I don’t know how many of my readers have noticed that their trips to the grocery store have gotten just a bit more expensive. I know I certainly have. Simple things like sugar, bread, coffee, and apples, have all gone up in price.
I am by no means an economist, and many of the articles I read on the economy are filled with terms and concepts that I have a hard time understanding. Nevertheless there are a couple of things I have learned from my reading.
First I have an pretty good understanding of how a healthy economy should function, and ours is by no means a healthy economy. Secondly, and this is what concerns me, it appears that things are only going to get worse.
I just finished reading a report by the NIA, the National Inflation Association, and what they predict is not very comforting. I have no way to verify their predictions, but if what they say is true, then things don’t look good for people here in the U S of A.
The title of this article asks, can you afford $23 for a loaf of bread. Well that’s exactly what the NIA predicts a loaf of bread to cost in the near future. It also predicts drastic rises in other everyday items, such as $11 for one ear of corn, $62 for two pounds of sugar, $45 for a container of Minute Maid Pure Squeezed Orange Juice, $15 for one Hershey’s candy bar, and $77 for an eleven ounce container of my choice of coffee, Folgers Ground Classic Roast. And it is not only food that is going to go up. The NIA predicts that a single cotton T-shirt at Walmart is going to cost around $55.
When I was a kid I remember my father telling me stories about his experiences during the Great Depression. With increasing frequency I find myself asking myself if my son going to relive the experiences his grandfather did.
With today’s kids relying so much upon cell phones, the internet, or video games to keep them occupied, how well could they handle life without these things to which they have gotten so accustomed to?
It may soon come to that. I wonder how far people will be able to stretch a dollar if and when prices reach the levels predicted by this report? It will certainly be tough for the kids who will have to rely upon their own imaginations for entertainment, but how bad will it be for the adults. What will adults do when they realize they have to cancel their subscription to cable, and along with it all their sporting events and reality TV just so they can put a few extra scraps of food on the table?
You see, regardless of what the news tells you, to me, a healthy economy is merely how easily people are able to pay for the items they need to survive. To say it as simply as I can, if people are working, and earning a decent salary, and the factories are producing items which people need, at an affordable price, then the economy is healthy.
I think the news media has gotten people confused as to what defines a healthy economy. It seems that they use the stock market, the Dow and the NASDAQ as indicators of a healthy economy. But are they really that accurate a gauge of the economies health?
When a company records profits and their stock prices go up, does that make it any easier for you, as a consumer, to go out and buy goods at the stores? I haven’t noticed that when the Dow goes up prices at the stores suddenly go down and I can buy more food, have you? If not, then why do we place so much faith in the Dow as an indicator of how vibrant our economy is?
Say you work in a company that decides to downsize, laying off a percentage of their workforce. After doing so they continue to produce the same quantity of goods. Of course the company is going to show a profit, as their overhead expenses have gone down.
Do you honestly think that just because stock prices go up rose those unemployed workers are going to believe that the economy is doing fine? I doubt it, especially when they find that they no longer can afford to pay their mortgage or put food on the table?
If you want my honest opinion, the only good gauge of how well our economy is doing is how far a family, or an individuals dollar goes; how easily they can pay for the items they need for survival. In other words, how much bang for your buck is the true measure of a healthy economy.
Did you know, that prior to our nation’s Revolutionary War, the colonies experienced, by my definition, what was considered a very healthy economy? From Ben Franklins autobiography I quote, “There was abundance in the Colonies, and peace was reigning on every border. It was difficult, and even impossible, to find a happier and more prosperous nation on all the surface of the globe. Comfort was prevailing in every home. The people, in general, kept the highest moral standards, and education was widely spread.”
What was it that allowed the colonies to experience this level of comfort? To again quote from Franklin, “That is simple. In the Colonies, we issue our own paper money. It is called ‘Colonial Scrip.’ We issue it in proper proportion to make the goods and pass easily from the producers to the consumers. In this manner, creating ourselves our own paper money, we control its purchasing power and we have no interest to pay to no one.”
There, in a nutshell, is the reason why the economy of the colonies flourished. It was because they issued their own money in proper proportion so that goods passed easily from producers to consumers.
If they had issued too much currency, the would have caused inflation. Most people mistakenly assume that inflation is an increase in the cost of goods. However, the dictionary defines inflation as, “an increase in the supply of currency or credit relative to the availability of goods and services, resulting in higher prices.”
Even then, in our nation’s infancy, there were those who were not willing to allow this nation to experience that kind of prosperity. Shortly after Franklin explained how the colonies were able to live in such comfort, Britain took away the colonists right to produce their own currency.
