Posts Tagged ‘currency’

Money Idea

Posted: February 1, 2019 in Thought for the Day
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“Ideas are the currency of life. Not money—because money can run out.” -James Altucher

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“Americans feel squeezed because the cost of rent, medical insurance, and tuition – as well as other basic living expenses – is rising much faster than their wages. This creates very real problems for ordinary people.

By every measure – including stagnating wages and rising costs – things have been going downhill for the American middle class since the early 1970s. August 15, 1971, to be exact. This is the date President Nixon killed the last remnants of the gold standard. Since then, the dollar has been a pure fiat currency.

The rejection of sound money is the primary reason why inflation has eaten up wage growth since the early 1970s – and the primary reason why the cost of living has exploded.

Measured in gold, wages in the U.S. have fallen over 84% since 1971…. Priced in gold, the minimum wage has fallen 87% since 1968. Note that the federal minimum hourly wage was $1.60 in 1968. It’s $7.25 today, or 353% higher in dollar terms. But that $7.25 buys 87% less than $1.60 did back in 1968. That’s the story you won’t hear from the mainstream press.

Inflation follows a clear a pattern of corruption:  In a fiat currency system, the government will invariably print an ever-increasing amount of currency. This makes prices and the cost of living rise faster than wages. The average person feels the pain, but doesn’t understand what’s happening. More people support politicians who promise freebies. In order to pay for the ‘freebies,’ the government prints more money. This creates even more inflation, and the cycle repeats.”

-Nick Giambruno

“This free money machine is the equivalent of adding a zero to all the currency bills and declaring that everyone is ten times wealthier now. But as we’ve seen (and history shows), all that happens is a $5 loaf of bread is repriced to $50.” -Charles Hugh Smith

“Traditionally, inflation has been defined as ‘an increase in the amount of currency in circulation’….   Unfortunately, in recent decades, even dictionaries have been offering a revised definition of inflation, as ‘an increase in the price of goods and services’….

The purpose of bank-created inflation is to extract wealth from the populace.  By regularly increasing the amount of currency in circulation, banks create an environment in which the concept of debt appears to be beneficial. As a result, virtually everyone in today’s society not only has debt; he actually believes that he couldn’t improve his life except through debt….  In essence, the inflation concept was invented by banks as an invisible tax—a means by which they could extract wealth from the populace.

In effect, the individual is used by the banking system as a milk cow. For his entire working life, inflation is carefully adjusted to extract as much monetary value from his labours as possible, whilst still leaving him capable of continued production….

Refuse to borrow money for any situation. Yes, it will mean that, as your friends show off their new cars, you’ll be driving an older model. They’ll also live in nicer houses than you and they’ll ‘own’ their own house before you do. But, at some point, since you’re free from debt, you’ll pass them by and eventually retire well.

By understanding inflation, and acting on that understanding, the odds of living your life as a milk cow can be greatly diminished.”

-Jeff Thomas

“Gold is the currency of kings, silver is the money of gentlemen, barter is the money of peasants, but debt is the money of slaves.”

—Norm Franz, Money and Wealth in the New Millennium

“Indeed, many would say that, without debt, the world couldn’t function. Debt has always existed and always will. However, in eras past, debt often played a much smaller role, and those eras were marked by greater progress and productivity.” -Jeff Thomas

“In the United States neither paper currency nor deposits have value as commodities.  Intrinsically, a dollar bill is just a piece of paper….  What, then, makes these instruments…acceptable at face value in payment of all debts and for other monetary uses?  Mainly, it is the confidence people have that they will be able to exchange such money for other financial assets and for real goods and services whenever they choose to do so.  Money, like anything else, derives its value from its scarcity in relation to its usefulness….  Money’s usefulness is its unique ability to command other goods and services and to permit a holder to be constantly ready to do so.” -Federal Reserve Bank of Chicago

Idea Skill

Posted: March 4, 2017 in Thought for the Day
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“Skills and ideas are the new currency.” –James Altucher