MONEY: The tomato soup standard of value

Monday, August 18, 2014

http://keywestlou.com/a-good-time-last-night

*** begin quote ***

Then to Publix. I bought nothing. Cost $51. How do families do it?

When I was in high school, I worked in what was then called a supermarket. The time 1949. Supermarkets then were not the huge stores of today. Not even close. One of my jobs was to stock the shelves. One of the items was Campbell Tomato Soup. Five cents a can. I noticed Publix was having a Campbell Tomato Soup sale. Four cans for $4.95. $1.24 a can.  Although more than 60 years later, still a major increase!

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I would suggest to you that the difference is not “a major increase”, but a way to recognize that the value of “a dollar” — whatever that is — has dropped from 0.05 to 1.24.

Some economists — mostly from the Von Mise’s “Austrian School” — have asserted — I believe correctly — that the dollar has lost anywhere from 99.9% to 90% of its value depending on the interval you choose to measure.

In your specific example, it’s 95%!

Argh!

It’s about the Federal Reserve System, that is the OPEC of American Banks, Gooferment debt, Gooferment spending, cowardly politicians, and spendthrift bureaucrats.

The dollar, like the history of the French Franc, has been “devalued” day by day. Today the dollar is a shadow of its former self.

That’s the problem. 

Tomato soup hasn’t become more expensive; the dollars used to buy it are worth so much less. Ditto gas. Ditto every other product or service.

Argh!

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MONEY: US 90 percent silver coins minted before 1965

Monday, July 21, 2014

http://www.alt-market.com/articles/2229-the-immorality-of-paper-money

The Immorality Of Paper Money
Monday, 14 July 2014 16:44 Bob Livingston

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I still like U.S. 90 percent silver coins minted before 1965. They can be purchased in bags of $1,000 face amount or in smaller increments — even individually. (Find a local, reputable coin dealer with a good rating with the Better Business Bureau and a history in the community.) Buy for great price explosion upward as well as for survival coins. As paper money fails, a silver dollar will buy a week’s groceries any time.

*** end quote ***

A silver dollar is probably worth 19 U$D in melt value.

Don’t think that buys a week’s groceries. That’s probably hype.

But, it’s not hard to look at Zimbabwe, Argentina, Venezuela, or the pre-WW2 Germany experiences for an approximation of what could happen here.

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MONEY: THOSE SAME THREE SILVER DIMES

Monday, July 7, 2014

http://www.kitco.com/ind/Brecht/2014-07-03-Gas-Prices-Near-6-Year-Highs-No-Inflation-Who-Says.html

Gas Prices Near 6-Year Highs, No Inflation? Who SaysThursday
July 03, 2014 12:59

*** begin quote ***

While official government statistics show U.S. inflation at still low levels, anyone who buys gas, food or health insurance can attest to the fact that inflation exists in our everyday lives. GasBuddy has predicted that U.S. consumers will see the most expensive July 4th since 2008 at the gas pump.

Despite the dramatic increase in U.S. oil production in recent years, GasBuddy estimates that Americans are likely to pay about $1.435 billion per day for gasoline during the holiday week, about $50 million more each day, or $350 million more per week than last year.

*** end quote ***

Any wonder why the “stock market” is going up while the “standard of living” is going down like the Titanic!

The value of the Federal Reserve Note!

THREE silver dimes from 1964, when I started buying gas, would buy ONE GALLON of gas. At $21.15 per silver ounce, those SAME THREE SILVER DIMES are worth $5.70. Far more than a gallon of gas. (Never mind that today’s gas is better, cleaner, and healthier.)

So what’s changed?

The value of money has been inflated away by the Gooferment politicians and bureaucrats for the benefit of the Crony Capitalists and the Banking Cartel.

When do The Sheeple wake up?

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MONEY: A defined-contribution program

Sunday, July 6, 2014

http://online.wsj.com/articles/lockheed-martin-to-freeze-defined-benefit-pension-1404220591

July 1, 2014 9:16 a.m. ET

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Lockheed Martin Corp. LMT -0.82% plans to freeze its defined-benefit pension plan for salaried workers and move them to a defined-contribution program starting in early 2016.

