Are you angry at the billionaire class? Then you’re going to love this…

Do you want a 100% time tested proven strategy that guarantees not only to just startle the billionaire class, but will very well end it for good? Then keep reading…

 

First let me start out by saying that I have absolutely no bias toward Democrats or Republicans on this controversial, very partisan topic. Like you, I too realize that the gap between the rich and the poor in America is absolutely out of control; however, the solutions to income inequality that are mentioned in the mainstream media is where I differ vastly. Political rhetoric does little for me, whether you just want to “even up the playing field” like I do, or you really despise the richest 1% of the 1%- the solution is the same.

 

I am writing this to let you know that in America the top 1% by the year 2020 will own nearly 70% of this countries’ wealth and there is something very powerful we can do in order to stop that from ever happening, but first I need you to think like an uber-rich person for me.

 

What do billionaires and multi millionaires love more than anything? It’s not money. Money is second to them, it is actually the power that can be bought with that money that they are really addicted to.

 

Money can buy power, but few people realize that money also has what is called purchasing power, which is the qualitative measurement of money. When the quantitative measurement, or the amount of money in circulation is increased that qualitative measurement decreases at a similar rate.

 

Simply stated: inflation is the best friend of the billionaire and multi-millionaire class for many reasons, which I will explain shortly, but it also transfers wealth out of the hands of the middle class and is an enormous detriment to the poor.

 

So the key to making rich people completely miserable, and to terrify Wall Street all while simultaneously helping the 99% is DEFLATION.

 

Now I know what you’re thinking, won’t the rich gain purchasing power? Yes, but so will the middle class, deflation is a rise in the standard of living, for everyone, but them-they’re already billionaires what can they do with stronger money? The middle class sure could use stronger money.

 

In order to really see what I’m saying you have to think like a billionaire, nothing scares them more than losing what they already have: money and power. Rich people are absolutely terrified by deflation for several reasons:

 

• they do gain purchasing power, but so do you
• the rich have enormous amounts of assets to consider: they own real estate, stocks and bonds. They constantly chart the values of these assets and watching them being sold off on wall street puts panic in their hearts
• Almost every single rich person carries enormous volumes of strategic debt, these debts will become far more difficult for them to pay off-especially under rising interest rates.
• Wall street hates deflation because stock prices go down and are far more attainable to the average middle class investor

5-Inflation built the billionaire class, therefore   deflation its’ opposite, is the only thing that can undo them.

6-Even Donald Trump has admitted numerous times that he loves inflation for himself and that it is terrible for main street. This man built an entire real estate empire during the most inflationary times that the United States of America has seen since the Greenback during the Civil War. When he purchased property in Manhattan back in the 1960s and sold it in the 1980s or 1990s, he made enormous profits on the sale. If he held on to a piece of commercial property and rented it, he was always capable of increasing rents so he made enormous profits.

7- Wall street investors absolutely love cheap money that artificially pumps up the stock market.

The target rate of inflation currently sought by the Federal Reserve is 2% annually, the average worker does not experience a 2% annual wage increase that even matches the rate of inflation, let alone beats it. Since the average rate of inflation that we are experiencing is at least 2% annually, (it is actually higher) that means every 10 years or so, the cost of living goes up about 20%. Most workers do not receive a pay increase substantial enough to compensate for that. This is the prime cause of income inequality.

Not only is deflation absolutely devastating to the 1% of the 1%, the Middle class is always hit very hard from inflation-because the cost of living increases much faster than the average wage rate. Most people, particularly on the left, do not realize that it isn’t the number of dollars per hour earned by a worker that matters, it is the purchasing power of that money that matters. You could raise the minimum wage to $15 or even $20 an hour to try and make things fair, but over time $15 an hour will become the new $7.25 an hour.

Deflation is the 100% time tested proven strategy that guarantees to undo the rich. Rich people do not make their money the same way most people do. A lot of their wealth is based on the prices of a variety of assets, not on labor. If the average laborer increased their purchasing power, meaning their cost of living went down we wouldn’t be losing the middle class so quickly.

Along with inflation comes low interest rates, these two factors combined are very punishing to savers. There was a time where putting your money in a bank savings account was quality financial advice, this has not been the case for more than 15 years now under low interest rates and Federal Reserve money printing.

Middle class people by definition are not as savvy financially as the 1%, since your return on a savings account currently is under 1% which doesn’t even compete with inflation-middle class people have changed their behavior to become investors instead of traditionally being savers. This is an enormous role reversal.

There was a time, more than 20 years ago when most people had a savings account they could depend on, and under this scenario-the bank has to work for you, the middle class, to give you money in exchange for holding on to yours.

When the banks are working for the people, like they’re supposed to, we will experience a strong, thriving middle class. When they are paying favorable interest rates to middle class people who can also make money while they sleep-which is how the rich do it, there is a higher likelihood of a sizeable retirement. This is a balanced playing field AND it keeps the banks in check, doing the right thing by the middle class. The average consumer gains power and most importantly they’re not losing any, while rich people can’t make unusually large profits at the expense of everyone else. The gap between rich and poor will narrow enormously.

