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Inflation: The Hidden Tax of FRN Prosperity

Discussion in 'Financial Cents' started by Clyde, Aug 15, 2007.

  1. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    Inflation: Thanks to the FED

    McClatchy Washington Bureau

    [​IMG] Print This Article
    Posted on Tue, Aug. 14, 2007
    Prices for key foods are rising sharply

    Kevin G. Hall | McClatchy Newspapers

    last updated: August 15, 2007 02:48:16 PM
    MIDLAND, Va. — The Labor Department's most recent inflation data showed that U.S. food prices rose by 4.2 percent for the 12 months ending in July, but a deeper look at the numbers reveals that the price of milk, eggs and other essentials in the American diet are actually rising by double digits.
    Already stung by a two-year rise in gasoline prices, American consumers now face sharply higher prices for foods they can't do without. This little-known fact may go a long way to explaining why, despite healthy job statistics, Americans remain glum about the economy.
    Meeting with economic writers last week, President Bush dismissed several polls that show Americans are down on the economy. He expressed surprise that inflation is one of the stated concerns.
    "They cite inflation?" Bush asked, adding that, "I happen to believe the war has clouded a lot of people's sense of optimism."
    But the inflation numbers reveal the extent to which lower- and middle-income Americans are being pinched.
    The Bureau of Labor Statistics said in its July inflation report that egg prices are 33.7 percent higher than they were in July 2006. Over the same period, according to the department's consumer price index, whole milk was up 21.1 percent; fresh chicken 8.4 percent; navel oranges 13.6 percent; apples 8.7 percent. Dried beans were up 11.5 percent, and white bread just missed double-digit growth, rising by 8.8 percent.
    These numbers get lost in the broader inflation rate for all goods and services, which measured 2.4 percent for the same 12-month period. Across the economy, rising food prices were offset by falling prices for things bought at the mall: computers, cameras, clothing and shoes.
    "All of that stuff is going down in price, but prices for gasoline have gotten higher, and food prices have gone up," said Mark Vitner, a senior economist for Wachovia, a large national bank based in Charlotte, N.C.
    People also go to the mall a lot less than they go to the grocery store, so they're constantly reminded that dietary staples are up sharply.
    Why are food prices rising?
    It's partly because of corn prices, driven up by congressional mandates for ethanol production, which have reduced the amount of corn available for animal feed. It's also because of tougher immigration enforcement and a late spring freeze, which have made farm laborers scarcer and damaged fruit and vegetable crops, respectively. And it's because of higher diesel fuel costs to run tractors and attractive foreign markets that take U.S. production.
    The Labor Department's last detailed survey of consumer spending, in 2005, showed that Americans spent about 12.8 percent of their income on food. A bit more than 7 percent of their income was spent on food at home, and 5.7 percent was spent on food away from home.
    These percentages suggest that higher food prices, while unwelcome, won't break the bank for most consumers. But for retirees such as Jacqueline Wilson, 60, of Upper Marlboro, Md., rising food and fuel prices take a big bite out of fixed income.
    "I make every dollar count," said Wilson, outside a Giant supermarket. "I cut back. ... I get only as much as I need. I don't buy it because it is 10 for $10, but so that I'm using it and not wasting my money."
    Asked about her view of the economy, she answered, "Terrible."
    In broad terms, the economy isn't terrible. Unemployment is near record lows, and the second quarter posted a strong 3.4 percent growth rate. But it is for those Americans who are pinched by rising food and gasoline costs, and that's a lot of folks. Half the nation's families earn below the median family income of about $56,000. Three- fifths of American families report income under $70,000.
    At the Al-Mara farm in Midland, Va., Jeff and Patty Leonard run a large dairy operation where about 600 cows produce 19,000 pounds of milk each day. They plant about 1,000 acres of corn, so they don't face all of the rising feed costs like some farmers. But they sympathize with consumers because the costs of nitrogen fertilizers and diesel fuel have all gone up sharply, raising production costs by nearly 30 percent.
    "That's how your farmer feels here at home when we're trying to buy soybean meal, food for our cows and trying to maintain our equipment," said Patty Leonard. "I can understand exactly what the shopper is going through."
    Milk prices aren't set on the farm. That's done by marketing cooperatives, which this year have been successful in passing on higher production costs after several dismal years of prices that took dairy farmers back to the 1970s.
    "It's pretty much a realignment of the actual value of milk in today's dollar," Patty Leonard said. "Milk has been cheap for a long, long time."
    Globalization also explains higher milk prices. Australia, a leading milk exporter, is struggling through a drought, and European governments are pulling back dairy subsidies. So U.S. farmers, aided by a weak dollar, are stepping in to meet growing demand for milk products in China and India. That's pinched supply at home and abroad, driving up prices.
    "U.S. per capita dairy consumption is the highest it's been since 1987," said Chris Galen, vice president of the National Milk Producers Federation, pointing to rising U.S. demand for cheese, made from milk. "Americans are eating more cheese than ever — not just volume but per capita."
    To make more milk, or raise more chickens that lay more eggs, farmers need feed corn and other feed products. But corn prices have soared over the past year as Congress pushes ethanol, a renewable fuel made from corn. Fields that previously grew soybeans are now yielding corn, and that's driven up the price of soybeans as they become scarce.
    Iowa State University's Center for Agricultural and Rural Development shocked the farm sector earlier this summer with a report that corn farmers are expected to lock in prices of $4 a bushel through 2010, about double what corn fetched two years ago.
    "You will probably be seeing these prices rise for quite a long time and stabilizing, maybe, but not going back to the $2-a-bushel corn," said Jacinto Feitosa, co-director of the center in Ames, Iowa.

