“In this world nothing can be said to be certain, except death and taxes.”
The Works of Benjamin Franklin, 1817
The next 25 years is not going to be like the last 25 years. Why? Because the events that just recently took place have never happened in history and we are about to see the repercussions of them. Our country was spending far beyond it’s means, the incomes of U.S. home owners did not match the prices of the homes they lived in, and our lending standards were declining. Anyone with a pulse could buy a home. The credit to buy these goods was expanding at an alarming rate, lending was loose. The U.S. Taxpayer is now footing the bill for the poor decisions made by our past governments to release loose credit to those who were not able to afford it. FOR THE FIRST TIME IN HISTORY, U.S. debt is expanding and growing faster than the U.S. economy.
It’s no wonder that this current economy is the way it is… It does not make sense. The U.S. is in a GREAT recession because we are in debt, yet… we spend more. At first you think, this must be the way the system works. Heck, in the past when the economy was bad, the government always spent, spent, spent, until somehow the system jump started itself. The government was able to breath life into the economy simply by spending more money, and essentially giving this newly printed money to banks to “trickle” down to the average consumer. “Trickle Down Economics” right? Yet, like a frog in a pot of slowly boiling water, we slowly see our money, savings and the quality of our lives deteriorating. Unfortunately nothing has or will change in this system as long as the entities which control it are still in power.
Two simple questions… How and Why? How did we the citizens of the United States lose our power to vote and decide where our tax dollars are going? $50,000 in a savings retirement account in 1931 would have been considered a hefty retirement, but now in 2010 it will maybe buy a years worth of essentials, maybe two. That same $50,000 in 2020 might buy a couch to furnish a house.
Since 1933, inflation has increased 1,627.23%. This means that what cost $1.00 in 1933 costs approximately $16.27 today. Now get this, for every dollar saved in 1933, in 2010 it now has a buying power of approximately 6 cents… So people who save their money in U.S. Dollars over a long period of time are not actually saving, they are losing. Most large banks now boast an Annual Percentage Yield of .02% for a savings account. Seriously? You mean the tax payer has bailed these banks out and then they are given literally 0% interest on the loan tax payers finance to them and .02% is the best they can do to give back??? WOW! HOW DID THIS HAPPEN?
In 1960-1973, one gallon of regular gasoline stayed close to $.30 – $.35 per gallon. In 1973 and on, the price has risen dramatically due to the effects of inflation. Not only was gasoline/oil effected but all other commodities in relation to the U.S. Dollar has risen in price.
Today, a child is born into roughly $40,000 of debt. Now if you haven’t figured it out yet, the so called “bailouts” the government has implemented are actually designed to shift the banks losses to the taxpayers. With our current tax system and how it is evolving, we are getting very close to utilizing the majority of our income for some sort of tax. Can you think of anything that isn’t taxed besides the air you breath? Is this by design?
What is certain is that it has happened for decades now, therefore it is not by accident. Understanding this can be the difference between living in debt and breaking free from the shackles of debt.
How this all shakes out is up to us. But it takes a good understanding of how the economy works to do anything. You cannot just be a saver anymore. You can’t have just one well paying job and hope to make it. There was a time when Dad was the bread winner and Mom took care of the kids. Now, mom and dad must work while grandma takes care of the kids. Tomorrow, this will change and mom and dad will need 2-3 jobs each, or you will need multiple streams of income. We must solve this problem and do it soon, but to solve a problem we must first be aware and acknowledge the problem. To be able to identify and understand the problem we must educate ourselves. You can either search for information on your own or be a part of a consortium of minds sharing not only knowledge of the past but also future trends.
Did you know?
- The average person is spending $1.05 for every dollar they earn.
- Credit card debt totals more than $864.4 billion (Source: Federal Reserve’s G.19 report on consumer credit, March 2010).
- Total U.S. consumer debt: $2.46 trillion, as of January 2010 (Source: Federal Reserve’s G.19 report on consumer credit, March 2010).
- U.S. credit card default rate: 11.37 percent. (Source: Fitch Ratings, March 2010)
- More people will file for bankruptcy than graduate from college this year.
- The U.S. Department of labor shows the average annual family income at just $37,000.
- Citizens of these United States have lost 97% of their wealth since the inception of the Federal Reserve.
