Fund Manager- Elitists Are Redistributing Your Wealth!
SilverDoctors.com
July 27, 2017
Guess who’s first in line at the printing press….
By Dave Kranzler of investmentresearchdynamics.com
Analysts who advocate a monetary policy that targets “low inflation” are the equivalent of chickens in the barnyard rooting for Colonel Sanders to succeed. This idea that a low level of inflation being good for the economy is beyond moronic.
The fiat currency money system era was accompanied by the erroneous notion that a general increase in the price of goods and services is “inflation.” But technically this definition is wrong. “Inflation” is the “decline in the purchasing power of currency.” This decline occurs from actions that devalue a currency. Rising prices are the visible evidence of ongoing currency devaluation.
Currency devaluation occurs when the rate of growth in a country’s money supply exceeds the rate of growth in real wealth output. Simply stated, it’s when the amount of money created exceeds the amount of “widgets” created, where “widgets” is the real wealth output of an economic system.
In ancient Rome, the currency devaluation occurred when the Roman Government began to “shave” gold and silver coins which enabled it to increase the amount of coins produced from mined gold and silver in order to finance Government spending. When spending continued to exceed the amount of currency produced, the Government increased the money supply by diluting gold and silver coins with cheaper and more abundant metallic additives.
In the United States currently, currency devaluation occurs through both money printing, which has been cleverly disguised for propaganda purposes as “quantitative easing,” and by the continuous growth in credit creation. Debt issued behaves exactly the same as printed currency until that time at which the debt is repaid, not by more debt issued, but from money that has been accumulated by the debtor in order to repay and retire the debt.
The U.S. Government has not reduced the amount of debt issued for decades. Apologists will look at the Treasuries outstanding chart on the Fed’s website and argue that the debt level declined ever so slightly in the late 1990’s. But this was achieved through accounting gimmicks, not an outright reduction in Federal debt outstanding.
Notwithstanding this, the total level of debt in the U.S. system has been continuously increasing for many decades. While it’s argued that this is debt and not money supply, it is a fact that debt issued spends just like printed money until the debt is repaid and retired. Thus, currency devaluation has been occurring in the United States on a continuous basis since at least 1913 (founding of the Fed).
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