Updated inflation charts. Inflation at 7.3%.

The annual inflation rate of Federal Reserve Dollars is 7.3%. As you can see in the chart, usually Federal Reserve reduces the inflation rate after a series of high increases, but since 2014, the rate has remained level at about seven percent. Look for prices to continue to rise as the value of the Fed dollar falls. Learn more about these charts.

Annual changes in Fed Reserve dollar quantity - through 2017 August Line chart of Fed Reserve Dollar Quantity from 1959 to 2017, with callouts showing when total dollar quantity doubled. Current total is 12.7 TrillionPie chart showing components of Federal Reserve Dollars - 2017 August Table - Raw data showing composition of Fed Reserve Dollar total, from 1995 to 2017 (August)

Updated inflation charts

The inflation charts page has updated inflation data as of July 2017. Inflation is at 7.5 percent, based on revised Federal Reserve data. The rate appears steady. I was expecting the rate to decline so that ‘they’ could trigger another stock market crash, but maybe not. Still, a 7.5 inflation rate means…the value of the U.S. dollar has or will be worth 7.5 percent less than what it would have been worth if Federal Reserve and the U.S. administration had not created more dollars. This is despicable.

Here are the updated charts:

Annual changes in Fed Reserve dollar quantity - through 2017 July

Line chart of Fed Reserve Dollar Quantity from 1959 to 2017, with callouts showing when total dollar quantity doubled. Current total is 12.6 Trillion

Table - Raw data showing composition of Fed Reserve Dollar total, from 1994 to 2017 (July)

Pie chart showing components of Federal Reserve Dollars - 2017 July

For more details, visit the Charts page.

Japan Central Bank buying all with their fake money

We are so far behind. We are so in the dark. The Japan Central Bank is using its power to create money to buy everything, and most recently the shares of all companies. This is possible because all central banks can create money. It’s no different than if a counterfeiter was in your town, printed fake money, and bought every home in town. Then everyone thinks they’re rich because they have all this money. But they soon see the value of the money has plummeted because of the counterfeit money. So they have money, but no value. The counterfeiter, on the other hand, has all the houses. We are so far behind.

Read about the buying spree here.

Central banking is a religion and the bank ‘governors’ are the priests. I say this because it is a sacrilege to question the central bank’s actions. There is so much pomp and circumstance around every central bank. When, in reality, they are just money counterfeiters. They are ponzi scheme creators. They convince everyone to use their tickets, then they print as many tickets for themselves as they want, until the bank owns everything, and the people are paupers.

We simply have to stop using their money. We can start small. In each town, try to use silver, gold, or any real thing to trade with your neighbors. Stay in the private side of things to avoid corporate income.

Gov bailout info could enrich some

Insider information about forthcoming business events has long been known to enrich people and get them thrown in jail. Insider information about government actions has been less covered in the press and possibly by prosecutors likely because of the halo people place on U.S. government actions. Hedge fund manager Dan Loeb proved one could make billions betting on the government bailouts of 2008. Anyone with insider knowledge of the bailouts could have done the same.

he bet that the government bailouts would work. “We bought things like Chrysler Finance Company bank debt, which doubled in two weeks leading up to the bankruptcy of Chrysler,” he told an audience at the Jewish Enrichment Center, in New York, in 2009. “We bought insurance companies like Lincoln National and Hartford that were rescued by TARP. We bought Bank of America preferred stock.” In six weeks, Third Point went from being down 7 percent to being up 7 percent. [Vanity Fair]

Four years later, Dan Loeb won again by investing in Greek sovereign (government) debt that many believed was worthless but was soon bought by the European Union. Anyone with insider knowledge of the debt purchase could have also made millions.

…Loeb’s 2012 bet that Greek sovereign debt would rise in value as a result of a bailout from the European Union. Loeb, he recalls, bought the debt at 17 cents on the dollar and sold it for 34 cents a few months later. “He made himself about $400 million or $500 million,” Scaramucci says. [Vanity Fair]

The potential for insider trading based on government bailouts is yet another reason to end them and to remove the ability to bailout by stopping central banks from creating new money.

