Central Banks Prime Directive-Rob the Poor to Pay the Rich

“People who treat other people as less than human must not be surprised when the bread they have cast on the waters comes floating back to them, poisoned.” ~ James Baldwin, 1924-1987, American Author

Central Banks Prime Directive-Rob the Poor to Pay the Rich

The Senate boldly and blatantly refused to give 57 million elderly individuals $250 more. The story below highlights this point. This one sentence very nicely encapsulates our theme line of  Robbing the Old to Pay the Rich

A measure to give some 57 million elderly people, veterans and persons with disabilities a $250 check was rejected by the Senate on Wednesday, a setback for the powerful seniors’ lobby.

Social Security payments for the elderly and disabled will stay flat this year for the first time since 1975 because they are tied to consumer prices, which decreased amid the worst economic recession in 70 years.

That follows a year in which payments rose by 5.8 percent, mainly due to a spike in gasoline prices. “It is wrong to turn our backs on seniors in this moment of economic difficulty,” said Independent Senator Bernie Sanders, who sponsored the amendment.

But Republican Senator Judd Gregg pointed out that the bill would defeat the purpose of indexing Social Security payments to inflation. “The law says it shouldn’t be given,” Gregg said. At least 10 Democrats agreed with Gregg and joined 40 Republicans to defeat the proposal. Full Story

Under normal circumstances, I would have just ignored this story and moved along, but when I read the statement that is boldfaced above I felt I had to say something. The dim wits in Washington would not know what inflation was if it hit them right in the face and then drove over them.

The real and only definition of inflation is an increase the supply of money. It is not defined as in an increase in price as so many economists love to proclaim falsely. The money supply has gone ballistic, our national debt has doubled in the last ten years, and we continue to create money and a mind-boggling rate. Therefore, inflation has not disappeared, its pace has continued to increase, though the effects of inflation have not always manifested themselves immediately (price increases); based on this simple fact these individuals should not be getting $250, they should be getting between $600-1000. The masses are being blindly robbed via this silent Killer tax, otherwise known as inflation.

If Senator Judd and everyone who voted against this bill felt that we have no inflation, why are they are not lowering their salaries to compensate for this so-called low inflationary environment? It will be a cold day in hell when anyone in Congress voluntarily takes a pay cut. Senator Bayh was right; every incumbent should be kicked out and replaced with new blood; while not the perfect solution, it will send a message to these guys that it’s time to do something. When you bite the hand that feeds you, you are doomed to lick the boot that kicks you.

To add insult to injury after increasing the money supply, the Feds then lent billions of dollars to banks all of which played a huge part in making a bad situation even worse. The Feds inflate the money supply and then freely give this money out to individuals who don’t need it but those who need it have a hard time even getting $250 bucks.

We can see the effects of inflation everywhere; Higher gas prices, higher heating prices, higher rents, cost of basic staples increasing, etc.

Gold is one of the best measures of inflation is up roughly 350% from its 2003 lows. If we were in a low inflationary environment, the price of Gold would not have risen so much and this is after the massive correction it has suffered. For the record, we got out of Gold almost right at the top in 2011 and moved into equities. We follow the trend and not the noise – No market trends up forever. Gold will rise again but until the trend turns positive we are in rush to embrace the precious metals sector.

The average person’s salary has not increased enough to take inflation into consideration. All one has to do is look at the price of homes, even after a pretty strong pull back, the average Joe cannot afford to buy a decent home in many parts of the country on his salary. In the old days (the 1950’s) if one saved enough one was assured of being able to purchase a decent home.

We spend money defending other nations and trying to promote peace and justice in the world. Why can’t we spend some of these funds on individuals that need it? Where is the justice there?

What will Congress have to say when Gold eventually trades past the 2000 mark and then hits the $3000 mark? They are now projecting that our national debt will surge past $30 trillion; at the rate, we are spending, we could hit this target within the next 6-8 years.

The best hedge against inflation is to be in hard assets, but one has to make sure one is an inflationary environment as the Fed has twisted the definition of inflation. The new definition that the masses have fallen for is that Inflation is an increase in price. In reality, inflation is an increase in the money supply; price is only the effect of the disease.

What are hard assets?

Briefly, it is  anything that cannot be mass-produced or created; almost anything to do with the commodity’s sector, for example, Gold and Silver bullion. If many today’s fixed income individuals had put aside a bit of extra money and deployed this into Gold and Silver bullion, they would be in a far better off than they are today,   Even, after the substantial pullback both markets have suffered. Taking it one step further they could have chosen healthy stocks to invest their money into, waiting for adamant pullbacks to occur before committing fresh money to the market.  This simple technique would have produced a fortune from a small amount of money.  Mass Psychology is the most important tool you can master when it comes to trading the markets. We have an extensive section dedicated to exploring this concept and it will significantly speed up your understanding and mastery of the subject. If you have the time, it would be time well invested.

Simple Strategy to build wealth and protect yourself from the evils of inflation

The best way to protect yourself from the harmful effects of inflation is to live 1-2 standards below your means; the money saved should be put in investments that will hold their value over time such as Gold or silver. Over 100 years ago one Gold Coin purchased a great handmade suit, 100 years later one Gold coin can still buy the best handmade suit, and if you go to Asia, it will purchase even more. Can one say the same for 1 dollar?

However, one can make even more if one focusses on trends and gets into the right stocks and the right time.

Suggested strategies that you can put into play to improve your understanding of the world and the financial markets

If you seek freedom, the 1st task is to attain financial freedom so that you can break free the clutches of the top players who strive to enslave you. They want you to run in a circle like a hamster that runs on a spinning wheel; the hamster thinks the faster it runs the further it will go, but sadly it is going nowhere.

Mass psychology is a very powerful tool, and if employed correctly can help you spot the abnormal levels of manipulation, the masses are subjected to. It would be a good idea to familiarise yourself with the concept of “ Plato’s allegory of the cave.

We demonstrate how individuals can use Mass psychology to their advantage, how to view disasters as opportunities and how not to let the media manipulate you and direct you towards actions that could be detrimental to your overall well-being.  Hop over to the investing for dummies section of our website; it contains a plethora of free resources and covers the most important aspects of mass psychology.

Consider subscribing to our free newsletter to keep abreast of the latest developments. Change begins now and not tomorrow, for tomorrow never comes. Understand that nothing will change if you do not alter your perspective and change your mindset. If you cling to the mass mentality, the top players will continue to fleece you; the choice is yours; resist and break free or sit down and do nothing.


“Nothing in the world is more haughty than a man of moderate capacity when once raised to power.” ~ Baron Wessenberg

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