    2007 McClatchy Newspapers
  2. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

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  3. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

    [FONT=Arial, Helvetica, sans-serif]How the "Bank" of Rome Creates "Federal" Reserve Dollars out of Nothing!![/FONT] <hr align="center" size="1" width="30%"> <table border="1" cellpadding="7" cellspacing="0" width="100%"> <tbody><tr> <td height="77" valign="top" width="28%">
    [FONT=Arial, Helvetica, sans-serif]Albert Einstein said:[/FONT]​
    [FONT=Arial, Helvetica, sans-serif]"Compound interest is the eighth wonder of the world"[/FONT]
    </td> <td valign="top" width="37%">
    [FONT=Arial, Helvetica, sans-serif]Thomas Jefferson said:[/FONT]​
    [FONT=Arial, Helvetica, sans-serif]"I believe that banking institutions are more dangerous to our liberties than standing armies." [/FONT]
    </td> <td valign="top" width="35%">
    [FONT=Arial, Helvetica, sans-serif]Maier Amschel Rothschild said:[/FONT]​
    [FONT=Arial, Helvetica, sans-serif]"Permit me to issue and control the money of a nation and I care not who writes its laws"[/FONT]
    </td> </tr> </tbody> </table>
    <table border="0" width="100%"> <tbody><tr> <td height="415" valign="top" width="43%">
    [FONT=Arial, Helvetica, sans-serif]The "Federal" Reserve Bank loans the U.S. government their own "money" at usury or interest!![/FONT]​
    </td> <td width="4%"> </td> <td valign="top" width="53%">[FONT=Arial, Helvetica, sans-serif]The Federal Reserve Bank only creates the Principal - not the usury or interest that it lends to the U.S. government. Therefore the usury can NEVER be repaid and the end result is foreclosure and bankruptcy.[/FONT]
    [FONT=Arial, Helvetica, sans-serif]In 1765, the Bank of England demanded that the American Colonies pay taxes in British specie or coins which the people did not possess. If they had borrowed from the Bank of England to pay the tax, the end result would have been the same: foreclosure and bankruptcy with the Bank owning everything!![/FONT]
    [FONT=Arial, Helvetica, sans-serif]It's the same fatal bite of that old Serpent the Devil and Satan which deceiveth the whole world (Rev. 12:9).[/FONT]
    [FONT=Arial, Helvetica, sans-serif]No wonder that usury is called nashak or the bite of a serpent in the Bible.[/FONT]