Only mis-managed banks need liquidity

Europe doesn’t need liquidity. Only some European banks, the mis-managed ones, need funds or they will fail. And if they did fail, the customers would simply go to other banks. Some customers might lose money, but not everyone, which is what happens when the European central bank issues new money. The value of the new money comes from the money already in circulation. If you hear the word liquidity, take action.

Related article.

8th largest bankrupty in US, did you notice?

The eighth largest bankruptcy occurred at the end of October. Did you notice? Did the economy crash? Nope. MF Global was a derivative dealer that invested in loans to European nations that lost value. Fortunately, the US central bank did not create new money to “bail out” this fraudulent, poorly managed firm. And fortunately the US Federal Government did not give tax receipts to the firm. The company failed and all its customers moved to new brokerages.

Many customers lost money, but those losses weren’t passed on to taxpayers via government bail-outs and weren’t passed on to people who own dollars via a central bank rescue.

A company failed. It happens every day. This time, only the company’s clients suffered, not people who couldn’t even explain a derivative, including this author.

Related wikipedia entry.

Response to UK politicians about Iceland banking crimes

A UK politician, justifiably upset about the banking fraud of some banks in Iceland, wants to prosecute all the people who live in Iceland. Here’s my response:

You can blame the policeman, but not arrest him. If Iceland’s politicians conspired with the criminal banks to defraud UK savers, then you can arrest and prosecute the politicians, along with the bank owners and responsible employees. If the politicians simply ignored the criminals, then you can only vote for others during the next election (or ideally disband the gov’t completely). It is the criminals who are responsible for the crimes, and in this case it was the banks who took on deposits and then lent them to people who likely would never repay. The UK should be going after the bank operators and that might mean an extradition request.

Don’t blame ALL the people who live in Iceland for the crimes of a bank owners. There’s a local bank in my town here in the USA. If they lose your deposits, don’t expect me to pay. And I won’t come after you if your local Huddersfield banks steal deposits.

For your next column, write about the need for people to investigate banks, especially ones in other countries, before depositing their money and the crucial need to separate government from banking so people don’t expect taxpayers to foot the bill for the crimes of banking officials — no one expects taxpayers to cover missing dry cleaning items or failed restaurants.

Read politician’s column.

Depositors mob failing Afghanistan bank

Another banking crisis…this time in Kabul, Afghanistan, where the main bank lent our more deposits than it had on hand. Government paychecks are issued against an account at the bank, and government employees have mobbed the bank, while depositors have withdrawn more than $250 million. I’m sure some depositors didn’t make it there before the mobs.

Turns out, bank managers made a series of risky off-the-books loans and property investments in Dubai. A traditional bank account is actually a loan to the bank, which the bank then loans to someone else. If the bank doesn’t get the money back, neither do you. If you want to make money on your money, invest in a company you choose, don’t let the bank choose for you, unless of course you believe the bank can make a better decision, which will depend on the bank managers. Clearly, the Kabul bank managers were not acting in the interest of the depositors.

Don’t let this happen to you. The only “safe” savings account is wealth converted into a real product and stored in a secure safe at home, at a local bank, or in a bank in another country.

If a massive banking collapse happens in the United States, Federal Reserve could create money and provide it to failing banks, but the newly created dollars would buy much less than the dollars saved before the collapse. Depositors would get their dollars back, not their purchasing power. When Federal Reserve creates money, when it adds “more liquidity,” when it “eases the monetary system,” it takes purchasing power from people who hold dollars and gives it to people who get the new dollars, just like a company that issues more shares without increasing the shares of existing shareholders. Your dollars have a hole in the bottom.

Read a UPI article about the bank run in Kabul.

Choose your money.

Head of Iceland bank lends to friends, moves to Luxembourg

The head of a main Icelandic bank skipped town to Luxembourg after helping to create billions, yes billions, of new fiat money – via fractional reserve fraud – and lending the new fiat money to friends and colleagues.

Kaupthing lent 1.5 trillion kronur ($12 billion) in transactions that were “if not illegal, completely unethical,” said the Prime Minister on Aug. 4, citing the leaked bank documents. The loans were granted to 10 “interlinked parties” and provided “without any guarantees or covenants,” she said.

My only hope is that exile provides a type of punishment all people involved in defrauding Icelandic citizens and bank depositors.