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Screw the little guys.

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MONEY: It already IS bankrupt

Wednesday, May 21, 2014

http://www.zerohedge.com/news/2014-05-14/what-happens-when-america-goes-bankrupt

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‘Buddy,’ I remember thinking, ‘America isn’t going bankrupt. It already IS bankrupt.’

Just so that we don’t mince words, my dictionary defines ‘bankrupt’ as “any insolvent debtor,” i.e. a debtor whose liabilities exceeds assets.

That’s the US government, by its own admission.

As we’ve discussed before, the US Government Accountability Office (GAO) publishes financial statements each year in which they list all official government assets and liabilities.

The liabilities far exceed the assets. Big time. And the hole is getting deeper each year.

At this point the government’s net worth is roughly NEGATIVE $17 trillion, about 110% of GDP. That’s textbook insolvency.

The only reason the US government is still able to service its debts is because they are borrowing money just to pay interest… and because the Federal Reserve keeps printing money to buy up US debt.

*** end quote ***

Some very ugly chickens are coming home to roost.

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MONEY: California dreaming of the Bank of North Dakota

Friday, May 16, 2014

http://www.opednews.com/articles/Robbing-Main-Street-to-Pro-by-Ellen-Brown-Banking_Jerry-Brown_Public-Banks-140507-488.html

OpEdNews Op Eds 5/7/2014 at 14:28:58
Robbing Main Street to Prop Up Wall Street: Why Jerry Brown’s Rainy Day Fund Is a Bad Idea
By Ellen Brown (about the author)

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There is another alternative — one that California got very close to implementing in 2011, before Jerry Brown vetoed the bill. AB750, a bill for a feasibility study for a state-owned bank, passed both houses of the state legislature but the governor refused to sign it. He said the study could be done by the Assembly and Senate Banking Committees in-house; but 2-1/2 years later, no further action has been taken on it.

*** and ***

That is not just California dreaming. There is already a highly successful precedent for the approach. North Dakota is the only state with its own state-owned depository bank, and the only state to fully escape the credit crisis. It has boasted a budget surplus every year since 2008, and its 2.6% unemployment rate is the lowest in the country. Contrast that to California’s, one of the highest.

In a 2009 interview, Bank of North Dakota President Eric Hardmeyer stated that when the dot-com bust caused North Dakota to go over-budget in 2001-02, the bank did act as a rainy day fund for the state. To make up the budget shortfall, the bank declared an extra dividend for the state (its owner), and the next year the budget was back on track. No massive debt accumulation, no Wall Street bid-rigging, no fraudulent interest-rate swaps, no bond vigilantes, no capital appreciation bonds at 300% interest.

*** end quote ***

I think there is a HUGE barrier to establishing any “State Bank”.

The crony capitalists give campaign contributions. That’s the People’s tax money stolen by the Gooferment and transferred to Wall Street and Big Banks. And, portion is kicked back to the politicians and bureaucrats.

All very “legal”.

That’s what’s going to stop the “State Bank” movement cold!

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MONEY: What growth? In the money supply!

Wednesday, April 30, 2014

Fed Cuts Bond Buys, Sees Growth Pickup

The Federal Reserve said it would reduce its mortgage and Treasury bond buying program to $45 billion per month, while pointing to a growth pickup after a bad winter and sticking to previous guidance it has given on the outlook for short-term interest rates.

The steps were widely expected by investors before the meeting and represent a continuation of the monetary policy strategy laid out by Fed Chairwoman Janet Yellen and former Chairman Ben Bernanke in the last few months.

The Fed’s move came after a report that showed the U.S. economy barely grew in the first quarter. Fed officials acknowledged the first quarter slowdown was worse than expected by saying activity “slowed sharply.” Previously they had just said activity merely slowed.

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What marketplace are they watching?

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