EXPOSED: Regulators suppress truth about inflation & Fed policy to destroy the US Dollar

globalintelhub's picture

For savvy investors the fact that the US Dollar loses value every year is no surprise.  CEO of JP Morgan (JPM) Jamie Dimon characterized this eloquently with an analogy of ‘musical chairs’ – basically that at some point some asset class has to blow up.  There’s actually a reason for this, because in a debt based fiat monetary system, fresh credit needs to be created on a growing basis even to payback the interest on previous credit, or the system will implode (systemically speaking).  The Fed knows this, bankers know this, CEOs – about 50% know this, Zero Hedge readers know this, most economists know this…

But this still remains a ‘secret’ of the FX business that regulators don’t want the average retail investing public to know.  Now we’ve proven there is a conspiracy to keep these self-evident facts secret:

  1. Inflation is much worse than the Fed is saying
  2. There is a solution to inflation which is called hedging

WHY they don’t want folks to know this – well there can only be one reason.  As we’ve exposed in previous articles, banks are making a fortune by people not understanding how FX works.  If someone tries to explain it, in a way based on facts and substantiated – that simply can’t be allowed.  If the Fed says inflation is 2%, then it’s official – inflation is 2%.  Who is anyone to question the Fed?

Here’s the phrase that the regulators don’t want you to read because it’s ‘misleading’ – that’s right – it’s misleading.  It was to be immediately removed:

[REDACTED]“Currency Headwinds” is not an excuse for losing billions of dollars.  Inflation is much worse than the Fed says, and QE impacts other markets.  FX is starting to become the most significant market component.  So we believe that it’s important anyone, not only investors, master FX. [REDACTED]

It comes as no surprise, although we feel obligated to inform people generally about the Fed’s plans.  The Fed isn’t involved in a conspiracy to make people poor (although it might seem that way) – it’s simply the Fed’s answer to monetary policy in an electronic world.  Practically new USD is needed every year not only in the US but globally.  Management of this global financial system isn’t as easy as going to an alternative system ‘backed by Gold’ for example.  But in any event, regulators don’t want investors to suspect that inflation is greater than what the Fed is saying – this allows them to continue their QE program in stealth.

The reality is for most people inflation is killing their quality of life, while product inflation is rampant wage inflation is stagnant – they earn the same every year (mostly).  This issue is further confused by people not understanding that the “Fed” is not the “Feds” as depicted in films – the Federal Reserve is no more Federal than Federal Express (Celente).  So if the “Fed” says inflation is 2%, then it’s like the US Government saying the weekly weather forecast via NOAA.  No, it’s not.  NOAA has no conflict of interest to tell us the weather – whereas the Fed has a huge conflict as their member banks have a profit incentive when it comes to inflation.  You see, if the banks can rip people off on small money transfers to foreign countries, meanwhile borrowing at rock bottom rates and inflating markets like real estate, stocks, and the rest – it will create a new oligarch class that even surpasses Russia.  In the last 10 years especially, the Ultra High Net Worth became the Super Ultra Galactic High Net Worth – the gap between the 1% and the 99% widened even further and QE is responsible for this.

So there is a vested interest to keep the wheels of this machine well oiled – and certainly don’t tell people about this dirty little secret.

To learn more about this checkout  Splitting Pennies Understanding Forex.

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Rick Cerone's picture

And they destroy real people in the process.

The Fed is a murderer.

lasvegaspersona's picture

" The best lack all conviction. While the worst

Are full of passionate intensity"

MrBoompi's picture

The government might lie about war, foreign policy, black ops, and eavesdropping, but they would never make up falsified economic data.    

Silver Savior's picture

Well with me the secret has been out for a long time. Inflation is for me around 10% and my raises are 2%. I got an F in math and even I can figure this out. Most people choose to do nothing. 

Why wouldn't someone want to hedge away from the dollar? The dollar is just a declining asset. This is the basis for my over investment in precious metals compared to the main stream. 

MrBoompi's picture

As long as there is no wage inflation, the overlords are happy.

JailBanksters's picture

I don't think anybody actually knows the real Inflation figure to be honest, it's all a Gestimate.

Supermarkets, Fast Foods are running Stealth Inflation by changing the Product Size to match the Existing Price.

