My complete name is Michael Piromgraipakd. In it’s entirety, it is simply too long and complicated to use as a web address and that is why you see my name as Mike Piro. So, you’ve reached my blog, welcome. This is my “Nerve Center” and it’s where I like to put down my thoughts, activities, and interests, and it allows me to interact with you. I am on a mission to make people aware and I am committed to bringing valuable information to you, the reader, in anyway I can. However, first as a disclaimer, I am in no way shape or form a financial adviser. This is a web log, otherwise known as a blog, where I find articles and information that I find important and I log them here for my own use. Also, when you read the content here, free your mind of the political paradigms that often bog down any sound thinking and see a different view of how the world works around you. You have “all access” to my blog but I would also encourage some due diligence on your part.
With that said, I’ve been inspired to share what I’ve learned with others like you and I hope you gain something from my website. In my mind there is nothing like easily obtainable, valuable information. In return, all I ask is that you interact, comment and post your thoughts. So to start off on the right foot, I’ll explain to you a little known secret that isn’t typically taught to you in your standard educational system.
That little secret is called, INFLATION. Learn and understand this very basic concept and it will open up new windows by explaining why many things happen in our government, economy and why your very own savings account, 401k, mutual fund is worth less and less by the day. Mark my words, this will be the most pressing issue facing every American, and actually every human being in the entire world, for the next 10-15 years.
Let me ask you a question. What do you think money is? If you said the US Dollar you are partially correct.
Wikipedia says “Money is any object or record, that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context”
Now what do you think the dollar is? If you said, “it’s money, stupid!” I’d have to say you might be wrong. And in maybe 5-10 years and possibly sooner, you will definitely be wrong. Why would I say such a thing? Let me break it down like this.
Did you know the dollar today, in 2011, is worth 2% of the value of the dollar in 1913? That number in 2008 was 6% compared to the 1913 dollar. That might explain why, in 1913, you could buy a loaf of bread for 5 cents and today that same loaf of bread now costs you almost $3.00. Will that same loaf of bread cost $50.00 in the future? Now everything has its ebbs and flows, and things go up and down in value according to supply and demand, but if in the near future we were to see a $50 loaf of bread would that make you understand better how the US fiat currency system worked? Or would you still think that it was a natural occurrence in your everyday life? Honestly, when a loaf of bread reaches $50, you better hope and pray you have an asset of value that will preserve what you’ve earned because that would mean the value of the current U.S. fiat currency, would have to dip below 1% of the value of the 1913 dollar. At that point, our economy would be in a state of hyperinflation. We are at 2% now. What is the likelihood that this might happen? Some people do not like hearing this, while others like to know what reality is. Then there are those who are like frogs sitting in a pot of boiling water, they are content with their surroundings until it is too late and one day they can’t even afford a loaf of bread that might cost 1 million or even a billion dollars. Think that’s absurd? Look up Zimbabwe or the Weimar Republic for this phenomenon called hyperinflation. It’s real and it could very likely happen to us here in the great US of A.
Children playing with stacks of worthless German Reichsmarks/Papiermarks
Zimbabwe man preparing his currency to purchase some goods (left),2008 receipt of a 1.2 Billion Zim Dollar Dinner (right)
“Hyperinflation was not a common place for Zimbabwe, because 30 years ago the Zimbabwe dollar was worth about USD 1.25. However in July 22nd, 2008, the value of the ZWD had fallen to approximately 688 billion per 1 USD. Since the country’s independence, rampant inflation and the collapse of the economy have severely devalued the currency, causing many organizations to favor using the US dollar or South African rand instead. Inflation was stable until Robert Mugabe began a program of land reforms that primarily focused on taking land from white farmers and redistributing those properties and assets to black farmers; this in turn sent food production and revenues from export of food plummeting, one more main reason that contributed to inflation in Zimbabwe was a monetary phenomena (the result of Mugabe’s government printing money) as can be seen by the appearance of ever higher face value printed notes, whose face value exceeded the sum of all previously existing notes.
Hyperinflation started to take shape very early in the 21st century Zimbabwe in the shape of chronic inflation at first. Inflation reached 624% in 2004, then fell back to low triple digits before surging to a new high of 1,730% in 2006. During that time, the Reserve Bank of Zimbabwe revalued their currency on August 1, 2006 at a rate of 1,000 old Zimbabwean dollars to 1 revalued Zimbabwean dollar. In June 2007, inflation in Zimbabwe had risen to 11,000% year-to-year from an earlier estimate of 9,000%. On May 5th, 2008 the Reserve Bank of Zimbabwe issued bank notes or “bearer checks” for the value of ZWD 100 million and ZWD 250 million. Ten days later on May 15th, new bearer checks with a value of ZWD 500 million (then equivalent to about USD 2.5) were issued. Five days later on May 20th, a new series of notes in the form of “agro checks” were issued in denominations of ZWD 5 billion, ZWD 25 billion and ZWD 50 billion. An additional agro check was issued for ZWD 100 billion on July 21st. Meanwhile inflation has officially surged to 2,200,000% with some analysts estimating figures surpassing 9,000,000 percent. As of July 22nd, 2008, the value of the ZWD had fallen to approximately 688 billion per 1 USD, or 688 trillion pre-August 2006 Zimbabwean dollars. On August 1, 2008, the Zimbabwe dollar was redenominated by removing 10 zeroes. ZWD 10 billion became 1 dollar after the redenomination. On August 19, 2008, official figures announced for June estimated the inflation over 11,250,000 percent. Zimbabwe’s annual inflation was 231,000,000% in July (Prices doubling every 17.3 days). At the beginning of November, 2008, the inflation rate was calculated to be at 516 quintillion percent (516,000,000,000,000,000,000%). The monthly inflation was 13.2 billion percent.
