Data source – M3 Federal Reserve: M3 for the United States (MABMM301USM189S) | FRED | St. Louis Fed (stlouisfed.org)
Deficit spending leads to higher prices because the government borrows money from Federal Reserve. But Federal Reserve does not have any money, so it creates money. That new money decreases the value of all money, leading businesses to raise their prices – You’re giving them money that is worse less and less.
A cost of living increase, in most cases, especially now, should be referred to as a “monetary adjustment”. It’s a request to receive the same agreed-upon value. The money has lost 15% of its value in 12 months. The company need to give you 15% more of it. It’s an increase in dollars, not an increase in value. It’s a monetary adjustment. You’re no better off, but you’re no longer worse off. #inflation #hiring #salaryincrease #salarynegotiation #economics
Federal Reserve created 15 percent more money in just 12 months.
Federal Reserve and Government Inc. has increased money quantity by 33% since 2000. About a 15% increase per year. This will lead (has led) to about a 15% increase in prices — when measured in Federal Reserve Notes/Dollars.
All the articles about inflation are so incorrect.
- Central bank causes inflation by creating more money and lending to gov’t. They know exactly how much inflation there will be because they create the money. Anyone can search for M3 Federal Reserve to see the increase in the money circulating.
- This is why many of the top banks/investment banks increased starting salaries by THIRTY percent. 30 ! They know the value of the money has declined about 25%.
- To avoid inflation, at least some of it, simply do not store any wealth in the US dollar. Own any stock. Any investment. Any crypto. Any real estate. Doesn’t matter. The dollar is sinking, so limit your exposure. Do you own the Turkish Lira which has decline 50% this year? No. See that’s how you avoid inflation.
- Now, your salary. Well that has declined 20%. The only thing to do here is to generate discussion at your company about the M3 federal reserve chart or any price chart of a single commodity to show that things are amiss and the value of the salary has declined. The company needs to do TWO things – (1) raise their prices and (2) raise internal salaries. Just as the banks note above have done.
The term ‘dollar’ used to mean a one ounce silver coin. Then it meant a silver or gold coin. Then it just meant a gold coin. Now it means nothing. When Nixon took us off the gold standard, what he really did was steal all the real money – the gold – that were using as money. Biggest heist in history? Possibly. From good old sweet nice Uncle Sam (yeah right).
Think bitcoin is nothing, well so is the US ‘dollar’. It’s not actually a dollar. It’s nothing.
Why did they do this? Because they can create ‘nothing’ anytime they want.
I just don’t want to call it a dollar, because it gives credibility to something that is nothing. Maybe even bitcoin shouldn’t have the word ‘coin’ in the term, since it’s not a coin.
I’m calling them FedReserve units.
I would like to be your resource on inflation.
What is the quantity of money circulating? What has been the annual change?
THESE ARE THE MOST IMPORTANT QUESTIONS FOR THE ECONOMY
And no one reports on it. Because of a conspiracy or because I’m not reaching journalists. Let’s go with the latter.
Here is a Fed Reserve chart of the increase in the quantity of money (please don’t call it the money supply). Notice the hockey stick rise on the right. A 33% increase!
In Jan 2020, there were 15 trillion dollars circulating.
In June 2021, there are now 20 trillion dollars circulating.
In just 18 months, the banks increased the quantity of money by 33% !!!
This means the value of the dollar will fall by about 33% (all other things being equal).
And consequently prices will rise by about 33%. Not 5%, not 10%, but 33%.
Want a hot stock tip? By options that bet the stock market (which is a price) will rise 30%.
And the gov’t just passed a bill for another one trillion of NEW money and there are plans for another 3.5 trillion of new money. We’re going to be looking at 50% increase in prices over three years. So sad. America was such a nice place for so long.
Please, please please write one article about this massive, unprecedented increase in the quantity of money and how it will lead to rampant price increases and lower purchasing power for our salaries. This is why the big banks just increased starting salaries by 30%! They know what’s happening to the dollar. And they’re protecting their own.
What you think is a dollar, isn’t a dollar. That green piece of paper in your wallet is a note. A Federal Reserve note.
What’s a note? It’s a promissory note. What’s a promissory note? It’s an IOU.
You’re holding a promise from the Federal Reserve to pay you a dollar.
What’s a dollar? A dollar is a one-ounce silver coin. They used to be called Thalers for the German region where they were once minted. Thaler became ‘dollar’ in English.
That green piece of paper is a promise to pay you a one-ounce silver coin. But really it’s not even that. Because Federal Reserve won’t ever pay you that silver dollar. So it’s really just a promise to do nothing.
We pass around Federal Reserve promises (to do nothing) as money and the term ‘dollar’ in this case is just a measurement of the buying power of that note.
If you think bitcoin is odd, I think you’ll see it’s less odd than federal reserve promises (to do nothing).
A one-ounce silver coin is currently worth 25 federal reserve dollars. This means that since the inception of federal reserve, the value of the federal reserve promises/notes has decreased by 96%! They used to promise to pay you the equivalent of 25 dollars, whereas now they promise to pay you one dollar.
I know this might seem confusing, but the point is that if you had a federal reserve note for one-dollar in 1913., you had actually 25 of today’s federal reserve dollars. Now you have one of those federal reserve dollars.
And this is why the system was created. To take your wealth. Every time they create more notes/promises, they take the value of your notes/promises. It’s like stock fraud where a company issues more stock but does not provide more stock to existing stockholders.
The solution is to allow people to use anything they want as money.
The Biggest Scam In The History Of Mankind – Hidden Secrets of Money Ep 4