Guest Post: Inflation Since The American Revolution

Tyler Durden's picture

Via Michael Krieger of Liberty Blitzkrieg blog,

As is clear by this chart, inflation was virtually unheard of until the Creature from Jekyll Island (the Federal Reserve) took over.  However, more importantly, things didn’t really start to get bad until the 1970?s right after Nixon took the nation off the gold standard in 1971.  Since that time, America has seen a period of non-existent real wage growth and a huge gap grow between the rich and the poor ever since.  Nothing like livin’ the debt slave dream!

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DavosSherman's picture


Fuck that noise.

Paging John Williams.


grekko's picture

Isn't the Federal Reserve supposed to control inflation?  I guess the Bernank and his Splunge-Bob Protection Team have been asleep at the wheel.  Or did Mr. Crab have his hands in the till? I know that everyone here gets it, but why are over 90% of the people in this country not out screaming in the streets.  Oh, I forgot, they took public education seriously...we woke up.


Totally believing and worshipping at the koolaide punch bowl.  Not for me, I'm a Mogambo Junior Ranger and I'm packing gold, silver, and lots of bullets.  As for my guns, they can have them, just as soon as I run out of the bullets (unless I decide to use them as a clubs next).  Maybe I should invest in Casey Sluggers, just in case the guns with the plastic stocks made by Mattell break.


Anyway, everyone here is cool, else you wouldn't be here.  I think you are all great, and wish the best for everyone here when TSHTF.  The Austrian School will be the only one left standing after that great destruction of wealth.


Cheers everyone!

centerline's picture

They did a heck of a job controlling it allright!  This party has gone on longer than anyone could have imagined.  The power of complexity, computers, globalization, etc.  Who could have seen that 100 years ago?  No way in hell.  They managed to take a dying system and kick new life in it for 30 years+... and now playing out a prolonged zombie phase on the incredible resillience of the system.  At the same time, the stakes are higher than ever.  Never before has the game "reset" with this much baggage in tow.  Uncharted waters for sure.

earleflorida's picture

Gross Domestic Product - 'GDP'... whatever that is? --- correlated to Gross Public Debt - 'GPD'... what it was, and is now-- a 'Petrified Oligarchy Brimstone' with nowhere to hide?

1975 GDP @ $1.6 trillion --- 1975 GPD @ $541 billion ~3:1 ratio

2012 GDP @ $15.6 trillion --- 2012 GPD @ $16.4 trillion ~ 1:1 or in reversal mode!


*just plug scroll year

walküre's picture

100 years is longer than the cabal probably ever imagined in their wildest dreams. The men who started the scam have long died. Who knows what their endgame was? Their proteges are still at it today due to our collective "turbo paralysis".

"old money" my ass. It was all stolen, looted, grabbed and exploited from the ignorant plebs.

100 years and counting. The FED should have been ended by now not elevated to ever higher controls and more power.

It all started with the FED and it will end with the FED.

End the FED.

magpie's picture

My dear, precisely the FED will guarantee that the USA will drift and stay around like an empty shell

Totentänzerlied's picture

Greed like that, it doesn't have an "endgame". It only knows one thing: more.

SelfGov's picture

What year did the US peak in oil production? Anybody remember?

MeBizarro's picture

'73 and your right that it was this along with combination of the 'Great Society', Vietnam & Cold War spending, and other spending. 

Historians are going to look back in 50 years and realize that both the US and the Soviet Union actually lost the Cold War.  Soviet Union only lost sooner.

Totentänzerlied's picture

What is ... the greatest wealth transfer in human history, Alex?

BeerBrewer09's picture

Consider yourself lucky if you are reading this, because the likelihood is high that you own something of real value such as commodities, PMs, food, water, guns & ammo, alcohol, land, etc. If not you had better trade your paper and digital numbers for something tangible.

I just got back from the grocery store. Everything has gone up drastically in price. A few of the things that stuck out to me were:

BREAD - you can't buy 2 loaves of any decent whole wheat for less than $3.99, and that's the stuff that's on sale. Most of them are at least $2.50 for a single loaf.

SOUR CREAM - Cheapest pint (store brand) is $2. The Breakstone version is $2.29. I remember pints being $1.09 just two years ago.

LAUNDRY DETERGENT - They want at least $2.99 for the cheapest bottle of stuff that does 25 loads. Most people probably don't pay attention and use a whole cap full.

OJ - $3.99 for a 56oz bottle of Tropicana. Not even half a gallon.

CEREAL - $3.69 for a box of 13 ounces.

Fucking ridiculous, man. I'm going out tomorrow to buy some bulk rice & beans. FWIW, I live in Central PA.

BeerBrewer09's picture

I heat my basement and first floor with a wood stove. They haven't figured out a way to tax me on that yet.

Pareto's picture

Wait till the force you to stick a fucking carbon emssions reader on your chimney.  Also, I have noticed that the "fees" have gone up exponentially the last 4 years since even though NATGAS is in the tank, I'm paying WAY more for gas and electricity than I ever did when NATGAS was $15/gig.  Really, does anybody really know what all those fees and transaction costs really are?  Its bullshit.

centerline's picture

If you haven't done so already, black beans and rice is a great mid-term way to go.  Buy a bunch and rotate inventory.  Start skimming off most of your inventory here and there to slowly build a decent store of basics too.

BeerBrewer09's picture

I have 10 food grade buckets, 10 mylar bags and 10 oxygen absorbers. I've done my homework and should be able to get 20-30 years out of rice & beans.

centerline's picture

Be sure to check local grocery stores.  They throw out food grade buckets with lids all the time.  Just need cleaning up.  They look at me weird when I ask for them... I just say it is for some sort of school or boyscout thing.