Other Products will be substituting a Product to match the Existing Price. And Real Estate is just what people are prepared to pay for something.

The Fed also starts with the rate they want to show, then creates a "New" more accurate formulae to get to that rate.

Things they can't change, is the amount gas in gallon for a given price. They Invented the Ethenol Scam to create the Stealth Inflation by Product Substition, but you can only do that once, after that it's subsidies for Oil Companies to pay the shareholders.

And Subsidies Gawd, Everything is Subsidized in the USA to hide the True Cost of Production.

America really is living in Wongaland

 

 

 

 

 

Memedada's picture

Most economists don’t know this. Neo-liberalist (the dominant paradigm of today) economic theory doesn’t even have “credit”/”debt”/”money/fiat-supply” as a central mover/causal explanation – banking is just seen as a facilitator of “markets” (not as the markets themselves – as they are). It serves a purpose to have and keep people (especially economists) in the dark in relation to how the system is designed to make wealth move upwards (the opposite of the fabled “trickle-down”-effect).

It is the same interests who’ve been successful in keeping the US-population in the dark in relation to ideologies. On ZH “the free shit army” is not the ones benefitting from the system (the ones actually getting the free lunches) but the victims of the system (those who gets crumps to keep them from open revolt). Looking and kicking downwards is what cowards and well-trained/-indoctrinated plebs do.  

bardot63's picture

 problem is 99% of Americans are too stupid to understand that inflation is a wealth killer and the weapon used is money printing. 

helloimjohnnycat's picture

Welp, how else can the corrupt & broke governmant pay its employees to keep the game afloat.

JimBobJenkins's picture

A whole chicken costs $10.00. Organic $14.00. Nuf said.

OverTheHedge's picture

And yet, I can't grow one for less than $20. It takes 40 days to grow a store-bought chicken from egg to table, but it takes me 7-9 months. Economies of scale, and access to God-knows what chemicals to speed growth.

I'd rather eat MY chicken, even if it does cost more.

wanderer9641's picture

you are keeping them too long - Not much growth after 4 months - 5-6 pounds dressed is excellent.

Silver Savior's picture

Is that good or bad? I don't buy meat. Not vegetarian just don't want to pay the cost. I have no problem not even going to the meat section. Most of the inflation can be found there. The produce department is guilty as hell too. Dollar or two apples and shit.

JRobby's picture

Whacked with all kinds of drugs either way.

Washed with chlorine

Herdee's picture

That's why you need Gold. It's to protect your purchasing power. A good form of insurance against political corruption, bank swindling and mamipulation of markets and fiat paper printing which supports war. Everybody should have a certain percentage in physical gold bullion or coins stored outside the banking system. Some say Gold is too expensive, I can't afford it. Then buy one gram at a time or buy silver coins. 

css1971's picture

Watch the taxes on silver. Typically attracts vat where gold often doesn't. Also check capital gains tax.

Small gold coins e.g. British sovereigns or similar sizes. Around the 10 gram mark.

ReturnOfDaMac's picture

Bad advice, can't eat gold.  Buy LMT instead. If it goes to 0 you can wipe your behind with the stock certificate!

globalintelhub's picture

can't eat gold?  WTF!!!  Try Goldshlager 

ReturnOfDaMac's picture

You're cheating!  Thats drinking ...

Silver Savior's picture

I actually started by saving pre 82 pennies as copper bullion and nickels as cupronickel. I moved into silver and bought the heck out of it then bought gold. Anyone can be a stacker. I am a retail worker and I am on track to have a stack like the rich people. Just stop buying shit you don't need. And determine if it's a need or a want. If it is a need can you get it cheaper some place else. Then also do silver math.

TeethVillage88s's picture

Who?

A) Was it the British Banking/Wealthy that set out to destroy US Independence & Liberty of the Peasant? Did England for example send in Lobbyist to Corrupt our Senate & House of Representatives... since they were used to that in Great Britain in the House of Lords??

- Great Britain Economic Model was Trade that made only the .1% Rich and Financial Economy that only made the .1% Rich... seems very familiar... So the Goods come from outside the System, made by people who pay "ZERO" for Taxes, Social Security, Medicare, Medicaid, Value Added tax, Production Tax, Sales Tax, Inventory Tax, Capital Gains Tax, Capital Investment Tax... So this was clearly an 'End Run' around the Tax System, 'Gaming the System'!

