By Clif High - April 27, 2023

True FED

Yep, they’re failing you!

Below you will find a table generated by ChatGPT.

This table shows you Chat’s understanding of the management skills of the Federal Reserve Bank (note, it is not a part of the Federal government, has no reserves, and is not a bank).

The Fed was created by blackmail, murder, and extortion in 1913. This table shows you their ability to manage things.

The Fed has been in existence for 110 years. Eliminating ALL the ‘minor downturns’, and ‘hiccups’ in the economy since its creation, and ONLY picking up the ‘official’ recessions and depressions, there have been, out of that 110 years of ‘management’ of our national currency, 44 years, and 7 months we have actively been involved in either a recession or a depression. So nearly half the time the Fed has been running things, the economy has been in the shitter. Not a good score.

And the real horror of it is that if we were to include all the minor downturns, we would discover that those would more than DOUBLE our time in that shitter to over 89 years and 5 months.

Not very good managers if they are in crisis mode 80% of the time. Not a good way to run your biz, nor your country. Eh?

Oh, also they are stealing from you via ‘inflation’ the whole damn time, AND have to have an ‘enforcement’ army (IRS) to try to get real wealth to backstop their bad management.

The inflation effect of the FED can be demonstrated with breakfast. In early 1920, a ‘study’ was commissioned by some Pork Producers backed by some bankers. This study showed that people needed a ‘heavy breakfast’ to withstand the rigors of that day’s work. That is when ‘bacon and eggs’ came into their own as a breakfast staple.

There have been established restaurants in New Orleans for hundreds of years in a more or less consistent business environment. These are usually my choice for long term comparisons both for quality and quantity comparisons. Using an average from 6 of these restaurants spanning ‘working class’ to ‘business/traveler’ class (4 are in hotels), we can get a view of the inflation in breakfast costs over time.

Bacon & eggs breakfast in 1920 cost for 4 eggs, 4 pieces of bacon, 2 pieces of toast or other bread (roll, pasties), coffee, milk, and ‘relishes/garnishes’ was based on two cents (0.02$) per dozen for eggs in the commercial markets local to New Orleans at the time. Bacon ranged in prices from 11 cents a pound up to 39 cents a pound for specialty cuts and curing.

The delivered product cost of a breakfast at a sit-down restaurant averaged in 1920 to 45 cents. In the working class ‘take away’ vendors, breakfast could be had in a ‘toast wrapped eggs & bacon’ for 30 cents.

Coffee was quite expensive at the time, and contributed between 7 cents and 15 cents to the cost of your breakfast. We note with a bit of amused irony that the New Orleans restaurants would offer breakfast without coffee. The locals called this ‘sans coffee’, which colloquially was expressed as ‘san-ka’.

None the less, go to any restaurants in New Orleans today, and your breakfast costs will be around $15.00. We find a more direct comparison with the high end “eggs benedict” breakfast that was quite popular in New Orleans in the 1920s and is still offered today in the same venues in a more or less unchanged form. The cost in 1920 for the high end eggs benedict breakfast was $1.05 (on average), and now is $18.45 (on average).

$1.05 versus $18.45 for the same items (materials, labor, and energy) carried over 100 years. That is true inflation.

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