Economic Warfare – Your Liberty, Rights, Freedoms are at Risk!

Bobblehead DollMany pundits have made the following statement, in one form or another, driving a car is the ultimate expression of freedom in America.  Yet, your freedom to drive a vehicle is endangered by the political left and the neo-socialists who want to steal and destroy your freedoms.  Mention economics, and most people’s eyes gloss over, brains disconnect, and they hope the pain will end shortly.  Please, fight this impulse.  I will attempt to make a highly complex topic simple and easily understood.  While I might not get all the specific details correct, I aim to communicate economics to a general audience that is free and empowered to further research the topics for themselves.  My links are reflected in the article for more information.

What is Money?

Money was discussed in a previous article and found here.  In simple terms, money is the tool used to transfer goods from one entity to another, showing a legal purchase was made to change ownership, hence opening the first crucial role of money, legally transferring ownership of goods and services from one person to another.  Unfortunately, legal ownership transference is where the government exercises its first controls, regulating cross-border commerce.  When the government went on a growth spurt in the 1930s, ballooning into the behemoth, we have right now, the government used the excuse of maintaining cross-border commerce to steal products grown by farmers, regulate prices, and set up means and methods to ensure the government was the only winner.TOP 25 QUOTES BY JOAN ROBINSON (of 54) | A-Z Quotes

The 1930 legal battles that wound up in the United States Supreme Court over price controls saw the citizen’s first attempt to reign in the government and failed miserably.  Worse, these first moves by the citizen were the first exchanges in an economic war that has raged ever since—money stores value.  Think of the money found when you do laundry.  You have no idea how long that money was lost, but the value of the money has not changed, you presume, and you celebrate finding the money.  Except, the value of that money has changed through inflation, and the government’s hidden tax (inflation) has robbed you of value.

Let’s say you found $20 in the laundry.  When you first lost that $20 bill, it had more value, e.g., you could purchase more with that money than you can now.  Sure, the value printed on the money still has $20 worth of goods or services, but the cost of those goods and services went up, restricting your ability to purchase.  Hence the economic warfare being waged by your government.  The government essentially said we would not worry about inflation.  Meaning they will devalue the money you hold for their own political purposes.Steve Keen Quote: "Economics is too important to leave to the economists." (12 wallpapers ...

An idea was floated by an economically challenged person to print a $5 trillion bill and use this to pay off the Chinese debt.  The problem is the devaluation of the money printed will capsize American citizens due to the hidden taxes of inflation.  Making that $5 trillion bill or bills would devalue the dollar and crash the American economy.  The stored value in the printed bill would not stand up to and be accepted, as a medium of stored value sufficient to pay the debts incurred.  Is the problem more clear; when money is printed, each dollar, pound, euro, etc., devalues the stored purchasing power of the money you currently hold in hand.Economics Funny Quotes. QuotesGram

Stored value is the second tool for waging economic warfare by the government against its citizens.  Consider all the money printed to pay for the supposed Coronavirus Tax Relief and Economic Impact Payments the world’s governments made to their citizens.  If you had $100,000 in savings when these monies were printed, your savings were devalued by the inflation rate, which is currently at a 40-year high in America.  The government is reporting inflation at 7.9%, so your $100,000 in savings lost the equivalent of $7900.  But, the government does not ever report inflation at the actual level, and the actual level of inflation is ranged between 8% and 45% depending upon the purpose or product you are trying to purchase.  Meaning your $100,000 could have a value of $92,000 to $55,000 in real value.  A hefty tax indeed!

Stored value, the number printed on different bill faces of currency, is static.  The actual value, e.g., the number of goods and services purchasable, is not fixed, and the government allows an annual inflation rate of 2% as “normal and acceptable.”  Thus, your $1 will have a purchasing power of $0.98, which is compounded year-over-year.  Thus, over a decade, that 2% inflation rate is now reducing your $1 to $0.80.  Multiply that for the $100,000 and a decade of saving, receiving interest that does not equal inflation to compensate means your money in your savings account has lost $20,000, just from the government allowing inflation at 2% annual growth.  Let’s say your bank is generous for savings account holders and provides a published interest rate of 3%, subtract the inflation taxes of 2%, and you are only earning 1% interest on your money.  Is this the bank’s fault or the government’s?Amartya Sen quote: Economic growth without investment in human development is unsustainable...

