Congratulations! You Just Got a 5% Pay Cut

Typically most Americans would be thrilled with a 5% pay raise from their employer.

This past month, everyone in America just took a 5% pay cut, courtesy of the criminal Federal Reserve.

You see, the criminal Federal Reserve has been busy buying up bonds from the Treasury and pumping the markets full of phony money to the tune of billions per week.

The Treasury prints up some notes with some pretty pictures on them and stamps them with the number "10 billion" - and then hands these notes to the Fed, who then hands the Treasury 10 billion in dollars. The Fed then collects the interest on these bonds through the IRS system which holds a gun to the American publics head. The Fed then hands this interest earned back to the Treasury, which in turn hands the Fed new bonds. Of course, the Fed takes a nice cut of the profits off the top in all these exchanges.

This act of buying up our own debt pretty much has the same effect as running a printing press. It creates "new money" which is then dumped into favored corporations, government special interest groups, and all other manner of crony banking/financial/industrial treasonous institutions.

As we all know from economics 101, when there is more of something, its value declines. So it is with our phony dollars. As the Fed engages in this criminal counterfeiting operation, it is devaluing all the dollars held by the public.

Thanks to the Feds actions, this past month the Fed has managed to devalue your paycheck by 5% when compared to gold and by 6% when compared to the Euro. Eventually this will result in higher prices for all goods as the new money works its way through the economy.

Of course, those who get the new money first get the most benefit, since prices have yet to adjust upwards.

Of course, that person will not be you.

www.bloomberg.com...


editors note:

Some left-wing fascists may scream that the dollar index is still strong, which is ridiculous since the dollar index is measured against other countries currencies who are actively doing the same thing. Since they are all devaluing their currencies, the purchasing power loss of the dollar is actually faaaaaaar higher than what the index presents.

The u.s dollar is dropping like a rock on the currency exchanges here in asia. I wont accept any u.s dollars for my consulting work as they keep losing value. And may stop accepting any western currencies as they are following the u.s dollar in dropping. I dont get much when I work and dont want to lose the little I do get so at present you guys can keep your near worthless coloured paper.

reply to post by Expat888


You'll have to be more specific about the country you are in.

Most of the big ones are engaging in the same kind of debasement to prop up the dollar.

Japan has destroyed itself trying to appease its export industry.

It varies between china, vietnam, macau, hk , malaysia.. I avoid the u.s puppet states s.korea, taiwan, japan (shame as am of japanese descent ) singapore ...

reply to post by mnemeth1


Well, if the US ever loses it's tie to oil, we are up SC without a paddle.
As seen here in the gold prices, something seems to be wrong.
Even with blatant and obvious price manipulation, the US dollar's ability to purchase a fairly stable supply of gold seems to be waning.

It seems there are reports that the international banks have quit dumping gold on the market.

Nothing to see here, walk away.

So, if we just look back to say 2002, the US dollar compared to gold has lost what 75-80% of it's value. With the coming inflationary spiral, expect the further paycuts to ensue.

graph from here-futures.tradingcharts.com...

[atsimg]http://files.abovetopsecret.com/images/member/8ce99e69b668.gif[/atsimg]

more mindless bibble babble from the OP. You can't take one fact, and then relate it to something completely unrelated, and *poof* they become the same thing. A 5% paycut is much different than the dollar to euro comparison. Poppycock i say!

I laughed especially hard when you compared the value of the dollar to gold

What is this, 1970?

Having not taken many econ courses and have the basic idea on how to save and invest...can someone explain to me the relevance of basing currency on precious metal?

If I say one gold bar is worth $100 dollars capable of buying 200 loaves of bread, then one gold bar can buy you 200 loaves of bread, right?

The thing that gets me is I'm the one declaring the price of something, just as the fed is declaring the price of something...the fed simply eliminates the third part of our equation, the gold. If the fed tells me my $100 buys 200 loaves of bread without having to consider the amount of gold I can buy with my bread...what do I care?

Oh...epiphany, you're upset because of the control the fed holds over the value of the dollar without relying on the historically unreliable markets for precious metals. I think I've just become a bigger fan of the federal reserve than before.

Let's go with your numbers, $10 billion at 0.21% interest(current rate as of this post) is $21 million the federal reserve makes in interest and subsequently gives back to the US treasury. Effectively paying the treasury with it's own money that the fed gave them in the first place.

