Isn't it interesting that, all of a sudden and
after eight years of supposedly flat prices and deflation fears, all the
rage is "surging inflation" and this phenomena may "force the Fed to
act" to raise rates again as soon as March?
I don't know. Maybe there really is a sudden
surge of price inflation? How would I know when I'm just a dope with a
MacBook? However, I think it's fair to be more than a little
skeptical..especially when it comes to the efficacy of
government-created data. Is it possible to prices at both the wholesale
and consumer level to suddenly surge to multi-year highs simply because
Trump was elected? I'm having a hard time connecting the dots because
that doesn't seem likely or possible. Instead, it's almost as if The Fed
is dying to hike rates for their Banks and they're getting the data
they want/need to justify their ends.
To that point, check this chart that I pulled
from Twitter. Note that it's another one of those FRED charts from the
Fed's own database. So, help me out with this...If the purchasing power
of the dollar is down 30% over the past 17 years, how is it that NOW is
the first time that we're actually seeing significant MoM and YoY
inflation numbers??
Instead and once again, are the numbers simply
being cooked/fabricated/made-up simply to fit the desired narrative?
Want to run rates to historically low levels? Have the BLS (yes the same
Bureau of Labor Statistics that cooks up the BLSBS each month!) print
"inflation" at historically low levels, too! Need/want to hike rates for
whatever reason? Have the BLS suddenly print that inflation "is
surging"!
And you think that's not possible?? HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA! Again, check that chart above from the Fed itself and tell me that inflation is only now beginning to pick up.
Why is the purchasing power of the dollar
continually declining? Because The Fed is constantly increasing the
supply of dollars in order to meet the liquidity demands of their Banks
and the federal government!
Of course, many will then think of M2 "velocity" next. Granted, this
chart is only updated through the end of Q4 but do you see anything here
that suggests a sudden trend change? Me, neither.
So, of course what I'm suggesting here again is
that it's all bullsh*t....just like everything else. Game the statistics
into whatever you want/need them to show and then the
Financial/Political/Media Complex reacts accordingly. All the while, the
average person gets screwed. How?
- The BLS deliberately understates inflation in order to constrain COLAs for retirees and Social Security recipients
- The Fed decreases rates to zero and prints trillions of new greenback in order to save and shore up their member Banks
- Now at the appointed hour, the Fed wants to hike rates so that their
member Banks can charge more interest upon the vastly increased money
supply, further strapping with higher interest costs the average
individual or retiree.
Who wins? The Banks. Who gets screwed every
time? The average, everyday American who is just trying to scrape by,
working three jobs and desperately trying to hold it all together.
Only popular uprising or financial collapse
exist as possibilities for changing this inherently corrupt and criminal
system. Since popular uprising seems unlikely due to the complete lack
of economic education in this country, we're left with only the option
of financial collapse as a way of extricating ourselves from the serfdom
of central bank control. And sadly, when it inevitably comes, global
financial collapse is going to be an unmitigated disaster for nearly
everyone.
But here's one more chart. Note that this covers
about the same time period as the two FRED charts above. And be sure to
note that, instead of declining like your purchasing power, this chart
shows an increase of more than 4X over the same time period. And what is
this?
GOLD. Not the limitlessly-created fiat script of governments. Instead, REAL MONEY that has been recognized as such for millennia and, as always, your ONLY protection against the madness and criminality of the global bankers.
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Our Ask The Expert interviewer Craig Hemke began his career in financial services in 1990 but retired in 2008 to focus on family and entrepreneurial opportunities. Since 2010, he has been the editor and publisher of the TF Metals Report found at TFMetalsReport.com, an online community for precious metal investors.
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The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.
