Got Gold? – How the FED is Leading Us to Poverty
Yesterday I was reading through the Federal Reserve Bank’s July report on M1 and M2 data that they periodically issue to the public. You can find the report here. Not surprisingly, the Federal Reserve Bank has increased the money supply by over 1.1 trillion dollars in the last 2 years… Stop, and let that sink in…
What does that mean for the average citizen?
We just got robbed – Royally!
For reference, the definition of M1, M2, and M3 is below…
- M1 = Measure of the money supply that includes all coins, currency held by the public, traveler’s checks, checking account balances, NOW accounts, automatic transfer service accounts, and balances in credit unions. (source – investorwords.com)
- M2 = Measure of the money supply that includes M1, plus savings and small time deposits, overnight repos at commercial banks, and non-institutional money market accounts. A key economic indicator used to forecast inflation. (source – investorwords.com)
- M3 = Measure of the money supply that includes M2, plus large time deposits, repos of maturity greater than one day at commercial banks, and institutional money market accounts. (source – investorwords.com)
- Note: M3 represents all US money supply in the economy. It is no longer reported to the public or the US Government. Only the Federal Reserve Bank knows the true number. (a private bank, what?!?) – Any wonder why? Obviously they don’t want us to know how much they are printing!!!
You can see from the chart on the right, that in no less than 2 years the Federal Reserve Bank has legally counterfeited (printed) and circulated USD dollars in massive scale. This is an increase of roughly 15.7%.- WOW! Unless you found a savings account, or investment vehicle, that has earned you over 15% in return; you just lost money over the last 2 years from doing nothing but savings it!
In the same report, they reveal that they have increased the M1 supply of money by almost 19% in this last year alone! This means that the money throughout circulation and held by the average citizen was debased to almost 80% of its value. As this inflation takes effect over the next 12-19 months, everything you purchase from bread, to milk, to energy will most certainly increase. Believe me; you will feel it in your pocket book!
Check this Chart Out! (source – mises.org)
If you think that’s bad, take a look at the increase in money supply by the FED in collusion with the federal government since 1980 (above), approximately 10 years after President Nixon removed the last tie from the US Dollar to Gold in the Treasury. (i.e. removed the last link to the gold standard)
Since that time, the FED has been printing money like mad! Increasing the money supply to fund all our government’s pet projects and not doubt, investment bankers’ luxury penthouses…With no more restraints provided by the gold reserve, they are free to debase the currency at record amounts. In essence our entire US economy is in the hands of these private bankers, and the US government has no knowledge of their actions and decisions!
Why Americans Feel they can’t get Ahead Financially
As the government increases the money supply, this new currency is first given out to those with connections and influence within the government. (generally large investment banks, corporations, etc.) As that money filters down through the economy to you and me, prices have already increased (effects of debasement/inflation) and we feel, and truly are, poorer.
This is the reason why Americans feel more and more strapped every year financially. As the FED is increasing the money supply, necessities and general goods are increasing in price, but unsurprisingly our income has not increased at the same rate – (Have you received a 16% raise over the last 2 years to cover inflation (debasement)?)
Is it any wonder why most Americans now need dual incomes to stay ahead, are struggling to pay their basic bills, and can’t save for the future?
It’s the FED! The Federal Reserve Bank, sponsored by big government politicians, is the reason for the madness! This private banking cartel has caused every recession since its creation in 1913, and is on the verge of creating massive hyperinflation in the future. (US Treasury Secretary even admits the FED caused the economic crises it in this article – amazing!)
As thinking patriots we need to be informed of the actions of our leaders in government, but we also need to understand our banking system. Thomas Jefferson warned us against such motives and actions of private banks… They are a silent attack on our private property – and in essence our Liberty!
‘I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered” ~ Thomas Jefferson ~ 1802
For more on the FED and its destruction on our economy and our liberties, visit the Austrian Economics website mises.org
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