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Forum Post: Why is your standard of living declining?

Posted 6 years ago on Feb. 28, 2013, 8:54 a.m. EST by john32 (-272) from Pittsburgh, PA
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[-] 1 points by grapes (5232) 6 years ago

The productivity-per-hour and the hourly-compensation curves diverged around the time of the Arab oil embargo in response to the U.S. backing up Israel in the Yom Kippur War. The price of oil jumped greatly igniting inflation (the U.S. had just started going through its peak oil) and a run on the U.S. gold reserve. Nixon having expanded the VietNam War into Cambodia and run up the costs of the VietNam War (though Lyndon Johnson was involved, too) had closed the gold window and ended the convertibility of the U.S. dollar to gold.

Later on, our Federal Reserve 'discovered' the magic of the out-of-thin-air creation of credit. Hourly compensation (in fiat money) can then keep on increasing WITHOUT really increasing after the adjustment for inflation while real things produced retained their values and debts even became great wealth producing tools. That was the Wizard of Oz behind the curtain. Hoi Polloi fell for the nominal compensation trick and yes, improved competitiveness (really a codeword for more profits for the powers that be by pitching hoi polloi against hoi polloi). Ditching gold allowed the flights of fancy until the dung beetle gets crushed by the debt ball that it has rolled.

[-] 1 points by HCabret (-327) 6 years ago

My 'standard of living' has nothing to do with how much money and stuff I have, or whether or not I live in a progressively larger house or has a car or more than 1 one.

Voluntary poverty is far better than being rich.

[-] 0 points by john32 (-272) from Pittsburgh, PA 6 years ago

I agree with that...it's relative to everyone.

What i will say though is that raising three kids and having a spouse is much more difficult in todays climate because of what is talked about in the video above

[-] 1 points by HCabret (-327) 6 years ago

Less new human beings for at least a little while=good

Im indifferent on whether people get married or not; that is their problem, not mine.

[-] 0 points by vaprosvyeh (-400) 6 years ago

Isn't more difficult relative too? I'm sure having a spouse and three kids during the pioneer era was no picnic. Raising your own crops, sewing your own clothes, depending on the right amount of rain and the right amount of sun to survive? One good storm destroying all your security?

Life has never been anything except difficult in one way or another. We make it more difficult for ourselves when we buy into the idea that our kids have to have what someone elses kids have or we're not good parents. Or when we view ourselves as victims instead of realizing that compared to the world standard, we're the luckiest damn people on the planet.

[-] 0 points by john32 (-272) from Pittsburgh, PA 6 years ago

I guess I mean...we could comparatively buy more goods with less money. Or put in the same amount of work and get more goods out of it than we can today.

[-] 1 points by TrevorMnemonic (5827) 6 years ago

INFLATION caused by a corporate takeover

[-] 1 points by PublicCurrency (1387) 6 years ago

Good video - astonishing really . . .

Before the Federal Reserve Act of 1913 there was no Federal Income Tax. All federal money was obtained by taxing imports.

Also, before the Federal Reserve Act of 1913 - there never was a world war. Without the U.S. the Europeans could not have funded a world war as the "Money Masters" had already drained their wealth through their many wars.

[-] 0 points by john32 (-272) from Pittsburgh, PA 6 years ago

Yes...the system allows perpetual wars to be fought while secretly destroying our standard of living....it's criminal.

[-] 2 points by PublicCurrency (1387) 6 years ago

U.S. currency is a public asset because the value of our currency is based upon trust in our people and our system.

Q: Why do Americans pay interest on the useage of our currency: an asset which they own.

A: Because ALL of our MONEY originates as a loan from a private bank (except coins).


[-] 0 points by shoozTroll (17632) 6 years ago


'Nuff said.

[-] -1 points by vaprosvyeh (-400) 6 years ago

I believe he's pointing to the Federal Reserve being the problem.

[-] 0 points by shoozTroll (17632) 6 years ago


The FED is their fall guy.

They should have no problem selling that to you.