“Deflation” or “Inflation”.
Jul 30th, 2010 by Randy Toman
If the government makes the decision to say there is no inflation. Social Security recipients will not get any cost of living increase. It will be the second year in a row that they had no adjustment in SS payments. It will mean all SS folks will be living off of January 2009 cost of living SS adjustments and for the past 2 years they will be froze at fixed income. Local school taxes have gone up 6.17% with the mailing of the tax bill this summer.
Now I have had an on going verbal battle with some folks here locally regarding what is happening to the economy and do we have “Inflation” or do we have “Deflation”. They have taken the position it is “Deflation” that is were the economy is at and informing me I haven’t a clue as to what I was talking about when I said, “Inflation is about to hit us big time.” They also said, I was not able to give them theory and/or documentation as to why I’m taking my position and therefore was only being contentious and in fact ignorant as to what I was talking about.
At one point in my feeble attempt to defend my “Inflation” position I said, My wife keeps telling me food prices are going through the roof with each passing week she is buying the weekly groceries. That defense of my position was in no way going to count and that tidbit of information did not matter and/or was not scientific enough to bear any fruit for the justification of my position. That was in no way a fact and could not be accepted by him.
Anyway, enough of this let me give you two paragraphs from the “Miles Franklin” E-mail newsletter of July 30, 2010. Page 8
(Entitled)
National Inflation Association
“If you do a Google search for, “There is no inflation”, it will bring up a shocking 385,000 web results and almost all of the articles are related to the U.S. economy. Investors around the globe are pointing to the consumer price index (CPI), which shows prices only up 1.05% from one year ago, and saying that inflation in the U.S. is not a problem. The most popular forecast by Wall Street analysts today is that the U.S. is headed for a long period of deflation, similar to Japan’s “Lost Decade”. NIA is currently in the process of dissecting exactly what took place during Japan’s “Lost Decade”. We are producing a short movie comparing Japan’s economy to the U.S. economy and it will be released in the coming weeks.”
“NIA considers gold to be the best gauge of inflation, not the CPI. Most experts on Wall Street chalk up gold’s rise from $255.95 to $1,158 this decade to rising fears and uncertainties and increasing jewelry demand from India, while maintaining that there is no inflation because the CPI says so. They fail to realize that the government has an agenda to minimize CPI increases in order to keep Social Security payment increases as low as possible. In the future, if the government decides to bailout their banker friends from hyperinflation by adjusting mortgage contracts to the rate of inflation, NIA predicts they will adjust mortgage principles based on the price of gold and not the CPI.”
After reading those two paragraphs, you tell me which way you think we maybe going. I say the country /dollar is going down, (worth-less) while gold and silver goes through the roof and so do the cost of goods. Isn’t that some kind of indicator of “Inflation”, maybe we might even be called “Inflation”.
In the same newsletter quoting Jim Sinclair;
“Hyperinflation will come over night as Jim predicts, forget gradual.”
Watch for a behavioral change in the folks and their banking habits, they will no longer trust the dollar nor the banks. They already are beginning to question the government and trusting in the politicians is almost non-existent. When the dollar goes and the people no longer trust either government or the money, we shall have serious problems holding things together.
We Shall See don’t you think?
Well, regarding the Consumer Price Index, which is the basis for raises in Social Security, during the Clinton administration, the whole basis of the CPI was changed…in order to AVOID raising Social Security and related payments. What they did — not the Congress, mind you, but the faceless bureaucrats who really run what used to be our nation, they dropped the prices of …. get this!!…they dropped the prices of food, energy (gasoline, heating oil, natural gas, electricity) and something else that I can’t remember at the moment…because these were “too volatile.” In other words, they dropped the prices of things that were going up from the Consumer Price Index, in order to try to make us believe that prices are not going up, and in order to save money by stiffing the retired population.
Yup, it’s true all right. You can read about it in the book I lent you by Paul Craig Roberts( is it called “The War of the Worlds”?). I think Kevin Phillips also mentions it in his book “Bad Money.”When I get a chance, I will go back and look, and get back to you.
I remember now — the third thing they dropped from the CPI is taxes. Food, fuels, and taxes. Yup, if we just sorta ignore those pesky things, why, there is just no inflation to speak of….That is why our cost of living is skyrocketing, but there is ‘no’ inflation.
I cannot recommend a better update on the economy than the columns Paul Craig Roberts publishes on various sites. You can ignore him when he opines on foreign affairs, but he is an economist, was part of Reagan’s team, used to be a WSJ editor, he knows his stuff, and he tells the non-politically correct truth, which is why he is no longer a WSJ editor. Just Google his name, once or twice a month, and see what he has to say.
Awhile they vote themselves special benefits like health care and pensions, they stick it to the very people who are paying the bill. They have become over-glorified welfare recipients similar to the welfare crowd they helped to create, all to get votes so they can continue their false compassion for their victims. Giving away other people’s money is NOT compassion!
A government without a conscience is a Tyrannical government!