    </td> </tr> </tbody> </table> [FONT=Arial, Helvetica, sans-serif]The power of compound interest or usury.[/FONT]
    [FONT=Arial, Helvetica, sans-serif]This graph is an example of ONE Rockefeller billion placed in the bank in 1900 at 6% usury and compounded annually. At 6% interest the money doubles every 12 years. There is a rule called the Rule of 72 for calculating usury rates. Divide the usury rate by 72 and the quotient will give you the approximate number of years that it takes the money to double:[/FONT]​
    [FONT=Arial, Helvetica, sans-serif]The rule of 72[/FONT]​
    <table border="0" width="100%"> <tbody><tr> <td width="36%"> <table align="center" border="0" width="70%"> <tbody><tr> <td colspan="2">
    [FONT=Arial, Helvetica, sans-serif]Usury at 4% percent[/FONT]​
    </td> </tr> <tr> <td width="18%">
    [FONT=Arial, Helvetica, sans-serif]72[/FONT]​
    </td> <td width="82%">[FONT=Arial, Helvetica, sans-serif][/FONT]</td> </tr> <tr> <td><hr></td> <td>[FONT=Arial, Helvetica, sans-serif] =15 years approx.[/FONT]</td> </tr> <tr> <td>
    </td> <td> </td> </tr> </tbody></table></td> <td width="31%"><table align="center" border="0" width="78%"> <tbody><tr> <td colspan="2">
    [FONT=Arial, Helvetica, sans-serif]Usury at 6% percent[/FONT]​
    </td> </tr> <tr> <td width="18%">
    [FONT=Arial, Helvetica, sans-serif]72[/FONT]​
    </td> <td width="82%">[FONT=Arial, Helvetica, sans-serif][/FONT]</td> </tr> <tr> <td><hr></td> <td>[FONT=Arial, Helvetica, sans-serif] =12 years approx.[/FONT]</td> </tr> <tr> <td>
    [FONT=Arial, Helvetica, sans-serif]6[/FONT]​
    </td> <td>[FONT=Arial, Helvetica, sans-serif][/FONT]</td> </tr> </tbody></table></td> <td width="33%"><table align="center" border="0" width="72%"> <tbody><tr> <td colspan="2">
    [FONT=Arial, Helvetica, sans-serif]Usury at 8% percent[/FONT]​
    </td> </tr> <tr> <td width="18%">
    [FONT=Arial, Helvetica, sans-serif]72[/FONT]​
    </td> <td width="82%">[FONT=Arial, Helvetica, sans-serif][/FONT]</td> </tr> <tr> <td><hr></td> <td>[FONT=Arial, Helvetica, sans-serif] =9 years approx.[/FONT]</td> </tr> <tr> <td>
    [FONT=Arial, Helvetica, sans-serif]8[/FONT]​
    </td> <td>[FONT=Arial, Helvetica, sans-serif][/FONT]</td> </tr> </tbody></table></td> </tr> </tbody> </table>
    [FONT=Arial, Helvetica, sans-serif]Divide the usury rate by 72 and that will give you the approximate number of years for the money to double.[/FONT]​
    [FONT=Arial, Helvetica, sans-serif]There is a more precise way to calculate usury using the computer calculator. Most computers have calculators. The formula to calculate principal plus interest for one billion dollars is this:1.000.000 multiplied by 1.06 raised to the power or exponent of 96 equals 268.759.030 billion dollars!! You can also cheat and go here!![/FONT]​
    [FONT=Arial, Helvetica, sans-serif]How the "Bank" of Rome creates Federal Reserve Notes out of nothing!![/FONT]​
    <table align="center" border="0" width="100%"> <tbody><tr> <td valign="top" width="49%"> <table border="1" cellpadding="7" cellspacing="0" width="100%"> <tbody><tr> <td height="321" valign="top">
    [FONT=Arial, Helvetica, sans-serif]Step 1 in "money" creation[/FONT]
    [FONT=Arial, Helvetica, sans-serif][​IMG][/FONT]
    [FONT=Arial, Helvetica, sans-serif]The "Bank" of Rome[/FONT]
    [FONT=Arial, Helvetica, sans-serif]Fiat "money" creation begins when the "Bank" of Rome decides that the U.S. is ready for another bite from that old serpent the Devil. They instruct their American branch —the Federal Reserve Bank — to order Congress to raise the debt limit by $1 billion. [/FONT]​
    </td> </tr> </tbody></table></td> <td width="2%"> </td> <td valign="top" width="49%"> <table border="1" cellpadding="7" cellspacing="0" width="98%"> <tbody><tr> <td height="317" valign="top">
    [FONT=Arial, Helvetica, sans-serif]Step 2 in "money" creation[/FONT]​
    [FONT=Arial, Helvetica, sans-serif]The U.S. Congress[/FONT]​
    [FONT=Arial, Helvetica, sans-serif]Congress obeys the "Federal" Reserve Bank and instructs the U.S. Treasury to print $1 billion interest bearing bonds and sell them to the Federal Reserve Bank of New York.[/FONT]​
    </td> </tr> </tbody></table></td> </tr> <tr> <td height="331" valign="top"> <table border="1" cellpadding="7" cellspacing="0" width="100%"> <tbody><tr> <td height="302" valign="top">
    [FONT=Arial, Helvetica, sans-serif]Step 3 in "money" creation[/FONT]
    [FONT=Arial, Helvetica, sans-serif][​IMG][/FONT]
    [FONT=Arial, Helvetica, sans-serif]The U.S. Treasury[/FONT]
    [FONT=Arial, Helvetica, sans-serif]The U.S. Treasury prints the$1 billion interest bearing bonds and sells them to the Federal Reserve Bank!! As security or collateral they offer the INCOME TAX collected from the taxpayers. The U.S. Treasury prints only the Principal . . . not the usury or interest.[/FONT]​
    </td> </tr> </tbody></table></td> <td> </td> <td valign="top"> <table border="1" cellpadding="7" cellspacing="0" width="99%"> <tbody><tr> <td valign="top">