- If the Federal Reserve inflates the dollar by 6% a year, you are losing 5% of your wealth stored in a US bank EVERY year.
Year comparison of the cost of items in 1933 vs 2010 inflation adjusted.
- Cost of a new house 1933: $5,750.00 (equivalent to $93,565.72 in 2010)
- Cost to rent a house in 1933: $18.00 per month (equivalent to $292.00 in 2010)
- Brand New Plymouth in 1933: $445.00 (equivalent to $7241.17 in 2010)
- Gallon of gas in 1933: 10 Cents (equivalent to $1.62 in 2010)
- Loaf of Bread in 1933: 7 Cents (equivalent of $1.13 in 2010)
- 1 Lb. Of Hamburger Meat in 1933: 11 Cents (equivalent to $1.79 in 2010)
- Can of Campbell’s Vegetable Soup in 1933: 10 Cents (equivalent to $1.62 in 2010)
- Dozen Eggs in 1933: 5 Cents (equivalent to 81 Cents today)
- The US Federal Reserve (Fed) creates inflation that is a silent tax on the world.
- Citizens of these United States have lost 97% of their wealth since the Fed was created
- The Fed was responsible for the great depression of the 1930s, the real estate bubble, the tech stock bubble, and every other boom/bust cycle since 1913
- The Fed is a public Banking Cartel of Private banks created in 1913 by congress as designed by the private banks. These private banks get a 6% dividend each year. The Banking Cartel is made up of the following banks:
* BNP Paribas Securities Corp.
* Banc of America Securities LLC
* Barclays Capital Inc.
* Cantor Fitzgerald & Co.
* Citigroup Global Markets Inc.
* Credit Suisse Securities (USA) LLC
* Daiwa Securities America Inc.
* Deutsche Bank Securities Inc.
* Dresdner Kleinwort Securities LLC.
* Goldman, Sachs & Co.
* HSBC Securities (USA) Inc.
* Jefferies & Company, Inc.
* J. P. Morgan Securities Inc.
* Mizuho Securities USA Inc.
* Morgan Stanley & Co. Incorporated
* Nomura Securities International, Inc.
* RBC Capital Markets Corporation
* RBS Securities Inc.
* UBS Securities LLC.
- All currencies in the world are now “Fiat” currencies which means that the paper cannot be exchanged for something tangible like Gold or Silver on demand
- Only the “tinker bell” effect makes a US$ bill more valuable than a sheet of toilet paper.
- In 6,000 years of recorded history, there have been about 3,800 fiat currencies that all end the same way, hyperinflation and collapse
- People that have their savings in the fiat currency lose everything
- Those with Silver and Gold substantially improve their standard of living
- The Fed is the 3rd central bank of the US. The first 2 lasted about 20 years each
- From 1836 until 1913, there was no central bank in these United States. During this time Silver and Gold were used for currency and prices were stable and a penny saved was a penny earned.
- The US bimetallic standard ended with a Gold/Silver ratio of 16/1
- The US fiat currency became the world’s problem when the US$ became the world’s reserve currency with the 1944 Brenton Woods agreement
- Instead of raising taxes and/or cutting spending, congress has used the Fed to silently tax the world via inflation to fund wars and social programs
- The Fed was created to hide the costs of WW I
- FDR ended the exchange of the US$ by US citizens and confiscated Gold from US citizens to inflate and hide the cost of his social programs
- Nixon closed the Gold window to foreign governments to hide the cost of Vietnam
- Other countries know what the Fed is up to and are taking steps to replace the US$ as the world’s reserve currency
Now ask your self these questions:
How will your life change if a gallon of gas costs $20?
How far is food shipped to your grocery store?
How will you handle your utility bills being doubled?
Silver and Gold have always been used as a hedge against inflation. You could buy a dozen eggs with the same amount of Silver in 1900 as you can buy today. The only thing that has changed is the number on the Fed note. At certain points in history like today, a substantial amount of wealth is transferred to people with Silver and Gold as a result of inflation. A $15,000 invest in Silver in 2010 might buy you a house when hyperinflation hits.
More millionaires were created in the 1980 Silver bull market than in the Tech Stock and Real Estate booms.
Thomas Jefferson once said, “I believe that banking institutions are more dangerous to our liberties than standing armies”
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