Feel Like Your Dollar/Your Currency is Not Going as Far as it Once Did?
Your Dollar is Not Going as Far as it Once Did!
If you feel like your dollar is not going as far as it once did you’re right.
Now I’m using the USD and American information because they are the worlds largest economy and have the world’s Reserve currency. As a result for a long time now it has been true “as goes the US economy so goes the World economy”. But even that is coming to an end but that is another story for another day.
The reason your dollar is not going as far is the result of rampant INFLATION… even though you’re told it is way under 2%
If you’re not familiar with this wonderful website, Shadowstats.com and like this sort of “true” information I’d suggest a visit now and again it can be very revalationary.
I want and found these two charts on today’s inflation based on the way the official index was calculated in the 1980’s and again how it was calculated in the 1990’s
The blue line shows what our inflation rate would be if the CPI or inflation index was calculated the same was as it was in the ’90’s
But of course that is not the only “adjustment” the government has ever made to how they calculated CPI. It is a regular event.
Here is how current inflation would look if we used the 1980’s method of calculation.
Here you can see that if the CPI was calculated as it had been in the 1980’s than inflation would be nearly 10%, not the “official 1.7%
It has always boggled my mind how anyone can leave the cost of food out of an inflation index as it is an element that all of us pay money for. But governments know that by and large the public does not know what the inflation rate really means. At best they know it should be low so we don’t have “hyper-inflation” like th ecountries who are destoryed by inflation experience.
I hope that it is clear that the government decides where it wants inflation and simply adjusts the “base” it uses to adjust it to suit. It has nothing to do with the real rate of inflation that we experience every time we go shopping.
So if real inflation is running around 8-9%, meaning that the cost you pay at the store for the things you buy is rising 8.5% (approximately) and your wages aren’t rising by that much annually than you’re going to see and feel that prices are going up fast and your income isn’t.
Why the official CPI is Important
The government plays these games with the official inflation rate for a few big reasons:
- It has to payout old age pensions and income supplements and disability payments to a lot of folks. So if it ties the rise in those payments to the “official CPI” than the government can say it is doing a good job and at least keeping the incomes of that segment of the population in line with inflation. Never mind that they find it harder and harder to make ends meet. Being on a fixed income wit hno bargaining power really sucks!
- It has to bargain with the public sector unions who certainly want to be able to ensure their members that they are keeping up and even beating inflation. So the government sets the inflation bar knowing that they can settle the public sector contracts somewhere around the official CPI and thus they can tell the public they did a good job of looking after their money and keeping public sector wages somewhat inline with inflation and the union bosses can tell their members they kept their wages ahead of inflation.
- It is acknowledged that rampant inflation is an economy killer. Just look at Zimbabwe and Venezuela. Venezuela is still in the struggle with the government denying inflation is rampant while the store shelves are empty as merchants can’t afford to buy imported goods and in the socialist system it is really up to the government to buy the goods for the merchants who are nothing more than distributors, but no one wants Venezuelan currency so they either have to pay in USD or in oil and gas which they once had plenty of before trained oil workers were replaced with government employees/friends. Zimbabwe now is on an unofficial gold currency as $100 Trillion Zimbabwe dollars won’t buy you a loaf of bread. Thus the government has to convince people that it has inflation under control.
Is Inflation really under control
Here is an image of the 1913 Federal Reserve Note as the dollar was initially dubbed, as it was backed by gold and redeemable in gold that the Federal Reserve was holding.
Poor Dollar: There is Not Much Left of the 1913 Reserve Note
Yet we are told that inflation is under control and there is no problem.
The problem that looms is that the US has huge debts $20 Trillion at the moment and growing daily by 3 Billion dollars. In order to pay its debts the government wants rampant inflation as it seriously devalues the dollar as you can see. So you can expect your income and savings to get more and more and more out of line with reality as the price of goods will soar with inflation.
But there is one thing you can do if you want to protect yourself from the continuous erosion of value of your dollar particularly as you approach retirement.
Let’s see what happened to those who bought gold back in the 1930’s as compared to the value of an equal amount of dollars.
Buy Gold or better Just Exchange Your Dollar Savings for Gold
While this is great advice, and if you have a lot of savings I would strongly suggest you turn a good portion of it into gold. If you need help knowing how to do this just leave me a message in the comments and I will contact you.
For those interested in started a gold savings account, I would love to show you how to open one for FREE. Most places would charge you a lot to open a gold savings account due to the security measures they would have to have in place to keep it safe for you, but Karatbars International keeps their own gold safe in their vaults and will happily do the same for you. They want to really ensure the world has a chance to save in gold, as they see this period of rampant inflation coming, and coming fast.
The first “hit” may occur in 2016 but more likely in 2017 and it will make the 2008 financial crisis look like a blip but things will get worse… At least that is what the soothsayers, that I follow, are telling me.
Once you have a FREE gold savings account you can begin a savings program where you begin to exchange some of your paper currency for gold at a market rate.
This video does a better job of explaining the KaratBars gold savings account than I can plus it tells you how you can even get more gold for FREE by sharing this vital information.
Please let me know in the comments if this resonates with you or if this makes sense to you. This is a real passion of mine as people are being duped by their governments and it will end badly for most. I know I don’t want to be one of the victims and I don’t want you to be one either.
About the Author
Mary has been blogging and helping people online for well over 4 years. Her passion is empowering others to be all they can be, so they can make the difference they were intended to make. Mary is also very concerned about our world which is awash in debt, which will ultimately overwhelm and destroy our way of being. If you'd like to join me in my quest to change this situation one gold saver at a time check out http://gettingpaidingold.com