Do you see how the government is robbing you through economics?  Your 5% raise is only 3% once the inflation devaluation has been factored into your budget.  Play the lottery; the taxes alone might kill you, but the devaluation of the money reduces the actual purchasing power of your winnings.  If you do not understand the economic warfare being waged against you by your government, you will lose more than you ever gained in winning the lottery.  Yet another reason why lotteries are a tax on stupid people, for even when you win, you lose!

Cash has another problem beyond inflation, money supply.  The money supply is the technical term for ensuring banks can replace worn-out, ripped, and damaged money.  Money supply plays a role in how much money your local store has on hand to provide change and cashback to customers.  For employers who pay employees in cash, the money supply is a significant problem with extremely high costs.  The government regulates those costs and passes them onto consumers through banks and lending institutions.  Are you struggling to get a loan; this is another by-product of money supply woes.  Paying higher fees to change money to another currency for your trip is another money supply product.  Money supply remains another weapon of the government to affect economic warfare, and many people do not understand this principle, making the government’s policies more effective.Mahatma Gandhi quote: Economics that hurt the moral well-being of an individual or...

Have you noticed the decline in the availability of $10 dollar bills?  I asked for two $10.00 bills when I broke a $20.00 at a Walmart recently, I was denied because Walmart has instituted a policy to only accept $10.00 bills, not give them.  Albertson’s, Staples, the in-store bank in Walmart, and the local credit union, all have a similar policy.  What is the government doing forcing a reduction in $10.00 bills in circulation?  In researching this single policy, I can find no written information on this issue; yet the evidence is clear, there is a manual currency reduction in process and the government needs to explain why.

Before 1980, the basic money supply was measured as the sum of currency in circulation, e.g., cash, traveler’s checks, and checkable deposits.  Currency serves the medium-of-exchange function but denies people any interest earnings.  However, as discussed, interest earnings are not all they are cracked up to be due to inflation.  Cash under a mattress, lost in pockets of clothes, stuck in a book in your library is black money; it is as dead as yesterday’s fish and constantly devalued by inflation.  The money supply tries to regulate the cash on hand to lend as a tool to protect your money from inflation.  Except, the government constantly allows a 2% inflation rate, negating a lot of savings accounts and other interest-earning propositions.

Want a new car, consolidate your credit card debt, or try to buy a house; all of these loan products are an extension of the money supply and the regulation of money supply by the government.  Important to note that your credit cards and bank-issued or employer-issued debit cards are not affected by the money supply, and this is another reason why credit cards and debit cards are so dangerous.  These tools are agreements between you and the issuer, where money is transferred when the tool is used, and the consumer is responsible for all the fees the government insists upon to help pay for the money supply.Economy has frequently nothing whatever to... - Quote

Conclusion

In waging economic warfare, it remains imperative to know about economics, identifying what money is, its role, and the fiduciary controls the government exerts to attack its citizens.  Some may call my language inflammatory, but tell me, do the inflationary costs right now not feel like your taxes have skyrocketed?  Inflation is a hidden tax, a tax fully controlled by the government, and the value of your money decreases yearly because the government says 2% inflation is acceptable.  Who made this decision, an unconstitutional entity called the Federal Reserve Bank.  Since its inception, Congress has tried to obtain transparency and accountability from the Federal Reserve Bank to no avail.  Do you understand why I take umbrage with the Federal Reserve Bank?LIC

The governors of the Federal Reserve Bank decided your money could be taxed at 2% inflation annually as a normal condition of doing business.  These people set the interest rates you pay for your credit cards and are not paid for your savings accounts.  Looking into the history of interest rates since 1900, there is always volatility; the Federal Reserve’s actions have since the 1980s to not allow savings rates over 5%.  When adjusted for inflation, that’s a 3% interest rate for those trying to save money.  What does this mean; fewer people are saving money.  Look where those trying to beat the 3% have invested their money, the stock market, where volatility is a minute-to-minute occurrence, higher risks against less interest, where your money remains subject to taxes, fees hiding other taxes, government fingers, and inflation.

