Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

The Fed’s Magic Trick That’s Picking Your Pocket

  by    0   0

Every year, the Federal Reserve robs you of a little bit of your wealth.

And it does so by design.

Writing for the Sovereign Man, Jeff Thomas called it a “magic trick.” But it’s not magic in a mystical way. It’s magic in the show business sense of the word.  It’s an illusion, facilitated by distraction that fools the audience. As a result, we all miss what’s actually happening.

How does the Fed rob you?

Inflation.

As Thomas put it, inflation is the ideal magic trick. The average person doesn’t see it as a tax. The magicians – the central bankers – present it to us as a normal and necessary part of the economy.

Rube Goldberg, was an American cartoonist, sculptor, author, engineer, and inventor. He was best known for building complex machines that only accomplished a very simple task, or in some cases didn’t do anything at all. When you look at the Federal Reserve justification for inflation, it brings to mind one of these Rube Goldberg machines.

The Fed has most people convinced that all of this is necessary and even beneficial. In fact, if anybody protests, the central bankers will assure them that without this scheme, the economy will cease to function correctly. But ultimately, this is a nothing but a carefully crafted magic trick designed by the political class to tax the people. As Thomas put it, “from its inception, one of the goals of the bank was to create inflation. And, here, it’s important to emphasize the term ‘goals.’ Inflation was not an accidental by-product of the Fed—it was a goal”

It’s a given that all governments tax their people. Governments are, by their very nature, parasitical entities that produce nothing but live off the production of others. And, so, it can be expected that any government will increase taxes as much and as often as it can get away with it. The problem is that, at some point, those being taxed rebel, and the government is either overthrown or the tax must be diminished. This dynamic has existed for thousands of years.”

Enter inflation.

Inflation allows the government to borrow money, devalue the currency, and then pay off its debt later in cheaper dollars. It is literally an invisible tax. The Fed’s money creation has proven extremely effective in inflating the dollar. Over the last 100 years, the greenback has lost nearly 97% of its value.

Once the above process is understood, it’s understandable if the individual feels that his government, along with the Fed, has been robbing him all his life. He’s right—it has. And it’s done so without ever needing to point a gun to his head.”

So, what can we do to avoid the effect of this voodoo? One way to mitigate the effect of inflation is to buy gold. Precious metals historically serve as a hedge against inflation. Since gold is priced in dollars, it’s dollar price will typically rise as the dollar’s value depreciates.

As Peter Schiff has explained, this is one reason rising interest rates are really bullish for gold.

The main reason that interest rates are rising around the world is because inflation is picking up around the world. Higher inflation is positive for gold. I mean, it is the most bullish thing for gold. And in fact, when inflation rates are rising, that means money is buying less, right? The purchasing power of money is going down. And that’s when you want to own gold.”

TaxFreeGold.Banner.1000x285

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

 


Related Posts

Recession Early Warning? Spending By the Wealthy Is Slowing

America’s economy is built on consumption. Average Americans have been pushing the US economy along, spending money they don’t have. But as we’ve reported, there are signals that the credit cards might be close to maxed out. Now there appears to be another warning sign – the wealthy are reining in their spending.

READ MORE →

Poland Brings Gold Home; Calls It a Symbol of Strength

Poland has repatriated 100 tons of gold from England. National Bank of Poland Governor Adam Glapiński announced the yellow metal’s return home on Monday. “The gold symbolizes the strength of the country,” Glapiński told reporters.

READ MORE →

Is the Auto Loan Bubble Nearing Its Popping Point?

a check engine light is onHow much more can the auto loan bubble blow up before it pops? Total auto loans and leases outstanding for new and used vehicles increased by another 4.3% year-on-year in the third quarter, according to the latest data from the Federal Reserve. This was a factor in pushing total American consumer debt to a new […]

READ MORE →

Who Produces the World’s Gold?

Which countries produce most of the world’s gold? Gold mine output has flatlined over the last several years and that trend appears to be continuing in 2019. Gold production rose fractionally in 2018 by about 1% totaling 3,346.9 tons. That compared with 3,318.92 tons mined in 2017  — a modest 28-ton increase year-on-year. According to […]

READ MORE →

Market Review: Improving Investor Sentiment Will Drive Silver Prices Higher

Improving investor sentiment will drive silver prices higher. This was the conclusion drawn from the Metals Focus/Silver Institute Interim Silver Market Review. Metals Focus director Philip Newman presented the data during the Annual Silver Industry Dinner hosted by the Silver Institute. His presentation featured historical supply and demand statistics and provisional estimates for 2019.

READ MORE →

Comments are closed.

Call Now