Now at age 50, I still remember well how my grandfather talked about how the sins of one generation can harm future generations.
Measuring intergenerational financial harm is no easy task.
Hard money folks are always quick to recite how Nixon’s 1971 disconnection Of the US dollar from the gold standard unleashed a wrath of inflation on our children.
But what about average wages?
If its not rational to measure prices using Bankster created fiat dollars, then there is no good reason to measure the real value of average wages in fiat dollars either.
Even with the massive (failing) bankster programs to suppress the price of precious metals (that our GATA friends have well exposed) gold remains the best yardstick to measure longer term changes in BOTH wages and prices.
When I was born in 1959 an average Americans fiat money wages of
$5016 was about 143 ounces of gold.
By the time 1971 rolled around and "tricky Dick" abolished the gold standard average wages in gold actually rose to 260 ounces on $10,600 in fiat dollar wages. In hindsight 1971 was sadly the high- water mark for Americans real average wage.
By the time I graduated high school in 1977 average wages had fallen by over 60% to just 102 ounces of gold on $15,000 in fiat dollar wages.
Despite what we think as low inflation during the Reagan years by
1989 average real wages was just 72 ounces of gold from $27,450 of fiat dollar wages.
Falling 90’s gold prices by 1999 gave us real average real wages that recovered to 104 ounces of gold on $28,970 of fiat dollar wages.
As debt levels exploded in recent years real wages have hit a new post 1959 low. By 2008 real average wages were just 53 ounces of gold on $41,335 of fiat wages.
Even with no accounting for all the massive wage reducing tax increases and mandates since 1959 its very clear that the wages of average Americans measured in the real money of gold have fallen by at least 70%.
Let the fall of 70% real wage cut sink in for a moment.
Its very hard to grasp the effect of TENS OF TRILLIONS of dollars of real purchasing power of average Americans stolen by bankster fiat money creation.
At today's price of Gold near $1100, today’s fiat money wages of the average American would need to be about $286,000 in fiat dollars just to be even with the 260 ounces of gold Americans earned on average in 1971.
Even harder to grasp is the fact that most Americans think they actually make higher real wages then prior generations.
The undeniable reality is that the systematic fiat embezzlement of the average Americans wages is the greatest mass theft in history.
Muggers routinely go to prison for years for taking $100 at knifepoint.
Can you name even one central bankster money creator who has ever been handcuffed? Wouldn’t it be grand if we could just keep Gitmo open to incarcerate the counterfeiting banksters who have done more damage to us than any terrorist?
Be confident in one aspect of America’s future, that without real monetary reform, nothing will change for the better.
Until that moment arrives, no asset class will long outperform precious metals.
Michael "Woody" O’Brien ChFC
