I just recently coined the acronym DAFFYS, to explain the majority of Americans. DAFFYS means Deluded American Fiat-Fooled Yellen-era Serfs.
The majority of Americans are under the absurd delusion that they have “cash” in their bank accounts. But it is not true money (silver or gold “dollars” as defined in the Coinage Acts of 1792 and 1834). Instead, just like the folding paper currency, those accounting entry digits represent “Federal Reserve Notes” (FRNs), with no intrinsic value. FRNs are released “at will” (by fiat) by the Federal Reserve cartel. They are developed out of thin air, through the process of fractional reserve banking. Created out of absolutely nothing, they are likewise redeemable only for nothing– simply other FRNs, in various forms, including debased (clothed) coinage. Beginning in 1965, FRNs ended up being non-redeedmable. The 90% silver coins minted up until 1964 were quickly swept out of flow by the public and stashed, for family safekeeping. There were 40% silver half dollars for a few more years, however those prematurely disappeared from flow. Individuals understood what was going on, and they caught that real money. Numerous folks were stockpiling silver coins that there was a coin shortage for numerous years. Ultimately, the U.S. Mint caught up, producing almost worthless silver-plated copper slugs, to distribute ersatz dimes, quarters, and half-dollars.
We’re Being Robbed
As the money supply increases, earnings go up. Your typical dimwitted DAFFYS see “more money” in their wallets, and for this reason they feel like they are getting ahead. However they are not when inflation surpasses wage boosts. And normally, regretfully, that holds true. So DAFFYS may feel richer, but they are in fact getting poorer.
We are being systematically robbed two methods, every year:
1.) A tax rate that averages no less than 30% combined, at local, state, and federal levels.
2.) A currency inflation rate that now exceeds 12%. (The much lower “official” rate is a lie, due to the fact that it leaves out food and fuel rate boosts.)
The Yellen Age
The Yellen Period began when Janet Yellen rose to the chairmanship Federal Reserve banking cartel. (She chaired The Fed from February 3, 2014 to February 3, 2018.) Throughout her period there, Yellen regularly voted to keep rates of interest artificially low. In typical D.C. Revolving Door fashion, not long after leaving The Fed, Yellen became Secretary of the Treasury, under Joe Biden.
A lot of DAFFYS wrongly believe that the Federal Reserve is a federal government department. It is not. Rather, our nation’s Central Bank is a private corporation that represents corporate banking interests. You will not find the Federal Reserve in the “Federal government Pages” in the front of the telephone directory. No, it is back in the White Pages, somewhere below the Federal Express business. Again, it is a corporation. The seven members of the Federal Reserve Board of Governors are chosen by the President and validated by the Senate. But that is all made with a wink and a nod. Everybody understands that the banksters run the whole show, which just those cronies who are hand-picked by the corporate banking elite ever get chosen to the Federal Reserve Board of Governors.
Inflation is so perilous that very few Americans recognize its full results. The majority of DAFFYS have an unclear realization that their “money in the bank” (or in a wallet, or tucked under a mattress) gradually loses its buying power. But just if somebody steps back and looks at the big picture can they see the significant quantity of wealth that has actually slowly been robbed from them. In result, inflation is a concealed form of taxation.
Remember: We are slaves to taxes and slaves to inflation. Austrian School financial expert F.A. Hayek warned us about this in his classic book The Roadway to Serfdom. Hayek composed in primarily rhetorical and speculative terms, but we are now living it, folks. The well-entrenched banksters and political leaders are the only winners in this video game. They are the royalty in the back row, and we are the pawns on the chessboard.
I have discovered the Inflation Calculator website to be quite helpful. It traces inflation back to 1913. That year is an excellent starting point for determining their figures, because that year saw both the facility of the Federal Reserve and the Federal Earnings Tax. (The 16th Modification was allegedly ratified on March 15, 1913– however that has been contested.) In the beginning, Congress placed a flat 3-percent tax on all incomes over $800 …
Our Inflated Dollar
On the Inflation Calculator page, you can see that $1 in 1913 had the exact same buying power as $30.49 does, in 2023. Or, another method of taking a look at it, is that we’ve been robbed of 29/30ths of the buying power of the Dollar.