Oh no! It's a horrible cycle of controlling currency and screwing capitalists...say it ain't so!

reply to post by links234



what?

Wow, two very huge brain pans step in and show their TRUE knowledge.

Simple folks, in 1913 3 senators passed into law the Federal Reserve Act. That is right 3 senators.

At the time, a twenty dollar gold coin could buy a $20 in currency or a hand made tailored suit.

Today, $20 US dollars could not buy you the belt for the suit, but the coin will still buy you the suit.

Now, if you cannot follow THAT, 10 years ago you were paid a certain dollar amount for your labor. You received raises over that time. At the same time, dollar values have gone down, meanwhile prices for things have gone up.
Even if your raises allowed you to continue to purchase the same things, did you actually get raises? Of course not.

So, do you two need any more explanations?

Let me post this for you-

[atsimg]http://files.abovetopsecret.com/images/member/9d7724d31934.jpg[/atsimg]


Do you see any problems here?
Got that from this article-Understanding The National Debt (Sesame Street Edition)

It is the sesame street version, it might help you to understand the problem.

Now, if you would like to understand the problem with the federal reserve, treasury department, fiat currency and fractional reserve banking, this video will help-





Maybe this information will help with your ignorance.

Originally posted by mnemeth1
reply to post by links234

 

what?

I don't even know anymore.

Originally posted by saltheart foamfollower


Let me post this for you-

[atsimg]http://files.abovetopsecret.com/images/member/9d7724d31934.jpg[/atsimg]

I'd like to add that 1 in 7 Americans are in poverty. almost 50 million Americans are on medicare. the US has the largest prison population than any other country. Over 9 million are unemployed. unemployment for those

ok mem or salt

how does inflation and deflation and the value of the dollar relate?


and dumb it down for me come down to my level


this is confusing to me

$1.00 in 1914 had the same buying power as $21.59 in 2010 with a inflation rate of 3.25%

is that really due to inflation or is that just how much the value of the dollar has lost

reply to post by American_Soviets


To be more accurate on your additions.

The US has the highest percentage prison population.

Also, the true unemployment rates, I think U6 is the right one, I can never remember if that or U3. Anyway, one of the two, is at 16%.

This means that the true unemployment is around 16-20%.

Total estimated workforce=153.6 using below statistic from government numbers to determine total

Stated unemployed Sept 2010 at 9.7%=14.9 million unemployed so 100% would be the 153.6 million workers

So if the real numbers are this-
16%=24. 5 million
20%=30.2 million

yeah that Aussie dollar is like up to 97 US cents.

Should equal parity soon or in 2011 as the "experts" say.

Originally posted by saltheart foamfollower
reply to post by American_Soviets

 

According to the International Centre for Prison Studies at King's College London, the U.S. currently has the largest documented prison population in the world, both in absolute and proportional terms. We've got roughly 2.03 million people behind bars, or 701 per 100,000 population. China has the second-largest number of prisoners (1.51 million, for a rate of 117 per 100,000), and Russia has the second-highest rate (606 per 100,000, for a total of 865,000).

www.nytimes.com...




Prison Population Around the Globe

The United States has the highest incarceration rate and largest number of criminals behind bars.

www.straightdope.com...


As for the other numbers, I was using conservative numbers, so I won't bother debating your higher numbers. The purpose is to say that the picture is grim and getting worse.

Originally posted by neo96
ok mem or salt

how does inflation and deflation and the value of the dollar relate?


and dumb it down for me come down to my level

this is confusing to me

$1.00 in 1914 had the same buying power as $21.59 in 2010 with a inflation rate of 3.25%

is that really due to inflation or is that just how much the value of the dollar has lost

Inflation IS the measure of how much value the dollar has lost.

Inflation means to expand.

When the money supply is "expanded" or "inflated" more money is pumped into the economy - since money IS debt - this means more debt is being created.

As more debt is created, the money supply expands.

As the money supply expands, the value of each individual dollar declines.

This is ultimately simple supply and demand at work.

If debt is paid off, we would experience deflation, since less debt would reduce the money supply.

Since the American consumer is bankrupt right now, all of the bankruptcies are causing a massive reduction in consumer debt. This debt reduction would normally cause deflation and put the banks out of business, however the Fed is printing money at epic rates to keep their corporate crony banker buddies in the black.

