Do You Feel Poorer?


You feel poorer because you are poorer.

In the last fourteen years, has your income increased over 50%? If you think it has, has it done so after taxes? Even if it has, you likely have not kept up in terms of inflation.

If you are a retiree, living on fixed income, a pension or bonds, you certainly have become poorer. If you had bought the Dow-Jones on 12/31/1999 you would have entered at about 11,500. It closed last week at less than 17,100. That would have been an appreciation of 6,600, better than 50%. But, of course, that was before taxes.

As a retiree, you have seen your purchasing power stolen by Fed policies. Whether you invested in fixed income or equities, you lost ground. Anyone in that position has seen their lives become poorer despite a lifetime of successful work and careful financial planning.

For those still working, most are losing purchasing power each year. Wages are not keeping up with inflation, even the understated numbers reported by government. In short, the decline of a once-great economic power is well underway. The country is no longer growing enough to raise everyone’s standard of living.

Government has killed the golden goose and in an attempt to hide the obvious is debauching the dollars. Government tries to hide their own failure with phony statistics and a welfare state designed to placate the masses. Bread and circuses are deceptions not progress.

This charade will not work! It is merely a futile attempt to prolong the Ponzi scheme for a little longer. While the process continues, the parasites who plunder the productive ready expand in numbers. The productive either give up or remove their capital from the country. Those who stay build compounds with the walls around them to protect against the   soon-to-become enraged masses. Bread and circuses precede poverty. They don’t continue through it.

To understand the loss of purchasing power, look at this series of items: Continue reading

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