Your government did that to wage economic warfare against you, to empower them to steal your rights, freedoms, and liberties.  There is no other way to describe what is happening globally in all governments.  China plays games with the value of its currency to power trade deficits.  This, in turn, changes prices and increases costs.  These actions are taken to “compete,” when in reality, the activities cover massive debt problems in China.  If the CCP cannot keep the tap turned wide open on trade deficits, their money supply drys up, and debts come due in a bankrupting tsunami!Milton Friedman: The Most Quotable Economist - Capitalism.com - Create the Change

The European Union has never been fiscally sound because the various members of the European Union are taking advantage of the productive members to cover the costs of the fiscally useless members.  France cannot survive as a country without the European Union’s largesse; Greece, Portugal, and several other countries are all in the same boat.  Their governments did this intentionally as political games to stay in power.  When these countries run out of other people’s money, they will be forced to change socially, and the tsunami of debt to the World Bank and other nations will not be pretty.

Knowledge Check!Economics drives these problems mainly due to the lack of knowledge of the lines of congruence between economics and the psychology of governing.  The enemies of freedom understand economics, and this is why these tools have been so successful in waging war and stealing freedom, rights, and liberties through monetary policy.  Until we, the rightful owners of government, understand what is happening, we will all be at the whims of our enemies.

© Copyright 2022 – M. Dave Salisbury
The author holds no claims for the art used herein, the pictures were obtained in the public domain, and the intellectual property belongs to those who created the images.  Quoted materials remain the property of the original author.

Dollars and Sense – Inflationary Spending and Fiscal Insanity

Bobblehead DollThese articles have discussed money, monetary policy, fiscal sanity, and government spending several times this year.  Some have called me alarmist for raising fiscal sanity during a “Global Health Crisis.”  While COVID-19 (Sars-COV-2) is undoubtedly a viral disease with a 98%+ survival rate, I cannot in good conscience call this a “Global Health Crisis.”  The pandemic declaration was a political move, the mask mandating, business closures, and every other hysterical move have been carefully formulated to present a problem where none exists.  Has Sars-COV-2 mutated; absolutely, but the emotional hysteria has mutated far faster.

Dollars and SenseApathy

When you pass paper to a store clerk, are you spending money; no, you are spending confidence.  Your confidence in the dollar’s strength, as represented by a check, cash, money order, credit card, etc., is what is being spent.  Why was the Great Depression so lasting and detrimental; a lack of confidence in the US Dollar.  People who saved their money formed sane fiscal policies personally and acted logically lost their confidence in the US Dollar, and the dollar went into a great depression.

Since President Clinton, the US Government has been on a drunken spending spree and does not appear to be stopping unless the citizens demand they cease and desist!  What does this mean for you and me; everything costs more for two reasons inflation and interest.  When the government prints money, too much money increases prices, and too few goods chase too much money, resulting in people suffering.  When the government borrows money, the interest must be serviced; the interest will increase prices and usually absorb some of the extra capital on the market to bring down inflation.Lemmings 2

Except, Quantitative Easing (QE) is hindering the absorption of money on the market.  Hence America is witnessing something truly remarkable for the first time in financial history, the debt (principal), the interest, and the extra capital, all of these storms are combining into a major conflagration economically speaking.  Usually, at this point, a country begins to look for a place to go to war, which explains China and its expansionist policies in Southeast Asia and the Pacific Ocean.  Too much debt, too much interest, a military needing worked, and assets need to be stolen from other countries.  Typical historical thinking, war truly is grand larceny on a massive scale!