Zimbabwe hyperinflation approached post Second World War Hungary’s hyperinflation (Hungary: 12.95 quadrillion percent per month (195% daily), ie. prices doubling every 15.6 hours. Zimbabwe: 79.6 billion percent per month (98.0%), ie. prices doubling every 24.7 hours). On January 16, 2009, Zimbabwe issued a $100 trillion bill.”
One of the main purposes of a paper currency, was to allow people to carry something of value to purchase things without having to lug around heavy bags of gold and silver. It seems in the case for Zimbabwe, it may be better to carry a silver or gold coin than to use a wheel barrel to cart Trillions of Dollars to have dinner.
Typically, when people think inflation they think that everything is going up in value when in reality, it is quite the opposite. When the government prints money it DILUTES the value of each of the fiat dollars in your pocket and bank account. Yes, the dollars that were used to bailout the big banks, car industry, and mortgage companies, every last one of them dilute the value of each of YOUR fiat U.S. Dollars. It’s a hard concept to follow but “things,” such as food, gas, oil, clothing, gold, and silver aren’t going up in value when you compare them to each other. The “Twilight Zone Moment” here is that your U.S. fiat dollar is going down in value while it sits in THEIR banks, all the while these institutions that were “Bailed Out” are taking your bailout dollars and buying things of value with them driving up inflation… Oh and 1913? That year is very significant but… more on that when you enter your name and email to the left.
Here is an excerpt from Epperson’s book “The Unseen Hand”
An example of how Inflation is caused could be offered by the useof a simple model.
Suppose mat sea shells are used as money on Island A, and that the prices on the island are determined by the number of shells in circula- tion. As long as the quantity of shells remains relatively constant and there is no rapid increase, prices will remain relatively stable. Suppose that some of the more adventurous islanders row over to a nearby island and collect a large quantity of sea shells, identically the same as those in circulation as money on the main island. When these additional sea shells are brought back to Island A and put into circulation as money, they will cause an increase in the price level. More sea shells (money) will enable each islander to bid up the price of any given good. If the islander has more money, he can afford to pay a higher price for the product he wishes to purchase.
There are certain elements in society that wish to increase the money supply for their own benefit at the expense of the other members. These people are called “counterfeiters,” and are punished for their crime when discovered. They are punished because their counterfeiting of extra supplies of money decreases the value of the legitimate money
held by the members of that society. They have the illegal and immoral power to cause inflation by increasing the money supply, causing the value of the other money to drop. This activity, the counterfeiung, is actually a crime against property, the money of the society, and the ciuzens have the legal and moral right to seek an end to this destruction of their private property, their money.
How is it possible for inflations to persist if those who have the ability to counterfeit are punished by the public for their crime? The solution for the counterfeiters lies in making it legal to counterfeit money. Those who counterfeit can really reap the benefits for their crime if they can get control of the government and make their crime legal. The government has the ability to make even counterfeit money “legal tender” (requiring all citizens of the nation to accept the counterfeit money along with the legal money.) If government could make counterfeiting legal, there would be no crime for counterfeiting, and this became the goal of the criminals.
Those who sought to make government all powerful in the lives of their citizens soon learned that inflation could also increase the impact and scope of government as well. The marriage between the socialists and the counterfeiters was inevitable. Nobel Peace Prize winner and economist Friederich von Hayek detailed this relationship thus: Inflation is probably the most important single factor in the vicious circle wherein one kind of government action makes more and more government control necessary.”
Here are some very interesting caveats:
- On 02/21/2011, Silver hit its highest price since March 7th, 1980: $34.00/ounce (Today, 04/04/11, it is at $38.57)
- Mubarak’s 30-year dictatorship over Egypt was toppled after increased food inflation of 17% sent the people into the streets…
- Despite the Fed’s record amounts of cash injection, (now around 3 Trillion since 2008), to “boost employment”, the initial jobless claims continue to increase with 410K posted in the past week, over the 400K expected…
- The Chinese appetite for gold and silver bullion continues at a voracious pace, as investment demand jumped 70% in 2010 alone…
- The US Mint sold 6.4 Million Silver Eagles in January 2011 – more than any other month in history.
- The World Bank’s latest report this week revealed that global food prices have jumped 29% during 2010, thanks to inflation combined with poor yields.
- The housing bubble continues to deflate, with approximately 11% of all homes in the US sitting empty, and more foreclosures taking place in 2010, than in 2009.
- Not a single banker, politician, or Wall Street insider who’s pillaged our nation to the point of ruin, has gone to jail… Not one.
-Mike Dillard of the Elevation Group
If you have the chance to look further into this, I recommend the book entitled “The Creature from Jekyll Island” by Edward G. Griffin. You can find the entire book in “Scribd” format on my blog HERE. Now I leave you with a few foretelling quotes by Thomas Jefferson and then one by Mayer Amsched Rothschild of the infamous banking elite Rothschild family.
“If the American people ever allow the banks to control issuance of their currency, first by inflation and then by deflation, the banks and corporations that grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers occupied.”
– Thomas Jefferson
“I believe that banking institutions are more dangerous to our liberties than standing armies.”
– Thomas Jefferson
“Permit me to issue and control the money of the nation and I care not who makes its laws.”
– Mayer Amsched Rothschild
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Thank you for your time.