Fed Officials Frantically Play Dumb to the Coming Inflationary Storm

The Fed is baffled as to why inflation remains so low.

It’s a clever move, given that the reason inflation is believed to be “low” is because the Fed has been purposefully understating inflation for years.

Perhaps the biggest fraud ever committed in financial history concerns the understating of inflation in the Unites States post-1971. 

By the Fed’s own admission, the US Dollar has lost some 84% of its purchasing power since 1971, and yet the Fed has routinely claimed that inflation has been “subdued” or “under control” throughout that time period (with the brief exception of the inflationary spikes of the ‘70s).

With this level of currency depreciation, incomes would have to rise exponentially to compensate for Americans’ higher cost of living. They haven’t. As a result of this, Americans have increasingly relied on two parents working instead of one, while supplementing their incomes with credit cards and other debt instruments.

The below chart is possibly the single best argument against any claim by the Fed or others than the official inflation numbers are accurate. If income growth was indeed greater than the rise in inflation post-1971 as the below chart suggests, most families would currently have only one parent working and STILL be saving money. Instead, today the norm is for both parents to work and the average US household to be sitting on over $137,000 in debt.

Put simply, the official inflation numbers are garbage.

The Fed purposely wants it this way because understating inflation allows the Fed to

1)   Overstate GDP growth

And…

2)   Paper over the fact that incomes have been on the decline relative to cost of living since the early ‘70s.

So don’t let the Fed fool you with its “gosh, where is the inflation?!? We don’t understand!” act. The Fed KNOWS inflation is rising rapidly. Heck, the $USD has already dropped 10% in the last 12 months that’s DESPITE the Fed hiking rates THREE TIMES.

Put simply, BIG INFLATION is the THE BIG MONEY trend today. And smart investors will use it to generate literal fortunes.

We just published a Special Investment Report concerning FIVE secret investments you can use to make inflation pay you as it rips through the financial system in the months ahead

The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU.

We are making just 100 copies available to the public.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

Comments

LawsofPhysics Thu, 10/12/2017 - 15:51 Permalink

The inflation is there in many forms, in fact, my hypothesis is that much of the hot/free money that has been given to bankers and financiers (and is STILL being given) is just now looking for a way out before the "official" monetary system and "markets" do fail.  This explains the rise in crypto currencies.  No matter, at the end of the day, those who physically control productive capacity and resources will rule the day and they (not the consumer or useless paper-pusher) will decide what they will accept in exchange for their labor."Full Faith and Credit"

Dwain Dibley LawsofPhysics Thu, 10/12/2017 - 23:37 Permalink

Where did you get the silly notion that "hot/free money" is being given to bankers and financiers?You should go back to whoever told you that and slap the shit out of then for filling your head with such silly nonsense.The Fed does not give money away.  For the most part, the Fed doesn't deal in money at all, they deal in assets and credit in order to affect interest rates and liquidity in the interbank settlements system.  This, in turn, affects a bank's ability to generate credit as loans.  Depending upon the Fed's grossly misnomered "Monetary Policy" goals, the Fed can buy bank assets, which adds liquidity to the interbank system thus driving down interest rates that allows banks to generate more credit as loans or, it can sell assets draining liquidity out of the interbank system, driving up interest rates, which decreases a bank's ability to generate credit as loans.  Any increase in the actual legal tender money supply, which only increases via depositor demand in reaction to credit induced inflation. is purely tangential to the above process,MONEY . 

