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The Truth About Competitive Devaluation

Articles & Blogs - International Commentary

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It is common knowledge that the U.S. dollar has lost approximately 98% of its value since 1913. That was the year that a private bank called the “Federal Reserve” was given a monopoly to print all U.S. currency; and in exchange for that colossal privilege it was given a statutory mandate to protect the value of the dollar.

How/why has the Federal Reserve been such a total failure in its statutory mandate? The most obvious reason was that these private bankers never had any intention of protecting the value of the dollar. As I explained in “Crime of the Millennium”; it is the printing of these paper currencies (in grossly excessive amounts) which has allowed bankers to perpetrate all of History’s greatest acts of collective theft. The more they print; the faster they can steal.

Naturally the other Corporate Oligarchs are wholeheartedly in favor of this institutionalized program of theft-by-currency-dilution, since they are also big winners. As the value of these paper currencies are (deliberately) destroyed by banker over-printing, the inevitable (and immediate) consequence is that the wages of all workers are rapidly driven lower (in real dollars).

Regular readers will recognize the chart below, showing how (in real dollars) the average wages of U.S. workers have been falling steadily/rapidly for over 40 years. The result of that massive devaluation of wages is that average U.S. wages have fallen by more than 50%, all the way back to (literally) Great Depression levels. Meanwhile, management hand themselves raises many times in excess of the actual rate of inflation – effectively stealing the wages out of their own workers’ pockets.

[chart courtesy of http://nowandfutures.com/index.html]

As a result of this corporate Robin Hood mentality of robbing from the poor (workers) to fatten the rich (management); the average wage differential between the wages of senior management and the median worker wage has risen from the traditional range of between 3:1 and 10:1 to a ratio (in North America) of between 100:1 and 1000:1.

Translating the above numbers is simple. While ordinary workers have seen their own paycheques slashed by more than half, some members of U.S. management are being paid in excess of 30,000% more than their actual worth – based on hundreds of years of wage data. Yet while today’s corporate executives are the most grossly overpaid individuals in the history of human commerce, all efforts by our politicians (and all propaganda from the media) has focused on the “need” to slash wages, benefits, and anything else received by the Little People even further.

 

So where does “competitive devaluation” enter this picture of economic plundering and wage-persecution for the average worker? The “problem” for these predatory corporations (and our governments who serve them) is that if only one economy engages in this systematic program of economic oppression that the theft (and injustice) become more and more obvious to observers both inside and outside that economy.

If only one economy is “devaluing” (i.e. destroying the value of) its currency; then only one set of workers are noticing that their wages (in real dollars) and their entire standard of living is collapsing. Even more important (to the bankers), it makes the bankers’ act of theft-by-currency-dilution even more blatant – as the value of only one of their paper currencies is (visibly) destroyed.

Competitive devaluation solves all those “problems” for our Oppressors. It is the proverbial “lobster in the pot” phenomenon. With all of our nations destroying the wages of their own workers, with all of our nations unleashing insane/crippling inflation loose upon the world; it becomes much, much more difficult for the Little People to perceive these financial crimes being perpetrated against them.

Competitive devaluation has allowed our (lying) politicians and our (thieving) corporations to pretend that an economic Pot of Death is instead merely a “warm bath.” It is why the moment the bankers see any currency not plummeting lower in value that they immediately attack the economy of that nation in financial markets. Thus any (honest) politicians with delusions of actually putting the interests of their own people ahead of the plundering of the Oligarchs quickly receive an “education” on how our (rigged) markets now function.

Essentially, competitive devaluation is a permanent program of economic slavery, where the workers are involuntarily forced to subsidize their own employers to an ever greater degree, as a larger and larger percentage of their paycheque is effectively confiscated – as the actual rate of inflation exceeds the (tiny) nominal pay-raises they receive, generally by several multiples.

Understand that competitive devaluation was only made possible by the abomination now known as “globalization.” Prior to our borders all being effectively erased (for economic purposes), individual nations retained the capacity (i.e. sovereignty) to resist these types of external – and predatory – economic forces. No longer. Now “the market” (the collection of rigged casinos solely operated by the bankers) can bludgeon any economy into submission which dares to put People before Parasites.

The (only) Western exception to this campaign of economic slavery is Iceland. Iceland’s government essentially threw the Western banking cabal out of its nation. It endured the attacks on its economy, and regained its economic sovereignty.

As I’ve written previously, this has prompted two “responses” from the Banking Oligarchs. First we had “austerity” in Europe: mindlessly slashing any/all spending on ordinary people (even further) in order to produce the maximum amount of economic destruction. The goal was to cripple these economies so severely that they would be unable to survive the bankers’ war of economic attrition (as Iceland has done), and to break-free from the bankers’ financial choke-hold on their economies.

We see the “success” of Austerity demonstrated in Greece, where the people have tried to cast aside the politicians who continue to serve the bankers (and Oligarchs) and persecute their own people. What we saw was a massive two-pronged propaganda effort. The (corporate-controlled) media brainwashed the people with the lie that the same Traitor Politicians 100% responsible for destroying their economy were the only people they could “trust” to fix that same economy.

At the same time the media propaganda machine “warned” Greece’s impoverished and terrified population of even more catastrophic consequences should they rid themselves of the Traitors – and elect an Opposition Party which had categorically promised to cease serving the bankers (as Iceland had done). Understand that the very panic caused by such economic destruction impairs our cognitive faculties, making the Greek people (and other Victims) even more susceptible than usual to any brainwashing campaign.

The second response of the Oligarchs was more recent. They ordered their Revisionists in the corporate media to rewrite the economic history of the past few years. Iceland was portrayed as some sort of inexplicable anomaly. And indeed it is an “anomaly”: the only Western nation whose economy has been getting better instead of worse over the past three years.

Meanwhile, the Traitor Politicians in charge of all other Western economies are portrayed as loyal-and-diligent public servants, doing their best (under difficult circumstances) to fix the same economies that they already destroyed. Here we see yet another complete disconnect between the propaganda and reality.

Throughout the entire political/social/economic history of our modern societies we punish failure. The Failures are fired, replaced; and someone new is brought in to fix the mistakes of their predecessors. No longer. In our Oligarch Economies, failure is rewarded. Whether one is a banker, politician, or corporate executive; “accountability” is a word which has long since ceased to have any meaning…to those on top.

Meanwhile it is the Little People themselves who are held accountable for the failures of the Oligarchs. We are literally paying for their failures (more and more every day); and as the Traitors tell us with their Austerity, we have only just begun to pay for their crimes and failures.

 

 

 

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Comments (2)Add Comment
Jeff Nielson
...
written by Jeff Nielson, September 04, 2012
Cognitive dissonance at its finest. Increasing every day as the media battle to maintain the illusion intensifies. The edges are fraying of the threadbare veil. Here we have the pleasure of seeing it all demolished, and the matrix revealed. Thanks Jeff for another reality-sustaining post.



Dalkrin, I could have used your observations BEFORE I wrote this piece. "Cognitive dissonance" was exactly the phrase I was searching for. Better write it down... smilies/wink.gif
Dalkrin
...
written by Dalkrin, September 04, 2012
"Meanwhile, the Traitor Politicians in charge of all other Western economies are portrayed as loyal-and-diligent public servants, doing their best (under difficult circumstances) to fix the same economies that they already destroyed. Here we see yet another complete disconnect between the propaganda and reality."

Cognitive dissonance at its finest. Increasing every day as the media battle to maintain the illusion intensifies. The edges are fraying of the threadbare veil. Here we have the pleasure of seeing it all demolished, and the matrix revealed. Thanks Jeff for another reality-sustaining post.

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