The Truth About Competitive Devaluation: Opinion
VANCOUVER (Silver Gold Bull) -- It is common knowledge the U.S. dollar has lost approximately 98% of its value since 1913. That was the year the Federal Reserve was given a monopoly to print all U.S. currency, In exchange for that colossal privilege it was given a statutory mandate to protect the value of the dollar.
How/why has the Federal Reserve been such a total failure in its statutory mandate? The most obvious reason is these private bankers never had any intention of protecting the value of the dollar. As I explained in Crime of the Millennium it is the printing of these paper currencies (in grossly excessive amounts) that has allowed bankers to perpetrate all of history's greatest acts of collective theft. The more they print, the faster they can steal.
Naturally, the other corporate oligarchs are wholeheartedly in favor of this institutionalized program of theft-by-currency-dilution since they are also big winners. As the value of these paper currencies are (deliberately) destroyed by banker over-printing, the inevitable (and immediate) consequence is that the wages of all workers are rapidly driven lower in real dollars.
Regular readers will recognize the chart below, showing how (in real dollars) the average wages of U.S. workers have been falling steadily/rapidly for over 40 years. The result is that average U.S. wages have fallen by more than 50%, all the way back to Great Depression levels.Meanwhile, management hand themselves raises many times in excess of the actual rate of inflation, effectively stealing the wages out of their own workers' pockets. (Chart courtesy of http://nowandfutures.com/index.html.) As a result of this corporate mentality of robbing from the poor (workers) to fatten the rich (management), the average wage differential between senior management and the median worker wage is up from the traditional range of between 3:1 and 10:1 to a ratio (in North America) of between 100:1 and 1000:1. Translating the above numbers is simple. While ordinary workers have seen their own paychecks slashed by more than half, some members of U.S. management are being paid in excess of 30,000% more than their actual worth, based on hundreds of years of wage data.
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