2011-07-25

How the Government is Stealing Your Food?

For starters, is the United States Government really "stealing your food?"

Absolutely...

How is this happening?

Well, the way it works is, rather than intervening in grocery stores, or factories where all of this food is produced, the government (via a secret organization that is only required to reveal a fraction of their financial dealings) instead intervenes earlier in the process... in your pocketbook and bank account.

Essentially, what they do is alter your money in a special way so that when you go to the grocery story, the grocery store will actually give you less food than the same money could buy just a few weeks ago.

This occurs in a series of steps. Let me explain...

STEP 1)
It starts at the top. The "theft" begins when the Federal Government needs some money. They call up the Federal Reserve and ask for help. The Federal Reserve is the small and secretive group I've alluded to. They're like the Government's own private bank. They have enormous powers. And next to no oversight.

STEP 2)
The Federal Reserve says "sure, we can help you." They loan the Government some money. And the Government promises to pay it back.

Of course the Federal Reserve doesn't have any real money to lend. But what they do have is complete control of the financial system in the United States. So they basically end up printing new money out of thin air. The Government doesn't really intend to pay this money back either. But they do print some Treasury bonds – some IOU's – and give them to the Federal Reserve to hold onto... just for good measure. Of course, these days, all of this happens electronically, with a few strokes of a computer keyboard.

Since 2008, the Fed and the Government have created nearly two trillion dollars this way.

STEP 3)
This is where the theft reaches you. You see, each new dollar created out of thin air this way must get its value from somewhere. Where does it get it?

It drains it from the existing money.

Every time this happens – every time a new dollar gets created out of thin air – a little bit of value is stolen from the money you currently hold.

This is what most people refer to as "inflation." Check out the videos and examples in inflation explained.

Two comics that illustrate the situation:



Image source: http://www.flickr.com/photos/teohyc/3379282068/sizes/o/in/photostream/