Where are America and China headed; let’s ask Czarist Russia, USSR, Nazi Germany, East Germany, China, North Korea, Italy, Venezuela, Greece, France, and who knows how many other economically unstable countries historically and presently.  Going to war will not solve this economic crisis, though some may try that solution.  The only solution worth advancing at this critical juncture economically is reducing the size of government, placing a firm halt on all government spending, and refusing the politicians to get into debt for at least two decades!  Yes, this means changing Social Security, Welfare, Medicaid and Medicare, and every other government benefit program to fit a reduced budget and smaller government model.  Failure to tighten belts for the next two decades will bankrupt America, and most of the world, making the Great Depression look like a summer picnic.Lemmings 4

Gold and Oil, real estate, Gross Domestic Products (the goods manufactured in America for sale), trade, all of these wealth tools and more cannot support the debt incurred, the money printed, nor the size of the government from the city and county to the White House.  As this trend continues, Wall Street will continue to be tumultuous, at best, and the confidence in the US Dollar will continue to slide.  But, as the dollar slides, which global currency will begin to take up the slack?

The Euro has discredited itself and is not worth the paper it is printed on.  China thinks they will step into the void and take up the slack with the Yuan, except their financial situation is almost as bad as Venezuela’s and Cuba’s, but their size and government type keep this hidden from the public.  Even though the Yuan is in junk status, the Communist government hides these facts; the truth is leaking out in higher trade tariffs and other global trade and finance costs.  Russia’s economic situation still has not stabilized with the fall of the USSR and will probably need another two to three decades until it can compete on the global economy again.Gravy Train 2

I heard a postulation that the Arabian Oil Rich nations of the Middle East would produce an OPEC-backed currency if the US Dollar fails.  I highly doubt this as a solution, but the potential is there.  Another person claimed the lack of confidence in the US Dollar would lead to the World Bank/International Monetary Fund (IMF) issuing currency for the world; boy, would that be a significant problem!  Yet, the American Dollar is being purposefully destroyed by the current crop of politicians, and nobody is standing up and declaring ENOUGH!

Inflation

The US Government, and many others globally, have increased their drunken spending since Jan/Feb 2020 to incredibly extensive levels and used a “Global Health Crisis” as the excuse.  Except when Ebola was sweeping the world, we did not have this level of insane spending and government intrusion.  Ebola is far deadlier, easier to spread, and yet the Ebola disaster is barely remembered.  Bird Flu, Swine Flu, SARS, MERS, all these viruses have had their time in the media hysterical spotlight, every single one of them is deadlier than Sars-COV-2, easier to spread, and they were never a cause for a global pandemic.Gravy Train

Inflation is caused by poor economic policy, where the government grants itself the ability to print money.  Inflation is not just money and monetary policy; inflation is also confidence, faith, and trust.  Inflation is how the government acts, thinks, and behaves.  Inflation is as real as COVID-19 and just as deadly as Ebola while being more problematic for everyone.  From Dec 2020 to the end of July 2021, inflation has increased the price of goods and services by 3.8%, seasonally adjusted, or 5.4% non-seasonally adjusted, which means that prices go up as a seasonal adjustment in the summer.

Fiscal Insanity

Consider with me an analogy; you live in a community of houses and pay a Homeowners Association (HOA) Fee.  Your neighbor has decided they can write checks on your checking account, and the HOA has granted them legal protection to write checks on your bank accounts.  Because your neighbor has legal protection, you sell off assets to provide the funds for your neighbor.  You sell to other neighbors letters of credit that you promise to pay interest on, provided your other neighbors hold those letters of credit for specific amounts of time.  Except, your neighbors stop buying those letters of credit over time because they do not like how your neighbor keeps writing checks and spending your money.  How do you keep this house of cards from blowing over and losing everything?

