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They’re printing it faster than you can save it. The Federal Reserve prints money at will. That’s what causes inflation. Don’t listen to a word Federal Reserve Chairman Ben Bernanke says inflation is. Quantitative Easing or QE is the double speak used by ivy league economists to explain this wanton printing of money.
– The Federal Reserve Act became law in 1913, therefore
– Congress surrendered its power to borrow/create money to a for-profit corporation.
– Today we call that “outsourcing.”
– The Fed is NOT a part of the US federal government.
– The Fed admits this & adds “yeah but” we are subject to Congressional oversight.
– That’s like hiring the fox to wire a security system in the hen house.
– The money you hold in your pocket is nothing more than a promissory note, it’s DEBT!
– Congress borrowed it from The Fed and the paper money you hold is the IOU.
– If Congress couldn’t borrow from The Fed you’d be taxed to death, literally.
– Every year Congress automatically spends more than the prior year, never less.
– Budget cuts are cuts to the proposed amount Congress wants to spend.
-Not the amount they are currently spending or spent last year.
If you print money it’s illegal. If The Fed does it it’s called “Quantitative Easing”.
What does this all mean? It’s simple. The more money that is printed, the less your existing dollars are worth.
A famous painter produces an original work of art and it sells for $1 million. Limited supply, high value. If he paints the exact same piece of art 10 more times, the value of the original drops. High supply, lower value.
Remember when VCR’s first came out? They were heavy, bulky, and expensive. Not that many people owned one. Once they got lighter, smaller and cheaper everyone was buying them. High supply, lower price. Same concept as the art. The same concept with money. Paper money isn’t magical or mystical. It’s no different than widgets at Wal-Mart.
Every time The Fed prints money it’s causing inflation. If you are a saver and earn your income from interest bearing investments (CD’s for example), you are being punished by inflation. The US economy is built on a false premise. The premise being economic growth, fueled by debt, will continue forever.
This is totally contrary to the laws of nature. Everything has a cycle of birth, growth, maturation, and death. Every empire in history has gone through this cycle. The American Empire is no exception.
The Federal Reserve says the economy is recovering. That’s a blatant lie. We are experiencing hyper inflation. Gold is near $1,500/ounce. The higher gold goes, the higher inflation is. Gold is the only TRUE barometer of inflation. As paper currency is worth less, gold is worth more.
You’re playing in a rigged game. The system is built to try to keep you in debt from cradle to grave. This is why getting out of debt is so important to your financial future.
I want to help you escape the rat race. It’s possible to get off the tread mill of hyper consumerism. You have to stop charging up & paying down credit cards. You have to stop trading up your car every 4 years. You have to stop refinancing your house when interest rates drop a point or two.
As Dave Ramsey reminds us: this is 20% math and 80% behavior modification. The US government & The Fed are not modifying their spending behavior, but you can modify yours.
To Your Financial Freedom,
Greg Whitaker
www.debtshepherd.com
© Greg Whitaker 2011, All rights reserved
