Sunday, August 9, 2009

Inflation Examination

Inflation is an economic Lynching of the world’s poor. For the purposes of this discussion, We will focus on how Inflation effects American’s. As I have previously pointed out, Inflation is the main mechanism of the workers of inequities. Inflation ensures that the price of goods continues to rise, while real wages remain stagnant. It had been ten years until the minimum wage rate increased in 2008. If inflation over this period averaged 4% annually… That would mean $5.25 per hour in 1998 was worth a little less than $2.50 per hour (when adjusted for inflation) in 2008. This is where We see the extreme divergence, between those that have and those that have not….

The stock market is a computerized program that is designed to well outpace inflation. If the stock market’s historical averages did not outperform the rate of inflation, consumer confidence would be lost and people would stop investing their money. If the stock market averaged returns of 5% annually, why would people take any risk, they could put their money in a Saving’s account. The stock market has to reward people for their risk.  It not only needs to outpace inflation, it has to outpace other investment opportunities, in particular the long-term Government bond. We will examine the ten-year bond for the purposes of this discussion. The Government has metrics and parameters that ensure reversion to a mean over different lengths of time. If you buy a ten-year $250 bond when you redeem it in ten years it will be worth $500. This breaks down to a little more than 6% annually (6% a year compounded annually comes out to 96% over ten years). The stock market is then going to historically average between 7-8% annually over this same period.

It is formulaic. The stock market thrives on capital investment, if they did not outpace the Government bond, which is perceived as safe and secured, people would have no incentive to take the added risk of equities. Pension funds, Retirement funds, 401k’s etc. would all look for alternative investments, or just give their money back to the Government and earn 6%. There would be no need for funds for that matter. You would just buy directly from the Government. The Government made that money in order for it to be spent and to generate more commerce…They don’t want it back.

The Government ensures inflation by artificially inflating the price of commodities. The only commodity of any importance to inflation is the price of Oil. The government owns and controls the entire supply. By increasing the cost of all businesses fuel, it ensures the price of goods reflect these increased costs of doing business. This makes certain that money never stays on the sidelines. The second money is taken out of action, there is an opportunity cost and the money’s value subsequently disintegrates. If you build something with it, that is great too, it fuels industry.

Going back to this divergence of rich and poor. The poor live pay check to pay check. They do not have money in their checking account, they cannot even begin to think about investing in the stock market. Let’s examine what happened to the poor person’s money over this ten-year period. Their salary remained $5.25 per hour, from 1998-2008. Over this same period inflation rose 4% annually. 4% over ten years equals 40%, then you have to compound that which adds another 16%. Real wages went down a total of 56% over this ten-year period. That is how I got to less than $2.50 per hour in wage deflation.

Now we will consider what happens to professionals who earn a living. This means that they do not get paid per hour and they make more than they spend annually. They are therefore, able to invest their excess capital in the stock market or other business ventures. Doctor’s, wall street executives, lawyers, and the insurance industry all charge for their services relative to inflation. Lawyers who charged $100 per hour in 1998 are charging $200 per hour in 2008. If one of these professionals decided to invest $100,000 in 1998, they would probably have averaged 8% annually. They would have $244,000 in 2008. This is also assuming they were not adding to their savings over this ten year period. Not to mention, if they are able to save over a ten year period, they probably already owned property. If they owned a half million dollar property that appreciated 4% annually, they would have increased their equity in their home by over $250,000. You see the tales of these two stories. The people on the bottom who were hardly existing in 1998 have been cut in half by the time 2008 rolls around. The wealthy individual who had $100,000 in equities, and $50,000 equity in their home in 1998 (we assume it was just the 10% they originally put down)…This household has now increased its net worth from a $150,000 1998 to $550,000 in 2008. These are definitely two different stories. One story is the Brady Bunches, while the other story is a Tales from the Crypt.

Consider these different professions that I just mentioned. The one thing they have in common, they all require a college education. To become a Doctor, you first need to attend schools that are either private…Or live in a neighborhood where the public school is too far away for inner city students to be bussed in. I live in Los Angeles and the best school district in LA is Las Virgenes School District. The reason for this is because the students from South Central LA cannot be bussed that far. They travel over an hour every day, to and from the hood, to Woodland hills- Taft high school. Las Virgenes would be about 20 minutes beyond that. Not coincidentally, William Taft was a slave owner and one of the founding members of the Skull and Bones. Headquartered at Yale University (the first Ivy League School), however, their international headquarters is in Germany. They got their name because they crucified Jesus in the town of Skull. If they sacrificed Jesus, what do you think they are teaching at these Ivy League schools regarding morals? Everything that I have just stated is irrefutable fact, people can see a list of Skull and Bones members here:

