Inflation is Permanent Destruction of Your Purchasing Power
How the US Federal Reserve Steals Your Money
In an attempt to not bury the lead of this story, I will briefly discuss how inflation permanently destroys the purchasing power of your money. The chart below shows the purchasing power of the US Dollar since the founding of the US Federal Reserve in 1913. One dollar in 1913 has devalued to about three cents today. If the Fed kept to its promises to target 2% inflation, our dollars would have only devalued to about twelve cents. The result of this issue - prices are 30 times higher during this period instead of 8 times higher (huge impact).
When you hear discussions about 9% inflation in a year (like in 2022) - this is permanent devaluation of your money - the purchasing power never comes back. The only deflationary period in the US was during the Great Depression. If you owned assets (real estate, stocks, etc.) - you likely saw their “price” increase. If you were not given raises to keep up with the inflation - your ability to buys goods with your wages has deteriorated - significantly!
I have been a financial executive for 45 years. During that time, I hardly ever questioned how the US Federal Reserve (the “Fed”) operated. After considerable recent research, I now know that the US Federal Reserve has more influence on the economy of the world than any other organization in existence. Every citizen of every country in the world is affected by the decisions of the US Federal Reserve.
The most amazing part of this research is how little is known about the US Fed. These hidden facts are intentional - the Federal Reserve could not survive full disclosure. I will attempt to discuss some of the great unknowns about the Fed and most importantly - what are the results of the Fed decisions.
Facts About the Federal Reserve:
The US Federal Reserve is not part of the US Government. It claims to be “an Independent Agency” - and it claims that it “needs independence” to successfully execute its mission. It is a private organization - owned by a few banking families. These families are now worth TRILLIONS of dollars (they are the richest families in the world).
The President of the United States appoints the Chairman of the Federal Reserve - but has no influence on any of the decisions that the Fed Chairman makes. No Fed Chairman has ever been fired by a US President.
The Fed Chairman reports to Congress every quarter, but once again, Congress has no influence on the decisions that the Fed makes and cannot audit the actions or the balance sheet of the Fed.
The Fed is given total control and power to print and monitor the US money supply. They control all decisions regarding expansion of the US money supply. The US Treasury (part of our government) does not print or influence the money supply.
The Fed has total control in setting the Fed interest rates.
The US Federal Reserve does not answer to any branch of the US government.
The US Federal Reserve has never been audited or publicly investigated.
The US Federal Reserve is “owned” by the Federal Reserve Member Banks - but no one knows who owns the Member Banks, what percentage anyone owns and how the owners of the Fed profit from this arrangement. Nothing about the Fed has ever been audited. The Fed owners do not pay taxes on the profits that are not funneled through member banks. Ownership of the Federal Reserve has never been publicly disclosed.
Ford had it correct - he was talking about the Federal Reserve.
WHAT CAUSES INFLATION?
When the Federal Reserve increases the US dollar money supply – this is the main driver of inflation. Normally, prices will rise slowly in response to the increased money supply. This is not some mystery. Inflation is an intentional decision by the Fed. It is not caused by interest rates. Inflation is driven by increasing the money supply. Inflation is permanent destruction of the US Dollar’s value. Inflation benefits the wealthy people who own assets – it destroys the potential wealth of the people who are trying to earn a living and acquire assets. The best way to discuss inflation is to outline how it was implemented during the most destructive periods of inflation in our lifetimes (COVID of 2020’s and the Oil Embargo of the 1970’s).
COVID - 19 Inflation Plan (really genius when you lay it out)
1) Establish drivers for cost increases. COVID provided disrupted supply lines, new product needs (masks, PPE, vaccines, plastic dividers), and closure of many small businesses by lock-down. The Ukraine/Russian War provided a conflict with a major oil producer to drive up energy costs. The “Climate Disaster” serves to drive up energy costs by making everyone migrate to wind and solar which is more expensive because full fossil fuel backup is required (except in China).
2) Place investments in key areas prior to the Pandemic. Invest in vaccine companies, online shopping (Amazon, etc.), Zoom, PPE companies. Short the market just prior to the lockdowns (Trump works for the Fed owners - they know he will “flatten the curve”). Most of Congress shorted the market before COVID lockdowns - if they knew - the Fed Owners knew.
3) Lockdown the world economy and crash the stock market (major profit from your short positions - step one). Trillions in profit for the Fed Owners.
4) Jump back into the stock market (you know it is not a real pandemic that would result in mass death events and long-term damage to the market) because the market will rebound (especially in the areas you have your investments).
5) Juice consumption by giving massive stimulus checks and corporate incentive loans/gifts (using the lockdowns as justification). These stimulus steps required the Fed to print $6 trillion dollars of new money (tax revenues were not used). The Fed Owners receive $6 trillion dollars in value (funneled through its banks) and the citizens of the US receive $6 trillion dollars in debt. Additionally, every dollar in existence is substantially devalued.
