has brought about a situation in which many borrowers — in particular governments and banks — are no longer in a position to pay down their debt. In other words: The damage has been done, the only question is: who is going to pay for it?
MI: So who is going to pay?
Polleit: Governments and banks will presumably employ higher taxation, confiscation, suspending payments on outstanding debt and, of course, inflation through money printing. One thing should be certain: holders of government and bank debt will be on the losing end. Either they will suffer from not getting back their money or from getting back just inflated money.
MI: The economies — be it the US, China, or even the Euro Zone — appear to be recovering at the moment and we’re told this means the crisis is over.
Polleit: The latest set of improving data is at best indicative of an artificial and eventually unsustainable economic process. It has actually been set into motion by highly distorted interest rates and a new round of fiat money injection. Malinvestment is on the rise again. It is just a question of time until this so-called “upswing” will turn into yet another “bust.” Fiat money creation has caused the malaise. Creating even more fiat money won’t solve the problems. It will make them even worse.
MI: What do you expect central banks to do going forward?
Polleit: Central banks have been captured by commercial and investment banking interests. I would assume that they will do more of the same: manipulating markets first and foremost by suppressing interest rates and printing new money to keep banks and the financial industry afloat.
With central banks running wild, we’ll be moving toward even more severe “boom-and-bust” cycles, even bigger government, less freedom and liberty, a distribution of income and wealth which is increasingly at odds with true market forces.
Central banks will become the real centers of political power. You could even say they are on the way to assuming the role of a “Politburo.” Central banks will effectively decide who is going to get credit at what conditions. They will decide which governments, which banks, and which kind of business sectors and companies will flourish or go under. The truth is that if the fiat money regime is not brought to an end — either by political will or by economic collapse — the economies will end up in a kind of socialist-totalitarian dead-end. But I tend to be optimistic: namely, that the fiat money scheme will break down before such a situation is reached.
MI: If not fiat money, then what?
Polleit: Gold is the ultimate means of payment. Everybody should own some gold. Under current conditions the gold price should be trading between $1,600 and $1,800 right now. At the same time, one would still need to earn an income stream, and by owning productive capital the investor may also protect himself to some extent from government interference: Even cold-blooded socialists know that the nationalization of the means of production means “killing the cow you would like to milk.” That said, owners of productive capital may suffer from higher profit taxation, but not outright expropriation.
About the Author:
Thorsten Polleit is chief economist of the precious-metals firm Degussa Goldhandel GmbH. He is also an honorary professor at the Frankfurt School of Finance & Management. He is an adjunct scholar of the Ludwig von Mises Institute and was awarded the 2012 O.P. Alford III Prize in Libertarian Scholarship. His website is www.Thorsten-Polleit.com. Send him mail.
Image credit: https://mises.org
Don’t Worry – The Government Says That The Inflation You See Is Just Your Imagination
If you believe that there is high inflation in the United States, you are just imagining things. That is the message that the U.S. government and the Federal Reserve would have us to believe. You might have noticed that the government announced on Wednesday that the cost of living increase for Social Security beneficiaries will only be 1.5 percent next year. This is one of the smallest cost of living increases that we have ever seen. The federal government is able to get away with this because the official numbers say that there is hardly any inflation in the U.S. right now. Of course anyone that shops for groceries or that pays bills regularly knows what a load of nonsense the official inflation rate is. The U.S. government has changed the way that inflation is calculated numerous times since 1978, and each time it has been changed the goal has been to make inflation appear to be even lower. According to John Williams of shadowstats.com, if the inflation rate was still calculated the same way that it was back when Jimmy Carter was president, the official rate of inflation would be somewhere between 8 and 10 percent today. But if the mainstream news actually reported such a number, everyone would be screaming and yelling about getting inflation under control. Instead, the super low number that gets put out to the public makes it look like the Federal Reserve has plenty of room to do even more reckless money printing. It is a giant scam, but most Americans are falling for it.
Meanwhile, the prices of the things that most Americans buy on a regular basis just keep going up. The following are just a few examples of price inflation that we have seen lately…
-McDonald’s has killed the dollar menu because it is becoming impossible to “make any money selling burgers for $1“.
But don’t worry – the government says that the inflation you see is just your imagination.
-Amazon.com has raised the minimum order size required for free shipping from $25 to $35.
But don’t worry – you can afford to order more stuff thanks to the great new job that you got during this “economic recovery”.
-It is being projected that those using natural gas to heat their homes will see their heating costs rise by 13 percent this winter.
But don’t worry – “global warming” should kick in to high gear any day now.
-The price of chocolate has gone up by 45 percent since 2007, and it is being projected that it will now be increasing at an even faster pace.
But don’t worry – eating chocolate is bad for you anyway.
-Thanks to Obamacare, the health insurance premiums of many American families are absolutely skyrocketing. As I wrote about the other day, one family down in Texas just got a letter informing them that their health insurance premiums are going up by 539 percent.
But don’t worry – this is just “health care reform” in action.
Meanwhile, things just continue to get tougher for middle class American families. Household incomes have actually been declining for five years in a row and total consumer credit has risen by a whopping 22 percent over the past three years.