In 1913, $2.00 was the typical unskilled field worker’s spend for one day of work. (Roughly $720 each year.) The nationwide typical knowledgeable wage was $1,296 per year (with a typical 42.5-hour work week.) State and government workers were paid approximately $699 annually.
That one dollar (back then made from silver or redeemable for silver, on-demand) would have purchased you any of the following in 1913:
- 50 pounds of potatoes
- 30 Hershey chocolate bars
- 3 pounds of coffee
- 4 pounds of sirloin steak
- 5 pounds of round steak
- 3 gallons of milk
- 3 lots eggs
- 11 pounds of rice
- 20 loaves of bread
- 27 pounds of white baking flour
Today, a dollar won’t even purchase you one sweet bar.
And ponder these other costs for 1913:
- Model T Ford Runabout (1913 was the first year of production): $680
- Common bicycle: $11.95
- Colt Model 1911.45 ACP handgun: $19.75
- L.C. Smith Field Grade Sidelock shotgun: $25 (Fancy Trap Grade: $55.)
- A great quality match of men’s clothing: $5 (Premium quality: $14.65)
- The typical home varied between $3,400 and $4,800– that differed, regionally.
Consider this: It is not the worth of merchandise that has altered. Nay, it is the value of a U.S. Dollar that has changed, losing value drastically. In 1913, a $20 gold piece would purchase you a great Colt revolver or automated. In 2023 the gold contained in that exact same $20 gold piece (as valued in existing dollars) will still buy you a good Colt revolver or automatic.
The Hemisecturing Period
The Guideline of 72 is a gauge that investors typically use to determine how quickly their money will double in value. If you divide 72 by the annual rates of interest, you can roughly identify the amount of time it takes for a financial investment to double. The exact same guideline likewise deals with inflation, however in reverse. The Guideline of 72 also estimates the length of time for money to lose half its value.
A lot of economic experts look at the cumulative effects of inflation as an upslope in costs. I prefer to imagine it as a downslope in purchasing power.
Beginning in 1913, it took 31 years for the Dollar to lose one-half of its buying power. ($1 worth of products in 1913 cost $2, in 1944.) I call these limits “hemisecturings” — the points in time where something is lowered by half. Yes, I acknowledge that hemisecturing is a term that is generally used in geometry, however I believe that my use of it in this context is apropos. Think about it as a Kindergarten lesson: “Bobby has a pie that is cut into 8 pieces. Joe takes 4 pieces of Bobby’s pie. Just how much of the pie does Bobby have left?”)
The second hemisecturing took simply 22 years: 1944 to 1968. ($1 worth of goods in 1913 cost $4, in 1968.)
With the silver basic disposed of domestically in 1965 and the dollar no longer redeemable for gold globally after 1971, the rate of inflation was complimentary to broaden significantly.
The 3rd hemisecturing took simply 16 years: 1968 to 1984. ($1 worth of items in 1913 cost $8, in 1984.)
The fourth hemisecturing took simply 9 years: 1984 to 1993. ($1 worth of goods in 1913 cost $16, in 1993.)
From 2009 to 2022, with artificially-low rate of interest, the U.S, economy continually broadened. This developed a huge inflow of foreign capital, and a strong U.S. Dollar, on the Forex. The main inflation rate briefly fell to less than 1% in 2015. Lower inflation rates delayed the 5th hemisecturing.
The 5th hemisecturing interval is approximated to occur next year. That would make it a 31-year period: 1993 to 2024. ($1 worth of items in 1913 will cost $32, in or before 2024.)
Resurgent Inflation
Think about that in the past two years, inflation has actually returned with a vengeance. Inflation hasn’t been this high because the late 1970s and early 1980s. If an 8.1% inflation rate were to remain continuous, it would take just under 9 years for the 6th hemisecturing. (72 divided by 8.1 equals 8.88 years.) But once again, I approximate the existing “real life” inflation rate to be something more like 12%. So the period for the sixth hemisecturing may be only 6 years.
If the hemisecturing periods get close together once again, then we can anticipate both a monetary crisis and a monetary crisis. Such crises tend to activate population dislocations, socio-political crises, transformations, and even world wars. So, be prepared.
Bottom line: Inflation is coming at us like an express train. Get out of the method! To protect yourself from high inflation, it is due time to shift to tangibles.– JWR