6) Prices dramatically rise in all areas - massive inflation. Rising construction costs cause home prices to soar (non-resident private equity investment in residential real estate is a key factor - many knew to make this investment). Sadly. sixty percent of the small business’s shutdown by COVID have never returned. Blame the cost increases on greedy corporations (this was all planned by the Fed Owners).
The payoffs for the Fed Owners ($10-15 trillion dollars) justify the effort required to pull off the massive COVID pandemic operation.
The 1970’s Oil Embargo and Arab War
The 1970’s mass inflation was driven by the cost of energy. Similar to our recent inflation, they used conflict with oil producers (OPEC) to drive up energy cost. The Fed Owners were not near as bold in their efforts in the 1970’s. Their profits were not as exorbitant as the COVID operation. They were able to make profits in the bond markets by raising interest rates to an unbelievable 20%. It will be interesting where the Fed lands in its efforts to “fight inflation” with interest rate increases in the latest COVID inflation wave. Bond traders make a killing from drastic interest rate changes.
We have no government oversight over the Fed’s money supply decisions. When the Fed increases the money supply – it directly enriches the owners of the Fed (and decreases the wealth of everyone else).
Here is the real conundrum - technology and innovation are deflationary. If we tried to build the smart phone in your pocket back 20 years ago - it would have cost millions of dollars each. Think of the price of large-screen TVs. Even large-scale farming is deflationary. Doesn’t fit the narrative.
THE FEDERAL RESERVE IS NOT (I REPEAT - IS NOT) PART OF THE US GOVERNMENT
Please research it yourself – look up 1913 Federal Reserve Act (passed Christmas Eve 1913).
Let that sink in a little. The organization that prints our money and sets interest rates is not part of our government. This is the most powerful organization in the world. US citizens do not own the Fed and cannot influence the decisions made by the Fed. The Congressional testimony of the Fed Chairman is just a “magician’s trick” to present a resemblance of government oversight.
THE PRESIDENT APPOINTS THE CHAIRMAN – BUT CANNOT INFLUENCE FED DECISIONS
Once again – look it up yourself. The Fed is completely independent. It is why Reagan and Clinton had the same Chairman. Bush and Obama had the same chairman. Trump and Biden have the same chair. These presidents do not share the same economic beliefs – why would they share the same Fed Chairman? If presidents truly had influence over the Fed – these presidents would not share the same Fed Chair. No US President has ever fired a Federal Reserve Chairman.
In the words of Alan Greenspan: “The Federal Reserve is an independent agency, and that means there is no other agency of government that can overrule actions that we take.”
Nathan Rothschild boasted in 1815 that he controlled the British empire by controlling the money supply. He was not wrong! Sadly, his organization came to the US. His organization started the US (we were originally part of the East India Company) - yes, that should make your head spin a little.
WHO SETS THE INTEREST RATES FOR THE FEDERAL RESERVE BANKS?
The Federal Open Market Committee (FOMC) sets interest rates in secret. Congress does not select the FOMC or influence the selection of the FOMC. In my lifetime the rates set by the FOMC have been 20% (in 1980) and 0.25% (in 2008). Neither extreme makes sense. Both extremes have had devastating results on the world’s economies.
WHO OWNS THE FEDERAL RESERVE?
My research shows that it was just a few banking families (you should recognize these):
Rothschilds of London (they own and control JP Morgan – a Rockefeller was chairman most of your life)
Warburgs from Germany
Lazards from France
Rockefeller
Goldman Sachs
Lehman Brothers
Amazingly, none of these families show up on the Forbes “Richest Families” list. Anyone investigating the net worths and disclosing the amounts would shock most people. It would be in Trillions of Dollars!
There is a glitch in the matrix - when I “Googled” the Rothschilds in DuckDuckGo - I was able to find an article in the Hindustan Times where they discussed the net worth of the Rothschilds family - they claimed 20 trillion. My estimate is that this is low - but at least a much better estimate than our US media. With this level of wealth at their disposal - buying a few US politicians is not really that difficult.
IS A PRIVATE FEDERAL RESERVE GOOD FOR OUR COUNTRY?
This is the most important question everyone in the world needs to be asking! Is a private Federal Reserve beneficial for the world? I believe that the following charts demonstrate that the current Federal Reserve is failing and needs to be replaced by a public utility – block chain monitored model. If we do not replace them – they will continue inflating our money away.
THE CAUSE OF THE CURRENT INFLATION SPIKE!
(Source) – the Federal Reserve St Louis website.
The Federal Debt of $33 TRILLION is a direct result of the Fed’s printing of money out of thin air – POOF. The Fed owners get $33 TRILLION in value – the US citizens get debt – this is a very bad trade.
This is the major cause of the current rise of inflation! The Fed prints the money for deficit spending. It is why we have deficit spending.
They may not be finished – we had three waves of inflation in the 1970’s and 1980’s!
