- Posted October 7, 2013 by
Port Saint Lucie, Florida
The Cause of Inflation
I am 78 years old and a retired millionaire. I ‘worked’ continuously both part and full time since I was ten years old.
My first retirement @ age 60 was ‘instigated’ by the Clinton Administration who ‘incentavized’ the defense industry to devour each other in order to ‘slim down’ US Aerospace to 2 ½ airframe manufacturing companies:
“GE sold its aerospace division to Martin Marietta, which then sold itself to Lockheed. Boeing bought the aerospace units of Rockwell International, and then acquired McDonnell Douglas. Northrop bought Grumman.
Lockheed Martin and Boeing both ended up with about ten percent of all government aerospace contracts, though joint ventures and teaming remained significant. The concentration in the American industry made it look like European industry …”
Thus, after more than 34 years with Grumman, I was essentially ‘forced’ to retire by Northrop after it purchased Grumman as part of the ‘recombination and downsizing process’ that was skewed against older Grumman employees. I left with a pension, a 401K and an IRA; - money that I worked for (earned), saved and invested.
After a year and a half of “retraining”, I was hired by Periphonics only to ‘retire’ again 3 years later, after Periphonics was purchased by Nortel. I volunteered for a ‘RIF” (Reduction-In-Force, aka ‘recombination and downsizing process’.)
1. In the past it was possible to ‘work’ and if you produced more ‘wealth’ than you consumed, you had something left over to ‘save’ and/or ‘invest’. The best examples of that are farmers who can produce more food than they eat, and thus can sell the surplus (thus feeding others) and use ‘money’ (medium of exchange) to expand their operation and generate more surplus (aka ‘profit’). So a low-middle income wage earner, fiscal conservative (like myself), could ‘save’ a million plus dollars in a lifetime.
2. Today, my million plus bucks is slowing being stolen by the present ‘tax & spend’ administration, as follows:
a. Inflation: Why do we routinely accept “inflation”, like death, is natural and inevitable? Then explain why flat screen TVs, smart phones, laptops, tablets, digital cameras are all better and cheaper?
b. QE 1 & 2: Today the US government is no longer confined to a ‘tax & spend’ policy but now includes a ‘print &spend’ mentality:
i. Money: Quantitative Easing of the money supply. AKA counterfeiting (normally a criminal offense).
ii. Corporate Bail-outs: e.g. GM was downsized and “politically unfriendly” dealers were run out of business thus further enhancing the financial viability of one political party at the expense of other. AKA Buying voters and votes.
iii. Food Stamps: Another way of increasing the money supply while buying voters (and votes).
iv. Social Security:
• COLA: First cause inflation, and then increase the money supply to SS recipients, which contributes to inflation.
• SSA: Bring over indigent ‘immigrants’ who have never worked here (at least on the books) and then give them free medical and a monthly stipend, thus buying voters (and votes).