The Next Great Failure

...The same day Nixon ended the link between the USDollar and gold, he also imposed a series of price and wage controls thinking that enforcing such an action would maintain the social status quo....Despite the fact that America was on a gold standard from 1913 through 1971, the fed had already managed to destroy around 25% of the dollar’s purchasing power.....To understand why all of this took place, it is essential to first understand the desired outcome, which was and has always been a worthless dollar. Think about it as a slow-motion bank robbery. If you have an extremely wealthy country, as the US was post WWII, you can’t just go in and re-possess everything; that would raise the ire of the citizenry. But what you can do is impose incremental changes that over the course of decades slowly rob the citizenry of its wealth. ...Even under the auspices of a (weak) gold standard, the fed was able to steal 25% of the dollar’s purchasing power between 1913 and 1971. Compare that with today and you’ll find that the fed has now managed to steal 95.4% of the dollar’s purchasing power compared to 1913. That is a pretty crafty theft, no? And if you really think about it, public awareness of this robbery was near zero until just a couple of years ago.....

New Modus Operandi for a New Paradigm
printing more dollars makes existing ones worth less..and eventually worthless...the value of each new fiat dollar that goes into circulation is worth just a little less than the one before it...

The Emergence of Consumer Credit
It took this nation over 200 years to accumulate its first trillion in national debt and barely 25 years to accumulate another $15 trillion, not to mention the underlying unfunded liabilities..Debt loads were (and still are) way too high and when your economy is 70% depending on consumer spending for its growth, you’ve got a problem when that spending slows down... Whether it is the TARP debacle, the ‘shovel-ready’ jobs stimulus of 2009, something of a bailout for homeowners who were burned by purchasing at the top of the market, Fannie, Freddie, or any number of other absurdities, the motive should now be apparent. They are attacking aggregate demand as a means of hiding the destruction of the dollar. The ridiculous dollar index doesn’t help either, as every time a new phase of the Eurozone crisis kicks off, the USDollar appears to gain ‘strength’.

                                ...................By Andy Sutton