Why Americans are Broke

15 Apr

Why Americans are Broke

Hint: It’s Because of the Money!

Doesn’t it feel like we are seeing stories like this more and more often?  58 percent of Americans are living paycheck to paycheck according to a CNBC poll.  

The people have no savings.  It’s a mystery why this should be a mystery.  It happens because Washington clearly is at war with savers.  It’s a pretty old and reliable rule of thumb:  if you penalize something, you can generally expect to get less of it.  And… the state sure does penalize saving!

You know it does, because every dollar you save loses purchasing power hand over fist.  By design.  

You can think of inflation as rising prices, and you would end up befuddled.  But if you learn to see inflation for what it is, a decrease in the dollar’s purchasing power, then you’ll understand that the American people are being punished for saving.  It’s because of inflation.

Imagine you locked $100 dollars up in the bank for a year.  When you take the money out to spend it, you will discover that thanks to the deep-state money manipulators and their money printing, your dollar buys less.

Exactly!  Then why save if it makes you a guaranteed loser? 

Here’s a chart we borrowed from David Stockman.  It shows in green the declining purchasing power of the dollar since 2000.  Down, down, down.  

Then why save dollars?

The other lines show the increase in consumer prices over the same period.  The overall CPI is shown in blue.  The red line is the rising index of food prices.  The purple line shows the increasing price of energy.  Up, up, up.

So perhaps we should understand when we learn the people have no savings it is because the waning purchasing power of the US dollar disincentivizes saving.

In a gold based monetary system, people are very likely to be saving.  Because gold is good money.  As we like to say, they can’t print more gold.  

Gold investors know a thing or two about wealth preservation.  To learn more, speak with a Republic Monetary Exchange gold and silver specialist today.