    [FONT=Arial, Helvetica, sans-serif]Step 4 in "money" creation[/FONT]​
    [FONT=Arial, Helvetica, sans-serif]"Federal" Reserve Bank of New York[/FONT]​
    [FONT=Arial, Helvetica, sans-serif]The "Federal" Reserve or the Fed buys the usury bearing bonds and credits the U.S. Treasury for $1 billion. The government must now pay back the bonds with INTEREST. As the interest was not created, it can NEVER be repaid with "Federal" Reserve Dollars!![/FONT]​
    </td> </tr> </tbody></table> </td></tr></tbody> </table>
    [FONT=Arial, Helvetica, sans-serif]In a closed monetary system like the U.S., only "Federal" Reserve Notes are legal tender to pay back the bonds. Gold and silver are REAL money and could be used to repay the debt but they are stored in Switzerland and credited to the account of the "Bank" of Rome.[/FONT]​
    [FONT=Arial, Helvetica, sans-serif]Since the Treasury only printed the PRINCIPAL —not the usury or interest —the money can NEVER be repaid.... The end result is bankruptcy and foreclosure for the government. This is the very same scam that the Bank of England tried to impose on the Colonies when they made specie or coin the only means to repay the king's tax.[/FONT]​
    [FONT=Arial, Helvetica, sans-serif]Here is another example of money creation by the Federal Reserve Bank. The diagram is from The Truth in Money Book by Theadore R. Thoren and Richard F. Wagner. Thoren and Wagner were experts n the Federal Reserve System and monetized debt creation. However they were not aware of the Secrets of the "Bank" of Rome and the real identity of the moneychangers and their crusade to destroy this country by debt and usury.[/FONT]​
    [FONT=Arial, Helvetica, sans-serif]The American people have to pay usury on their own money. Not even the Mafia could have dreamed up a more stupendous scam than this!![/FONT]​
    [FONT=Arial, Helvetica, sans-serif]Usury is the ONLY cause of inflation!![/FONT]​
    <table border="0" width="99%"> <tbody><tr> <td valign="top" width="47%">
    Growth of usury on the Federal debt follows an exponential curve e.g., 2, 4, 8, 16, 32, etc, etc.
    </td> <td width="10%">
    </td> <td width="43%">[​IMG]</td> </tr> </tbody> </table>
    [FONT=Arial, Helvetica, sans-serif]Inflation robs a currency of its purchasing power until eventually it buy NOTHING. Before the fall of the Roman Empire, the government debased the currency by clipping the coins and adding less and less silver and gold. Inflation does the same thing to a paper currency as the paper becomes worthless and people lose all faith in the fiat. Eventual collapse can be postponed by printing more and more "money" but eventually the day of reckoning finally arrives.[/FONT]​
    <hr align="center" size="1" width="100%">
    [FONT=Arial, Helvetica, sans-serif]Editor's Notes[/FONT]​
    <table border="0" width="100%"> <tbody><tr> <td valign="top" width="30%">
    [FONT=Arial, Helvetica, sans-serif]John D. Rockefeller (Mr. Usury) in 1872.[/FONT]
    </td> <td width="6%"> </td> <td valign="top" width="64%">
    [FONT=Arial, Helvetica, sans-serif]Federal Reserve Founder John D., said: [/FONT]​
    [FONT=Arial, Helvetica, sans-serif]"Among the early experiences that were helpful to me that
    I recollect with pleasure was one in working a few days for
    a neighbour in digging potatoes—a very enterprising, thrifty
    farmer, who could dig a great many potatoes. I was a boy of
    perhaps thirteen or fourteen years of age, and It kept me very
    busy from morning until night. It was a ten-hour day. And
    as I was saving these little sums I soon learned that I could
    get as much interest for fifty dollars loaned at seven per cent. — the legal rate in the state of New York at that time for a year—as I could earn by digging potatoes for 100 days.
    The impression was gaining ground with me that it was a good thing to let the money be my slave and not make myself a slave to money" (Ida Tarbell, History of the Standard Oil Co., p.41).
    </td> </tr> </tbody> </table>
    [FONT=Arial, Helvetica, sans-serif]What a pity he didn't stay digging potatoes... The world would be a much better place today.[/FONT]​
    [FONT=Arial, Helvetica, sans-serif]John D. Rockefeller was the founder of the "Federal" Reserve Bank. He was a typical usurer. Letting other people do the work and then reaping the benefits. It is a shame that the pious hypocrite NEVER heard a sermon on usury when he attended the Euclid St. Baptist Church every Sunday.[/FONT]​
    [FONT=Arial, Helvetica, sans-serif]Even though the "Federal" Reserve Bank has the name FEDERAL in it's title, it has no connection with the Federal Government except that it OWNS the government.... The President of the U.S. and Secretary of the Treasury do not sit on its board!! The Chairman is appointed for a period of 14 years. The President does appoint him but that is just a formality as the Fed can easily ruin an uncooperative President by causing a recession or depression.[/FONT]​
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