In reply to by LawsofPhysics

Dwain Dibley LawsofPhysics Fri, 10/13/2017 - 10:38 Permalink

I understand, you don't like learning that your cherished beliefs are just an incongruent collection of bullshit and you're lashing out.Don't be scared, it's ok.Your question about the "price" of shit you hold is silly and not germane to the issue.Primary dealers don't have any "new money" on deposit with the Fed.  Their accounts at the Fed are asset-backed "credited accounts", just like your deposit account at your local bank is a "credited account".  There is no actual money in either of them, they are just bank debt expressed and utilized as bank-managed lines of credit.Currently, there is a total of $1.53-Trillion U.S. legal tender dollars (the official and only currency of the United States) in circulation around the globe.  Of that $1.53-Trillion, $280-Billion is in circulation within the U.S.  Of that $280-Billion, $72-Billion is held in bank vaults.That $72-Billion in bank vaults backs the $1.9-Trillion in credited demand deposit accounts.  It also backs the $9.3-Trillion in credited savings accounts.  It also backs the billions in credit transactions, from Main Street to Wall Street and all points between and beyond, that occur on a daily basis.  It also backs all U.S.G. payments.And that, is the stark reality of Fractional Reserve Banking within the U.S.The U.S.G. is under no legal obligation to make good by 'monetizing' the trillions in dollar-denominated Fed and Bank generated debt/credit.  The Fed and the U.S. banking system are the most indebted entities within the U.S., not the U.S.G.  So, it is not the U.S. Dollar that is failing, it is Fed and bank generated debt/credit denominated in dollars, that is failing.U.S debt is denominated in U.S. Treasuries.  U.S. Treasuries are redeemable in U.S. legal tender, and in spite of the rumors to the contrary, the U.S.G. owns the legal tender.  Yes that's right, the U.S.G. owns the FRN.https://www.law.cornell.edu/uscode/text/31/5103https://www.law.cornell…

In reply to by LawsofPhysics

Dwain Dibley ejmoosa Fri, 10/13/2017 - 14:02 Permalink

You are taxed for services rendered.  You don't like paying taxes and feel the services rendered do not suit you,  then stop whining about having to pay them and work to get the laws changed. The U.S.G. owns the legal tender money in the sense that it is created as a sovereign right.  Once that money enters economic circulation, it becomes the private property of those who hold it.

In reply to by ejmoosa

tecno242 Dwain Dibley Fri, 10/13/2017 - 09:44 Permalink

To be fair, only the primary dealers have access to .25% interest money.  If you or me were to borrow money right now in order to finance investment we wouldn't get fantastical rates.  Hedge funds, large investors, basically anyone with the ability to get secured loans will get money very cheap for investment.So in essence, when the FED is increasing liquidity in the system, very little of that money is available to you or me with such fantastical rates ready for investment.  It's mostly only available to the already rich.With the exception of home flippers, but they typically buy in cash and avoid finance anyways, so just more people that have at least 400k chilling.

In reply to by Dwain Dibley

SILVERGEDDON Dwain Dibley Fri, 10/13/2017 - 13:28 Permalink

All your fancy words wallpaper over the fact that the power to mint money belongs exclusively to the US Congress. And yet, the FED has been given the power to print money out of thin air, loan it to government for use, charge interest on the loan, and tell government when and by how much to fuck over it's citizens with bail outs, TARP programs, and other disingenuous scams to compensate for banking fuck ups. Go fuck yourself with a barbed wire covered baseball bat lubed with flaming napalm, mister spin doctor failure.  

In reply to by Dwain Dibley

Dwain Dibley SILVERGEDDON Fri, 10/13/2017 - 14:14 Permalink

OK, you incognizant piece of shit:THERE IS NO U.S. LAW GRANTING TO THE FED THE AUTHORITY TO CREATE MONEY.THE FED DOES NOT CREATE MONEY.THE BANKS DO NOT CREATE MONEY.The Fed and banks create debt which is utilized as bank administered lines of credit, payable in legal tender money that they do not have and cannot get.

In reply to by SILVERGEDDON

Know shit Thu, 10/12/2017 - 13:38 Permalink

Inflation can be seen almost anywhere.

One has to start by opening ones eyes, and actually be willing to see it.

A sample you ask?

Well take these '100 copies for free' articles, they use to mention how many where left.
But now that has disappeared all together.