This mass creation of debt is causing inflation, rather than deflation. The Fed is creating debt at absolutely insane rates right now. Debt which the American tax payer must ultimately pay off.

Also what I would like to add to what mnemeth has stated.

Something is not right in Denmark (money supply).

The fed has been printing money at insane rates. Look at the payout for bonds and treasuries, they are at historic lows.

This NORMALLY would increase inflation. The problem is, that between now and early 2009 there is a collective rate of inflation of -2.3 to 2.9, which means that the prices of goods, services, real estate etc have been soooo inflated over time, that the standard way of controlling prices, is not working properly.

It is almost like the fed is pushing a vehicle up a hill and not quite reaching it yet, but once the top is reached, watch out below, the value of the dollar (inflation) will plummet (hyperinflation).

This is why on the videos I posted, the speaker was talking about the price of oil plummeting because it is tied to the dollar? Still trying to figure out all the fed's maneuvers on price fixing and manipulation. One of their ways of doing this is, the manipulation of such commodities as precious metals. Google Comex fraud and corruption at Morgan Stanley. They have been fixing the prices of precious metals. Absolute fact there. A whistle blower gave the moves on the precious metal markets, three days prior to it happening. This was shown in a Congressional hearing.

Things are looking very, very strange in the markets.

i knew the the us dollar was intentionally devalued and i was always under the assumption that it was to make goods and services cheaper overseas.

it makes sense to me of what you had said for the simple fact going to the example in my first post the federal reserve had just been created but with 1 critical difference.

the amount of currency in circulation was nothing near the levels that we have today.

the fed reacts to government spending the government is spending too much and the fed has to print too much money with it decreasing the value of whats already printed while printing more money and devaluing whats already been printed and keeps on going and going like the energizer bunny rabbit.

deflation is suppose to kick in and turn the tides back.........

simple put there is way way way too much money in circulation and there needs to be a crapload taken out for the value of the dollar to ever rise.


or has my ignorance showns its ugly face agian?


thanks mem and salt the information you provide is greatly appreciated.

reply to post by neo96


Yeah getting pretty close! Good job!

Not only does the supply of money need to be reduced, things like real estate, oil and food also need to drop back down as they have all been pushed way above their fair market values.

My parents built a house in a new suburb in Calgary about a quarter mile from the edge of an Indian reservation in 1990. My dad at the time owned a commercial construction company and was able to design and build our personal home all "in house" saving him tons of money. The house all said and done in 1990 had a finished cost of $294,800. Fast forward 20 years, the house is still very beautiful and has been kept up maintenance wise, yet it is aging and things creek that never used too, could use paint in a few rooms the carpets are shot and after 20 years require a replacement. Last year my dad had a stroke and has decided to move into a smaller place since the kids are now gone and my mom and him have been apart for 10 years. He gets a appraisal done on the house... new value $1,340,000! Realtor comes over, agrees says, "With new carpets and fresh paint throughout I would like to list at $1,450,000." most of the flooring in the house is hardwood, I think the estimate on the carpet was 7900 bucks. Paint and wall patches, my dad estimated at 2400 with him doing the labor.

1990 = $295,000
2010 = $1,340,000
2010 w/ polish = $1,340,000 + $10,300 = $1,350,300
BUT WAIT my math is wrong...
$1,340,000 + $10,300 = $1,450,000 - That's better I had to use my real estate calculator. Apparently by adding 10,000 dollars of polish to a house you can add almost 100,000 to the value. CRAZY.

Yeah I'm pretty sure something is out of whack with our economic situation, like don't get me wrong the house is nice but its NOTHING compared to houses that are built today, technologies have come so far. Should the prices of older more outdated things not be DROPPING in value as better stuff becomes available?

Back to the topic... 5% is only the tip of a very big iceberg and Bernanke is trying his very hardest to steer us right into it. He is about to let go huge amounts of quantitative easing then things will start to get interesting... 10%, 20% or 30% inflation in a matter of weeks, if not days.

Americans Enjoying Final Days of Artificial Economy

In recent days, Japan has intervened in the foreign currency market to artificially drive down the value of the yen. Japan's actions to weaken the yen have driven it from 83 to 85.73 against the U.S. dollar. Most analysts in the mainstream media are portraying this as Japan's attempt to "head off a deflation spiral". Almost everybody is applauding Japan's move, saying it was needed in order to "shore up its export-driven economy".