Tax BurdenAmerica is in this position right now!  Trend lines show a steady downward trend in the value of the US Dollar.  Inflation will keep increasing prices as too much money is chasing too few products on the market.  Debt needs to be serviced and interest paid.  But, when the interest payment is the only thing being paid, and the principal will also need to be serviced, where and how does the principal get serviced when the interest is absorbing all the monthly payments?  Simple economics, money once created and put into the money market, cannot just be absorbed or disappeared.  Just like food doesn’t disappear once consumed, the offal must come out and be handled responsibly.  Well, the dollar is in an offal position and needs responsibly handled!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

NO MORE BS: Hope, Faith, Confidence, and Your Money

Life ValuedImagine you are going about your daily duties and visit the grocery store.  Where for a specific amount of confidence and hope, you complete an exchange for a product groceries.  Another trip sees you investing hope and faith in retirement using confidence to help protect against the vagaries of the future.  April 15th is fast approaching, where confidence in the government is measured through tax revenue, and government officials then spend your confidence on various projects where you hope the investment will be rewarded by improved roads, better economic conditions, and safety inside defensible and sovereign boundaries.

What is Hope?

Hope, according to Webster, is a feeling of trust, as an extension of an expectation, and desire, that something will occur.  For example, I hope for my diet to work, as I desire to lose weight, an expectation that exercise will aid in losing weight, and trust that my weight will reduce over time.  Does this make sense?

Wasting TimeI ask, because too often, when hope is mentioned, people immediately tie religious expectations and connotations to the word, then plasticize hope into being something it is not.  Hope is not an end goal but the journey to an expectation born of desire and bounded by trust in a system that supports a person’s hope.

What is Faith?

As detailed by Webster, Faith is both an expression of religion’s doctrines and complete trust or an expression of confidence.  Faith is the launch process of hope.  Going back to my desire and expectation to lose weight, I have trust that the doctor was correct in ordering me to lose weight.  Hence, my conviction in the doctor’s words is an expression of faith, and my action is putting faith and hope to work actually to lose weight.

Never Give Up!Complete trust is observable all around us daily, from inserting the key into the car ignition to start a car to the hours spent working where we trade our time (a precious resource) for a tangible item (paycheck) and in so many other ways and means.  Consider grocery shopping; we make selections using our best judgment, with complete trust that the products purchased will not make us sick from food-borne illness or the ignorant or malicious actions of other people.  Why does spitting in a police officer’s cup of coffee make us mad; because it breaks that complete trust that the same will not happen to us.

What is Confidence?

Detective 4Confidence is a unique term, and Webster spends an inordinate amount of time trying to capture the power of, and reality is confidence.  Confidence is “a feeling of self-assurance arising from one’s appreciation of one’s own abilities or qualities; firm trust, a specific feeling  regarding the truth of something, a feeling or belief upon the reliance of someone or something.”  The key to confidence is your own self-assurance.  For example, you are assured through past transactions that your employer is not kiting paychecks.  Your confidence in receiving a salary drives you to be motivated and return to work each day.  When that trust is broken, you will leave and find new employment.  Hence, people do not work for companies, but for managers and leaders, they like.

Confidence is a reality when many people all have trust in the same thing, which creates societies, social standards, and governments.  Confidence in the government is expressed using the government’s monetary system to trade for products and services you would not have if you had less confidence in the government system.  Firm trust in the “value of the US Dollar (insert your own currency here)” leads to gains and losses in economic values.  Consider the events of the Christmas Holiday, which is fast approaching.  The individual expresses confidence, faith, and hope in holiday shopping.  The government uses the data of the volume of trades of confidence as a measuring stick in how well they are doing in government to improve a person’s return on investment.  Shopkeepers, stores, and others selling products and services represent a two-way street of faith, hope, and confidence as they trade with customers and with other suppliers, government, and stakeholders in conducting business.

ResilienceConfidence is never an unconscious decision!  One cannot have firm trust, faith, or hope, in something without being consciously aware and possessing experience and knowledge in that someone or something.  Hence, confidence is the conscious use of trust as a destination in the journey of hope, launched by faith.