Take care

Mr... Robot Thu, 10/12/2017 - 13:38 Permalink

I've read where this is going soon.Revelation 6When the Lamb broke the third seal, I heard the third living being say, “Come!” I looked up and saw a black horse, and its rider was holding a pair of scales in his hand. And I heard a voice from among the four living beings say, “A loaf of wheat bread or three loaves of barley will cost a day’s pay.[b] And don’t waste[c] the olive oil and wine.” 

gdpetti Thu, 10/12/2017 - 14:19 Permalink

https://kingworldnews.com/breaking-another-well-known-swiss-bank-has-ju…The Bank Is Supposedly Storing For Them October 12, 2017 SECOND MAJOR ALERT: Another “Well-Known” Swiss Bank Has Just Refused To Let A Client See The Gold The Bank Is Supposedly Storing For Them October 12, 2017 It’s happened again. For the second time in less than a week, the man who has become legendary for his predictions on QE, historic moves in currencies, told King World News that another scandal is unfolding in Switzerland as a second major Swiss bank has has just refused to let a client see the gold that the bank is supposedly storing for them. What In The World Is Going On With Swiss Banks? Eric King:  “Egon, the piece went viral on KWN where you were exposed the fact that one of the Swiss banks refused to hand over a client’s gold.  You also exposed more shocking information about what is happening with other Swiss banks.  What in the world is going on with the Swiss banks?” Egon von Greyerz:  “Eric, this week we had another situation unfold at an extremely well-known and respected Swiss bank.  A wealthy, long-time customer went to the Swiss bank and requested to see his gold bars.  The Swiss bank responded, ‘You can’t see them.’…This gentleman has, according to a statement from the Swiss bank, a very large number of gold bars on deposit at this bank.  Eric, I would call it ‘a significant amount of gold.’  And yet the Swiss bank said to this wealthy client, ‘No, we’re not going to show them to you — we can’t.’  The client was furious and now wants his gold and other assets out of that Swiss bank. But this is what’s happening now.  We talked in my previous interview about how clients are refusing to send clients’ gold anywhere.  What’s happening is these banks are putting up obstacles to prevent clients from taking gold or other assets out of the bank.  And I think this situation will get much worse, Eric.  Eventually nobody is going to be able to take their gold out of the banks.  I have seen banks tell clients the gold is safe at the bank, and then later revealed that the gold isn’t there.  And I don’t believe this bank possesses this client’s gold.” The Client Was Furious Eric King:  “Egon, when this man was at the bank and this unfolded, he had to be thinking to himself, ‘They don’t have my gold.  It’s gone — they’ve sold it.’” Egon von Greyerz:  “Absolutely.  He was furious and he did not believe the bank had any of his gold.” Eric King:  “Were there any reasons given to him for the banks’ inability to show him his gold?” “They Don’t Have The Gold” Egon von Greyerz:  “No, no reasons.  My guess, because I have seen this before, is they don’t have the gold.” Eric King:  “Egon, what do you want to say to people around the world who are reading this?  What’s your message?” Egon von Greyerz:  “My message is very clear:  There is going to be such a mess in the global financial system in coming years that a major amount of the assets that people have in banks will disappear.  This is why I have been warning people, ‘Don’t keep your wealth preservation assets in the bank.’  People must keep their wealth outside of the banking system in private vaults, otherwise they might never get access to it when they need it.  People have to own physical gold and when they do, do not trust the banks.  When you own physical gold, store it outside the banks because they are already, right now, being extremely difficult when it comes to clients wanting their gold out of the banks, and I’m afraid the situation will get much worse during the next financial crisis.”   

SybilDefense gdpetti Thu, 10/12/2017 - 21:02 Permalink

The gold is not here at the bank Mr Smith.  Its in Jim's house, in Gus"s farm, in Aunt Sally after her operation.  Just take the gold you need.  Everyone.  Just what you can get by with.  Here Mr Smith, take this Bitcoin.  Its just like our, er,  I mean" your" gold.  And Merry Christmas, now go jump off a snow covered bridge somewhere until you see the ghost of prosperity past.

