We all know that our cost of living in increasing, but how much?
The official government statistics assure us that inflation is running around 2% per year. It reminds me of the line attributed to Groucho Marx, “Who are you going to believe, me or your own eyes?”
According to the surveys, real people think their personal inflation rate is around 8% per year with a significant percent of the responders claiming 9 – 11% or more per year. Are you going to believe what the government is telling you or your own experience? [Read more...]
What is YOUR Inflation Rate?
Adam Hamilton: Real SPX Record Highs
Submitted by Adam Hamilton:
The US stock markets enjoyed an incredible first quarter, with the flagship S&P 500 stock index (SPX) surging 10.0%. New cyclical-bull highs were achieved on an amazing 3/7ths of all Q1’s trading days! But the most interesting one was certainly the last. On Q1’s final trading day, the SPX edged up to a new all-time record high. Though celebrated with great fanfare, adjusted for inflation it was far from a record.
Thanks to central banks rapidly inflating their fiat-money supplies, long-term price comparisons are problematic. As the Fed relentlessly injects new money into the US economy every day, the purchasing power of each dollar slowly erodes away. A dollar today buys less than a dollar did 5 years ago, and the farther back you go the greater the disparity. Considering inflation is essential in any long-term analysis. [Read more...]
Deepcaster: Forecasts Facilitating Gain
Submitted by Deepcaster:
“I don’t know when it’s going to end. But my guess is it’s going to end very badly. And it’s going to end very badly because, again, when you get the biggest price in the world, interest rates being manipulated, you get a mis-allocation of resources and this is going to end in one of two ways: with a mal-investment bust which we got in 07-08 […] Or it could end with just monetizing the debt and ‘off we go’ inflation. So that’s a very binary outcome. They’re both bad.”
The Fed’s and other Central Banks’ Money Printing is surely facilitating Serious Malinvestment, which almost inevitably leads to a Bust i.e., to Economic Stagnation or even Depression.
But that Money Printing is also already leading to Inflation. Result: Stagflation is impending, or, more likely, Hyperstagflation. [Read more...]
Deepcaster: Bogus Official Statistics Offer Profit Opportunities
Submitted by Deepcaster:
“There is no paper money in 2014 or 2015 that will be worth much of anything.” – Jim Rogers
Investors are increasingly concerned, understandably, about the Reliability of Official or Quasi-Official (e.g., those emanating from Too-Big-To-Fail Banks and Ratings Agencies) Statistics and other Financial and Economic News.
Understandably so, given that the actions of Participant Mega-Financial Institutions in the LIBOR Scandal cost Borrowers Billions.
Understandably so, if the allegations in the Ratings Agency litigation are proven true, Investors in deceptively “Rated” Mortgage-Backed Securities, and other commercial Paper have taken a Financial Bath there also.
Understandingly so, given the continuing Flood of Bogus Official Economic Statsitics.
But the Mismatch between Bogus “Statistics” and “News” on one hand and the Real Numbers and Real News on the other provides Opportunities to Profit and Protect. This is because Bogus Statistics and Disinformation give rise to inherently Unsustainable Trends and misallocation of Capital.
Peter Schiff: Inflation Propaganda Exposed
In the latest Schiff Report, Peter Schiff discusses a topic regular SD readers are familiar with- the government’s manipulation of public perception of inflation due to the bogus CPI statistic.
Schiff states that The CPI is no longer a tool to accurately measure inflation, but an instrument of propaganda the government uses to hide accelerating inflation from the public and financial markets. Modest CPI increases over the past several years do not reflect an absence of inflation, but a design flaw in the index that fails to fully capture the magnitude of price increases. Central bankers drawing economic conclusions regarding inflation and monetary policy based on this highly flawed data point are making a major policy error.
Schiff’s full report below:
[Read more...]
The Inflation – Deflation Reality in 2013
Submitted by Deepcaster:
The five year chart of the CRB Index (a Broad Measure of Commodities Prices) shows three descending tops, which is suggestive of Deflation. But to conclude that Deflation is likely to be The Ruling Force in the Economy in 2013 would be a Dangerous Error.
Indeed, it is critically important for Investors to understand whether or not we are in an Inflation or Deflation, or both (we later explain how this is possible). Failure to understand The Reality about Deflation and Inflation is likely lead to poor or even lethal Investment decisions.
Here we explain The Inflation/Deflation Reality and indicate how to Profit.
In 2013, we will continue to see inflation in terms of the US dollar currency, and deflation in terms of gold.
[Read more...]
Deepcaster: Cartel Supressing Gold & Silver’s Role As Canaries of the Financial World
Submitted by Deepcaster:
The proposed forced Investment of Present and Prospective Retirees 401(K) Assets in U.S. Treasury Paper about which we earlier wrote, is now followed by yet another prospective attack on Retirees’ Security, and indeed on the Wealth Security of those who hold $US Denominated Assets.
The Prospective Rigging of the CPI Calculation Protocol would , yet again, make the “Official” CPI even further removed from The Inflation Reality. The Reality is that the current U.S. Inflation Rate, 9.82%, is already Threshold Hyperinflationary.
Absent manipulation, Gold and Silver would be the monetary “Canaries” of the Financial World, whose prices would long ago have warned of Excessive Monetary and Credit Creation. Well, in the past decade their price appreciation certainly has “warned” of that, but not in the past few months. Gold and Silver prices are subject of ongoing Price Suppression by a Fed-led Cartel. But Gold and Silver Price Suppression, cannot last forever.
Deepcaster: Mega-Banks Pushing for Mandatory Gov’t Securities Investment in All Retirement Accounts
Submitted by Deepcaster:
The Prospective Rigging of the CPI Calculation for Social Security recipients would , yet again, make the “Official” CPI even further removed from The Inflation Reality. The Reality is that the current U.S. Inflation Rate, 9.4%, is already Threshold Hyperinflationary.
The Key Point for Investors is understanding the Motivation behind Government and Mega-Banks pushing for Mandatory Government Securities Investment, and changing the way Inflation is calculated.
The Powers-that-Be in the Global Banking and Finance community know that the ever-increasing Money Printing – QE to Infinity – is already leading to increasing Price Inflation, which they wish to hide, and thus eventually to Massive Sales of Paper Treasury Securities, for which they wish to have Buyers, via 401(K) Funds. [Read more...]
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