WHY DID THE FED KEEP RATES SO LOW FOR 15 YEARS?
With interest rates at historic lows – companies were able to borrow massive funds to artificially inflate stock prices. They were able to borrow cheap funds and buy back their shares. This kept the stock market prices rolling along. It also enabled them to buy other competitors. Manufacturing is difficult. Many US companies farmed-out their production to China – as we found out during COVID – this may not be the best way to ensure critical goods are available to US citizens. This debt will need to be refinanced. With the Fed rates rising this will not be pretty!
This looks like a NASDAQ bubble to me! NASDAQ is revisiting its all-time high! This cannot end well. Sadly, with trillions at their disposal - the Fed-owners can manipulate our markets at will.
Housing won’t save you either.
The last inflation bubble took 25 years to recover.
WE ARE CURRENTLY DOING WORSE THAN DURING THE DEPRESSION
Now versus Great Depression
Cost of avg. home 1930 - $3,900 (3x Salary)
Cost of avg. home 2023 - $430,000 (8x Salary)
Cost of avg. car 1930 - $600 (45% Salary)
Cost of avg. car 2023 - $48,000 (86% Salary)
Avg. annual rent 1930 - $216 (16% Salary)
Avg. annual rent 2023 - $24,000 (42% Salary)
Average salary 1930 - $1,300
Average salary 2023 - $56,000
Consumer prices are 30 times higher than in 1913 – thank you FED OWNERS!
The above chart shows why we have families that require two working parents. The magicians on Wall Street have done well for themselves. People who were able to acquire homes and land in the 50’s have seen them increase in “price” – but in reality – this is just destruction of the value of the US dollar.
Cost of Housing versus average hourly wages
WHO CAUSED THE GREAT DEPRESSION?
Ben Berneke testified in Congress that the Fed caused the Great Depression – “But we won’t do it again!” Our current situation is the same one as in 1930 (raise interest rates during/after a recession).
They lowered interest rates in the 1920’s and provided easy credit to create an enormous stock bubble. The Fed had interest rates as low as 0.25% over the last fifteen years creating our current stock and real estate bubble.
They shut down 2/3 of the banks in the US in the 1930’s (leaving only Federal Reserve banks). They are currently working to close the regional banks – concentrating the credit decisions.
WHY DID THE FED TAKE THE DOLLAR OFF THE GOLD STANDARD?
FDR confiscated the gold holdings of all US citizens in 1934 (an amazing theft that has largely been left uninvestigated) to begin the devaluation of the dollar. By taking the dollar off the gold standard the Fed could manipulate our currency at will. The Fed took us completely off the gold standard in the 1970’s.
WHO WENT TO JAIL AFTER THE 2008 “CREDIT CRISIS”?
I can’t find anyone who went to jail. Our largest bank and beneficiary of much of the bailout has done quite well. Jamie Dimon has a net worth of $2 billion (phenomenal wealth for someone who has never invented a product or taken a risk) – he is on the board of the Fed. JP Morgan has done quite well since 2008 (so glad that we sent them $600 billion to bail them out of their mortgage problem)!
IT IS BAD ENOUGH THEY STOLE OUR CENTRAL BANK - THEY HAVE BURDENED MUCH OF OUR EDUCATION, MEDICAL RESEARCH, AND FOREIGN POLICY
1902 - Rockefeller funded the General education Board. It was modeled after the Prussian approach to education - focused on producing factory workers. Our problems in education can be traced back to here.
1910 - Rockefeller funded the Flexner Report - it closed our holistic medical schools and resulted in our current allopathic (drug oriented) approach to medicine (through funding of our medical schools). Nutrition research has never recovered.
1913 - Rockefeller funded the American Cancer Society. No area of medicine has had poorer results in curing the targeted disease.
1920 - Rockefeller funded the League of Nation’s efforts in nutrition, medicine, and epidemics (think COVID). Rockefeller would later fund the formation of the United Nations (and the World Health Organization).
More on these to come!
WHAT IS THE GOAL OF THE FEDERAL RESERVE? THEY HAVE ALL THE MONEY THEY NEED!
THEY ARE NOT HIDING THEIR INTENTIONS!
Further evidence of their intent
COVID? GLOBAL WARMING? FINANCIAL COLLAPSE? FOOD SCARCITY?
Lincoln, Harrison, McKinley and Kennedy - Four US Presidents who formally opposed the Federal Reserve Cartel - they died in office.
Now for a little scary conspiracy theory!
Rothschild’s have always understood the corruptive power of the Central Bank.
The reason you have heard so little about this problem is that the politicians are all being paid and the leaders on Wall Street are all part of the theft!
Trump?
Biden?
By selecting these two clowns as our candidates, the Fed-owners are planning a horrendous 2024. They clearly want division and chaos. In 2020, they gave us riots, lockdowns, mail-in ballots, and January 6. This is not looking like a good year for our country. Time to hunker down.
This is a solvable problem – we must all work to try!