In reply to by gdpetti

Gatto Thu, 10/12/2017 - 15:50 Permalink

The real issue is that inflation has a LAG of 5 to 12 YEARS after the money is printed!  Example, the overspending in the late 60's in Vietnam caused massive inflation in the early 80's, and when they begin the realize that the massive spending from 2007 to just recently is beginning to cause massive inflation, it will be too late to do anything about it!  There will already be inflation in the pipeline that can't be slowed!   It is coming!

All Risk No Reward Gatto Thu, 10/12/2017 - 16:16 Permalink

Hi Gatto, I hope the name is in reference to one John Taylor Gatto (Youtube him) - a true American hero.

Almost everyone is confused about the nature of money.

The private cabal of people who control the money promote this ignorance by financing main stream ignorance, as well as various "controlled opposition" false narrative about money.

The reality is actually pretty simple, but it relies on reality, NOT false narratives.

Foundational Points:

1. The sovereign in a society controls the money in a society. There is no reason why a sovereign would ever allow anyone else to control the money (and if they did, they instantaneously lose their sovereignty).

2. Following from #1, Western governments are NOT sovereign. Neither are their peoples. A small coderie of people who privately control the money system ARE THE SOVEREIGNS.

If you think Nancy Pelose, Obama, Ryan, et al. actually controlled government then you've been punked by a Money Power psy-op engineered to deceive you.

“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”
~Napoleon Bonaparte

I can't say it any better. Whatever his tyrannical faults, Napolean wasn't a dummy, he just ran up against a group that controlled more money than he did.

I repeat, Money Power Monopolists are the REAL DECISION MAKERS. They control government. They control the military. They control the major press. They control every major corporation through leverage. They control the intelligence agencies. They control the major mobs. They control the major drug running (and their mega-bank fronts always get caught and protected... Opium Wars 2.0). They control terrorist funding in order to overthrow governments outside their monetary purview to put them under their monetary purview (Afghanistan, Iraq, Libya, Ukraine; even Vietnam, Japan, and Germany). War's main purpose is to extend the Money Power Monopolists power over more nations. It is what simply EXISTS. No, they won't tell you, you neo-helot. You are supposed to be a schmuck that can't connect dots right in front of you.

So, if you hold trillions in monetary wealth and trillions in debt paper, and the debt-money paupers are up to the top of the "One World Trade Center" in inextinguishable debt, would you hyperinflate to bail out the monetary system illiterate masses at your own expense?

No, you wouldn't.

And neither will they. We are schmucks compared to the people who literally run the vast majority of the planet like some kind of monetary "Oz" hiding behind the "money curtain."

Now, I'm not saying a hyperinflation won't eventually come. What I'm saying is that it will be orchestrated WHEN IT BENEFITS THE SITH LORDS WHO RUN THE MONEY SYSTEM.

So, what is their incentive when they hold trillions in monetary assets and trillions in debt-paper?

A debt-money depression. They will crash the economy, wipe out the debtors (meaning transfer the material wealth of the masses to their corporate fronts), and effectively rule the world.

Once the planet has been busted (they are long hard assets and light on money and debt-paper), THEN, AND ONLY THEN, DO THE SITH LORDS RUNNING THE MONETARY SYSTEM HAVE AN INCENTIVE TO HYPERINFLATE (balance their books, call it even). They could use this hyperinflation to create a new crooked money system to financially and economically rip faces of the monetarily illiterate ordinary people.

That's it. It isn't rocket science. Nobody will be able to counter this argument with a rational argument. At least they haven't in 10 years - and I've been looking.

All they can do is viscerally down-vote under the delusion that their feelings define reality.

"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks."
~Lord Acton

"Power corrupts. Absolute power corrupts absolutely."
~Lord Acton

"Let the American people go into their debt-funding schemes and banking systems, and from that hour their boasted independence will be a mere phantom."
~William Pitt, (referring to the inauguration of the first National Bank in the United States under Alexander Hamilton).

