We’re not Iran, which now has a 75% inflation rate, with people literally not being able to buy food. Endless printing of the Rial won’t help. It’s gone too far, and is out of control. Nickel Cokes and Hershey Bars, are the same Cokes and Hershey Bars today, as they were in 1933, only our dollar has only lost 99% of its purchasing power, whereas Iran’s Rial, can now be used as wallpaper or to start a fire. Iran’s Rial, will end like the German Reichsmark after WW I. There, an ounce of gold went from 140 reichsmarks to 140,000,000. Here, it has gone from $20.67 to $5100 per ounce, but the dollar is on its well worn historic path.
As inflation grows, so do salaries to keep up with it; or they supposedly grow that fast. Not Social Security, unfortunately. Stott’s Law says that the more of anything there is, the less they will be worth, and of course that includes paper dollars, both physical as well as computer entries, which pay the bills of the federal government, to which our 347,390,176 population is subject. Basically, the first welfare state was created by FDR in 1933, when Social (in) Security was created, and the fist public housing also. Since then, over 2,000 federal bureaucracies and agencies, have mysteriously come into existence. Just by going through the alphabet, various federal departments can be found.
Take the letter “E” as an example:
“Economic analysis Bureau,” “Economic Growth Energy and the Environment Dept.,” “Economic Research Service,” “Education Department,” “ Elder Justice Administration,” “Election Assistance Commission,” “Elementary and Secondary Education Office,” “Employee Benefits Security Administration,” “Employment and Training Administration,” “Energy Department,” “Energy Information Administration,” “Engraving and Printing Bureau,” “Environmental Management Office,” “Environmental Protection Agency,” “Equal Employment Opportunity Commission,” “European Command,:” “ Executive Office for Immigration Review,” “Export-Import Bank of the United States.” Each bureaucracy, agency, and department, has part of the close to 3 million employees of the federal government in it. Like Topsy, it continues to grow.
In Massachetts, it costs over $300,000 a year for a family of four to live comfortably, and in Mississippi $186,618. In China, it costs $1890 per year, for a family of four to live comfortably. Is it any wonder why U.S. manufacturing has gone to China? Is it a mystery, that Trump’s plan to bring industry back to the U.S. has failed, other than his absurd tariffs, which I fervently hope the Supremes will disallow all of them, since the are unconstitutional.
In China, after taxes, the monthly income is $755. In America, it is $4539. Is it an enigma why Walmarts are coined “China Marts?” Is it a puzzle, why China makes an electric car they are dying to introduce into America? The GDP in China, is $13,303, and in America, it is $85,810. No, I do not want t live in communist China, but their path to what has happened in America, has only been on-going since Chairman Mao’s death, and ours has been going on since FDR in 1933. Besides, they have no ‘free’ (sic) elections allowing the elected to legislate endless welfare schemes to buy their votes.
Trump says America is “Hot” and inflation has been controlled, which is the anal output from a bull. Nothing is cheaper. Not even gasoline, because the Fed keeps selling fake dollars to the Treasury at interest, to pay the bills of the 2,000 federal agencies and almost 3 million employees. Want to stop inflation? Balance the budget, and stop the influx of dollars. Very simple, but it will never happen, like it has never happened in all of the Earth’s history. Stop storing your surplus in a leaky bucket. Forget paper promises such as stocks, bonds, bit-coins, and endless promises of what the future brings. No one knows what the future will bring, other than that economic history always repeats itself.
-Don Stott don@coloradogold.com