Congratulations! You Just Got a 5% Pay Cut

Typically most Americans would be thrilled with a 5% pay raise from their employer.

This past month, everyone in America just took a 5% pay cut, courtesy of the criminal Federal Reserve.

You see, the criminal Federal Reserve has been busy buying up bonds from the Treasury and pumping the markets full of phony money to the tune of billions per week.

The Treasury prints up some notes with some pretty pictures on them and stamps them with the number “10 billion” – and then hands these notes to the Fed, who then hands the Treasury 10 billion in dollars. The Fed then collects the interest on these bonds through the IRS system which holds a gun to the American publics head. The Fed then hands this interest earned back to the Treasury, which in turn hands the Fed new bonds. Of course, the Fed takes a nice cut of the profits off the top in all these exchanges.

This act of buying up our own debt pretty much has the same effect as running a printing press. It creates “new money” which is then dumped into favored corporations, government special interest groups, and all other manner of crony banking/financial/industrial treasonous institutions.

As we all know from economics 101, when there is more of something, its value declines. So it is with our phony dollars. As the Fed engages in this criminal counterfeiting operation, it is devaluing all the dollars held by the public.

Thanks to the Feds actions, this past month the Fed has managed to devalue your paycheck by 5% when compared to gold and by 6% when compared to the Euro. Eventually this will result in higher prices for all goods as the new money works its way through the economy.

Of course, those who get the new money first get the most benefit, since prices have yet to adjust upwards.

Of course, that person will not be you.

www.bloomberg.com…