What is spent when money exchanges hands?

Confidence, faith, and hope.  But, you claim, “That was my money.”  Really, what value does your money have?  The answer is nothing!  If I give you a piece of cloth/paper stamped with a 20 symbol on it, you interpret this as a $20 bill, having the value of 20 dollars, pounds, euros, etc.  That which we call money is nothing but faith, hope, and confidence in a governing system where products and services are exchanged for time and faith and hope through our individual confidence in the government.  But the reality is that the piece of paper/cloth is nothing, has no value, and can do nothing without the express faith, hope, and confidence of the one trading services or products for that value statement.

Dane-GeldBy removing the Gold Standard from money, we stopped trading in a fungible and tactile substance (Gold, Silver, Grain, Salt, Animal Hides, etc.).  We began trading in a measured system of confidence as provided by the government.  Your “money” is nothing but your faith and trust in the government sponsoring your system of confidence be that confidence called a US Dollar, a Rial, a Pound Sterling, a Euro, etc., you deal in nothing but confidence.  Raw products with tradable value, grain, precious metals, oil, etc., are all injected into the monetary system through investment and speculation markets, not the individual farmer, rancher, miner, etc.  Who receive their wages not through trading their products but by trading their efforts and time with their confidence in an employer-supported by a functioning government system.

Your Money!

I love this phrase!  Rather, I like asking the question, “What does ‘Your Money’ mean to you personally?”  The answers never cease to amaze and horrify me.  I asked a 20-something this question and was told it was what they spent on college.  So, I wondered does your education and academic success provide the value of the investment of money?  To which, the 20-something had no coherent answer.  Let me be clear, the value of an academic gamble is not found in the money made with an employer but in the power of changing how you think and approach the world. Educational costs have far exceeded the value of the academic experience.  The connection between the value and cost of education is warped and twisted, and the only people winning are governments, unions, and the controllers of educational experiences.

Detective 4If I hold a piece of paper/cloth with 100 stamped upon it, I could claim I have money.  Except, I do not have money; I have a bit of cloth/paper with ink declaring that piece of cloth/paper had value, but only if I trust that government.  Consider the trouble Venezuela is currently in, the thin ice of economic problems Mexico, Greece, France, and so many other countries exist presently.  The confidence in those government systems is shaken.  The value of that currency is weak compared to other currencies.  If a blacksmith in Ohio produces a sword, and similarly skilled blacksmiths create the same sword in Saudi Arabia, China, Vietnam, Peru, and Cuba, why does the value of that sword change?  Are the sweat and efforts of the blacksmiths different; no!  Does the value of experience change; no!  Did the cost of gaining that knowledge, experience, and talent change; no!  Is the steel cost to mine different; only because the governments’ currencies are different.  Does the value of the sword adequately represent the value of the currency exchanged; more than likely, No!

What is “Your Money?”  For when we lose confidence in the government, the value of the currency slips, which leads to expressions of fear, a lack of faith, and a refusal of the citizens to hope and trust.  Recently, I had a statement arrive declaring I had XX thousand dollars in a retirement account.  Is the value of those funds found in the report received; no!  The value of those “retirement funds” is located in the government system’s future, invested with faith, on a journey of hope to the time that I can remove those funds without being taxed to death.  If the value of the dollar goes down, those retirement funds are useless.  If the dollar’s value goes up, more faith, hope, and confidence are being invested in the government operations over time.

LinkedIn ImageA “Liberty FIRST Culture” understands their money relationships to government, is engaged in preventing government abuse as that leads to lower values of currency, and the lower the value of a currency, the more expensive products and services become.  Kate, the blacksmith from the (2001) movie “Knight’s Tale,” is absolutely correct, “Each drop of sweat has a price!”  But the price of that sweat is not always competitive with the currency used to remunerate that effort, all because of hope, faith, and confidence in the government managing the currency.  Think about that the next time you are asked to vote!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.