What did they Do?

B) Did they change the US Constitution, the Bill of Rights/Civil Rights? Did they create Executive Actions from US Presidents from George Washington through Abraham Lincoln & the Civil War... and beyond?

How did they Do IT??!!

C) Did they use Blackmail, Coercion, Bribes, Entrapment through bribery or other illegal acts?

Are they still doing it in the DOJ, FBI, NSA, CIA, other Intel Agencies, MI-5, MI-6, other foreign Intel Agencies such as in Israel, France, Germany, Belgium, Luxembourg, Italy, Vatican City, Old City of London, Spain, Monaco, Switzerland, Austria, Russia, Malta, Off Shore Financial Centers?

D) Was Vote Rigging Used?
E) Was Voter Fraud Used?
F) Were Titles, Lands, Wealth, Financial Instruments exchanged to make powerful US Citizens vote and act for Foreign interests?
G) Are we now seeing similar efforts to support Globalism... Conflict of Interest, Financial Conflict of Interest, Investment Accounts that grow at very high rate?

/No Sarc

TeethVillage, no shortening, no salt

Justin Case's picture

Capitalism?

We cannot attribute the failings of the system to "Capitalism" as it is classically defined. Capitalism does not, for example, require a pure fiat system to function. Nor can the current international monetary and financial system (IMFS) be described as Capitalism. It is much closer to Fascism under a fiat regime of a more Imperialist nature.

True Capitalism does not allow for TBTF, with financial failure rewarded (and trillions in losses "socialized"). Risk is not systemically protected by an unwitting collective. Clearly this cannot be argued against. It can be said that Capitalism helped to foster this development, but importantly, it could not have been accomplished under a free market gold standard. To wit:

Capitalism was governed by the gold standard system which was international, very solid, with clear rules and had brought great prosperity: for banking Capital was scarce and so allocated carefully.

The bolded statement above is extremely important to understand. It is also important to understand that we have never had a true free market gold standard in our lifetimes, free both of artificial "fixing" as well as derivative futures manipulation. This is what FREEGOLD advocates essentially, as the next evolution of a true gold standard for our next IMFS.

Physical gold accumulation among the 2% has reached a level that will in fact allow the families to cease the current measures to prevent the clearing of our current debt based system. Unfortunately, the situation has entered into "new waters" that have never been tested by historical precedent, therefore it is troubling our central banks, and the way forward remains unclear.

We all do wish to make the transition as painless and peaceful as possible, but there are war mongering factions within the circles of power, and these factions will live and die by the current debt based wealth redistribution system, even if we were to simply sit them down, explain the peaceful process with them, and attempt to buy them off with our gold.

I don't think we'll call this new era one of Capitalism. I believe the new system deserves a new name, not tainted by such predispositions of the past.

Memedada's picture

USA is owned – by capitalists (owners of capital/the original meaning of the word) from all over the world (=they don't care about US plebs). The medias are owned (=they control what “news”/”information” you get – and don’t get. And they control the “narrative”, the “terms” (very apparent on this site – all from US have a “corporate created” vocabulary that makes it impossible to discuss ideologies) and the distractions/bread and circuses). The monetary system is owned (through the private commercial banks/90% of all fiat-creation and the privately owned FED). The political system is owned – through the two corporate/privately owned parties pretending that there’s a democratic debate/choice. The MIC is privately owned (including privately owned intelligence companies, mercenary companies and security companies).

US plebs doesn’t have a say in the theatre they are forced to participate in. They’re spectators and unwilling actors in a play that’s scripted by their perverse and inhumane owners. The script at the moment is: let them fight each-other over meaningless differences (keep them from seeing the obvious: that they’re all getting f*cked by a rigged system no matter what color, sexual orientation, cultural background or whatever they have).

 

BOPOH's picture

Who owns my English language?

Answer: Hebrew speaking people.

JRobby's picture

All of the above and then some.

Exporting jobs.

Uncontrolled, incentivized immigration. 

Corp. Inversions

High cost barriers of market entry, endless regulations and statutes.