Since the dollar left the gold standard in 1971, the U.S. has lost nearly 20% from the ranks of the middle class

The power to print money is the power to move wealth in whatever direction a bank, institution, or agency chooses.  By increasing a money supply, you move wealth upwards towards a small group of individuals that are financially and politically set to reap the benefits of asset price inflation.  And likewise, if you decrease that same supply of money, you tend to move wealth downward as asset prices sharply decline, and prices for products and services become beneficial to those who save money rather than invest in paper.

And as the Middle Class in America continues to decline in the shadow of the central bank’s unprecedented increase in the nation’s money supply, a new study from the Pew Institute parallels the fall of the middle class since the year 1971, and in particular, when President Nixon took the U.S. off the gold standard.

Overnight, we reported that according to a new Pew study, this is precisely what is taking place because while in 1971 two out of three Americans live in middle-income households, now for the first time in at least four decades (and likely ever) just under half of all households (about 49.9 percent) belong to the “middle class.” Slightly more than half of Americans (about 50.1 percent) either live in a lower-class household (roughly 29 percent) or an upper-class household (about 21 percent). – Zerohedge

For a fair perspective, incomes that determine who is in the middle class vary from state to state, as costs for products and services such as rent and energy are much different in Maryland than they are in Mississippi.  And in fact, can be as diverse in range as $75,000 between the highest and lowest ends of the class.

middle class ranges

The bottom line is that first by inflation, then by deflation, the bank that controls our money supply has brought us to the brink of a new Great Depression, and the inevitability of the end of the middle class.  And as many economists are now certain that the direction our economy is going is towards the deflationary part of the cycle, most Americans will lose nearly everything since we are no longer a nation of savers, but one built on massive debt, and little cash.

Kenneth Schortgen Jr is a writer for,, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.