Jan 13, 2014 The Great Inflation Scam One of the bedrocks of stability in a nation is the ability for its citizens to trust the actions of their government. Opinion polls show that the people’s faith in Washington’s leadership has been on a continuous decline. A key factor driving this mistrust is the amount of false information being issued by government agencies. There was a time when reports on debt, inflation, jobs, and unemployment were beyond politics. Tinkering with numbers was seen as scandalous as editing the text of the Bible. Today, there is no integrity in the ranks of government workers. The economic data released by Washington has the same trustworthiness as the figures pronounced by the old Soviet Union. The rate of inflation is one data point I’d like to focus on—because it’s so easy to verify. The U.S. Department of Labor, Bureau of Labor Statistics says that inflation, as measured by their Consumer Price Index, is currently running at 1.2% per year. (You would have to go back a hundred years to find a lower level of inflation occurring during a time of economic expansion.) The Labor department might want to check the batteries on their calculators because something doesn’t add up. The news feeds have a growing number of stories about huge increases or record high prices for basic commodities. Here are five examples: The price for fresh whole chickens hit its all-time high. Slaughter cattle prices hit their highest level on record. New Year’s Day marked record-breaking gasoline prices. The Electricity Price Index hit 202.284, an all-time record. The price of homes in 20 key cities climbed 13.6% in 2013. Dish Network and DirecTV are increasing rates by 5.5% in 2014. The price of a stamp will go up by 3% later this month. Products like chicken, beef, gas, and electricity aren’t things you buy once in a blue moon. You consume them almost every day. Home prices make nearly forty percent of the government’s index, so there should be at least a 4% bump in inflation. I can personally testify about the price of chicken. When I go to Kentucky Fried Chicken at least once a week, I order the same meal each time. A few weeks ago, the price of my standard meal went from $9.50 to $10.27, which is an 8% increase. The fed’s crazy inflation math is based on a flawed system that allows for substitution and changes in quality. For example: If the price of T-bone steak goes up, costs will be lowered by the assumption that people will buying cheaper cuts of meat. The cost of an Iphone can be reduced by the extra features that come with a new version. Only a government economist could think a $1 increase in movie tickets could be offset by an opening cartoon. When you apply subjective adjustments to a basic price, you end-up with data that is easily manipulated. Of course, price suppression is not an accident: It’s the goal. The government has a very good reason to lie about inflation. If they reported the true rise in prices, investors would demand higher interest on their money—to retain its purchasing power. Since the government has $17 trillion in debt, higher rates would drive up the deficit. People on Social Security and various government pensions would also want cost of living increases that matched inflation. The great inflation scam has worked so far. The government has only given out a 1% raise for 2014 with almost no complaints from the public. But how long can this game go on? It will only take a few years of shortfall between the real inflation and the phony inflation being reported to zap people’s abilities to maintain a basic standard of living. With the government running a deficit of over a trillion dollars each year, the rapid increase in the money supply is guaranteed to create more inflation. All this market manipulation will eventually make matters worse. When people realize that prices have been grossly underreported, panic will rule and the value of the dollar with plunge. Economic hardship is the mother’s milk of prophetic progress, and in the financial markets we have what could be called a perfect storm. I coined that phrase after noticing prophecy always unfolds faster during times of economic trouble. Since the world faces a number of financial hurdles in the coming days, I can only warn prophecy watchers to fasten their seat belts. KNOW THE TRUTH ***
Posted on: Thu, 16 Jan 2014 21:42:47 +0000
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