The Silver Bear Cafe

Many have asked, with all the printing taking place, why is inflation relatively tame? Sure, we see increases in health care costs, 10-15% annually in food, and 10-20% in precious metals over the last few years but when the overall money supply triples over a decade, those are relatively small numbers compared to what you would expect. So, why is there so little inflation? It’s there, you just have to understand how the system is being used to screw you, the little guy or girl.

We’re going to tackle this idea in 4 parts. First, we’ll talk about wealth, and how it is being stolen from us all.

	2009	2017	Percent Increase
Farm Land (Iowa)	$2275 per acre (average)	$11,200.00	300-500%
Rental Home (National Avg., 4bd 3 bath)	$236,000.00	$349,000.00	148.00%
Stock Market (S&P 500)	1093	2375	217.00%
10-year US Bond Price	105	155	148.00%

First, our incomes do not increase at the same rate as required to own land or other income producting assests. Home prices, stock market prices, etc, all escalate faster than the median income, so that over time minimum wage translates into less ‘stock’, or less ‘house’, etc. Roll this forward 5 or 10 years, and you end up with… well, exactly what we have in the US today. Farmers who do the work, but cannot afford to own their land. Workers who clean the school, but rent their house. Retiree’s working an extra 5 years simply because their investments did not grow quickly enough to match cost of living increases. All while the owners of those income producing assests ‘consume’ the income and increases asset prices to their own benefit.

Good luck paying that if you’re getting laid off or stuck with a minimum wage job.

The second mechanism is related to inflation. People are encouraged, or even forced (think 401k) to invest in dollar-denominated asset classes which intentionally limit the ability to hedge risk and inflation. The Federal Reserve then ensures there is a slow, let’s say 2-6% inflation rate, while only acknowledging a 1-2% inflation rate in their CPI, and the government and banks pocket the difference. Year-to-year, 1-3% is being stolen, if you have a savings account returning less than 2-6%, your wealth is being taken.

Why isn’t gold and silver going up 200 or 300% in price? One simple reason: If they were, the illusion of the ‘strong Dollar’ would end. Thus, keeping precious metals beat down allows the fiat currency regime to continue. As to the mechanism, it is abundantly clear that the biggest banks of the world are manipulating the gold and silver markets. In fact, they admitted to it:

Deutsche Bank Admits It Rigged Gold Prices, Agrees To Expose Other Manipulators

That it for the first Act, in the play designed to enslave the 99.9999%. In Act II, we will get into how the Powers-that-be are solidifying their control. It gets oh-so-much- worse.

Written by Brad Peters
Software Engineer, Freedom lover, and Prepper-in-training

The opinions voiced above are solely those of the author, and do no in any way represent those of anyone else.

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