Guest Post: Debt-Slavery For Dummies

Tyler Durden's picture

Submitted by G at Knowmadiclife blog,

Everything the Fed does ultimately leads to less economic activity, less savings and more debt resulting in poverty for Americans, not prosperity.  Debt is not prosperity. Debt is poverty and economic slavery.

Why are you working harder but getting poorer?

Let us analyze the effectiveness of the Fed’s only policy tool of printing money since the onset of the great financial crisis in 2008 by looking at:

  • Economic activity as measured by human action - the real source of all wealth
  • Earnings
  • Savings
  • Debt
  • Poverty
  • Government dependency


How can Americans ever be expected to reverse the slide into debt-slavery if real wages are stagnating? Even when using the official government inflation numbers which understate the real level of price inflation (CPI-W until 2009 and CPI-U from 2010) real wages in America have been flat at best since 2008.

Did you notice the mysterious vertical jump in the data series between December 2009 and January 2010? It was here when the government changed the inflation index it uses to calculate real wages from the CPI-W to the CPI-U. This change from one bogus number to a different bogus number resulted in an instant jump in real wages - further distancing the illusion from reality. Why are no mainstream economists telling us about this?

This arbitrary change in the inflation formula used to compute real wages is a great example of how government numbers do not reflect real economic activity. In reality, these numbers are completely meaningless in the real world. These numbers only have value in the illusionary matrix created by the Intellectual Idiots and the central planners for us to live in. It is smoke and mirrors to hide the ongoing failures of the central planners and the Intellectual Idiots advising them.


Artificially low interest rates discourages savings and increases spending by causing the cost of daily living to increase. We end up spending more than before for the same goods. Combine this with the government purposely understating the real level of price inflation and voila! - we magically have economic growth - at least the illusion of economic growth. In reality, we are getting poorer just to maintain the same standard of living. Consumption leads to poverty. Poverty leads to dependency on the state - economic slavery - debt slavery.


Stagnant wages combined with rising price inflation has forced many Americans to rely on debt just to make ends meet. This is not a sign of economic growth as the MSM and statist economists would have you believe. Most of the time reality is the opposite of what they are telling you. You have to think for yourself to know the truth. When you think for yourself the truth becomes apparent - Americans are going deeper into debt because they are broke not because they are prospering.



Is this what an economic recovery looks like? Of course not. Do not let the teleprompter reading propagandists on TV fool you. They are simply highly educated in that which is false. You know better than them.

The Fed’s policy of money printing has resulted in less economic activity, no wage growth, less savings, more debt, increased poverty and increased dependency on the government for Americans than when the GFC started! Americans are now economically worse off than they were in 2008.

The recession never ended. The central planners have simply hidden the deteriorating economic reality from us by money printing resulting in nominal price increases - in combination with misleading official unemployment and inflation figures. As long as the money printing continues things will continue to get worse, not better.  This leads us to one curious question: if the Fed knows reality is deteriorating and it’s monetary policies are causing this deterioration to accelerate, what is the endgame the government and the Fed have in store for Americans?

What is the road back to prosperity?

There is an easy solution that takes us away from this road to debt-slavery and puts us back on the road to prosperity. That road to prosperity for Americans is ending the Fed’s interest rate manipulation and letting the free market determine interest rates, or the “price” of money (Dr. Robert Murphy does an excellent explanation of this in this video). In a free market the interest rate is the price of money - it reflects the point where the supply of savings and the demand for debt in the economy balance. As interest rates rise Americans will be incentivized to spend less and to save more. Saving leads to prosperity. Prosperity leads to independence from the state - economic freedom.

The debt will liquidate and the money supply will contract, or deflate. This money supply deflation will allow the value of money to increase rather than decrease. Prices of things we buy will begin to fall rather than increase - making us wealthier. Real wages for Americans will begin to rise again. The American middle class will begin to grow again as it’s earnings is worth more, saves more and earns more on that savings.

As prices fall capital investment that previously was not seen as profitable will become profitable. Capital investment based on real consumer demand will pick up. Because this will be real economic activity based on the real market price of money (interest rate) and real consumer demand the destructive extremes of the Fed created boom-bust business cycle will ease considerably.

To find that road to prosperity we must first begin with reforming the Fed's toxic policies designed SOLEY to profit the banks, it's owners and shareholders (here and here and here)

That reformation starts with ending the Fed's monopoly on the US money industry. Free up the money industry to competing currencies with legislation such as the Free Competition in Currency Act (explained by Professor of Economics at George Mason University Dr. George White here and by Congressman Dr. Ron Paul in this video). Give Americans freedom of choice in currency - examples would be gold and silver back currencies. If the Fed’s debt, our US dollar, is so great for Americans it should have nothing to worry about regarding competition from barbaric relics such as gold and silver, right?

