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We've seen how the prices have gone up over the
years, which merely means that the dollar has been inflated, or its
quantity increased. Why? To pay the bills the politicians have run up
to make themselves popular and get re-elected. Not our fault. As the
dollar lost value, the citizens had wage increases to attempt to equal
the price increases… to literally keep on living. The wage increases
never kept up with the cost of living, so the standard of living
gradually went down. It has been said by various economists, that we
have a standard of living which we had close to fifty years ago. No
progress towards a 'new world,' in other words, but rather a
retrenchment. Not our fault.
Under FDR, a plan was wholeheartedly endorsed and
voted on by those in office at that time, and it was and still is
called, "Social Security." It all sounded so wonderful back then, but
now has become a nightmare for the fed. Why? Because when the plan was
begun, there were a lot of workers for each retiree, and now there are
barely two, so far more is being paid out than is coming in, in spite
of the fact that "contributions" (sic) have been increased by hundreds
of percentage points. From 1% to close to 20%, and still Social
Security is an economic disaster. As if that weren't bad enough, it was
decided to subsidize medical care, and forced the individual states to
do the same thing. "Medicare" and "Medicaid" were born, and have both
proven to be a further economic disaster. If an insurance company paid
out more than it took in, it would go the way of all flesh pretty
quickly. Medicare and Medicaid come no where near the break-even point,
and a dark cloud is on the horizon in the form of the 'baby boomers'
retiring by the thousands every day, and making application for the
benefits they have been paying for all these many years.
Social Security, Medicaid and Medicare,
actuarially unsound, will be so far out of balance in a few years, that
there will be only one solution. Know what it is? That's
correct…they'll have to print the payments, or to make it technically
correct, they'll have to sell debt, etc. If no one will buy the debt,
they'll buy it themselves, as I believe they are already doing. Buy
their own debt? Impossible as that sounds, it must be done to keep the
system afloat as long as possible. Technically, to increase the money
supply to pay the bills, they must print instruments to sell, so that
when they are sold, the money can be printed. Technical only, because
if no one wants to take a chance on the dollar's value over the years,
and decides not to invest in dollar denominated paper issued by the
Treasury, the Treasury will buy it themselves, which is no more
ridiculous that the so called "information age," when 'wealth' is
supposedly created by doing each others laundry and paying each other
to do it. Since it is all a fraud anyway, why shouldn't the fed buy its
own debt, thereby allowing the money to be printed? The bills have to
be paid, and the retiring baby boomers will be demanding the re-payment
of the dollars they were forced to put into the system.
Naturally, this will require even more printing
press money to be produced to pay the retiring boomers. The more
printed, the less they will be worth, so prices will go up, payments
will be increased as the 'official' cost of living index increases.
Since an accurate cost of living index means a shorter life span of the
buck. The 'official' cost of living, as well as the 'official'
inflation rate, are as phony as Santa Claus or the Easter Bunny. If a
true set of statistics were coming out of D.C., it might set back the
crumbling dollar as much as a couple of decades. If the true cost of
living and inflation were used and published, the average Social
Security check would probably be close to twice what it now is…or do
you really believe the 1-2% 'official' inflation rate? The 'official'
inflation and cost of living figures determine the increase in payments
for Social Security. It save a lot of dollars if the payments can be
kept low.
We've mentioned the expensive current wars in
Iraq and Afghanistan, as well as all the previous wars which
decapitated the dollar from a sound dollar, to probably 2% of its
former glory. We've gone from production to consumption. America has
gone from making what it uses, to buying from various overseas
entities, what we use and even eat. Our capital has vamoosed with each
container coming in full, and returning empty. Our capital, in the form
of sound currency, has degenerated by increasing the supply of dollars,
thereby making the dollar unsound. We've been hit two ways. First by an
endless increase in the number of dollars in circulation, and second,
by sending them overseas for things we want and need, simply to exist,
and it isn't our fault.