How To Be a Crook
https://www.youtube.com/watch?v=2oHbwdNcHbc

Poverty - Debt Is Not a Choice
https://www.youtube.com/watch?v=t7BTTB4tiEU

Renaissance 2.0 The Rise of [Debt-Money Monopolist] Financial Empire
https://www.youtube.com/watch?v=96c2wXcNA7A

Debunking Money
https://www.youtube.com/watch?v=5iBSBVew-3Y

Krugman (and each MIT economist professor - THEY KNOW AND THEY OCCULT!) is a Goebbelsian propagandist as he covers the crimes of wolves with his fake sheep suit and lisp.

Krugman to Lietaer: "Never touch the money system!"
https://www.youtube.com/watch?v=Q6nL9elK0EY

In reply to by Gatto

All Risk No Reward All Risk No Reward Thu, 10/12/2017 - 16:20 Permalink

BTW, the key controlling inflation is to concentrate the debt-money wealth in the hands of a few so they can keep the money sidelined.

Since outstanding debts require their debt-money to pay down, they can't pay it down and will go bust. The Banksters then use government as their police force to asset strip ordinary citizens.

They are doing it now in Greece. They will do it in your community, too.

It is the absolute height of gullibility and ignorance to believe that those who fraudulently enslaved society to inextinguishable debt will now bail society out of said fraudulent inextinguishable debt.

“We live surrounded by a systematic appeal to a dream world which all mature, scientific reality would reject. We, quite literally, advertise our commitment to immaturity, mendacity and profound gullibility. It is as the hallmark of the culture. And it is justified as being economically indispensable.”
~John Kenneth Galbraith

“In our time, the curse is monetary illiteracy, just as inability to read plain print was the curse of earlier centuries.”
~Ezra Pound

In reply to by All Risk No Reward

illuminatus All Risk No Reward Thu, 10/12/2017 - 19:17 Permalink

Thank you so much All Risk!! I wish I could give you more upvotes. I wish more people would get this. It seems simple enough, yet I can't even get my own children to believe me. It's as if people are under a spell. What is going on is too incredible I suppose and most minds just won't believe the audacity of what is being perpetrated. The old saying " No one so blind as he who just won't see" applies. It grieves me to know and see how powerless we really are to stop this grand crime and tragedy.

In reply to by All Risk No Reward

All Risk No Reward All Risk No Reward Thu, 10/12/2017 - 16:24 Permalink

Weimar, Argentina... I know, but do you know?

Do you know those were DEFLATIONS from the standpoint of the Sith Lords operating the money system OUTSIDE of those nations?

Banksters bought up German and Argentinian assets FOR PENNIES ON THE DOLLAR, BECAUSE THAT'S HOW THEY ROLL.

AND BUYING UP YOUR COMMUNITY FOR PENNIES ON THE DOLLAR WILL BE HOW THEY ROLL OVER YOUR COMMUNITY, TOO.

JUST LIKE THEY DID DURING THE GREAT DEPRESSION FOLLOWING THEIR DEBT-MONEY BUBBLE BLOWING DURING THE "ROARING 20'S"

Oh, that's not part of the programming.

You aren't dealing with "cowboy" nation states here, you are dealing with the...

Supranational Debt-Money Monopolist Mega-Corporate Fascist Global Empire...

bitchezzzzzzzz

Parroting decontextualized narratives isn't going to work here.

In reply to by All Risk No Reward

Conax Thu, 10/12/2017 - 16:08 Permalink

A can of stew went from $2.49 to $2.99 in six months. A pound of the cheapest ass bacon (probably the remains of chinese political prisoners anyway) went from $3.49 to $4.99 in a year.  Haircut that was $14 is now $18.Inflation is roaring, but it hasn't gone hyper yet. The well-off ignore inflation, as long as they don't need a rucksack full of paper to buy chewing gum.  Poor people are well aware that they are being boiled slowly and things are getting worse by the week.The banks would never admit it else they would have to raise the rates. Doing so would help the frugal, the savers, those that reject the heavy debt way of life. They hate those people.

