Saturday, January 31, 2015

How We Ripped You Off With Inflation Part I

Don’t worry; inflation over the last 10 years has been very low, according to our official government numbers. Yes, it is true; we have tinkered with the formula we use to come up with the ultra low inflation rate over the years. We actually started making small changes to our method of calculating inflation around 1980. We found that if we manipulated and substituted certain figures like the price increase in food and energy (including gasoline), we could produce a much lower inflation figure!!! Note the comparison between the inflation rates we at the government published vs. the inflation rates over the same time period using the original formula from 1980. It’s made us all kinds of your money.
Why would we do this? How do we make money doing this? Well, for one, all of you people on Social Security, your benefits are pegged to inflation. If we say inflation is 2%, but it is actually 6%, you only get one third of the raise you should be getting. We get away with giving you a smaller raise every year, and the cumulative effect of this since 1980 is that you should be getting at least double what you are getting now. Consider it a 50% tax paid to us on top of the tax we already subject you to. Are you on welfare, unemployment, or some other entitlement program? Same story, you get a smaller raise each year and we keep the difference.
Now consider those of you paying Social Security or income tax to us. The tax brackets are adjusted for inflation every year. If inflation is 4%, but we decide to figure it at 2%, guess what? We only adjust them upwards by 2%, and many more of you move up into higher tax brackets. The cumulative effect of this since 1980 is mountains of your money for us that we were never meant to have.
Do you have something to sell, a stock, or maybe a property that you have held onto for many years? Is it more valuable than when you bought it? Let’s say you bought it in 2000, and sold it in 2010 for a 20% capital “gain,’ or 20% more dollars than your purchase price. As shown at the site above, the true inflation rate was about 60% from 2000 to 2010, but our published inflation rate was roughly 30% for the same time period. Had the value of your asset not changed, it would be worth 60% more dollars, but its value actually dropped, it just didn’t drop as fast as money. Despite this real loss of value, we assign a capital gains tax you. Our law demands that you pay us tax on your “gain,” that is in reality a loss – a loss even when using our own phony inflation figures!! We don’t care if you are paying capital gains tax on your losses. We will still take our cut from you. It doesn’t matter if many other countries allow their citizens to subtract inflation from capital gains, we do not, and we will not. Imagine how much money we have made over the years!! Imagine how much we could make if we printed money even faster (causing higher inflation) while keeping the official inflation rate very low!  See how much you thought you made but didn't!!
What we get is more of your money, and what you get is less of our money.
Yes, our partners at the Federal Reserve have printed us a lot of money lately. This is how we funded the recent bailouts. See the Federal Reserves own chart showing the monetary base over time near the top of this site. When this money works its way into circulation and manifests its extraordinary inflationary effects, think of us, and how much more of your money we’ll be making.
No, the Ron Paul types will not stop us. Too many of you don't even realize what we are doing, much less how to protect yourselves. The duping and fleecing of you Americans is laughably easy; it's become our hobby.

"Permit me to control the currency of a nation and I care not who makes its laws"
- Baron De Rothschild, brainchild of the Federal Reserve Bank.

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