Why are all the Fed's policies leading towards economic slavery of the American people? Ignoring these policies will not change the inevitable economic outcome resulting from these policies. You can ignore reality but you cannot ignore the consequences of ignoring reality.

Why are YOU allowing this to be done to you?

Do you want to learn more about the Fed and sound money? More resources than you can shake a stick at are available at this Federal Reserve Knowledge Bomb or the Knowmadic Life website - check out the Recommended Reading, Documentaries and Site Links sections. Or you can go for the mother load of information at The Mises Institute at

From knowledge comes awareness. From awareness comes freedom.

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DoChenRollingBearing's picture

Be your own central bank!

Stay out of debt and buy gold.

fnord88's picture


“Go back to bed, America. Your government has figured out how it all transpired. Go back to bed, America. Your government is in control again. Here. Here's American Gladiators. Watch this, shut up. Go back to bed, America. Here is American Gladiators. Here is 56 channels of it! Watch these pituitary retards bang their fucking skulls together and congratulate you on living in the land of freedom. Here you go, America! You are free to do what we tell you! You are free to do what we tell you!” Bill Hicks


Go back to bed america....the recession is over.

DoChenRollingBearing's picture


Then buy bearings instead, made of precious 52100 steel.  And do not take them out onto the boat with you.  And of course, lead and lead delivery systems can be considered precious too...

Intoxicologist's picture

Oh, I getcha DoChen.  I'm just in a silly mood today.  Most of my comments today are brought to you by Guinness Generous Ales-ez. That and the comedy outside when I went out to my chicken coop this morning to collect eggs. There, nestled on the floor atop the pine shavings were an array of brightly colored, plastic, candy-filled (or so I thought) eggs.  Turns out they were loaded with mini-steak treats for the dogs.  Prankster neighbors.  Gotta love 'em.

respect the cock's picture

@ DoChen...yes.

Paid off the last bit of $55,000 in debt (student loans, car, CC) this past January.  Took me 20 months to do it.  

Once I hit $12 cash (liquidity...emergency fund, etc...I don't see a major dollar selloff soon, IMHO) in savings by end of June, next step is metals.  $12k in physical gold/silver by EOY.  

Already have food, water, defense, physically fit/strong, have a durable career with useful skills, etc...

I'm better off than most, I suppose.


Being debt-free sure is like having a yoke lifted off your shoulders, that's for sure!!!




Muddy1's picture


Congratulations, and kudos.  You have learned a great lesson, that the borrower is the slave of the lender

Svendblaaskaeg's picture

"Be your own central bank"

Something funny happened on the way to the bank: stagger stagger crawl

Silver Bug's picture

People need to learn how to get OUT of the system. Use gold, silver, bitcoin. Whatever you have to.

CH1's picture

Well said, SB. Whoever singed you was an idiot.

TraderTimm's picture

The unfortunate part of human psychology is clinging to what is known, and fearing new things. Those people will learn the hard way. Bank "garnishings" are coming, and there's not going to be anyone in the little guy's corner. The rich and powerful will have already made their arrangements when the taxes/levies start flying.

RafterManFMJ's picture

The down arrow was likely for bitcoin.

TeamDepends's picture

Is there a Cliffs-Notes version?

RafterManFMJ's picture

How about a Haiku version?


Can you feel the FED

Tricksy thieves and slavery

Free us, o Market

TeamDepends's picture

Grabbing a shank they

thought was a shiv

Shanghai price of tea

Oquities's picture

we are not going to end the Fed peacably.  it will take a revolution or a collapse.  the money mongers are too powerful, wealthy, and connected to go gently.  we are too docile to revolt.  only collapse is the solution.

kurt's picture

It's even worse. The super rich feed our brains every night with disinformation via tv. The defenders of the retired AARP has taken the stance that Social Security will need to be cut. The NRA is an advertising and political conduit. The very, designated, defenders of WHICHEVER group in infiltrated, manipulated. The main problem is our manipulators are flailing and bored. They have a vague idea that we need to be depopulated, relying on a couple old movies and Twilight Zones, and bad information. The basic sicknes is this: rich people think another person's gain is their own personal loss. We can't even have a singing show without winners and losers. The empowered are dredfully sick, as are the disempowered.

pelerine's picture

"The basic sicknes is this: rich people think another person's gain is their own personal loss."


YES.  In a time of such abundance, everyone should be better-off. 


The very rich and powerful are trying as hard as they can to break what should be a pretty resilient economy, because they can't stand the idea of ordinary people having a rising standard of living.

Disenchanted's picture



because they can't stand the idea of ordinary people having a rising standard of living.


...or any sense of self determination, aka Liberty.