Personally, all I want to see happen is that the current minimum wage becomes a living wage-which is absolutely possible and was the case in America for quite some time. I challenge you the reader to ask a grandfather or an elderly person how much money they made per hour in the 1950s. I am sure that the number will seem very low, to you; moreover, most likely your grandmother didn’t work, or she worked part time, and most likely your grandparents had more kids than your parents did.

How is this possible? That a single income family with more kids, got by easier? Well, they were on the gold standard and money could not be made out of thin air, it was based on something tangible that really existed.

If you’re a Progressive, Liberal or a Socialist, you probably aren’t too fond of the gold standard, and you probably just felt like leaving this website immediately, I get it. Well, I did too at one point, until I realized that there are two approaches to preventing income inequality, and fiscally conservative people do have a good point to offer.

You can either: have a cap on the total amount of money that can be created through the mining of a precious metal, which allows for slow moderate expansion and maintains purchasing power for everyone. The other options is allow the Boys club to create untold trillions upon trillions of dollar to the point where we haven’t even been able to study how much money is in circulation since 2006 because the Federal Reserve could not justify the amount of money it would cost to study how much money they created and lost track of and then attempt to tax some of that money back from people who know how to hide it in assets, off-shore accounts and shell corporations with no address. They have the best lawyers, the best accountants and they are very well connected to other powerful people so the chances of the rich ever paying the right amount in taxes to satisfy the needs of the people better than deflation could is impossible.

You can either cap the total amount of money that can be created, or you can attempt to beat the rich at their own game of printing money and attempt to redistribute it later. How is that going?

Now, let’s just say that you perhaps take a more radical approach than I do. Let’s say hypothetically that you really, really hate rich people from the bottom of your heart, because you think they are: rent seekers, capitalists and exploitative, then you should love deflation and the thought of not letting rich people create money at all and instead force them to move at a snails pace so that others can catch up.

The gold standard really is the gold standard, having money pegged to something tangible is the absolute best case scenario for the middle class and the poor because it maintains their purchasing power, it is truly power to the people.

Deflation is an absolute game changer, it levels the playing field and it terrifies the 1%, but let’s go even further. I want you to think about watching some wall street tycoon in a panic deleveraging an enormous amount of his assets, that if they’re valuable are in fact returning to a sort of price ‘homeostasis’, if you will. Nearly all stocks on wall street are artificially overvalued because of money printing, it creates enormous illusory wealth for these people that all comes crashing down when the Federal Reserve either raises interest rates or stops printing money. Just the whisper of the potential for rising interest rates is enough to scare wall street.

Most mega rich people invest in things that aren’t really things, like derivatives. Mortgage-backed-securities and credit default swaps are both unattainable to the average person and provide no real value to society, conveniently these types of investments are only possible when there is no gold standard.

Cheap money is the driving force behind these shady investments that are just pieces of paper, they do not really create wealth like for instance manufacturing actual tangible things that are useful to society does.   Pieces of paper multiplying only benefits the people who are multiplying them and without low interest rates and cheap money this scenario isn’t even possible. When investors invest in real things, jobs get created. Goods and services become more plentiful and society as a whole benefits from an increase in production. This is the real job of an investor, to put their money into a publically traded company that manufactures something or creates a service that benefits people. Wall street is so far removed from that reality, I’m sure some people just laughed at that statement.

Only inflation makes it possible for banks and investors to create nonsensical financial instruments that ultimately benefit nobody. When these complicated financial instruments that are truly only understood by a few men on this planet are a large driving force on the stock exchange, once faith in these pieces of paper is lost and the value of these ‘assets’ crumbles the losses are always “socialized” because the middle class has to pay for them meanwhile gains are always kept private.

The ONLY answer to income inequality is deflation and rising interest rates combined with a cap on the total amount of money that can be created through some kind of sound money. The best way I know how to accomplish this scenario that benefits the middle class is through a return of the gold standard.

In the future, the middle class is either going to work for banks or banks are going to work for them. Middle class people will either be able to save again or they will continue to suffer the result of losing purchasing power, low interest rates and ultimately a lower standard of living.

The tables are completely turned on the middle class by the banks under inflation because they will either lend just about anyone money no questions asked, and create something like a very painful housing bubble or because the cost of living is going up many middle class people have taken to these banks extremely high interest credit cards to compensate for their loss of purchasing power which allows for them to make record profits on credit cards and especially on absurd late fees, banking fees and account maintenance fees. Not only do banking fees and usurious interest rates deeply affect the middle class, they also get absolutely nothing in return. This represents a transfer of wealth from one group at the expense of another.

Inflation and low interest rates punish savers, it makes people invest in things they otherwise wouldn’t have and it paints a target on the back of the middle class and leads to massive exploitation. If you are a Liberal, Progressive or Socialist I highly suggest that you rethink some of what your constituency is saying about the causes of income inequality. If you are one of the people who really hate the rich, then what better way to get back at them than to watch them crumble under the weight of their own ‘assets’ by turning them into ‘liabilities’? Phony wealth will be completely exposed under deflation, this is why the richest 1% of the 1% is so fearful of it and that is why they always pull the strings to get the government to bail them out at the expense of the taxpayer. In the US tens of millions of US citizens have quietly accepted the absence of any interest income on their savings or retirement while increasing risk and decreasing security or return. The United States is basically being reduced to looting itself.