http://en.wikipedia.org/wiki/List_of_Skull_and_Bones_members

The Skull and Bones main headquarters are in Germany, this should hardly be surprising. NATO’s headquarters are also in Germany. It is all about the money! The members of the Euro are the same members of NATO. The only non member of the European Union who is also a member of NATO forces is America. America is in the club, but they do not use the Euro, they use the greenback. The Euro, The Pound, and The Dollar are the equivalent of American Express Titanium cards. Which is an appropriate metaphor, since their currency is backed by military grade machinery. These are the countries that determine what other countries money is worth. By them all uniting to share a common currency, they are allowing people in their club. One of the other major factors for inflation with commodities in developing countries is currency transaction costs. Every time they want to trade with a neighboring country, they have to pay conversions fees for currency exchange. These transaction costs, cause the price of goods to skyrocket. What the European Union did was establish a single currency among their members. This group consisted of members of the World Bank. The World Bank collects money doing all of the world’s currency exchange. It makes no sense to charge member countries transaction fees, when the money is going to be redistributed back to them anyways…Hopefully it is becoming clear why NATO has their headquarters in Germany.

The list of Skull and Bones membership that I provided only has the name of American Savages, it does not have the full listing of NATO heathens. They are not racist at all, they come in all different colors of hatred. Iran, Saudi Arabia, Egypt, Israel, China, African Governmental leaders…While they might all be of different races and ethnicities, they all share a common hatred for humanity and Love. Not so ironically, the reason they are able to control the world is because they are unified in their greed and hatred. In order to control the entire human population, they had to divide everyone. They accomplished this first through religion, and then via racism. The Saudi family and the Bush’s kiss each other on the lips and act totally homo-erotic when they are together. In Saudi Arabia where Sharia Law is mandatory practice for all those that live in the country. You are beheaded for being gay, as well as for practicing any religion other than Sharia Law. The inference being anyone who is not Muslim should be put to death. How come the Saudi Family play’s grab ass with The Bush’s, Cheney’s, Valdimir’s, and Charles’s of the world, every time they see each other? Divide and Rule is the basic premise of their club, they are unified in spreading this agenda.

The founder of the NAACP was a black man whose ancestors were documented slave owners. He was also the man who helped to oversee the Tuskegee Experiments on Negro Sharecroppers, WEB Du Bois. The subjects were first inoculated with Syphilis and then studied for 50 years, while scientist monitored the progression of the disease they had given them. These experiments continued for forty years after a vaccine for the disease had already been released by the Military. Du Bois of course studied in Germany and worked with Stalin in Russia. This was the statement WEB released upon hearing of Stalin’s passing.

In the March 16, 1953, upon the death of Joseph Stalin, Du Bois controversially wrote of him:

Joseph Stalin was a great man; few other men of the 20th century approach his stature. He was simple, calm and courageous. He seldom lost his poise; pondered his problems slowly, made his decisions clearly and firmly; never yielded to ostentation nor coyly refrained from holding his rightful place with dignity. He was the son of a serf but stood calmly before the great without hesitation or nerves. But also - and this was the highest proof of his greatness - he knew the common man, felt his problems, followed his fate

To call Stalin a mass murdering homicidal maniac would be putting it mildly…It would be the equivalent of saying Hitler had poor judgment, but his heart was in the right place. That was what the founder of the NAACP had to say about Stalin. Look up Stalin’s Wikipedia page, you can count over 2,000,000 dead bodies he was responsible for. That is only the numbers that Stalin’s Government reported…It makes you wonder whose rights the NAACP is protecting?

People have become so blinded from the truth that they think that the color of a man’s skin will dictate the content of their character. NATO and the rest of the Skull and Bones know this to be a total fallacy. If being black meant you had character, then the Skull and Bones would never have allowed Barack to become President and Oprah to become the most powerful woman in Media. This is a good lesson to all followers of Martin Luther King, Haile Selassie, and Bob Marley who sang the speech they both read. Until the color of a man’s skin is of no more significance than the color of his eyes and until people are judged not by the color of their skin, but by the content of their character…There will always be War. Barack is a perfect illustration of this fact and I hope he will serve Us well in the future, as a final footnote on this fallacy. Crackers come black as well. Crack er is in reference to the slave masters who cracked their whips. Just because nobody has ever seen a black cracker before does not mean a black person cannot be a cracker. People should examine the meaning behind the words they use and not be so literal.