Funny you posted tonight about this stuff since I am actually rotating some black beans... making a kick-ass black bean soup tonight.  This version is a little more exotic versus hard times since it has some bacon and beer in the recipe.  Great stuff.

RobD's picture

I use 55g food grade barrels I get from the local feed store for $25. You can store 300lbs of dry goods in 6 6gallon mylar bags with O2 obs and CO2. Much more effecent then buckets. Have stored over 3tons of rice, beans, corn and wheat this way.

weyes1's picture



This post has really pulled the varmints from the wood pile.

RobD's picture

Opps it is 9 6g Mylar bags per barrel, weyens replied before I could edit. As for the amount, I'm the only one in my extended family that has any money or the ability to prep. 16 mouths requires a lot of cals to keep alive for a year.

bunnyswanson's picture

Rice and beans!  Noodles too.  Don't forget spices, sauces and gravy (bullion cubes) which can make these 3 items taste so much better.  Experiment with various Chinese, Mexican and other recipes (hot, spicy, meaty flavor).  Check exp dates.  Buy a freezer to keep the beans and rice in and rotate so you don't discover bugs (or seal in air tight container).

Onions, garlic, salt (with iodine) go a long way. 

Tea bags, sugar, flour, coffee, booze also. 

Pet food.  I got antibiotics of every kind from online pharmacy and kit for medical care.  Pain meds, anti-inflammatory, toothpaste, shampoo and detergent also.

Powdered milk.  Spare glasses.

Bansters-in-my- feces's picture

Compound Interest...bitchez.....

Kill you every time.

JR's picture

I charge them... with... having conspired to transfer to foreigners and international moneylenders title to and control of the financial resources of the United States.” That was Louis McFadden, a courageous Congress who was speaking truth to power and identifying the financial takeover of the US by the Federal Reserve.

He who holds the power to control the growth of the money supply, to increase the money in circulation, has the power to destroy the free market.

Keynes and Lenin realized that inflation is an economic law.  Both realized that inflation has the power to destroy the free market. Both also realized that inflation serves as an income distribution system; and both realized that the only agency that could cause inflation legally was the State.

Here are highlights of McFadden’s attack on the Federal Reserve System from Chapter 16 of The Unseen Hand by A. Ralph Epperson when “even a casual observer after the Stock Market Crash of 1929 had to notice that the ownership of the banking system had changed”:

There weren't many who saw what was happening to the American people by these machinations of the bankers, but one who did was Congressman Louis McFadden, who was quoted as saying:

When the Federal Reserve Act was passed, the people of these United States did not perceive that a world banking system was being set up here.

A super-state controlled by international bankers and international industrialists acting together to enslave the world for their own pleasure.

Every effort has been made by the Fed to conceal its powers but the truth is — the Fed has usurped the Government.

It controls everything here and it controls all our foreign relations. It makes and breaks governments at will.

After the stock market crash had run its course, Congressman McFadden charged that: "The money and credit resources of the United States were now in the complete control of the banker's alliance between J.P. Morgan's First National Bank group, and Kuhn, Loeb's National City Bank."

On May 23, 1933, McFadden brought impeachment charges against the Federal Reserve Board, the agency he thought had caused the Stock Market Crash of 1929, with these charges, amongst others:

I charge them... with having... taken over $80,000,000,000 (eighty billion dollars) from the United States Government in the year 1928....

I charge them... with having arbitrarily and unlawfully raised and lowered the rates on money... increased and diminished the volume of currency in circulation for the benefit of private interests..."

And then McFadden expanded his understanding of those who benefited in the crash to include the international bankers: "I charge them... with... having conspired to transfer to foreigners and international moneylenders title to and control of the financial resources of the United States…”

 He then ended with this statement that the cause of the depression was not accidental: "It was a carefully contrived occurrence... The international bankers sought to bring about a condition of despair here so that they might emerge as the rulers of us all."

McFadden had a price to pay for his attempts to explain the causes of the depression and the stock market crash: "On two occasions assassins attempted to kill McFadden with gunfire; later he died, a few hours after attending a banquet, and there is little doubt that he was poisoned.”

toomanyfakeconservatives's picture

I'm hoping to pay $1,100 tomorrow for a rifle that was worth $700 a little over two months ago.


It's a really sweet old rifle.

earleflorida's picture

sweet old rifle?

you can make your own at nearly nothing if you have the right tools, and knowhow...

Fix It Again Timmy's picture

If it walks like a duck and quacks like a duck, then it is a ...

Lord Of Finance's picture

Tyler forgot to spot the time on the graph when 'the creature from the great society' was given authority, who as soon as the C.I.C. was blown away, got started in gettin this debt machine a runnin by conducting a 'war on poverty', and exploding the size of government, which turned out to be more good intentions achieving even more horrific results. That is where(on the graph) our 'johnson' popped a serious 'Boehner.' 


   BTW, I know that Johnsons former boss did not help things either.

JoeSwede's picture

The chart should have been a log chart. Not that it matters to the conclusion...

nantucket's picture

lighthouses rule

Neo1's picture

Use federal reserve notes and incur an Irrecusable obligation. The puzzle is complete!!!

A Banksters defeatism (realization of defeat) nightmare, Being forced to Return to Real Money=United States Note=Lawful Money, Use the Remedy within the Federal Reserve Act. Redeemed 12USC411, Refusal Penalty 12USC501a  Stop being a Slave!!!!!! This is Tax Free Money!!!!!!

Convincing Congress to Abolish the Fed

JiminGA's picture

The Fed is the primary cause of inflation. Anytime money is created by debt it insures inflation.  Debt requires interest, so one dollar of debt at 3% interest devalues that dollar by 3%.  Prior to the creation of the Fed in 1913 real inflation was virtually nonexistent.