He has the right of it

 

Aesop, whom we've met in these pages on many occasions, is back from his blogging hiatus and demonstrating that sarcasm, acerbic wit, and not giving a damn do, indeed, convey points of view very well.  Here he is discussing the US dollar and fiat currency in general.

Wages since 1985 have cratered. Case in point, my parents' combined household income in 1985 was at the 50th percentile at the time, i.e the mid-point, nationally. Or notionally. Mine is currently at the 90th percentile nationwide, all by my ownself, IOW, better than 90% of US households. But for me to have the purchasing power they enjoyed near the household median in 1985, my paycheck would need to be larger than it is by seven- to ten-fold. IOW, I make 500% of what mom and pop did, yet the purchasing power of my income is only about 40% of what theirs was then. That's how much nothing my fiatbux "Real wages" command currently, and how badly "Real wages" have dropped.

Gold is gold, which is why the spot price is USD$4500/oz as I write this, compared to +/- USD$300 in 1985. That means a dollar in 2026 is worth less than 7% in real terms what it was 40 years ago.

. . .

For Common Core grads, that means your dollar now is worth less than 5/1000ths - 0.005% - of what a dollar was worth in 1932. ($1 x 0.065 x 0.07 = 0.00455. QED) A dollar currently is worth less, in real terms, than the cost for the ink and paper to print it. Maybe write that down on your hand in Sharpie, lest ye forget. We don't need zinc pennies anymore, because $1 bills are the new 1/2¢ coin. And the only people who've figured that out are EVERYONE who's selling you anything, worldwide, and why all your s***, from cars to houses to Happy Meals,  has zoomed in price. Gold hasn't zoomed. Your dollars are simply worth Jack, and S***. That's how inflation works, with the Treasury printing fiatbux three shifts a day, and inflating the unbacked money supply by trillions, year after year. Fun times, dead ahead. 

. . .

This reality is why Fiatbux - dollars, francs, yen, renminbi, whatever - are all finely engraved toilet paper. Don't make me do a retard crayon talk here. The only things that have cratered harder than "real wages" since 1985 are Russian armored regiment performance, or possibly Minnesota fraud investigations. Even Catholic church child abuse investigations have improved more than real wages since 1985. To suggest otherwise makes CNN economic reporters and hosts on The View sound wise. 

. . .

Sometime between tomorrow and death, most of the world is going to discover firsthand what the inhabitants of Weimar, Zimbabwe, and Venezuela all learned about financial reality. It isn't going to be pretty. In a Wile E. Coyote running off the cliff kind of way. Mind the drop.

Just saying.

There's more at the link.

Of course, he's saying nothing new to those of you who've been following our discussions on this blog over the past few years.  We most recently addressed the problem less than a week ago.  Nevertheless, there are relatively few people, in my experience, who actually understand the issues and/or will reorient their lives in such a way as to live according to reality as it truly is.  Most people will continue to spend money, not on things of lasting worth or that will retain their value, but rather on what the Bible calls "riotous living":  weekends in Vegas, fashionable clothes, fancy frou-frou imitations of coffee, and so on.  If most people would spend on true necessities what they spend every month on such fripperies, they could prepare themselves and their families for hard times and sleep easier at night.  However, most don't bother.

If you want a glaring example of evidence about our present situation, it's actually the absence of a piece of evidence.  It's simply this:  What happened to the audit of US gold reserves in Fort Knox that we were promised?  Where is it?  Where are the results?  The subject has literally vanished from view.  My conclusion is that it's being deliberately suppressed;  and if that's the case, then I can only assume that our gold reserves simply aren't there any more.  Where they are, and/or what happened to them, I have no idea:  but if we had them, there's no reason at all why we, the people who (in theory) own them, just as we own (hah!) our government, should not be told about them.  I'm pretty sure the powers that be understand full well that if they aren't there, they no longer underpin the value (such as it is) of the US dollar, so they'd rather ignore them and pretend the problem doesn't exist.  Trouble is, after we've been lied to and misled so often by so many administrations, nobody with two or more working brain cells trusts the deafening silence which is all we hear about the subject.

(If you think differently, I have this bridge in Brooklyn, NYC I'd like to sell you.  It's beautiful!  You'll make a mint out of charging people tolls to cross it!  Price on application.  Cash only, please, and in small bills.)

Oh, well . . .

Peter