Once Again, the Fed has Robbed You. (Yes, You!)

“It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

- Henry Ford

Ever wonder why no one ever mentions that every time the Fed cuts rates, it weakens the dollar? Wall Street always hails this action as a positive step - a boost to the economy - but no one ever seems to mention that each such rate cut is yet another transfer of wealth from your pocket into the pockets of Wall Street Bankers and Fed members.

How can this be? It’s quite simple, really. A rate cut is generated via an expansion of the money supply - basically printing money. Bankers love this, because it provides them with more liquidity to lend out at a profit. Businesses love it for similar reasons. Yet no one speaks of the consequences: devaluation of the currency.

Consider this - the last time the Fed cut rates, did you get a raise? How about the time before that? Or the time before that?

Chances are the answer is no. In fact, the opposite is most often true. How can that be? Well, let’s say you earn $75,000. The Fed cuts rates, and your salary remains at $75,000. Yet because the fed has devalued the dollar via its actions, that $75,000 is actually worth less than it was before.

There’s no better example of this than the price of gas. Gas has gone up 300% in recent years, right? Yet if you price gas in gold, it has been flat for over a decade. Gas has not actually become more expensive, the dollar has gone down. And when the dollar goes down, so does your salary. After all, who cares if you earn $100,000 a year if a potato costs $1000?

Look at the staggering pace at which prices for every day essentials like gas and food are going up. Food is up 15% so far this year, and it’s only getting worse. Yet on May 1, the Fed chose to exacerbate the problem by cutting rates yet again.

The next time you see news of a rate cut, and watch as the stuffed suits celebrate, I want you to repeat the following mantra to yourself: “I just got a pay cut.” Because you did, along with every working American. And all of that money went straight into the pockets of those same stuffed suits that are trying to convince you that this is a good idea.

It is imperative that the American people educate themselves about the monetary system, and understand how near we are to a total collapse, because nothing will change unless we demand it.