Parliament, under pressure from the Bank of England, passed the Currency Act of 1764, forcing the colonies to use gold and silver, which was only obtainable through British banks.
In just one short year the economy of the colonies had done a 180, as Franklin describes here, “In one year, the conditions were so reversed that the era of prosperity ended, and a depression set in, to such an extent that the streets of the Colonies were filled with unemployed.”
While many believe that it was taxation without representation that led to the Revolutionary War, it was in fact the economic situation in the colonies that was, according to Franklin, the prime reason the colonies sought independence.
From Franklin’s autobiography, “The colonies would gladly have borne the little tax on tea and other matters had it not been that England took away from the colonies their money, which created unemployment and dissatisfaction. The inability of the colonists to get power to issue their own money permanently out of the hands of George III and the international bankers was the PRIME reason for the Revolutionary War.”
In this country today, the Constitution grants Congress the power “To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures” It has only been when Congress gave up that power, granting it to a system of private banks, that our nation experienced economic difficulties.
Our founders were extremely wary of the influence of the bankers, or money changers as they were often called. James Madison once stated, “History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.”
Thomas Jefferson was even more dire in his prediction, “If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”
It is my fear that we are witnessing the beginnings of Jefferson’s prediction coming to fruition. We are still in the throes of a housing crisis which has led to many people losing their homes to the banks. Now, according to the report by the NIA, we are on the verge of hyperinflation, when even the most common of goods are going to become too expensive for the average American family.
Our government gave its power to coin our nations money to the Federal Reserve, and ever since they have controlled our economy by the raising and lowering of interest rates, and at times infusing massive amounts of money into the economy to keep it artificially stimulated. Remember, it is the amount of money in existence in an economy that causes inflation, not the cost of making the goods, nor the amount of money you earn.
Has it ever occurred to you why the IRS, a government agency, can audit you for mistakes you make on your income taxes, but this same government has refused to audit the Federal Reserve, which supposedly is also under government oversight?
I know from my conversations with people, that many of them are far too unfamiliar with the history of their own nation. Therefore it comes as no surprise that they do not recall the battle President Andrew Jackson fought against the Central Bankers.
During his personal battle to wean our country from the influence of the bank, Jackson was quoted as saying, “If the American people only understood the rank injustice of our money and banking system – there would be a revolution before morning…”
That quote is equally applicable today, as the American people would be outraged if they knew how much of their financial suffering can be directly attributed to the fiscal policies of the Federal Reserve. If the truth were to be made public, the ensuing protests would make the Tea Party movement look like, well, a Tea Party.
Congressman Ron Paul had introduced a bill, HR 1207, which would have required an audit be taken of the Federal Reserve. Yet to date that bill has not been passed. Our Congressional leaders do not want it to pass because if they do, and the corruption were to be exposed, it would mean the end of blank check days. Congress would be forced to live within their means, and that is something they do not want.
In 1815, Napoleon Bonaparte said, “When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes… Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”
Our government, and we the people, have place all our faith in the FED to manage and sustain our economy, and it has failed miserably. Each time they bailout a failing business, or enacted quantitative easing, a monetary policy where the FED increases the supply of money to stimulate the economy, they reduce the buying power of the dollars you earn. It is their policies that has caused the increase in the cost of goods, and it is them to whom you should direct your anger when your dollar does not go as far.
The monetary policies of the FED, coupled with the uncontrolled borrowing of our government are leading this nation headlong into an economic meltdown that will make the Great Depression look like a walk in the park.
When it comes you will be lucky if you can buy enough food to feed your families for one day, let alone a week. If the banks are even open for you to access it, your money will be as worthless as if you had walked into the stores and tried to buy food with used kitty litter.
I could go into great detail about the people and groups behind this, but honestly it would serve no purpose. My only intent is to let you know what our government has allowed to happen. Maybe, if enough people get mad enough they will flood their elected representatives with phone calls and letters, demanding that they audit the FED, and control their own spending.
We may still be able to halt our slide into another depression, if people act now. But once it begins, there will be no stopping it. And, if it begins, I pray that people have stored up enough supplies to ride it out. I also hope that people are prepared to defend their families, and their supplies, from those who will steal, and possibly kill you, just for the food in your pantry.
But people must act NOW. Not in 2012 at the next elections. Not in six months, not in two weeks…NOW! After all, it is you who will suffer when you can no longer afford the prices that we will face if we don’t act now to stop this madness. Your choice people, watch TV now and starve later or act now and possibly have a future. I know what I am going to do, do you?