Sudden Debt's picture

it's communist they say to let wages increase with inflation...

It's normal to increase consumption prices with inflation...

It's capitalisme to increase CEO'S paychecks 10 times faster than inflation...

it's capitalisme to lower wages when there's inflation...





Sudden Debt's picture

just waiting for the tipping point where suddenly the system implodes overnight so we can all say WE DIDN'T SEE THAT ONE COMMING!!!


debtor of last resort's picture

Well, your comments are like small pieces of semtex going off in my backyard when i'm reading zh.

kaiserhoff's picture

SD, You said you were getting good deals on silver in France.

Wouldn't want you to give away any favorite fishing hole information, but is there something for the rest of us to learn there?

Reptil's picture

where is this all leading to?
that's an easy question!

it's leading here:

and that's where it stops (the road).

Winston Churchill's picture

That intake shower is a bitch.

kaiserhoff's picture

@ Winston

Since you know the place and most of us have never been there, give us a heads up.

Is Cyprus going down enough of a factor on Greece to create a whole new series of disasters?


Winston Churchill's picture

The comparison with KreditAnsalt is very apt.A relatively minor bank failure

with unintended consequence of a global scale.Its not the locale that matters in

this case,though I feel for my relatives there.I warned them as did others.

I tried in vain to get them out of the Cypriot banks, and into PM's a  year ago,

and I cannot say  I told you so,even if I might  want to.

The tide has gone way out,the euro is exposed as naked,and  the tsunami is  coming,

caused by a shock in the tiny island of Cyprus.

kaiserhoff's picture

Thanks.  I thought your post on the subsequent thread was right on target.  Six months.  Why take the risk?

When you said business is heading east, where?  Former Soviet Block?

Winston Churchill's picture

The money is going east first.I think thats whats causing a delay in capital

flight from the euro zone.I'm thinking Hong Kong, and Singapore to start.Sure they are having

to set up accounts there first.Takes time,even for corporations to open bank accounts there.

Don't forget that offshored money from US companys,cannot come back to the US without taxation.

They sure as hell aren't going to leave $2.7 tn in europe, the euro mulitnationals have

just as much cash if not more.

There is a whole lot of overtime being worked by CFO teams this holiday weekend divying

up the risks.

This week could be interesting.If we ever hear the truth about is another matter.

kaiserhoff's picture

What a sucking sound that will make.  We are living in interesting times.

Best wishes for your family.  They are wiser now.  That should help.

JustPrintMoreDuh's picture

So there IS a reason for all the hp-ammo, ar-15's, armored vehicles, drones, draconian laws afterall?  

NoTTD's picture

Looks like South Dakota is the place ya oughta be.

IridiumRebel's picture

We got our tax refund back last week. It was pretty nice. Wife immediately started pontificating about shit to buy. I said we are going to pay off our outstanding medical bils, oil bill and a few other things. Reluctantly she does so. I get a call a little while later stating, "What a relief to have those paid! I feel so much better." See? Debt is slavery. Paying off or down is a step to freedom. It will suck tho when the world defaults and our prudence is for not as all the other POS' get free repudiation. Ahhh.....such is slavery.

DoChenRollingBearing's picture

I wished I could have given you two greens...

IridiumRebel's picture

I gave you one for your Personal CB post. Backatcha!

BidnessMan's picture

Too bad your employer overwithheld your taxes. You could have paid off your debt months earlier and avoided hefty interest cost. Instead of making an interest free loan to the Feds.

NoTTD's picture

Want a revolution?  Suspend withholding for one year.

StarTedStackin''s picture

Don't worry, as soon as the O'Bowel Movement gets back from their third vacation this year, they will fix the problem

The Invisible Foot's picture

Consumption, is by itself backwards and irrational as an economic model.

ziggy59's picture

This book must have several authors and coauthors...


Foreword by Corzine, Madoff, Greenspan, Krugman

Oldwood's picture

So are you saying that who ever dies owing the most money DOESN'T win?!

gould's fisker's picture

After reviewing those charts i don't need a manual, even if I am a dummy, just give me the manacles and let's get this over with--instead of the drip, drip, drip of zombie banks and the zombies who run them and the zombies who "regulate" them.

Tombstone's picture

Nothing wrong with collecting disability, food stamps and free health care.  Add up the freebies and you'll be as rich as half the country.  Throw in a Caddy and flat screen TV and you got it made.  So why work when you can be rich using the socialist central planning plan for wealth and prosperity?  It got The Dictator re-elected didn't it?

r3phl0x's picture

Too young, too healthy, too male.

Oldwood's picture

Does anyone here think this is not deliberate? In our all powerfully government controlled world where Obama created 3 million jobs, these numbers are an accident? Really?  It looks to me that they are doing everything they have been saying the wanted to do for thirty years.

