The League Of Power
Is This What You Wanted?
Hello again, and I hope you’re sitting down…
As promised, I’m going to explain what I’m simply referring to as The Great Inflation, because it’s going to affect you, and it’s going to happen faster than people think, albeit in an insidious way.
Of course, what you’re going to read now is only my opinion. I may be wrong, but the evidence isn’t pointing that way, and I’m not alone in this inconvenient thesis. In any case, keep an open mind and don’t let your mind be swayed by how you’d LIKE things to be, but how things ARE. I say this because a significant number of comments we get from readers are, while positive, suggesting that they’re living according to how they would LIKE the world to be, not how it IS.
I’ve written at length in these newsletters about fantasy and reality and I’ll come back to it another time, because this seems to be a disease that is spreading, and it’s a disease that’s dangerous for your wealth, because reality is where money is made, not fantasy (and my base assumption is that you’re here because you want wealth, success, freedom, health, and all that good stuff). And what I’ll explain here today is as much as OPPORTUNITY as an impending crisis.
I hope you don’t mind, but I see you as a friend that I speak to every week. A TRUE friend tells you the truth, however uncomfortable that truth is. Most ‘friends’ tell you what you want to hear. If that’s the kind of friend you want, listen to the mainstream media. They tell you what you want to hear because they need to sell ad space and please their sponsors. I have no obligation to anyone other than YOU when I write these letters.
So please let me set the stage for the government-induced drama that’s about to play out…
Long-time readers will know I’m not a big fan of The Federal Reserve. For years now we’ve been trying to alert you about their legalized counterfeiting program they risibly refer to as “Quantitative Easing”. The whole world swallowed this nonsense without a single raised eyebrow. And don’t think I’m singling them out, because most Western governments are at it: the UK, Europe, Japan. Norway stands out to me as the only country that seems to be able to balance a checkbook.
There is nothing “Federal” about The Federal Reserve. It’s a private organization that was formed by bankers on Jekyll Island in 1913. It is charged with making a profit. And it doesn’t have any “Reserves”, that’s just a play on words to instill confidence.
As we’ve witnessed economic crisis after economic crisis (induced by greed and corruption by The Fed’s buddies on Wall Street), the masses cheer as the good ol’ Fed comes to the rescue and puts the bounce back into the market’s step.
This is why speaking this way with many people is so unpopular- because The Fed are perceived to be the heroes who make the monster under the bed go away.
But there’s a price to pay for this protection…
If you read the classic H.G. Wells novel, “The Time Machine”, or watched the film adaptation, you’ll recall that the inventor of the time machine races into the future to experience what appears to be a utopian existence on Earth. In this utopia, nothing bad ever seems to happen to a race of pretty humans called “Eloi”. Food is provided in this paradise as if by magic. They live in blissful ignorance, and the libraries have turned to dust because nobody needs to know anything anymore.
But there’s a secret price for the Eloi to pay, as it turns out. A race of grim monsters called “Morlocks” live underground and provide the good life for the Eloi, but the Elois are all ultimately doomed as the Morlocks take them for sacrifice in payment for what the Morlocks provide.
Consider The Fed as the Morlocks, and your good self as a humble Eloi. Good fiction authors are always trying to warn society about injustices they see all around, albeit in a metaphorical way...
As you don’t want to end up like those happy but ignorant Eloi then, let’s have a little history…
After the Second World War, a system similar to a Gold Standard and sometimes described as a "gold exchange standard" was established by the Bretton Woods Agreement. Under this system, many countries fixed their exchange rates relative to the U.S. dollar, and the dollar became the world’s reserve currency. This effectively meant that anyone could exchange their dollars for physical gold.
As the US struggled in the 60s with a bad balance of payments, mostly because of The Vietnam War, foreign countries such as France took America up on this promise and started cashing in their depreciating dollars for gold.
And in response to this, Nixon slammed the door in 1971 and ended the Gold Standard (known as The Nixon Shock). Since then, our government has been on what is called a ‘fiat’ currency, that is, a currency that is only worth as much as the promise of a politician, it’s not linked to anything of intrinsic value.
**Sponsor**
hiveblocks