The Congress that instituted the “Federal Reserve” as the US Central bank had no authority to do so. Issuance of anything as “money” in the United States of America that isn’t gold or silver coin is expressly unlawful; period (Article 1, §10 U.S. Constitution). The devaluation of our money is a conspiracy and system of extortion which is set in place by the international banking establishment in many countries over a span of one-hundred years.
Photo by saeed karimi on Unsplash
Negative interest rates.
The Federal Reserve sets the Prime Rate for lending. Interest rates for banking, borrowing, and investing all revolve around and reference this rate set arbitrarily by a “room full of financial experts” (cough) based on how much money it allows them to extort from the rest of us without being altogether too obvious about the sordid ordeal. Cynical? No… irritated and angry. They’ve ruined the most productive country in the history of man-kind and are currently working on enslaving the rest of the world by similar means. Technical terms for such are available, but are not fit for polite company.
Today, the clowns who run the Fed understand as much about inflation as does this clown and these “bubbles. Why? Because they deceive themselves. They change the standard by which they measure inflation because the numbers belie their corruption of the system; a system which they have no lawful right to administer in the first place.
The CPI is really a “CP-Lie”, a basket of goods that are tracked for their market value or price over time giving insight into the “real rate of inflation” as it hits the consumer public. Except, as the inflation effects of expanding the currency supply continue to register in real purchasing power of the dollar, it begins to make them look bad. So, they change, and continue to change, the items in the basket so that the numbers look better. If you tried to do that with your tax returns you’d land in Federal prison; and in a hurry.
Current inflation rates here at the outset of 2022, where inflation is starting to catch its second (or third) wind, is estimated by the government agency Bureau of Labor Statistics which estimates inflation near 7%. However, those with more integrity can go back to the 1980 standard of the basket of goods for the CPI and recalculate. The effective rate of inflation, or how the purchasing power of your “dollar” is eroding, is rated at 15% by the 1980 standards.
courtesy: shadowstats.com/inflation
Published interest rates, as with the CPI, deal with “the picture they want you to see”. Negative real interest rates deal with the resulting effect upon your purchasing power or how effective the numbers are in your bank account and wallet. You might end up with more “dollars” in your paycheck, more units, more numbers, but when you go to the gas station with gas near $4 per gallon, how much gas can you get for $25… an average tankful not many years ago. How much does it cost you at the grocery store for much the same load of groceries versus three or four years ago?
Here’s where published interest rates hit our reality. If the 10-year treasury bond currently pays 1.8%, but the rate of inflation is eroding your purchasing power at 15% per year, you’re losing just over 13% in real purchasing power; a negative rate of over 13%. What’s your savings account pay? It’s likely over 100% worse as most savings accounts are paying less than 1% annual percentage yield (APY). Are your mutual funds in your IRA or 401K paying 15% or more? If not, then your retirement account isn’t preparing you to have more purchasing power in retirement than what you have right now regardless of the pile of “numbers” you’ve collected in your account.
Have you any plans for how to deal with the onset of increasing or exponential inflation? I assure you, the people you look to to manage the system responsibly for the benefit of the rest of us have no feasible answer.