11b40 Conax Thu, 10/12/2017 - 17:03 Permalink

Just last night, the wife & I were commenting on or dinner bill at Outback Steakhouse.  We have been eating there for many years, and generally get the a similar meal to this one, but what not long ago was about $30 was over $42, plus tip.2 appetizers, 2 side salads, 1 premium Margarita & 1 glass of mediocre wine - so almost $50 with the tip.  We are seniors, and don't eat much in one sitting.  I guess if we had a steak each and 2 drinks, it would be closer to $100......in a mid-priced chain restaurant.  Inflation is ripping.

In reply to by Conax

flea Thu, 10/12/2017 - 18:01 Permalink

John Allison (former Chairman BB&T) has been in the mix since the beginning of Cabinet selections:

'If he had a “magic wand,” Allison said he would get rid of the Fed, but he knows that’s not likely in his lifetime. “It’s just too powerful of an organization,” he said.'

But, maybe Warsh is the man:

'Former Federal Reserve Governor Kevin Warsh “would do a really good job” as Federal Reserve chairman but that also depends on the political environment, according to former BB&T Corp. CEO John Allison.

Allison, who has also been considered by the Trump administration as a potential contender for the top Fed position, told Bloomberg Television Wednesday that he personally doesn’t want the job but he wouldn’t rule out a nomination to the Fed board.

"No, I really wouldn’t in all honesty," Allison said when asked about the chairmanship. “I really would like to get rid of the Fed. I’ve been very vocal about that. I think their job is impossible.”'

“We all know that price fixing doesn’t work,” said Allison, who also once headed the free-market focused Cato Institute in Washington. “What does the Fed try to do? They try to fix the price of the world’s reserve currency, which is the most complicated price that can possibly be. So you almost always know that they’re doing it wrong."

Allison said he would “not necessarily" rule out an appointment to the Fed board. "It would depend on the whole circumstances and whether you could believe you could impact policy.”

Warsh served as Fed governor from 2006 until 2011 and is now a fellow at the Hoover Institution.'

Bloomberg.

Maestro Maestro Thu, 10/12/2017 - 18:23 Permalink

There cannot be either deflation nor inflation in the ABSENCE of money, for both deflation and inflation are MONETARY events.

Dollars, euros, yens, yuans, shekels, rials, or roubles are not money.

Present-day US dollars are a CRIME according to Article 1, Section 10 of the Constitution of the United States of America. The country that issues the reserve currency of the world! How can we take anyone seriously, including idiots known as the Chinese and the Russians, when this the case?

Euros, yens, yuans, shekels, rials, or roubles are only accessoires to the aforementioned crime, as they are only different names for the same shit: the unlawful Federal Reserve Notes [which they are not either as they don't promise to redeem ANYTHING] also known as dollars.

JibjeResearch Maestro Maestro Fri, 10/13/2017 - 13:46 Permalink

I disagree with you guys.  Money is a vague term.  If you exclude currency from money, then all form of exchange is not money.  And what is left is value and people's desire for shit.  What do you call this desire/want/value?  And how do you intend to get it?  Barter? Shell? Ledger? Coin? Commondity? Paper? Crypto?Or... "I'll pay you anything you want tomorrow?" lolz  

In reply to by Maestro Maestro

JamesBond Thu, 10/12/2017 - 18:33 Permalink

The Carter Years

Double digit inflation, interest rates, and unemployment. If you lived through that then you might survive what’s coming....

jb

Anon2017 Thu, 10/12/2017 - 19:07 Permalink

For hundreds of thousands of Seniors on Medicare, Part B will be going up in price by about 30% in 2018 because of changes to premium surcharges that go into effect next year. And if you have a decent size IRA expect another big jump in your premiums in the year after you report your first Required Minimum Distribution. The surcharge brackets have not been adjusted for inflation since they went into effect in 2007(?) and starting in 2018 more seniors will be pushed into a higher cost category.  

MGA_1 Thu, 10/12/2017 - 19:19 Permalink

Ah... Phoenix... surely this is a sign that inflation is not a problem.  Still waiting for Phoenix to go long the market....