The Biggest Casino in the World

Inflation is controlled by the Government.   Inflation benefits the Government.   The Government has incentive to create inflation.

Welcome to the biggest Casino in the world!

The root of the problem is that nobody can simply save money any more.    We cannot put $10,000 in a safe in our house, because unless it is in a bank, it will not earn "interest."    Note that the current annual interest for $10,000 is probably around $50 in a 'high yeild account'.

So what are we good citizens told/forced to do with our money?   Invest it of course!  

We producers are FORCED to risk our hard earned money (storage of work) into a system filled with fraud, politics, and outright theft.

What if I don't want to risk my money.   What if I just want to earn money, save money, and put it somewhere safe?   Then you lose the value of your money to inflation.

The American stock exchanges are the biggest casino in the world.

Because of inflation, producers(workers, you and me) are forced to invest in stocks, which they know nothing about, which they cannot control, and which can lose their entire value in hours.

When an individual buys a single stock, that individual is saying "I think the value of this stock will go up"   What most people dont realize is that millions of other people have said the same thing, and because of the laws of supply and demand, millions of other people have brought that stock price into equilibrium already, so that stock has equal chance of going up or down.

Let me try and say this a different way.    Because of open information(everybody has access to stock information) and the laws of supply and demand, the stocks price already reflects its likelyhood to go up or down.

When a single person buys a stock, they are getting on a mountaintop and yelling "I'm smarter than everybody else" because they think the stock will go up more than anybody else.

So we've all been told, that for what equates to no benefit (unless your smarter than everybody else) that we need to put our money somewhere where it is susceptible to the following things:

-Theft (Benie Madoff)
- Insider trading
-Corruption (Enron?)

Some people might say "But the average return for the stock market is 8% / year.   I'm doing great!   Well kind of.

Once you take out inflation, the stock market hasn't really changed value since 1998.


Also note that this chart (located here) is using the Government released inflation numbers..

Now we are ready for a good laugh.    If you read my last post on inflation, you know that the government changes its definition for inflation in 1981.  If you look at chart above.   Since 1981, the Dow Jones has gone up up up!  Its only gone up because the definition of inflation changed in 1981.

I would bet 1 Bitcoin, that if the above chart used the 1980 definition for inflation the entire period, then it would be essentially flat.   We producers in the economy are FORCED to INVEST to protect ourselves from INFLATION for NO BENEFIT.   We risk our dollars ONLY to maintain the same purchasing power those dollars had when we earned them.   The only reason the stock market goes up, is because of inflation.

Another way to look at this is like this.   When I graduated from college around 2005 I think the economy was pretty hot (or getting hot).    The home building book was creating jobs, spreading money, and if I remember right, the health of the economy was generally good.    The stock market hit a high of about 14,000.

Today we have a cancerous government debt, high unemployment, higher under-employment, with an generally bad outlook, but the stock market is at 15,500?    So your telling me that the economy is better today than it was in 2005?   I call bullshit.

So the thought for the day on this post is, Where can I store money work(money) to protect it from inflation?

  The answer is quite simple.   Gold, Silver and Bitcoin.  

I haven't done enough research, but the generally theory is that gold and silver prices are manipulated by the government and banks.    Silver holders and producers are allowed to sell "paper silver" which is essentially a 'promise to deliver silver'.   I believe they are also allowed to leverage these promises, meaning 'I can only produce 100 ounces per day, but i'm allowed to sell 200 ounces per day.

This messes with the laws of supply and demand, and keeps prices low, perhaps to hide inflation?

I am a generally successful person and I dont own a single stock because I dont believe the system is honest.

The system is corrupt.   The system behaves like a technological dinosaur.   The system is ripe for change.  Bitcoin is that change.