Thread by @usacsmret

There are still almost four times as many US dollars in existence today than there were a mere 10 years ago
fred.stlouisfed.org/series/BASE

Are Americans producing four times as much stuff? No, not even close. That’s why prices rise every year despite all the real economic forces that should be driving them down. It’s all Federal Reserve money creation—the true definition of “inflation.”

Since the New Deal, Americans have been taught a whole range of economic fallacies designed to do one thing: keep them from realizing they’re being ripped off every day, every hour, every minute, all for the sake of the so-called “common good.”

At the root of these fallacies is the idea that a currency must be “elastic” to provide “tools” for combatting depressions (now euphemistically called “recessions”). One of the tools is the central bank “adding liquidity” to the markets to create jobs.

It all sounds very technical and complicated, but it’s not. All quantitative easing, lowering interest rates, or anything else in the Federal Reserve’s so-called “toolbox” amounts to is creating new money out of thin air.

They can dress it up any way they want, but that’s what it is when all is said and done. It’s stealing. It’s not as if the Fed can create new capital goods just by adding more dollars to the economy. The purchasing power must come from somewhere.

Otherwise, the Fed could just produce a million dollars for everyone, and we’d all be rich. But if they aren’t creating the purchasing power out of thin air, then the recipients of newly created dollars must be getting their purchasing power from someone else.

They’re getting it from you. Let’s say you have saved $10,000 in US dollars. At that moment, you have the purchasing power to acquire some very small percentage of all the goods and services available at that time.

Just to make the point, if there were only $1 million worth of goods and services available, you would have the purchasing power to acquire one percent of all goods and services available anywhere.

When the Fed creates new dollars and they’re lent out to investors, you no longer have the purchasing power to acquire the same percentage of goods.

Purchasing power has been taken from you and given to someone else without your consent. This is “stealing,” no matter how many pretty words politicians and central bankers spew to cover it up.

Americans are told this is necessary to “create jobs.” But how did it become your responsibility to underwrite creating someone else’s job? If it is your responsibility, why aren’t you simply asked for the funds rather than having your dollars surreptitiously depreciated?

Answer: They don’t want you to realize you’re being ripped off. They know that if they asked the public to give up their hard-earned savings for the sake of “creating jobs” for complete strangers, they’d never agree.

So, the Fed steals your purchasing power without asking you. And, as John Maynard Keynes once said, they do it in a manner “which not one man in a million is able to diagnose.”

As of this writing, the stock markets are selling off again. Media are blaming Trump’s tariff tweet on Friday. That the sell-off started two days earlier is troublesome for that theory. It looks more like the market tested the January 2018 high for a second time and backed away.

When the crisis comes, it will have much less to do with Trump and much more to do with the unprecedented monetary tsunami the Fed loosed upon the world from 2008 to 2016.

Media are already gearing up to blame the next crash on tax cuts and deregulation, which is absurd. They’ll say Trump’s pro-free market policies caused the crash, just as George W. Bush’s supposedly did.

Democratic presidential candidates will pile on that bandwagon until the axles break.
How long will the American public keep buying this story and allowing the Federal Reserve to loot them with one hand and claim to save them with the other?

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