The quality of our jobs continues to go down and our paychecks are not keeping up with inflation. In fact, 40 percent of all U.S. workers are now making less than what a full-time minimum wage worker made back in 1968 after you account for inflation.
So what do the “authorities” say that the solution to our problems is?
They want even more inflation of course. According to CNBC, many Federal Reserve officials (including Janet Yellen) believe that what the U.S. economy really needs is a lot more inflation…
Inflation is widely reviled as a kind of tax on modern life, but as Federal Reserve policy makers prepare to meet this week, there is growing concern inside and outside the Fed that inflation is not rising fast enough.
Some economists say more inflation is just what the American economy needs to escape from a half-decade of sluggish growth and high unemployment.
The Fed has worked for decades to suppress inflation, but economists, including Janet Yellen, President Obama’s nominee to lead the Fed starting next year, have long argued that a little inflation is particularly valuable when the economy is weak. Rising prices help companies increase profits; rising wages help borrowers repay debts. Inflation also encourages people and businesses to borrow money and spend it more quickly.
The rest of that article goes on and on about how wonderful inflation is for an economy and about how the U.S. economy desperately needs some more of it.
Well, if that was actually true, then the Weimar Republic should have had one of the best economies in the history of mankind.
But this inevitably happens when a nation starts producing fiat currency that is backed by absolutely nothing. There is always a temptation to just print a little bit more.
In the end, we are going to be destroyed by our own foolishness. We have the de facto reserve currency of the planet, and the rest of the world has trusted it for decades. But now we are systematically destroying our currency, and the rest of the globe is looking on in horror.
If you want to see a very good example of the impact that inflation has had on our economy in recent years, just check out this amazing chart which shows what the Federal Reserve’s reckless policies have done to the prices of commodities.
Ultimately, the U.S. dollar will be destroyed, and we will have done it to ourselves.
Many people are attempting to protect themselves against this inevitability by putting a lot of their money into hard assets such as gold and silver, but before you do that you might want to make sure that you don’t have a vengeful spouse that will toss it all into a dumpster someday. The following is from a recent New York Post article…
A Colorado man was so angry at his ex-wife for divorcing him that he had the couple’s life savings of $500,000 converted to gold — then tossed it in a dumpster so she couldn’t have any of it, the Colorado Springs Gazette reports.
In June, Earl Ray Jones, 52, of Divide, Colorado, was ordered by a judge to pay $3,000 a month to the woman he’d been married to for 25 years, so he pillaged the couple’s retirement account and had it converted into 22 pounds worth of gold and silver bars, the paper reports.
Jones claims he then tossed the modern-day treasure into a dumpster behind a motel, where he had been living temporarily, later telling the judge he had no money to give his ex-wife, according to the paper.
Did that story make you smile? It sure did the trick for me.
But that story is also a picture of what the Federal Reserve is doing with our dollar.
Our currency has been used for decades by almost everyone else around the planet. In fact, more U.S. dollars are used outside of our country than inside of it.
But now the Federal Reserve is systematically trashing the dollar and the rest of the globe is starting to lose faith in it.
Instead of realizing their mistakes, Fed officials say that we need to create even more inflation and they just keep on wildly printing more money.
In the end, we will all pay a great price for their foolishness.
This article first appeared here at the Economic Collapse Blog. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.
Image credit: http://theeconomiccollapseblog.com
Why Did McDonald’s Kill the Dollar Menu?
Because of price inflation.
In January, Wendy’s turned its 99-Cent Menu into the Right Price Right Size menu. Now, McDonald’s is ending its Dollar Menu after eleven years. The simple truth is: You can’t make any money selling burgers for $1, any more, says Atlantic.
Image credit: http://www.economicpolicyjournal.com
Peter Schiff: US lost ability to produce, can’t live without debt
Produced by RT
Published on Oct 20, 2013
Addicted to debt, moving from one quick fix to the next — this is how the world sees America’s debt ceiling saga. With its craving only temporarily satisfied, we’re guaranteed to see a rerun of the debt tragicomedy in early 2014. Is it possible to break the vicious cycle, or is it a question of postponing the inevitable? To canvass these issues, Oksana is joined by ‘Dr Doom’ Peter Schiff, an investment broker who predicted the 2008 crisis.
Today’s crony economy is killing the middle class
The only people who have seen their real incomes increase under this president have been the top 5% of earners. Those with large investment portfolios have seen their assets grow – or perhaps more accurately, have watched them inflate – while most of America has seen its income reduced over the last 5 years. Adjusted for inflation the average household in America makes less than 2008. Quite a bit less.
Crony capitalism has much to do with this. Those who have connections in government game the system for their benefit reaping rewards from the unwashed and often unknowing cubical serfs who populate the American landscape. (Or at least used to.)
(From Real Clear Markets)
Never has it been so good to be invested in a vastly expanding federal government — either to distribute or receive federal subsidies. Never has it been so lucrative to work in banking or on Wall Street. And never has it been so bad to try to find a decent job making something real.
Image credit: http://www.againstcronycapitalism.org
About Nick Sorrentino
Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org. A political and communications consultant with clients across the political spectrum, he lives just outside of Washington DC where he can keep an eye on Leviathan.