The truth is, although Japan claims to be helping Japanese citizens with this move, Japanese citizens are the ones who will actually suffer. Despite Japan's economy entering into recession last year, the Japanese were able to maintain their same standard of living because prices were falling due to their strong currency. Some of the largest Japanese exporters like Toyota and Sony saw their revenues decline last year by 20.8% and 12.9% respectively, but this was only bad for shareholders of these companies. Despite rapidly declining revenues for Japanese exporters, Japan's unemployment rate only reached a peak of 5.6% last year and is now down to 5.2%.

The Japanese should be happy and grateful for how strong their economy is compared to the U.S. economy. When it comes to exporters in Japan, their problem is not the strong yen, but the weak U.S. dollar. If Japanese exporters allow the U.S. dollar to collapse, their revenues will continue to decline substantially, but that is a healthy part of a free market economy. Within a year or two, a strengthening yen would allow the Japanese to spend more on their own goods, and revenues for Toyota and Sony would come back strong.

Japan's efforts to postpone a few Japanese corporations going through a brief but tough readjustment period are helping to artificially prop up the standard of living for Americans one last time. NIA believes that the Japanese better be careful what they wish for. Never before in world history has nearly every developed country been in battle with each other to have the weakest currency. Asian producing countries want their currencies to be the weakest so that they can have the honor of shipping their products to Americans who can't afford them.

Currencies are very fragile, especially when they are fiat and backed by nothing. NIA believes that nearly all countries around the world with fiat currencies are currently making the grave mistake of doing everything in their power to debase them. Even a five year old child, if you asked them if they want the money in their piggy bank to be worth more or less, would have the common sense to say more. The world's politicians either don't have this same common sense or they are being paid off by the management of export giants.

Although China recently made the wise decision to allow the yuan to strengthen, they haven't allowed the yuan to strengthen fast enough. China is now facing a price inflation crisis that will soon spread to the U.S. Consumer prices in China rose by 3.5% in August compared to one year ago, the largest increase in nearly two years. On a month-over-month basis (including seasonal adjustments), consumer prices in China rose by 4.8% in August over July.

Workers at a Honda plant in China recently went on strike over wages and work conditions. The Chinese have had enough of slaving in factories for $30 per week while Americans sit home on their couches, collect $400 per week in unemployment benefits, and consume the goods that the Chinese make. Chinese manufacturers are now being forced to increase the wages they pay to workers and these costs will be passed on to American importers of Chinese goods like Wal-Mart.

Wal-Mart recently eliminated their "rollbacks" on grocery items in the U.S. Grocery prices at Wal-Mart rose by a shocking 5.8% in July from June. In fact, some items in Wal-Mart like a 36-ounce bottle of Windex and a 12-ounce box of Quaker Oats rose in price by 51% and 66% respectively in July over June. Considering that in 29 states, Wal-Mart controls more than half the grocery market, almost all Americans are beginning to feel the effects of massive price inflation.

With 70% of the goods sold in Wal-Mart made in China, NIA believes that Wal-Mart's massive price increases for grocery items will soon spread to all other items sold. It is crystal clear for us to see what is ahead for U.S. prices of consumer goods, yet the mainstream media continues to talk about deflation. Cotton prices have surged 28% during the past two months to their highest level in 15 years. That alone guarantees higher clothing prices, but combined with the wage situation in China, Americans could see an unprecedented surge in clothing prices in the months to come.

A massive outbreak of price inflation is already taking place all around us, as Americans enjoy their final days of our artificial economy that is being propped up by China and Japan. Some people say China and Japan continue to buy and hold U.S. treasuries because of our overpowering military presence, but when they start dumping our treasuries and the bond bubble bursts, the U.S. military regime will come to an end. A U.S. societal collapse is coming and NIA will expose the truth in its over one hour long documentary coming in late-October. This documentary will be talked about around the world for years to come.

From:National Inflation Association

-Lightrule

Here is how a business owner sees what is happening. (Me)

Well, we won't be hiring anytime soon and we'll need to raise our prices to our customers.

Pay cash $ = discount.

Business owner buys gold, silver, guns & ammo. Quickly!