Radical Marijuana's picture

"Americans are going deeper into debt because they are broke not because they are prospering."

When one lives inside a government mandated money as debt system, it is NOT possible to get out. It is cosmetic bandages on the symptoms of fatal social sicknesses to think that buying gold or silver, or otherwise being "prepared" could be sufficient. Instead, those who took the most advantage of the money as debt system prospered the most. Those who do not got screwed the most. The established financial systems are a parasite that is totally intertwined through and through everything else: if there was no more debt, there would be no more money.

Sorry, but the Mises Institute, etc., deliberately misses the central point that money is backed by murder, and it is impossible for money to exist any other way. This article is just another of the many which do good analysis, up to a point, and then follow that with bullshit "solutions," which are non-starters, because either their analysis did not go deep enough, or they ignored the results of their analysis when they turned towards idealized "solutions" to the problems their analysis had correctly identified.

The Federal Reserve Board exists due to the runaway triumph of organized crime being able to take control of the government, which enables legalized lies to be backed up with legalized violence. The Fed’s debt, our US dollar, IS fraud backed by force. Anyone who proposes "solutions" which are not different systems of fraud, backed by different systems of force, are promoting impossible things, which could never exist!

A companion volume for "Debt Slavery for Dummies" should be "Death Control for Dummies."

All kinds of silly notions about "free markets" deliberately ignore the paradoxes with respect to enforcing the "rule of law." Since most of the "free market" bullshit presumes some miraculous "rule of law" would exist, and continue to function, without the paradoxical problems regarding the enforcement of that "rule of law," that kind of "free market" bullshit gets to deliberately ignore the real problems. Instead, it suggests some impossible series of political miracles, which will pull ourselves up by our own boot straps.

All of the notions of "sound money" and "honest money" that I have ever encountered are unsound and dishonest, because they deliberately ignore the central fact that money is backed by murder, and must be. Therefore, they never bother to explain how they will provide different systems of death controls to back up their different systems of debt controls. Of course, that makes it infinitely easier for them to promote their kind of bullshit "solutions."

fijisailor's picture

So what you're saying is that there is no hope for change since no entity could possibly challenge the murderous capabilities of the state.

Radical Marijuana's picture

My view is that power is always distributed, since everyone has some potential power to rob and to kill. History has assembled and channelled that power through War Kings, into sovereign states, which were covertly taken over by the Fraud Kings (the central banks.)

After that runaway triumph of financial frauds have already happened to the extreme degree that that has already happened, the murderous capabilities of the state will automatically become mad, due to too much success at legalizing lies, and backing those up with violence, which never works in the longer term, since no amount of violence can ever make the lies become true. Therefore, I have no doubt that there MUST BE CHANGE, since change is the only constant.

My deeper theories are so totally backwards to what the mainstream philosophy of science and politics presumes that it is very difficult for me to state them in any brief way. (It usually takes months for people to understand what I am talking about, but after a few years, they have heard it all, and then it gets boring.)

Anyway, my basic ideas are based on applying the concepts of energy systems to human civilization. However, my views of energy laws are profoundly different than the mainstream view, since the mainstream concept of entropy accepts the arbitrary minus sign that was inserted into the entropy equations, in order that power and information would have positive values, instead of negative values.

To put it metaphorically, I believe that the better solutions to these problems are for everyone to become better wolves, rather than better sheep. I basically agree with the idea that a democratic republic should be something that assembles and channels the power of We the People to rob and to kill. Since I believe that sovereignty is based on the power to rob, and that money is backed by murder, what I always propose is that we need to make a greater use of information, enabling a higher consciousness regarding the death controls.

Of course, there again, my meaning with respect to what "death controls" mean is mostly backwards to what most other people tend to presume, since they presume that their perceptions based on fundamental dichotomies are valid. I do not approach any of the impossible ideals that most other people believe in, because I regard them as having their mechanisms backwards.

Anyway, I have no doubt that the murderous capabilities of the state exist and must exist, and that those should evolve to become manifested in better ways. There is no hope for genuine change that requires that no death controls exist, or that there be no murder systems at all. There is lots of hope for changes that establish better checks and balances over how the sovereign powers of the state are actually applied.

However, doing that has to go through the profound paradoxes regarding how and why the best organized gangsters, the banksters, have ACTUALLY been able to take over covert control of the government, which has resulted in a de facto 99% privatization of all the most important powers that should belong to We the People as a whole, and be used for the long term benefit of those People ... or, at least, we should try to approach that more ...

snblitz's picture

Money is not backed by murder.  However, there are reasonably good arguments that most private land rights are based on theft.

To understand the current state of the US government as a tyranny please read John Locke's Two Treatises on Government.