Why does everything cost more each year?

Do you ever say, why does everything cost more than it did 10 years ago? even 5 years ago? Well that is the legal government robbery I was speaking of yesterday.

The various federal reserves around the world use this system called Fractional reserve banking, in simple words, it means they issue debt based on the money you store with them. Once you go deposit your hard earned paycheck for safe keeping, they only keep 10% of it and the other 90% goes to issue loans to others. Still think your money is safe with the bank? What if everybody decided to take out their money at once and do what is called a bank run? Only 10% would be able to claim their money, guarantied they would shut that down before it even got to that level...Scary isn't it!

On another note, here is why inflation sets in every year. New debt = new money being created. When your government borrows money, it is not someone loaning them the money, it is new money being created out of thin air by the federal reserve. When new money gets created, old money is worth less because there is more floating around now so goods and services have to slightly increase in price...FOREVER since new money is always created. The inflation also serves to pay the interest rate and that government debt. Those nice dollar bills you carry, have no value beyond the paper they are printed on, they are backed by debt and they are nothing more than a promise. They only have value because the majority trusts and believes in it. What if suddenly the majority changed their minds and started to value something else?

Here is an easy to understand example of what is happening and that was my eye opening moment to ditch the dollar for long term savings and begin to value something else . Until 1967, the money was partially backed by silver here in Canada and dollars were made of 0.60 troy oz of silver. Back then at the bank or registers you had the choice between a paper dollar or a silver dollar, each worth the exact same at the time. To make things simpler, lets round up the current price of silver to $19 /oz in Canadian funds.

$19 x 0.6 oz = $11.40 CAD
Had you kept a $20 bill from that era, it is still only worth $20 today. If you had kept 20 silver dollars instead:

$11.40 x $20 = $228 CAD for the same original 20 silver dollars in 1967

Can you see how the dollar has already collapsed a long time ago? The true value (the amount of goods and services received in exchange) of silver has not increased since then the money is worth that much less and you need that much more to get the same goods and services. That is just since 1967, imagine what that number could look like in 30 years from now. Your hard earned retirement saved in Fiat dollars will get you much less when you retire and actually need it. That is how the government is slowly impoverishing it's citizens.

A silver fact posted yesterday by @raybrockman that really caught my attention there once was 12 billion troy ounces of refined silver. With it being used industrially at a deficit for the last 20 years (using more than the yearly amount mined) there are now only 300 million troy ounces of refined silver in existence. With all the market manipulation in the form of paper silver (ETF) keep the silver prices unreasonably low and the decreased above ground supply isn't reflecting in the current prices. If anything charts show the prices have stagnated in comparison to the US national debt for the last 5 years. Had it kept up, it is estimated that it's current price should really be around $95/ troy ounce. Below I will provide a link to an interesting video posted by a great steemian @maneco64 / weku @dune69 that explains this in greater details. Check it out and show him some support, it's an informative eye opening channel.

With the current abnormal back up the truck prices, I went to a visit to my LCS (local coin shop) a few days ago and he was out of 10 oz bars of silver, another clue that something isn't quite right in the prices with the supply and demand concept. Physical supply is getting harder and harder to get at the current prices.

If you are Canadian, Royal Canadian Mint currently has a dinky little game to search for gold nuggets that get you entries to win FREE GOLD. By using my link to sign up you also help me out with extra plays!
http://www.thegreatgoldhunt.ca/ref/s/34b23864

Originally posted by me on weku.io. If you are not part of the weku community yet you can sign up with this link https://deals.weku.io/pick_account?referral=ladybug146 . It's pretty much like steemit but newer and better reward distribution. All you need to get started as an e-mail address and a phone to get confirmation text.

Disclaimer - I am not a financial adviser nor is this investment advice just my opinion and meant for entertainment & food for thought. Do your own research before making financial decisions.

Image taken with Nikon D7000 with Nikkor 40mm micro lens.

Source:https://deals.weku.io/community-deals/@ladybug146/why-does-everything-always-cost-more-each-year

Cheers and stack on! X🐞X