Our jobs have vanished, simply because workers
must be paid in dollars, and the dollar has gone down so much, that
other nations can make and grow what we need at a far lower cost in
dollars, than can Americans. Thus we import stuff, with profits going
back to Japan, China, India, and any other place which has sounder
currency compared to the dollar. China has no bureaucrats breathing
down workers and factory owners' necks, and taxing them incessantly for
everything they need, plus their labor. Admittedly it was started by
Sam Walton's kids probably, who weren't satisfied with being the
richest (by inheritance) kids in the world. They decided to become even
richer by cutting the throats of the American factory workers. Wal
Marts then began selling mostly imports, in direct contradiction of
their old man's "Buy and Sell American" philosophy. Millions of factory
jobs disappeared, and factories closed, never to re-open again. It
wasn't out fault.
The Japanese began making excellent cars in
America, with non-union labor in various southern area of America, but
the profits went back to Tokyo, our former enemy. Mills went bankrupt,
and cloth manufacture went overseas. Farm taxes and regulations became
so onerous, that food began to be imported from countries with no
regulations and heavy taxes on everything. Wonderful machines and
electronics were invented here, and began to be made overseas with
cheap labor, with American patents being ignored. With their new found
wealth, foreign nations began buying American corporations and
companies, with profits going back to whoever bought them. Columbia
Pictures, Firestone Tires? Only a couple of the many. It is virtually
impossible to find anything made in America today, and with each dollar
spent on a necessity, which may be made in China, the profit goes back
to China, and it isn't our fault. China now has one trillion US dollars
in its treasury, all of which came from profits from stuff sold to
Americans, and they're growing very leery of the dollar.
You'd be suspicious of an obviously bad
investment, and the Chinese are becoming just that. Their purchasing
our debt, has sharply decreased. Iran and a few others, will no longer
take dollars, admittedly because they hate our invasion of their
nations, but also because they know the buck is failing pretty quickly.
They don't want to get caught holding something which is losing value.
No one does! Really? I know a lot of people who are investing in bad
things. Millions of people I am familiar with, are doing what
foreigners are beginning to realize is a poor investment. Of course you
know. It is DOLLAR INVESTMENTS!
A quick look at history, plus a logical look at
what has and is happening to the buck, will surely indicate that saving
in dollars or investing in dollar denominated securities, is economic
suicide. Maybe a slow suicide, or maybe it will happen quickly, I don't
know, but to think it won't happen, is absurd. How can a currency,
which is backed by nothing, is being printed continually to pay the
ever increasing bills of war, benefits, handouts, and various other
forms of foolish spending, hold its value? How can a currency, which
has already lost 98% of its value, regain strength? If a man is 98%
dead from cancer or pneumonia, will his recovery be bet on by a
sensible gambler? No, but 99% of Americans are betting on the dollar's
recovery, or at least going no further down in value. An absolutely
foolish stance. Why do Japan and China, plus others, still buy a few of
our debts? Because we spend with them. Dollar savers in America, aren't
willing customers to China, Japan, and India. Dollar savers in America,
are totally different than the Chinese and others, who buy a bit of our
debt to keep the buck afloat till they either get out of them, or
develop enough customers with euros, gold, or whatever. This is the end
of three parts of analysis, which shows without doubt, that saving and
investing in dollars, and dollar denominated instruments, is crazy.
Will you use these three parts as a sort of 'Bible" to show those in
need of conversion? If just a few realize the folly of dollar
investments, and buy gold and silver from some other place, I don't
care. Just 'get saved' and get out of dollars, and into things
TANGIBLE. (I don't mean to sound like an evangelist.)
Antiques? Surely, if they give you pleasure. Old
cars? Whatever turns you on in something TANGIBLE. Old stamps? Rare
paintings? Whatever you wish, but remember, gold and silver need little
space, are universal money for thousands of years in all nations, and
will continue to be so. Just protect yourself.
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