 All of the Bush’s and Rockefeller’s names are on the list of Skull and Bones membership. Potter Stewart who was a supreme court justice. James “Jesus” Angleton who is considered the “mother” of the Central Intelligence Agency. Their Jesus is called the Anti-Christ. The Heinz family are also listed as members. Therefore, it should not be surprising to find Senator Jon Kerry on this list. Current active members according to the registry include Robert Gates who is the current leader of our armed forces. As well as, Auston Goolsbee, who is Barack Obama’s Chief Economic advisor (surprise surprise). People might want to stop holding their breath for Barack’s Change. You will just end up with a Red, White, and Blue Face. It is no coincidence that the two members on that registry are heads of Finance and Military.

I smoke herb, so I have a tendency to digress at times. My mind does not work in a linear fashion. I might take you on a bit of a journey, but I always stay on point. We were discussing opportunities for inner city kids, when I started talking about William Taft and the rest of his fraternity of blood brothers. Poor students are forced to take a one-hour bus rides to and from school and they are not even being afforded a decent education. The reason they decide to take the bus is because the schools in their neighborhoods are like prisons. The only difference between their schools and prison, it is easier to sneak weapons into their schools. The only chance they have of making it out of the hood is receiving a decent education (besides ballin or rappin).

Unfortunately, a high school diploma is worth nothing. They cannot afford to pay for their college tuition. For them to attend college, they would first need to somehow have learned something in school. Nobody learns anything in school, but in order to go to college, you need to learn what they teach you. They first need to do well enough in school and on their SAT’s in order to get into a decent college. Then they need to apply and get accepted for a loan. After doing all that, they have to pay for food and other living expenses while attending college. Having to work at least part time, depending on the loan. When this person graduates, they will certainly be in debt until they are at least 30 years old. That is a much tougher path, then the child who went to private school. Had an SAT tutor and then applied to college. Their father was successful so they were able to attend medical school without accumulating any tuition debt. Once they have completed learning how to torture people under the guise of treatment, they then earn six figures a year for the rest of their life and they start out zero dollars in debt. All they have to do is mutilate a few people, and prescribe the poisonous medicine their Medical book suggests. General practitioner’s have the best job of all. They ask people where it hurts. Depending on the region their patient points, they then refer that person to a specialist. They don’t need to know anything, they just need to know what areas go with what specialist…

This is to say nothing about inheritance of assets. The wealthy have trusts set up, tax shelter’s, clever accounting schemes in order to preserve wealth. There is nothing wrong with cheating the Government out of their money, they are cheating Us out of Ours. But those who are less fortunate do not have the same opportunity. If someone managed to pay for a little home and accumulate some equity. When that person dies, the Government takes half in estate taxes. If someone dies and their entire net worth is represented in home equity value. This individual’s family is forced to sell this property immediately, in order to give the government their half of the pie. Often times, people are forced to sell at below fair market value, in order to feed the monkey. They did not purchase a last survivorship policy that would pay off the Government’s equity share of their estate.

These workers of inequities are completely heartless. It seems that their thirst for greed and power can never be quenched. They make more and more and pass more and more along to their children. Their greed just grows and grows, they are taught that the accumulation of material wealth determines a man’s worth. They take their inheritance and try to compound this money and grow their fortune. This sets a precedent for those who follow these rulers, and captains of industry. People want what they have, the money, power, private jets, luxury yachts, and vacation homes on their own islands. The more people think they need, the less they care about others needs. If everyone is looking up at the next guy and what they have… Nobody ever looks down to see the people on the bottom who are suffering. The only way that society can improve it’s Love and humanity, is by helping out those less fortunate. People do not concern themselves with those who are less fortunate, they got their eyes looking up.

They have to worry about inflation and what the employment numbers are telling them. Not because they care that 200,000 humans lost their jobs (they are hoping they did), these numbers will determine whether the economy is growing or shrinking. Depending on what the numbers indicate, the Federal Reserve will either increase interest rates if people are gaining jobs or decrease rates if people are losing them. Wall street is then hoping for high unemployment, the government will then lower interest rates in order to make borrowing money cheaper. This cheap money can then be used to build out infrastructure, build new homes (because mortgage rates go down), thus requiring more jobs. Do you see how sadistic their system is, if people are getting jobs, it is bad for wall street, so they have to raise rates, reduce borrowing, and stop building. Thus shrinking the economy.

The rich have no ceiling and the poor have no floor (that is why Bob called it the bottomless pit). Fortunately, the bible says the last shall be first again, the poor cannot fathom how high they are going to get. While the rich have no clue as to how far down they are going to go. Jimmy Cliff tried to warn them…

Babylon’s entire system amounts to one gigantic illusion. In my next piece Economic Illusion, I examine just how much of an illusion this system they have Us all living in really is.

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