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Wednesday, February 29, 2012

FED to create more money out of thin air, Drudge appropriately posts pic of Monopoly money

This is how they steal our money, when they devalue the currency where does that lost value go? Strait into their dirty pockets!

Why are gas prices high, why are food prices high? The value of a piece of paper is not intrinsic, it’s worth no more than the material and labor costs to make it, really.

The true value is determined by how much of a good or service it will buy. A dollar bill could buy a gallon of gas a few years ago, now it takes four of those dollar bills to buy that same gallon of gas.

Two things affect the costs of that gallon of gas, how much gas is available and the value of the dollar bill.

The rise in the costs of gas is not due to a shortage of gas, we’re producing more gas than ever, the problem is with the value of the dollar bill. It is true that we could lower the costs of gas with greater production but that’s not the reason for the high prices. It’s the value of the dollar.

Say the total value of money in the US is 100 dollars, the FED pumps (creates out of nothing) 25 more dollars into the economy so now we have 125 dollars.

That 125 dollars will buy the same amount of stuff as the 100 dollars so now each dollar is worth only 80 cents instead of 100 cents.

That is what has been going on since 1913 when the Federal Reserve was foisted upon the nation by the banksters as shown in this chart. the dollar has lost 95% of it’s value since 1913:

Dollar-from-1913

 

FED CHAIRMAN BERNANKE WARNS: MORE PUMPING MAY BE NEEDED

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