Robbed Blind by the Federal Reserve
Many Americans seem to be confusing rising prices with rising worth.
“What’s making the price of gas go so high?”, we ask, like there must be something — a tanker spill, broken pipeline, price gouging — mucking up the supply and demand ratio. But, in reality, price and worth are two different animals.
Try to think about it this way: The price of oil is rising, but is it really worth more than last year? There’s one way to find out: fill up your transportation device with petrol and see how many miles it takes you.
I’m no economist, but I’ll bet the gas in your tank is still worth the same as the gas you had in your tank last year? And the price of gold…it’s rising, too. I don’t see how it’s worth more, either. The ring on my finger (about all the gold I have) hasn’t made me any more married lately than when I kissed my bride a few years ago.
What about the U.S. dollar?
Now, there’s finally something which hasn’t gone up in price. A good old dollar bill — actually, it’s a Federal Reserve Note — still costs one dollar. But you know what? It’s worth a helluva lot less than it was worth a year ago. It now takes 110 of the Fed’s fiat notes to buy a barrel of oil, and a thousand to buy an ounce of gold.
Why?
Jackson Pollock and Inflation
In 2006, Jackson Pollock’s painting, No. 5, sold for $140 million.
Now, what if there were suddenly another 199,999,999,999 original, signed, exact duplicates of No. 5 on the street?
I’ll tell you what would happen: none of them would be worth $140 million any more, and the worth of an original Pollock No. 5 would fall off a cliff.
So, pay attention, now. If you have one, take a Federal Reserve Note out of your pocket and hold it in your hand as tight as you can…
Last week, the Federal Reserve decided to create another $200 billion out of thin air. There’s now another 199,999,999,999 plus 1 more dollars out there on the street, just like the one in your hand. Did you feel its worth vanish? If you didn’t feel it, go buy some gas, or bread, or gold, or anything…
Now you’re getting it.
The worth of everything else in the world didn’t go up. What happened was this: the Federal Reserve just gave everybody a significant pay cut.
Iraq War Bills Come Due
Yes, now you may recall all the unpatriotic protestors who’ve whined about the cost of the Iraq War, who keep sending you that link to the cost of war site where the cost is climbing faster than the population of rats in NYC. The total is over $500 billion, and every day it goes up by $275 million, and there’s that figure about how the total comes to over $4,000 per household.
You didn’t think you were really going to have to pay, right?
Think again.
The Federal Reserve has begun accepting remittance, and boy…those crooked bankers are just getting warmed up. They also want us to pay interest on all the money Bush borrowed to bomb the cradle of civilization in our name, and all the money he paid Halliburton to forget to build it back before the company moved its headquarters to Dubai.
How To Prepare for the End of the World
So, you didn’t buy gold when you had the chance and now, even if you could get the bank to hand over your entire savings, it’ll only be worth burning in a few weeks. What the heck can you do?
Mike Rogers has a good idea; he calls it the poor man’s disaster hedge fund:
…we bought about 50 gallons of water with expiration dates of October, 2010. Six cases of canned tuna (108 tins per case), three cases of canned whole tomatoes (24 cans per case), six cases of canned corn (my kid eats canned corn like crazy), 24 tins of Sardines, 10 packages of crackers, 120 cans of Campbell’s canned soup, 100 cans of Corned Beef, three cases of Refried Beans, 108 rolls of toilet paper, several gallons of vodka – in case of the end of the world, got to have that (there’ll be nothing else to do), as well as medical supplies and antiseptic, my usual daily medicine, and a can opener, lighters, candles, batteries, and Sterno.
…While everyone is freaking out, I’ll be enjoying booze and Sardines on crackers for at least a little while.
More and more, this sounds like a fine idea. And don’t worry too much, because this was the plan all along. As soon as everybody’s hungry enough, Bush will replace the dollar with the Amero, and we can be united with Canada and Mexico in the coming North American Union.
Read More: crude oil price, increased gas prices, Federal Reserve Bank, Iraq War, U.S. Dollar, End of the World
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March 20th, 2008 at 12:51 pm
The Fed dropping the interest rate really jacks my jaw. First, they are screwing the elderly who live off the interest of various accounts.
Second..my credit cards tied to the prime are not going down..wtf? Shouldn’t I get that break as well?
Third..using our tax dollars to bail out Bear Stearns and allow JPMorgan to buy it is sickening..yet the people will get a lousy 600 bucks..equality? I don’t think so..not even friggin close.